In 2017 a report published by Mathew Taylor outlined 53 proposals to the government on improving the modern working practices. The Good Work Plan was a response by the government to the suggestions which was published in 2018 and set out the changes that will be implemented. The changes affect England, Wales and Scotland.
There are several legislation's changes that came into effect 6th April 2020.
Workers; including zero-hour workers and casual workers will have the legal right to receive written statement of main terms and conditions. The statement must be specific to the workers arrangements.
In addition to the above, the written statement of main terms and conditions will also need to include the following:
The pay reference period has increased from 12 weeks to 52 weeks, or for Employees with less than 52 weeks service, the total number of weeks they have worked. This is a fairer approach for employees with variable hours, as their holiday pay will reflect their working hours across the year, thus preventing them from getting varied pay during ‘high’ or ‘low’ season.
To calculate how much annual leave an employee is entitled to over a 52-week average period, the following method applies.
However, where weeks in which no pay has been received, this will not be counted towards the 52-week average.
Employees who do not have regular working hours have the right to request a more stable contract after 26 weeks continuous service. Individuals can request a more fixed working pattern with a guaranteed number of hours.
Employers taking tips from Employees is banned. Many workers especially in the Hospitality sector earn the national minimum wage, this provides them with an additional financial benefit. The consumers are reassured that their reward has gone to the staff as intended.
The threshold required to set up Information and Consultation arrangements has lowered from 10% to 2% of Employees. The 15 Employee minimum threshold for initiation of proceedings remains in place.
Employment status has always been a complicating matter to understand. When determining someone’s status there are several tests that were used. The government has agreed that with the new and emerging work arrangements a new framework needs to be developed to assist individuals and Employers with determining their status. Matthew Taylor recommends that the tests that determine whether someone is self-employed or has worker rights should place more emphasis on control and less on the notional right – rarely in practice exercised – to send a substitute.
The biggest change for the agency workers is the abolishment of the Swedish Derogation Agreement which allowed recruitment companies to pay agency workers less than the permanent employees. From 6th April the agency workers are now entitled to the same pay as the direct recruits of the business after they have performed the same role with the same hirer for 12 consecutive calendar weeks.