Employment laws are changing


New employment law is just around the corner for Cambridgeshire businesses.

  • Government changes largely increase employment rights and are inspired by the Matthew Taylor review
  • Contracts, holiday pay and parental bereavement leave are all under the microscope
  • IR35 tax rules for personal services companies are also changing, bringing another headache for affected employers

HR Dept writes:

As you can see, big changes are afoot for any business which employs people. As part of the government’s Good Work Plan, which is a response to the Matthew Taylor review on modern employment practices, there are mandatory new rules an employer will have to follow. 

So, to start at the beginning, the first day employment commences is the new deadline for issuing employment particulars or contracts. Previously there was a two-month grace period. Moreover, it is not just permanent “employees”, but also those working a fixed term and even people classified as “workers”. These particulars will have to go into more detail than was previously required.

Holiday pay calculations get a refresh too. Forms of remuneration other than basic salary have been required to be included in recent years. Now the reference period to be considered is extended from 12 weeks before the holiday to 52 weeks. The intention is that this will smooth out fluctuations in pay caused by factors like overtime and commissions.

Agency workers are also better protected. It will no longer be legal to give them lower rates of pay than employees by paying them between assignments – a practice known as Swedish derogation. They will also be entitled to a key facts statement outlining their entitlements.

Separate to these employee/worker rights boosts, tax changes come in which will present a further headache for employers which pay people via personal services companies. Responsibility for IR35 tax compliance will switch from the personal service company to the client or intermediary.

In addition to the issues above, the UK will become the first country to implement statutory parental bereavement leave this April. Should they experience the devastating passing of a child under 18, employees will have a day one right to time off. And if certain conditions are met, including at least 26 weeks of continuous employment, statutory pay will be available too.

If you need any advice, call us at The HR Dept Cambridge & North Herts on 0345 078 8454. We'll be happy to help.

To read more information, click here.

Local businesses throughout Cambridgeshire, run by people like you, outsource their HR because it is easier and more cost effective. We tell you what you can do, not what you can’t. We are here to give you practical and sensible help to sort out problems whenever you need us. When you are thinking about how to grow for the future, we can help you put together the ‘people plans’ to enable you to be even more profitable tomorrow.

HR Dept.