On 6th April, the annual increase in statutory rates will come into effect. This brings with changes in payments such as statutory sick pay and maternity pay. In addition to this, further changes will be introduced in relation to the calculation of holiday pay, rights to receive a written statement of terms of employment, bereavement leave and more.
Currently, holiday pay is calculated with reference to the 12 weeks preceding the worker’s holiday. However, from 6th April , the reference period will increase from 12 weeks to 52 weeks. Where a worker has been employed for less than 52 weeks their holiday pay will be based on the number of complete weeks they have worked.
All employers will need to take action to comply with new obligations to provide information to their workers. from 6th April, employers will be obliged to provide employees with a contract of employment from day one. Currently, employers have two months to do this.
Furthermore, a significant amount of additional information will also have to be incorporated into the document, including but not limited to the days of the week they are required to work, whether the hours are variable and whether any training entitlement provided is mandatory or must be paid for by the worker. I generally advise my employer clients to insert clauses dealing with the repayment of training costs on a member of staff’s departure.
Parents who have suffered the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnancy will also be entitled to two week’s statutory leave.
The following changes to statutory benefits and rates are expected to apply from 6 April 2020:-
- Sick pay (SSP) will be £95.85 (up from £94.25).
- Maternity Pay (SMP), Paternity Pay (SPP), Shared Parental Pay (ShPP) and Adoption Pay (SAP) will be £151.20 (up from £148.68).
- Limit on a week’s pay for unfair dismissal basic awards and statutory redundancy will increase £13 to £538.
- The National Living Wage will increase from £8.21 to £8.72.
- The National Minimum Wage:-
- Workers aged 21-24 = £8.20
- Workers aged 18-20 = £6.45
- Workers aged over compulsory school age under 18 = £4.55
- Apprentices = £4.15
Employers should have already prepared for the above-mentioned changes coming into effect from 6th April 2020. However, if you are yet to implement any of these changes or require advice or support regarding the same, then please give me a call as soon as possible to ensure that you have the appropriate processes in place.
If you, or your business have any queries on any element of this article, please do not hesitate to contact Lloyd Clarke on 01206 239761 or email for a no-obligation consultation.