From 6 April 2020, every new employee and worker will have the right to a statement of written particulars (section 1 statement) from day one of working with you, rather than up to two months after their start date.
WHAT ARE THE NEW REQUIREMENTS?
Some of the key changes from 6 April 2020 are:
- Both “workers” as well as “employees” have the right to a statement of written particulars for their employment.
- The right is from day one of starting work and there is no longer an exception for jobs lasting less than one month.
- There are additional requirements and these must be contained in a single document (not instalments):
- The days of the week the worker is required to work and whether working hours or days may be variable, with details of how they may vary.
- Any entitlement to paid leave, including maternity leave and paternity leave.
- Any other remuneration or benefits provided by you.
- Any probationary period, including any conditions and its duration.
- Any training provided by you which the worker is required to complete and any other required training in respect of which you will not bear the cost.
- There are particulars that may currently be included in a supplementary statement but which will now have to be given in the principal statement:
- The notice periods for termination by either side.
- Terms relating to absence due to incapacity and sick pay.
- Terms as to length of temporary or fixed-term work.
- Terms related to work outside the UK for a period of more than one month.
- Finally, there will be an important change to reference periods in relation to paid annual leave. The reference period will be increased for determining an average week’s pay (for the purposes of calculating holiday pay where there is variable remuneration or no normal working hours) from 12 to 52 weeks, or the number of complete weeks for which the worker has been employed.
WHAT DO THE CHANGES MEAN FOR YOU?
Replacing the word “employee” with “worker” for these statements seems straightforward, but it will mean you will need to clearly identify who are “workers” (i.e. obliged to provide work personally, but not carrying on a business where you are the customer) and who are genuinely self-employed. See previous blogs for further guidance.
An existing employee can request a section 1 statement on or after 6 April 2020 at any time up to three months after the end of their employment. In such cases you are bound to give the employee the statement including the additions set out above no later than one month after the request.
It is important to note that if an existing employee has not requested a section 1 statement after 6 April 2020, but there is a change, including to the new provisions which were not in that employee’s section 1 statement, you will have to notify the existing employee of the change.
WHAT SHOULD YOU BE DOING NOW?
- Carry out contract reviews and ensure that contracts reflect what must be given in one go and include the new additional requirements.
- Ensure you know what to do when existing employees ask for a new-style statement on or after 6 April 2020.
- Review the status of people working in your organisation to correctly identify employees and workers.