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Changes to Section 1 Statements
Changes to Section 1 Statements
From 6 April 2020, the requirement to issue and update contracts for workers will change.
As part of the Good Work Plan and the government’s response to the Taylor Review of Modern Working Practices, changes to Section 1 Statements will take effect from April 2020. These are summarised below.
Section 1 statements
Employers are currently obliged to provide employees with a written statement if their employment will continue for more than one month.
From 6 April 2020, there will be no minimum service requirement and the obligation will be extended to workers as well as employees.
The government’s intention is to ensure that workers can access fair and decent work, that both employers and workers have clarity on the employment relationship, and that the enforcement system is fair and fit for purpose.
Above all, the ambition is to protect vulnerable workers and improve workers' understanding of their rights.
What must employers do to comply?
Employers must provide a written statement of particulars to all workers, as well as employees, for all new joiners on or after 6 April 2020.
The majority of written particulars must be provided in a single document on or before the date on which the employment starts (that is, it becomes a ‘day 1 right’). These must include:
- The names of the employer and employee;
- The date the employment starts and the date on which the employee's period of continuous employment began;
- Pay (or method of calculating it) and interval of payment;
- Hours of work, including regular working hours;
- Holiday entitlement and holiday pay;
- The employee's job title or a brief description of the work;
- Place of work;
- A person to whom the employee can appeal if they are dissatisfied with any disciplinary decision relating to them or any decision to dismiss them;
- A person to whom the employee can apply for the purpose of seeking redress of any grievance relating to the employment and the manner in which any such application should be made; and
- From 6 April 2020, the following additional particulars must also be provided to all workers in the principal statement:
- The days of the week the worker is required to work and whether working hours or days may be variable, with details of how they may vary;
- Any other benefits provided by the employer;
- Any probationary period, including any conditions and its duration; and
- Any training provided by the employer which the worker is required to complete and any other required training in respect of which the employer will not bear the cost.
The following information is usually given in the principal statement. It used to be the case that the following information could be given up to 2 months after employment commencing. It must now be given with the principal statement:
- Terms related to work outside the UK for a period of more than one month;
- Terms as to length of temporary or fixed-term work;
- A note giving certain information about disciplinary and grievance procedures;
- Details of any collective agreements directly affecting the employment;
- From 6 April 2020, all the required particulars must be provided by the start date save for the following which may be given in instalments up to two months after the beginning of employment:
- Terms as to pensions and pension schemes;
- Details of any collective agreements directly affecting the employment.
- Details of any training provided by the employer; and
- A note giving certain information about disciplinary and grievance procedures.
How can KPMG help?
KPMG advises on all aspects of employment law and provide a range of services in a practical and commercial manner. For further advice on the April 2020 changes, contact Donna Sharp, Director and Solicitor, Employment Legal Services at KPMG in the UK or email employersclub@kpmg.co.uk.
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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
