LEGISLATION: Employment changes bring new rights from day one

Along with April showers, this month brings the UK a number of employment law and payment rate changes.

From flexible working conditions and carer’s leave to increases in national minimum wage (NMW) and national living wage (NLW) and a drop in the percentage of National Insurance Contributions (NICs) collected from some workers’ pay checks, there are many changes to watch out for. 

Among the changes is how holiday pay and leave will be calculated for leave entitlement for irregular hours or part-year workers.

April will also see initial feedback emerge from the government’s consultation last year on the umbrella company market.

Under the changes:

  • Flexible working: The right to request flexible working will be a day-one right for all employees, with the removal of a requirement for an employee to be continuously employers for at least 26 weeks to apply. Employees will be able to make two applications per year and they are not required to explain the effect this change in work might have on their employer. Employers will have two months – down from the previous three – to consult and respond to the flexible working requests.
  • Carer’s leave: Employees will have the right to take one week of unpaid leave per year to provide or arrange care for a ‘dependent’. This refers to a relative or anyone who relies on the employee for care – who has a physical or mental illness that means they’re expected to need care for more than three months; a disability as defined by the Equality Act 2010; or requires care because of age-related needs. This is also a day-one right.
  • Calculating holiday pay and leave for irregular hours and part-year workers: Employers must adopt the ‘accrual’ system instead of using a ‘leave year’ system for calculating leave entitlement when dealing irregular hours or part-year workers. For leave years starting on or after 1 April this year, employers will also be allowed to pay their irregular hours and part-year workers rolled-up holiday pay. Legal experts warn that employers who plan to use rolled-up holiday pay that introducing this change could mean updating contracts as well as policies and procedures.
  • NMW/NLW: NLW is now £11.44, up from £10.42, and adjusted to include those from age 21. The NMW has increased to £8.60/hour for workers ages 18-20, £6.40 for workers under age 18, and £6.40/hour for apprentices.
  • Redundancy protection: Priority status for employees taking maternity, shared parental or adoption leave will be extended for being offered suitable alternative roles when available if they have been selected or put at risk of redundancy, including employees who are pregnant. The protection will be extended for up to 18 months after the expected week of childbirth, the child’s date of birth or adoption. 
  • Statutory redundancy pay: This will increase from £19,290 to £21,000.
  • Statutory sick pay and family-related pay: The weekly rate of statutory sick pay increases to £116.75, up from £109.40.The weekly rates of statutory maternity, adoption, paternity, shared parental and parental bereavement pay increase to £184.03, up from £172.48.

A government update on last year’s consultation on the umbrella company market is anticipated on 18 April, Tax and Administration Maintenance Day, according to contractors association IPSE.

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