about the changes to Employment legislation coming into effect from April.
MINIMUM WAGE RATES
Apprentice: £4.15 per hour
Under 18's: £4.55 per hour
18 - 20: £6.45 per hour
21 - 24: £8.20 per hour
25+: £8.72 per hour
In addition to the annual increase there are also a number of changes to legislation that I discussed during the recent Talking Point Tuesday in the members Facebook group. If you missed it you can watch it here
Here's a summary of what you need to know:
TERMS AND CONDITIONS OF EMPLOYMENT
From April these must be issued to new employees on or before the date that their employment begins. This is regardless of the type of contract that they on i.e. fixed term, temporary, permanent etc. The contract must also include details on probationary periods and any training entitlements.
HOLIDAY ENTITLEMENT REFERENCE PERIOD
Currently based on the previous 12 weeks worked this will be changing to 52 weeks from April. Entitlement should be worked on the average number of hours worked and include any overtime which is regular.
Since the live video on Tuesday I've now had some extra clarification on the reference period which, to be honest, just complicates the issue further!! In short if you are employed on a term time basis and therefore only work 38 weeks you MUST count back a further 14 weeks into the previous year to get the full 52 weeks required. You are also required to keep records of the hours worked so that if an employee queries their holiday entitlement you have the evidence to show them how it has been calculated.
I'll be honest, this has blown my mind a little and it seems that the whole process is going to become even more convoluted and difficult for those of you who are term time only. I'm trying to organise for someone to come and record a video to explain this to you and how to calculate it. More info on that when I get it.
THE PARENTAL BEREAVEMENT (LEAVE AND PAY) ACT 2018
From April all employed parents will have a day-one right to 2 weeks leave if they lose a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy. Parents will be able to claim pay at the statutory rate for this period subject to them meeting the eligibility criteria. This new leave entitlement will need to be included in your current contracts for all staff and should be amended as such.
OTHER CHANGES COMING WHICH MIGHT NOT AFFECT YOU DIRECTLY BUT THAT YOU SHOULD BE AWARE OF....
All employers will be required to provide agency workers with a key information document containing prescribed information including:
their type of contract
the minimum expected rate of pay
how they will be paid and by whom
deductions or fees that will be taken
any non-monetary benefits to which they'll be entitled
any entitlement to annual leave and an example of what this might mean for take home pay.
IR35 AND OFF-PAYROLL RULES
Off-payroll are staff who are not on your PAYE scheme such as freelancers, consultants and contractors. The rules around taxation for such staff are changing and if you have self employed staff you should check with your accountant as to what these changes are and how they may affect you.
NATIONAL INSURANCE CONTRIBUTIONS ON TERMINATION PAYMENTS
Class 1A employer contributions will become payable on termination payments of £30,000 or over
If you are unsure as to what you need to do to implement any of these changes please do contact me and I will do my best to answer any questions. However I am not a qualified employment law specialist and if you have concerns I would, as always, advise that you seek specific legal advice.