Contracts of Employment.
We’ve had the data protection shake up with the introduction of GDPR so what’s next? Well as from 6th April 2020, there will be a bit of a shake up in employment law. Are you ready for the changes? Do you know what they are?
Let’s start by looking at one area which is changing and these are Section 1 Statements or to you and I are known more commonly as Contracts of Employment or Written Statements of Particulars.
Firstly let’s look at who may be affected by these changes.
- If you employ someone who will start work after 6th April 2020
- If you employ someone who starts a new contract on or after 6th April 2020
- If anyone you currently employ who requests a contract or statement on or after 6th April 2020
- If an employee or worker requires an updated contract of employment due to a promotion or change of job role within the organisation on or after 6th April 2020
What is a Contract of Employment/Written Statement?
This is a legal relationship between an employer and an employee. By law, an employer must provide anyone classed as an employee with terms of their employment in writing such as pay and working hours. A written statement of employment particulars contains this same information, however the difference between the documents is the contract of employment is much broader legally.
What currently needs to go in the Contract of Employment or Written Statement?
- Names of employer and employee
- Date of commencement of employment and date when continuous employment commenced
- Pay and frequency of payment
- Hours of work including “normal working hours”
- Holiday entitlement and pay
- Employee’s job title or description of the work
- Details of disciplinary and grievance procedure including appeals process
What additional information will need to be included on 6th April 2020?
- The days of the week the worker is required to work, whether this is variable and how they can be varied, if applicable
- Probationary period details including any conditions and length
- Information on any training the worker is required to complete
- Information on any training the worker is required to complete which the employer will not pay for
- Notice periods for termination
- Length of any fixed-term or temporary work
- Details of any benefits provided by the employer
- A term in relation to any work which must take place outside of the UK for longer which is than one month
What else do I need to know?
- The Contract of Employment or Written Statement needs to be issued on day 1 of them starting work as opposed to the current stance which is within 2 months of employment commencing.
- Some of the information can be included in another reasonably accessible document.
What may happen if I do not comply with the new regulations?
All workers could bring a claim against you if you have failed to provide either a Contract of Employment or a Statement of Written Particulars containing the correct information. This also applies if the information provided is inaccurate or incomplete. A worker cannot claim compensation for the failure to provide the document alone, however it could be tagged onto an existing claim if the document had not been provided at the time the claim was issued.
Conclusion
So in essence, the contracts of employment will be more detailed. You as an employer should be clear on the terms and conditions of employment and have these laid out in a transparent way. Some of the information can be contained within policies or the employee handbook if you have one, however these need to be accessible to the worker.
If you would like to know more about the changes proposed for April 2020 and the year ahead or would like to discuss updating your contracts of employment and policies, please do not hesitate to get in contact. We are happy to help.