Round-up of April 2020 employment law changes

Here’s our at a glance round-up of employment law changes coming into force in April

1 April

National living and minimum wage increases

The new rates are:

• National living wage for workers aged 25 and over: £8.72 per hour (up from £8.21)
• National minimum wage for 21-24 year-olds: £8.20 per hour (up from £7.70)
• National minimum wage for 18-20 year-olds: £6.45 per hour (up from £6.15)
• National minimum wage for 16-17 year-olds: £4.55 per hour (up from £4.35)
• The apprentice rate for those aged under 19 or in the first year of an apprenticeship: £4.15 per hour (up from £3.90)

5 April

Statutory maternity, paternity, adoption and shared parental pay increases

The prescribed rate for statutory maternity, paternity, adoption and shared parental pay increases to £151.20 per week (up from £148.68).

6 April

Statutory sick pay increases

The prescribed rate for statutory sick pay increases to £95.85 per week (up from £94.25).

Annual increase to compensation limits             

The maximum compensatory award for unfair dismissal increases to £88,519 (up from £86,444), or 12 months’ pay if lower.

The limit on a week’s pay used for calculating statutory redundancy payments and the unfair dismissal basic award increases to £538 (up from £525).

These apply where the effective date of termination is on or after 6 April 2020.

Changes to the statement of employment particulars

Employers have to include additional information in statements of employment particulars, provide the information earlier and provide it to workers as well as employees.  Click here for further information. 

Employer National Insurance Contributions on termination payments  

Employers have to pay employer NICs on the excess over £30,000 of a termination payment. Payments received after 6 April where employment terminated before 6 April are unaffected. Payments received in instalments where the first instalment was received before 6 April 2020 are also unaffected.  

Holiday pay calculations

The reference period for calculating an average week’s pay for statutory holiday pay purposes increases to 52 weeks (from 12).

Parental bereavement leave and pay

A new right to bereavement leave and pay for parents who lose a child comes into force. Click here for further information.

Information and consultation agreements

Employers have to consider a request to set up information and consultation arrangements if it is supported by 2% of employees (instead of 10%), subject to a minimum of 15 employees.

Agency workers

Agency workers employed on Swedish derogation/pay between assignments contracts are entitled to the same pay as direct hires after working for an organisation for 12 weeks, as a result of the abolition of the Swedish derogation.

Employment businesses have to provide agency work-seekers with a key facts statement, before agreeing the terms under which they will undertake work.