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Date posted: 6th April 2020
Significant employment law changes will be in fruition as of April 2020 in the UK. To ensure that your HR team is entirely up to date with the latest legislation, our experienced team here at Kingswood Group have put together a list of the changes and broken them down with key information:
Small rate increases to National Minimum Wage, Statutory Sick Pay, Statutory Maternity Pay, Paternity Pay, Adoption Pay and Shared Parental Pay. Visit gov.uk for a full rate card.
A small increase in the maximum compensatory award for unfair dismissal to £88,519.
Tax on termination payments is changing so that employer National Insurance Contributions (NICs) at 13.8% will be payable on any part of a payment that is subject to income tax. This change will increase the cost of settlement payments for employers. All settlement payments will continue to remain exempt from employee NICs.
The written statements now have to be issued on or before new employees’ first day of employment, rather than within 13 weeks of starting. Statements need to detail hours and days worked, holiday entitlement, salary and benefits, plus details of any probationary period.
The period that needs to be taken into consideration when calculating holiday pay is extended from 12 weeks to 52 weeks. Important to note for employees with variable pay rates due to overtime.
This means the different rules that exist for inside and outside the public sector will continue to apply until 6th April 2021. Parental Bereavement Leave New statutory entitlement to give parents the 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 also be able to claim pay for this period, subject to meeting eligibility criteria.
The threshold which employers need to comply with this right is reduced to just 2% of the workforce (from 10%) and a minimum of 15 employees.
The suspension of the Gender Pay Gap reporting for the 20/21 reporting year is due to the unprecedented pressures faced by employers during the COVID-19 crisis.
There you have it, a list of the Employment Law changes from April 2020. If you have any further questions, then you can contact our expert team who are happy to help. Click here to get in touch:
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