Changes to Employment Contracts/Statements of Terms from April 2020

by | Feb 3, 2020 | Blog

In its Good Work Plan, published in December 2018, the government announced several changes to the scope of section 1 statements in relation to any person starting work on or after 6 April 2020. In summary, the changes are:

  • The obligation on employers to provide a written statement of particulars will be extended to workers, as well as employees
  • The majority of written particulars must be provided in a single document on or before the date on which the employment starts (that is, it becomes a “day 1 right”) 
  • Only particulars relating to incapacity and sick pay, paid leave, pensions and any training entitlement provided by the employer may be contained in another reasonably accessible document, which must be referred to in the principal statement itself 
  • There will no longer be a minimum one-month service requirement in order that a worker is entitled to receive a written statement of particulars

What this means…

The change means that you MUST provide all employees or workers with a Statement of Terms on or before they start working for you.

The Statement of Terms is an important document, and I recommend including them in a more detailed contract of employment and accompanying Staff Handbook.

Along with the information that was always required, the Statement of Terms now also needs to include:

  • the days of the week the worker is required to work, whether the working hours may be variable and how any variation will be determined;
  • any paid leave to which the worker is entitled;
  • details of any other benefits provided by the employer that are not already included in the statement;
  • any probationary period, including any conditions and its duration; and
  • any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker.

As with all Employment Law, none of this ought to be too tricky. However, many small businesses prefer to outsource their HR and Employment Law issues to a solicitor such as Steven Mather. I help businesses in Leicester with Employment Law advice and providing great Staff Handbooks.

2 Comments

  1. Fiona Calder

    Hi – great blog! Does this relate to IR35 with the changes to Workers instead of Contractors?

    Reply
    • admin

      Hi Fiona

      Not really. IR35 is tax legislation aimed at companies which really should be employees.

      Reply

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