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 legislations changes that are coming into place in April, with the Good Work Plan.

Written Statement of Main Terms and Conditions

At present, Employers have 2 months to provide an Employee with a written statement outlining their basic terms of employment. With the new legislation employers will be required to provide employees and workers with the statement from the start of their employment.

Workers; including zero-hour workers and casual workers will have the legal right to received 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 days and hours that the employee would be required to work
  • Any benefits that the employer offers to employees will need to be detailed in the contract. Any additional benefits will need to be communicated to the employees within 1 month of adopting them
  • Probation period details including the length and the conditions for passing
  • Details of any training that is offered by the employer, whether voluntary or mandatory and the details of who will bear the cost of this trainings

Period to Break Continuous Service

The current period required to break service is 1 week; ‘ending with a Saturday’.  The period to break the continuous service will be extended from 1 week to 1 month. 

Holiday Calculations

The pay reference period will be increasing from 12 weeks to 52 weeks, or for employees with less than 52 weeks service, the total number of weeks they have worked. This will be 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.

  • Step 1 Total hours worked/52 weeks = gives the average working week.
  • Step 2 Total cash (including regular commission and overtime) added over 52 weeks. You then divide the total cash amount by 52 weeks this will give you an average weekly pay
  • Step 3 Average weekly pay/average working week = average hourly pay per week
  • Step 4 Average working week/5 days = hours per day x average hourly pay = holiday pay for 1 day

However, where weeks in which no pay has been received, this will not be counted towards the 52-week average.

More Stable Contract

Employees who do not have regular working hours will have the ability to request a more stable contract after 26 weeks continuous service. Individuals will be able to request a more fixed working pattern with a guaranteed number of hours.

Employee Tip

There will be a ban on Employers taking tips from Employees. Many of the workers especially in the Hospitality sector earn the national minimum wage, this will provide them with an additional financial benefit. The consumers will also be reassured that their reward has gone to the staff as intended.

Information and Consultation

The threshold required to set up Information and Consultation arrangements will be lowered from 10% to 2% of Employees. The 15 Employee minimum threshold for initiation of proceedings will remain in place.

Employment Status

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.

Agency Workers

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 will now be 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.

If your organisation needs further information on The Good Work Plan, please contact us today.

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