LA HR Consultancy

New and upcoming Legislation for review – do not hesitate to contact me if you would like further information on how the following may affect your business;

Mixed-sex civil partnerships are introduced in England and Wales

Implementation date:  2 December 2019

The Civil Partnership (Opposite-sex Couples) Regulations 2019 enable mixed-sex couples to form civil partnerships in England and Wales. Previously, only same-sex couples could form civil partnerships. This change has an effect on survivor benefits in pension schemes. For example, the Local Government Pension Scheme (Amendment) Regulations 2019, which came into force on 31 December 2019, make provision for survivor benefits when a Local Government Pension Scheme member dies and leaves behind a surviving mixed-sex civil partner.

Reform to intermediaries legislation (IR35) is extended to private sector

Implementation date: 6 April 2020

The rules on off-payroll working in the private sector are amended, with the April 2017 changes to intermediaries legislation (IR35) in the public sector being extended to the private sector. The organisation, agency or other third party are made responsible for operating IR35, as opposed to the individual being engaged. However, small organisations are exempt. More details are set out in the Government’s consultation response: Off-payroll working in the private sector – summary of responses, policy paper: Rules for off-payroll working from April 2020, and factsheet: Off-payroll working rules from April 2020.

Increase in holiday reference period from 12 weeks to 52 weeks

Implementation date: 6 April 2020

The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 increase the reference period used for determining a week’s pay when calculating holiday pay for workers with irregular hours from 12 weeks to 52 weeks. The Government’s Good work plan states that the changes will allow greater flexibility for workers in choosing when to take holiday, particularly for those in seasonal or atypical roles that limit some workers from benefiting from their full holiday pay entitlement.

Extension of the right to a written statement to all workers

Implementation date: 6 April 2020

The Employment Rights (Miscellaneous Amendments) Regulations 2019 extend the right to a written statement of employment particulars to all workers (including employees).

The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 provide that access to a written statement will be a day one right for all workers (including employees). Employers will also have to provide additional information as mandatory content for a written statement.

Parental bereavement leave rights take effect

Implementation date: April 2020

The Parental Bereavement (Leave and Pay) Act 2018 provides for at least two weeks’ leave for employees following the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnancy. Employees with 26 weeks’ continuous service will be entitled to paid leave at the statutory rate and other employees will be entitled to unpaid leave.

Technical amendments to employment law to ensure smooth Brexit take effect

Implementation date:  To be confirmed

The Government introduces legislation to ensure that employment laws continue to operate effectively on the day the UK leaves the EU. The legislation makes minor technical changes, including amending and removing inappropriate language and references.

The latest versions of the Regulations to be published are:

• Employment Rights (Amendment) (EU Exit) Regulations 2019;
• draft Employment Rights (Amendment) (EU Exit) (No.2) Regulations 2018;
• Insolvency (Amendment) (EU Exit) Regulations 2019;
• draft Employment Rights (Amendment) (Northern Ireland) (EU Exit) Regulations 2018; and
• draft Employment Rights (Amendment) (Northern Ireland) (EU Exit) (No.2) Regulations 2018.

New legislation to ensure that tips and gratuities go to staff

Implementation date:  To be confirmed

The Government intends to introduce legislation to prevent employers from taking tips and gratuities that should go to staff. The Government’s announcement states that the changes are to prevent “poor tipping practices, including excessive deductions being made from tips left by customers” and that it will introduce the legislation “at the earliest opportunity”.

Although Brexit dominates the news, there will be a number of important employment law developments in 2019.

BREXIT

1. Post-Brexit immigration rule changes

Regardless of whether a deal on the UK’s exit from the EU is agreed, the rules around the employment of EU nationals will change sooner or later.

Once the UK leaves the EU, free movement will end, although in practice this is likely to be delayed pending legislation to repeal the current arrangements. Also, it will take time to put in place the practical arrangements necessary to make this possible.

The government has introduced a scheme under which EU workers already in the UK will be able to apply for “settled status”, to be able to live and work in the UK indefinitely.

However, employers need to be aware that, going forward, the employment of workers from the EU is likely to be subject to restrictions in the same way as the employment of other foreign nationals, so will need to adjust their recruitment processes accordingly. Recruitment and retention policies will need to be reviewed for effective workforce planning.

2. Start gathering evidence for executive pay reporting

Rules coming into force on 1 January 2019 mean that UK quoted companies with more than 250 employees will have to report on ratios between the CEO and employees’ pay and benefits.

The requirement applies to financial years beginning on or after 1 January 2019 so the first tranche of reporting will start in 2020. However, affected companies should gather their evidence in good time to be able to calculate their pay ratios by the deadline.

The information will have to be included in the directors’ remuneration report.

3. Extend itemised pay statements to workers

From 6 April 2019, the right to an itemised pay statement will extend to workers, not just employees.

Further, where a member of staff’s pay varies according to time worked, the employer will have to include on the itemised pay statement the total number of hours worked for which variable pay is received.

This can be done either as an aggregate figure or as separate figures for different types of work or different rates of pay.

4. Publish second gender pay gap report

Employers with 250 or more employees on the “snapshot date” ( 31 March in the public sector and 5 April in the private and voluntary sectors) must report on their percentage gender pay gap annually within 12 months of that date.

This means that the deadlines for the second round of reports are 30 March or 4 April 2019. Employers need to gear up to publish their second report, if they have not done so already.

Organisations must publish reports on their website and on the GOV.UK website. In the private and voluntary sectors, reports must also be accompanied by a written statement confirming their accuracy, and be signed by a senior person as prescribed by the legislation.

There is no obligation on employers to provide a narrative around any gender pay gap but they should bear in mind that an explanation may help to limit any reputational damage. Given that comparisons are likely be made with the previous year’s report, consider highlighting any reduction in the gap or be able to provide good reasons for any increases in the gap.

5. Be aware of national minimum wage rate increases

The national living wage is due to increase to £8.21 per hour from 1 April 2019.

Other national minimum wage rates are also due to increase, with hourly rates rising to £7.70 for workers aged at least 21 but under 25, to £6.15 for workers aged at least 18 but under 21 and to £4.35 for workers aged under 18 who are no longer of compulsory school age.

The hourly apprentice rate will increase to £3.90 and the daily accommodation offset will increase to £7.55.

6. Meet increased statutory family and sick pay rates

The weekly amount for statutory family pay rates is expected to increase to £148.68 for 2019/20. This rate will apply to maternity pay, adoption pay, paternity pay, shared parental pay and maternity allowance.

The increase normally occurs on the first Sunday in April, which in 2019 is 7 April.

The weekly rate for statutory sick pay is expected to increase to £94.25 from 6 April 2019.

7. Start preparing for parental bereavement leave and pay

The government has confirmed that it intends to introduce a right for bereaved parents to take paid time off work.

Under the current proposals, bereaved parents will be able to take leave as a single two-week period, as two separate periods of one week each, or as a single week. They will have 56 weeks from their child’s death to take leave.

The new right is expected to come into force in April 2020, but employers should start preparing for it during 2019, and could decide to introduce their own bereavement leave policy if they don’t already have one.

8. Look out for other developments in the pipeline

Employers should keep abreast of other proposed and potential employment law developments, including:

• Reform to intermediaries legislation (IR35) to be extended to the private sector (expected 6 April 2020).
• Changes to employer NIC treatment of termination payments (expected 6 April 2020).
• Requirement to publish family-friendly policies.
• Duty to consider whether roles can be carried out flexibly.
• Ethnicity pay reporting.
• Changes to rehabilitation of offenders periods in Scotland.