On April 6th, the annual increase in statutory rates will come into effect , such as sick 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, paid bereavement leave and more.
Currently, holiday pay is calculated with reference to the 12 weeks preceding the worker’s holiday. However, from 6th April 2020, the reference period will increase from 12 weeks to 52 weeks. Note, if the worker has been employed for less than 52 weeks then their holiday pay is based on the number of complete weeks they have worked and is only applicable to workers whose pay varies.
All employers will need to take action to comply with new obligations to provide information to their workers. This includes the current two month deadline for providing new joiners with a written statement of terms of their employment being reduced to their first day of employment.
The majority of written particulars must be in a single written document. 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. Here, it would be beneficial for employers to ensure they have the relevant documentation in place in respect of repayment of training costs on a member of staff’s departure. Please feel free to get in contact with myself to discuss further.
Parents who have suffered the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnancy will 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 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 abovementioned changes coming into effect from 6th April 2020. However, if you are yet to implement any of these changes then please give me a call as soon as possible to ensure that you have the appropriate processes in place to avoid any potential complaints being presented to an Employment Tribunal.
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 me at Lloyd.Clarke@attwells.com for a no-obligation consultation.