Employment law 2020: all the changes set to come into place next year

With 2020 just around the corner, there are certain changes set to come into place in regards to employment laws - and you may need to know about them.

Friday, 22nd November 2019, 12:33 pm
Updated Tuesday, 7th January 2020, 8:44 am

Although numerous employment law changes have been placed on hold due to the Government being involved in the complications and delays of Brexit, numerous laws, including sick pay and payslips, are set to come into place in April 2020.

This is everything you need to know.

Swedish derogation contracts no longer viable

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With 2020 just around the corner, there are certain changes set to come into place in regards to employment laws - and you may need to know about them.

Swedish derogation contracts currently allow employers to avoid paying agency workers equal pay after 12 weeks.

However, as of April 6 2020, these are set to become illegal, rendering employers unable to use them.

Lowering consultation threshold

From 6 April 2020, the percentage of employee support that is needed to set up information and consultation arrangements is set to reduce.

The minimum rates currently on offer for statutory entitlements including maternity pay, paternity pay and sick pay will are set to be reviewed in April 2020.

This will mean that only 2 per cent of the overall workforce needs to be behind this measure, which is opposed to the previous 10 per cent.

This reduction has been designed to give employees a greater voice in the actions of an organisation, alongside increasing overall engagement.

CEO pay ratio reporting

Certain employers will be required to include information which relates to their CEO pay ratio within directors remuneration reports.

Any UK listed companies who have on average more than 250 employees in a year, are expected to compare their CEO's most recent remuneration against that of their full-time employees.

Bereavement leave

Although the government has not yet released an exact date, the Parental Bereavement (Pay and Leave) Act is set to come into place in April 2020.

This will entitle primary carers, not just parents, to time off work following the death of a child.

Qualifying parents will be entitled to two weeks of paid bereavement leave following the death of a child under the age of 18, which will include those who have experienced a stillbirth after 24 weeks of pregnancy.

Contract changes

On 6 April 2020, the law surrounding employee contracts is set to change. This will mean contracts will become a right for all workers.

Contracts will also be required to contain additional details, including entitlement to any family-friendly leave, the clarification of any periods of probation, and the confirmation of the specific days and times that the employee is required to work.

Contracts will also have to include any other benefits not covered elsewhere in the written statement, alongside details of training provided by the employer.

Statutory rates review

The minimum rates currently on offer for statutory entitlements including maternity pay, paternity pay and sick pay will are set to be reviewed in April 2020.

Increase to minimum wage

According to employment law consultancy Peninsula, as national minimum wage (NMW) rates are reviewed each year, it is therefore reasonable to expect an increase to the existing rates in April 2020.

Agency Workers

Peninsula also expects that from 6 April 2020, agency work-seekers will have a right to receive a key information document, which will help them make informed choices about the work that they accept.

This document will be required to clarify specific matters, including the type of contract that the worker is employed under and their minimum rate of pay.

Holiday pay reference period to be extended

The holiday pay reference period is used to calculate the average pay of individuals that work irregular hours.

On 6 April 2020, this period is set to be extended from 12 to 52 weeks, with employers being required to keep track of employees' working time throughout the entire year, including overtime.