Updating your Contracts of Employment – Are you ready for the April 2020 changes?
Employers need to be aware of important changes to contracts of employment that are coming into force from 6 April 2020. At first glance, employers may not realise the impact which the changes could have on the contracts of employment they use in their organisations.
6 April 2020 will bring 3 changes:
- A written statement of terms (which is usually incorporated within a more detailed contract of employment), needs to be provided to all workers not just employees;
- That written statement must be given on or before the first day of employment starting as opposed to the current rule which requires it to be provided within 2 months of starting; and
- Additional information must be included in the written statement including:
- Any paid leave to which the employee is entitled;
- Details of all remuneration and benefits;
- Any probationary period; and
- Any training entitlement provided by the employer.
For most employers, the first two changes may have limited impact as an employer with good HR practices is probably doing those things anyway. However, the third change, which sees the information that is required to be included in written statement of terms (which for most employers is included in their contract of employment) will mean that they will need to review and update their contract of employment templates in time for the 6 April 2020 changes.
It is likely that as we get closer to the April changes, this change will receive more publicity and employers need to be ready. This is particularly the case as these new rules not only apply to employees whose employment starts on or after 6 April 2020, there are transitional provisions that apply to employees who started their employment prior to that date. This means current employees could request a statement of terms that includes the updated information and that updated statement needs to be supplied within one month of the request. As such, contract of employment templates need to be updated so any such requests can be dealt with.
If you would like further information on the changes including how we can assist in carrying out a review of your employment contracts to ensure you are April 2020 compliant please contact Matt Jenkin or Lindsey Abbott in the Employment team.