Partially, the Good Work Plan is already in force, but with more changes coming in April 2020 and in the future, it’s worth knowing what these are or how they will affect you.
If you run your payroll in house, it’s well worth checking that your team is following the law and are aware of the future changes. For those who outsource their payroll, these adjustments would have already been made and preparations would be underway for the changes ahead.
As part of the Good Work Plan all workers should now have access to payslips, more transparent ones at that and showing the hours worked for the money received. For workers who receive different pay for tasks performed, this means itemised payslips showing the hours worked for each rate of pay.
Starting from 6 April 2020, there will be more changes to ensure more stability and job security. Here are just some of them:
- The way holiday pay is calculated will change. Annual leave hours will be calculated based on the last 52 weeks of work rather than referring to the past 12 weeks, which is the current law.
This will protect seasonal workers and give them a fairer holiday pay acknowledging the full year of service. At present, a worker may get different rates of pay during holidays taken, depending on how many hours they worked in the previous three months.
- Employees and workers who work variable hours will have right to request a more predictable arrangement after 26 weeks of continuous service.
The request could be in regards to days expected to work or hours per week, particularly beneficial for casual workers and those on zero-hour contracts. The employer will have 3 months to look into the working patterns and forecasts and give the decision on the matter.
- Agency workers will receive the same level of pay as a permanent worker after 12 weeks of service. Something that they can currently opt-out from.
- From 6th April 2020, all workers and employees have a right to a written statement of job particulars from day 1. This is to ensure that the terms and conditions are clear for both parties right from the start. These would include details on type of contract (fixed term / permament), sickness and maternity leave policies, days and times the person is required to work, changes in working hours or pay, details on probation and any notices. Previously, this information was required to be provided within 2 months. From 2020, employers will be able to stagger release to two months providing that the majority of these particulars was provided on day 1.
- Ban on employers making deductions from staff tips and gratitudes. Though rare, but not uncommon, some employers claim portion of staff tips. The new law will protect employees and workers as the government recognises that for some jobs, tips and gratitudes form an important part of income.
Outsourcing your payroll can help your company avoid many costly mistakes. Our team are always up to date with current law and aware of the changes ahead. You can find the full copy of The Good Work Plan here: https://www.gov.uk/government/publications/good-work-plan/good-work-plan