New Year, new laws – upcoming changes in 2020

As 2019 draws to a close, here are some key developments to be aware of next year.

CEO pay ratio reporting

From 1 January 2020, UK listed companies who have in a year, on average more than 250 employees are expected to compare their CEO’s most recent remuneration against that of their full time-employees. 

Statement of main terms (SMTs)

The provision of SMTs will become a day one right for employees and workers from 6 April 2020. They will also need to contain additional details for the first time, including entitlement to family friendly leave, clarification of any probationary periods and confirmation of which specific days and times individuals are required to work.

Extension of holiday pay reference period

The holiday pay reference period, which is used to calculate the average pay of those who work irregular hours, will be extended from 12 to 52 weeks from April 2020. It will be important for organisations to keep track of employees’ working time throughout the year, including overtime, to ensure they are correctly remunerated whilst on annual leave.

End of Swedish derogation contracts

Organisations will no longer be able to make use of Swedish derogation contracts from 6 April 2020 as these contracts, which allow employers to avoid providing agency workers with equal pay after 12 weeks’ of an assignment, will become unlawful. 

Agency Workers ‘Key facts’ page

From 6 April 2020, agency work-seekers will have a right to receive a key information document to help them make informed choices about the work they accept. This document is required to clarify specific matters including the type of contract the worker is employed under and their minimum rate of pay.

Increase to minimum wage

As national minimum wage (NMW) rates are reviewed each year, it is reasonable to expect an increase to the existing rates in April 2020. The government has previously pledged to ensure those aged 25 and over will be entitled to a minimum of £10.50 per hour by 2024.  

Parental bereavement leave

The right to parental bereavement leave will also become effective in April 2020. Although no exact date has been confirmed, we know that qualifying parents will be entitled to two weeks of paid bereavement leave following the death of a child under the age of 18.

Government pledges

Although there have been no fixed implementation dates, the government have pledged to improve redundancy protection for working mothers and alter existing legislation around the use of non-disclosure agreements. We are also expecting the results of separate consultations on preventing sexual harassment as well as restructuring the availability of family friendly entitlements and statutory sick pay. However, it is worth remembering that much of this will depend on the new Conservative majority in government.

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