HR Employment Law Changes in 2020
There have been significant HR Employment Law Changes in 2020. All changes were publicised through various Government campaigns, but in a year like no other due to the Covid-19 pandemic, many of the changes could well have been missed.
HR Employment Law Changes in 2020 covered a wide variety of topics including parental leave and pay, gender pay gaps, immigration laws, minimum wage increase, plus naming and shaming, executive pay ratio’s, tax on termination, and DBS record changes.
Through the BREXIT transition, many EU laws were carried over in to UK law, however there were still changes including the UK points-based immigration system.
Other anticipated changes, specifically IR35 were delayed, while the biggest overhaul in HR Employment Law came with the introduction of the Good Work Plan, which came into force in April 2020.
NORI HR & Employment Law have summarised the changes that will effect business owners and employees in your business in a variety of areas.
In Detail – HR Employment Law Changes in 2020
Executive pay ratio reports published – 1st January 2020
New regulations under the Companies Act 2006 require UK listed companies with more than 250 employees to report on the pay ratio between their chief executive and their average worker as part of their annual company reporting requirements.
Holiday carry over into 2021 & 2022 – 27th March 2020
The Working Time (Coronavirus)(Amendment) Regulations 2020 allow workers to carry over leave they were unable to take due to the Coronavirus outbreak into the next two leave years. The relaxation of the rules only applies to the four weeks statutory leave under EU rules. The UK’s extra 1.6 weeks’ leave can still only be carried over into the next leave year.
Gender Pay Gap reports (public sector) – 30th March 2020
Public authorities, including government departments, the armed forces, local authorities, the NHS and state schools, with 250 or more employees, are required to publish their gender pay gap reports annually by this date, based on data gathered on 31st March each year.
Gender Pay Gap reports (private and voluntary sectors) – 4th April 2020
Private and voluntary sector employers in England, Wales and Scotland with at least 250 employees are required to publish information about the differences in pay and bonuses between men and women in their workforce, based on a ‘snapshot’ date of 5th April each year.
Good Work Plan – 6th April 2020
Numerous changes came into effect under the Good Work Plan including but limited to Statement of terms being a day 1 right for employees AND workers, abolishment of the Swedish derogation model, and the calculation of annual leave being over 52 weeks (previously 12) amongst others.
See the full changes here: https://www.noriconsultancy.co.uk/employment-law-news/good-work-plan-quick-start-guide/
National Minimum Wage ‘naming and shaming’ – 6th April 2020
The government is resuming the public naming of businesses that don’t comply with the National Minimum Wage regulations from this date, while raising the threshold at which this occurs from £100 to £500 in payment arrears. Fines still exist for underpayments of less than £100.
Extension of IR35 – 6th April 2020
The proposed changes to bring IR35 into the private sector have been postponed until April 2021.
Tax on termination payments – 6th April 2020
Termination payments over the sum of £30,000 become subject to employer NICs.
Parental bereavement leave and pay – 6th April 2020
Employees who lose a child under the age of 18 or suffer a stillbirth from the 24th week of pregnancy, on or after this date, gain the right to two weeks’ leave. The two weeks’ leave may be taken as one block, or as two non-consecutive one-week blocks, at any time during the 56 weeks following the child’s death.
The leave will paid at the same statutory rate as other family friendly rights the employee has 26 weeks’ service.
National Living Wage increased – 25th November 2020
From April 2021 the National Living Wage would rise to £8.91 an hour (an increase of 2.2%) and be extended to 23 and 24 year olds.
DBS record changes – 28th November 2020
The Disclosure and Barring Service has changed the rules governing the extent to which criminal records are disclosed to employers carrying out a standard or enhanced check on employees.
UK points-based immigration system – Opened 1st December, in force from 1st January 2021
A new points-based immigration system will apply to people arriving in the UK on or after 1 January 2021.
See the full details here: https://www.gov.uk/government/collections/uk-points-based-immigration-system-further-details
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