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Previous editions

January 2020

In this edition:

New right to a written statement of terms

New regulations in force on 6 April 2020 will require a written statement of terms to be given to an employee on or before the first day of employment. Currently employers have up to two months to issue a written statement of terms of employment to any employee working for them for more than one month. The change will extend the right to a written statement of terms to all workers, rather than just employees. Employers should begin preparation of the revised statement of particulars during the recruitment stage and ensure that these include every element of the new requirement. Employers will need to consider who might qualify as a worker, issuing contracts of employment only to employees and using a separate template when issuing particulars for workers.

Holiday pay reference period adjustment

From 6 April 2020 the Government will lengthen the holiday pay reference period for calculating an average week’s pay from 12 weeks to 52 weeks. This reform is intended to improve the holiday pay for seasonal workers, who tend to lose out over the way it is currently calculated, and to even out the variation in pay for workers.

Agency workers opt out loophole will be removed

The Agency Worker Regulations 2010 (AWR 2010) entitles agency workers to receive the same pay and basic working conditions as direct recruits once they have completed 12 weeks’ continuous service working in the same role.

However current rules governing agency workers allow agencies to opt out of equalising the pay of agency staff with the permanent workforce when they have been with the same employer for more than 12 weeks, provided they pay the agency worker between assignments. This will cease on April 6 2020.

New parental bereavement law

The Parental Bereavement (Leave and Pay) Act 2018 will come into effect on 6 April 2020 and will entitle all working parents who lose a child under the age of 18, or after 24 weeks of pregnancy, to two weeks’ leave, as a right from day one of their employment. The leave will be paid at the statutory rate provided the worker has 26 weeks’ service. The Act provides for a minimum of two weeks’ leave to be taken within a period of 56 days (8 weeks), beginning with the date of the child’s death.

Changes to IR35 rules for the private sector

As previously reported from 6 April 2020, all medium or large-sized private sector businesses will be responsible for deciding upon contractors’ employment status for tax purposes under HMRC’s “IR35” rules.

To prepare for these changes, businesses should review their engagements of any contractors who are paid via a PSC rather than with PAYE and NI deductions, and plan their process for making determinations on whether or not IR35 applies.

Your key contacts

Tim Copplestone photo, Senior Associate Employment & HR

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Partner

Bristol

Tim is an employment lawyer within the firm’s sport sector, having previously been an international athlete representing Great Britain in kayaking. He is identified as a Leading Individual in the Legal 500 2021.

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Emma Hamnett photo, Partner Corporate

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Partner

Manchester, Birmingham and London

Emma Hamnett is a partner in Clarke Willmott solicitors' Manchester Employment team specialising in all aspects of employment law.

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Sharon Latham photo, Partner Employment & HR

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Partner

Birmingham, Bristol and Cardiff

Sharon Latham is a partner in Clarke Willmott solicitors' Bristol Employment team specialising in HR/legal/strategic support for businesses.

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Marc Long photo, Partner Employment & HR

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Head of Employment and HR Team/COFA

Southampton and London

Marc Long is the Head of Clarke Willmott's Employment and HR team specialising in TUPE and outsourcing.

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Paula Squire photo, Senior Associate Employment & HR

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Partner

Taunton

Paula Squire is a Partner in Clarke Willmott solicitors' Taunton Employment team specialising in disciplinary action and business sale agreements.

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Anna Youngs - Employment Partner - Clarke Willmott Birmingham

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Partner

Birmingham

Anna is a Partner in Clarke Willmott’s Birmingham Employment & HR team supporting employers with all aspects of employee relations & employment law issues.

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