Are you ready for April?

April 2020 will see changes to the minimum wage rate and also the written statement of particulars of employment. These changes are noted below.

Changes to Minimum wage rates

Employers are advised to review all wages at this time to ensure that employees are working for at least the minimum wage for their age. If an employer fails to pay the correct rate they can be reported to HMRC who may issue a notice of arrears and a penalty. 

The scheduled increase means that from 1 April 2020 the minimum wage will now be as follows:
  • 25 and over: £8.72
  • 21-24: £8.20
  • 18-20: £6.45
  • Under 18: £4.55
  • Apprentices: £4.15
The above rates start to apply from the next ‘pay reference period’ after the increase. 

Remember that the apprentice wage only applies to those who are undertaking an apprenticeship through a third party training provider and having to attend school or colleague as part of their training.

Further this rate applies to apprentice until they are 19 only, an apprentice over the age of 19 will be entitled to this rate for the first year if their apprenticeship and will then be entitled to the minimum wage for their age range. 

Changes to statement of particulars of employment

Currently employees who have been employed for one month are entitled to a written statement of particulars of employment, also known as a Section 1 statement. 

The following changes to Section 1 statements are due to take effect from 6 April 2020: 

  • There will be no minimum service requirement. The right to a Section 1 statement will be a day 1 right. 
  • The right extends to workers, as well as employees. 
  • The majority of written particulars must be provided in a single document on or before the date on which the employment starts

The statement itself will need to contain the following additional particulars: 

  • The days the worker is required to work, whether the days and working hours may be varied and how any variation will be determined. 
  • Any paid leave entitlement.
  • Details of any other benefits provided by the employer.
  • Any probationary period, including its duration and any conditions.
  • Any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker.

The above changes will only apply to new workers and employees commencing work on or after 6 April 2020. Existing employees or workers are not required to be provided with a new revised statement unless their contract is terminated and they start work under a new contract on or after 6 April 2020. 

We are currently in the process of updating our contracts on HR Manager in line with the above requirements. Look out for further updates in due course. 

Lawgistics Members can utilise HR Manager, an easy to understand, simple to use piece of software that enables you to manage all aspects of HR, Employment Law, Health and Safety and GDPR compliance for your business. HR Manager is FREE and available to all Lawgistics members. Call 01480 455500 to start using HR Manager today or to talk to your legal advisor.


 

 

Authors: Katie Fitzjohn

Published: 16 Mar 2020

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