January 16, 2019
The Good Work Plan: Four Things Employers Need to Know
In December 2018, the government announced the ‘Good Work Plan’. This forms part of the government’s response to Matthew Taylor’s Review of Modern Working Practices.
Greg Clark, the Business, Energy and Industrial Strategy Secretary described the changes as the “largest upgrade in a generation to workplace rights”.
In 2016 the government set up a commission chaired by Matthew Taylor to undertake a review of modern employment practices. In July 2017, the commission published its findings and made several recommendations.
The announcement in December took forward 51 of the 53 recommendations made by Matthew Taylor. As a result, legislation is already in the pipeline to bring into effect some of the recommendations.
Four key proposals are likely to come into force on 6th April 2020 which we’ve summarised below:
1. Written Statements
Employees will be entitled to a written statement of employment from the first day in a job. In addition, a worker will be entitled to a written statement of particulars. Previously, only employees were entitled to written statements. Currently, the timeframe for providing a written statement of terms and conditions is within two months of an employee commencing employment.
2. Holiday Pay
The calculation of a week’s pay for holiday payment will increase from 12 to 52 weeks meaning people in seasonal roles will get the paid time off they are entitled to.
3. Agency Workers
The Swedish derogation is a legal loophole that allows employers to pay agency workers less than permanent employees. However, the government has brought forward the legislation to repeal the Swedish derogation. This means employers will have to pay agency workers the same as regular workers in certain circumstances.
4. Creating New Powers to Impose Penalties
An increase in payment where the employer blatantly breaches employment agency legislation like non-payment of wages.
Furthermore, the following items are not yet in the pipeline, but the government are considering implementing the following:
- Currently, a week’s break in employment was sufficient to break continuity of employment. An extension to four weeks is likely to replace this.
- Employers will not be able to keep tips that are given to staff. There is not yet any detail on how this will be achieved, so we await the legislation.
- Legislation is likely to be brought in to streamline employment status tests for employment and tax purposes. This would ensure that the differences between the two systems is reduced to avoid employers misclassifying workers/employees as self-employed.
Want More Guidance on the Latest Legislation?
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