As well as dealing with the ongoing impact of coronavirus (Covid-19), important HR changes are coming into effect in April 2020. We have listed these updates to prepare you for the changes and help you better understand the actions you need to take.
- Changes to written statements of terms and conditions
- Implement parental bereavement leave and pay
- Suspended pay gap reporting
- Ensure workers are paid the national minimum wage
- Increase statutory family-related pay and statutory sick pay
- Update your charity’s statutory redundancy pay calculations
- Adjust your holiday pay calculations for workers with irregular hours
- Ensure qualifying agency workers receive equal pay
Changes to written statements of terms and conditions
At present, employers have to provide a written statement setting out the basic terms of employment to all employees whose employment lasts for one month or more, and this must be provided within two months of the start of their employment. From 6 April 2020, your HR team should ensure that workers are provided with compliant written statements on or before their first working day.
As well as this, the requirement to provide a written statement of terms and conditions has been extended to workers, not just employees. This includes casual and zero hours workers.
The legislation also requires additional information to be given, including:
- The days of the week the employee is expected to work
- All benefits provided by the employer
- Whether days or hours are variable and if so, the basis on which they will be determined
- Details of training entitlement, mandatory training etc.
- Probationary period details including conditions for passing and duration
Implement parental bereavement leave and pay
The Parental Bereavement (Leave and Pay) Act 2018 is expected to come into force in April 2020. This means bereaved parents have a new right to take up to two weeks’ parental bereavement leave with pay at a statutory minimum rate. The right applies to the loss of a child under the age of 18, and stillbirths occurring after 24 weeks of pregnancy.
Your HR team should review their charity’s policies and procedures now to ensure that they include time off for bereaved parents.
Find out more here.
Suspended pay gap reporting
The deadline for private-sector and voluntary-sector employers to publish their third ‘gender pay gap report’ was the 4 April 2020, while the deadline for public-sector employers to publish their third report was no later than 30 March 2020.
However, enforcement of the gender pay gap reporting requirements has been suspended this year due to the coronavirus outbreak, the Government Equalities Office and the Equality and Human Rights Commission have announced.
Find out more here.
Ensure workers are paid the national minimum wage
On the 1 April 2020, the national living wage for workers aged 25 and over will increase to £8.72 per hour. Other national minimum wage rates also increase on 1 April 2020, with hourly rates rising to £8.20 for workers aged 21-24, to £6.45 for workers aged 18-20 and to £4.55 for workers under 18.
Your HR team should make sure that workers are being paid at least the national minimum wage that applies to them. As well as this, HR must show that they are complying with new national minimum wage rules by keeping adequate records of all payments.
Find out more here.
Increase statutory family-related pay and statutory sick pay
From 5 April 2020, the weekly rate of statutory maternity, paternity, adoption and shared parental pay increases from £148.68 to £151.20. The weekly rate of statutory sick pay of £94.25 increases to £95.85 from 6 April 2020.
Your HR team needs to ensure they have changed the policies and documents where they have referenced the rates, such as their maternity policies and sickness absence procedures.
In the wake of coronavirus (Covid-19), the Government has announced that it will introduce measures requiring employers to pay statutory sick pay from the first day of an employee’s sickness, rather than after three waiting days. HR should monitor the situation to ensure employees are paid at the appropriate time.
Update your charity’s statutory redundancy pay calculations
New limits on employment statutory redundancy pay come into force on 6 April 2020.
Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age. The weekly pay will be capped at £538 from 6 April 2020, the current limit is £525.
Adjust your holiday pay calculations for workers with irregular hours
Currently, the holiday pay of a worker who has irregular working hours is calculated by averaging the number of hours worked over the previous 12 weeks (known as ‘the pay reference period’). On 6 April 2020, the holiday pay reference period will increase from 12 weeks to 52 weeks.
Your HR team will need to adjust how they calculate holiday pay for workers with irregular hours, for example those in seasonal roles. Your charity’s holiday policy may also require adjusting if it refers to the holiday pay reference period.
Find out more here.
Ensure qualifying agency workers receive equal pay
Currently, after 12 weeks agency workers are entitled to be paid the same rates as permanent employees, unless they are working under specific contractual arrangements. On 6 April 2020, the ability for employers to pay agency workers less than their own workers in certain circumstances, will be abolished.
Your HR team must ensure that agency workers who have completed the 12-week qualifying period are paid equally to other staff.
About BHIB Charities Insurance
BHIB Charities Insurance specialise in providing tailored cover for community groups, clubs, societies, voluntary organisations and hobby or special interest groups. We offer more than just insurance and we are passionate about supporting local communities.
Any views or opinions expressed above are for guidance only and are expressed in generic terms. They are not intended as a substitute for readers taking appropriate professional advice relevant to individual circumstances. We would always encourage readers to seek professional advice.