Employers Get Ready For New Employment Law Changes
Legal Obligations for Employers
By law an employer must issue their employees with a Statement of Terms which clearly sets out the conditions of their employment. This document includes information such as pay and working hours. The legal term for this document is the ‘written statement of employment particulars’ which is commonly known as Terms of Employment or Contract of Employment.
Currently, you have up to two months to provide these written particulars to employees, once they have worked for you for more than one month. Under the current rules, a worker does not have to be given written terms, except in certain circumstances. A worker is classed as someone who works for you, but is not employed by you under a contract of employment.
Changes From 6 April 2020
From 6 April 2020 the legislation will change. As part of revisions to the Government’s Good Work Plan, a Statement of Terms must be given to both employees and workers right from their first day at work.
Such big legislative changes can be quite a headache for time-poor employers. They bring an increased administrative burden, with extra worries that you might omit vital information and fall foul of the law.
But help is available. Outsourcing the management of your contracts of employment, including the Statement of Terms, to HR professionals can save you time, money and hassle. One option is HR:4UK’s employee management system, eConnect, which automatically ensures your employee documentation always complies with current legislation.
Current Statement of Terms
Currently, as the law stands your statement must contain the following minimum information:
- Name of employer and employee.
- Date the employment started and any period of continuous employment.
- Location (or locations) where the employee will be required to work.
- Job title and job description.
- Hours of work.
- Pay or salary and how this will be paid (e.g. weekly or monthly).
- Holiday pay and entitlement.
- Details of any collective agreement with a trade union.
Statement of Terms From 6 April 2020
From the 6 April 2020 the Statement of Terms must now also include:
- The length of time a job is expected to last, or the final date of a fixed-term contract.
- How much notice the employer and worker must give to terminate the agreement.
- Information on sick leave and sick pay eligibility.
- Information on paid leave such as maternity leave and paternity leave.
- Details about the duration and conditions of any probation.
- Benefits and remuneration other than pay, such as health insurance and vouchers for childcare.
- The usual working hours and the days of the week the worker is expected to work. It should also include whether or not these hours or days will vary, and if so, in what way and how any variation will be determined.
- Any training entitlement provided by the employer and whether or not, this training is compulsory and paid for by the employer.
Helping Employers Stay Compliant Hassle Free
The new rules around Statement of Terms are among several far-reaching employment law changes which come into force this April. Major changes to the way holiday pay is calculated and the extension of IR35 to the private sector are also imminent.
Outsourcing Your Payroll
If you are struggling with the latest payroll changes, outsourcing your payroll is a cost-effective solution for many businesses. Reducing your payroll costs by 35% and avoiding HMRC penalties by keeping you compliant, outsourcing saves you valuable time and money.
Free Payroll Offer
HR:4UK are offering 3 months free payroll to all existing clients who add payroll to their services by 3 April 2020. To learn more about our 5-star rated service and how we can transfer your payroll over in 3 easy steps visit or contact us today 01455 444222
To ensure you’re always legally compliant when new rules are introduced, why not switch to HR:4UK’s employee management system, e-Connect. This cloud-based system automatically updates your employee handbooks and contracts, so you don’t have to. Accessible from pcs, smartphones and tablet devices, eConnect is paperless and eco-friendly. All you need to do is input your employee information and we’ll do the rest.
For more information on how we can help, contact our team of knowledgeable and friendly HR professionals on 01455 444222
*PwC studies show that outsourcing saves 35% on payroll. Read more here