- January 27, 2020
- Posted by: Laura
- Categories:
‘…the biggest shake-up of employment law in a generation.’
In response to the challenges caused by the substantial growth in self-employed arrangements and the use of casual working, the government is currently rolling out an extensive programme of employment law reforms known as the Good Work Plan.
The aim of these changes is not to restrict flexibility, as this still recognised as being essential for businesses. Rather, they aim to provide much greater clarity on the terms of engagement and make it easier for individuals to understand and enforce their rights.
Ahead of the reforms due to come into effect on April 6 2020, ADIA preferred supplier, Citation, carried out research on the Good Work Plan. They found that one-third of employers are still unaware of the Good Work Plan, some are incorrectly calculating holiday pay, and many are not prepared for the changes.
Every business in the UK will be affected by the legislative changes. However, they’re particularly relevant for ADIA due to the number of contractors and self-employed individuals our members engage with.
So what do ADIA members need to know?
A key focus area of the Good Work Plan is seeking to address rights for workers without fixed hours and those working without employee status.
By introducing state enforcement of these rights for ‘vulnerable workers’ (yet to be defined), the reforms seek to improve the enforcement of employment rights (especially holiday entitlement and pay). Following a series of court decisions on commission payments and overtime, holiday pay calculations (specifically what should be included) have changed in recent years.
The Good Work Plan also aims to improve clarity in terms of workers who have a more casual relationship with the business, as well as employees. It will extend the right to a statutory statement of main terms to all workers, requiring this to be made available by the first day of work, as well as introducing a list of additional information which must be provided.
Significantly, the reforms will allow some workers the right to request a stable contract. This will not be mandatory, in recognition that some workers are happy to work varied hours each week, but those would like more certainty will be able to request a fixed working pattern from their employer.
Though there is currently no implementation date for this, this change was a prominent feature in the new Employment Bill announced in the Queen’s Speech.
Defining employment status
The key issue at the heart of these reforms is that of correctly identifying the employment status, as this governs employment rights
Though there is no sign of this on the horizon, the government has conceded that this is an area of unacceptable uncertainty and has promised legislation to clarify this.
ADIA members may find that individuals who start working for them on a casual basis (e.g. contractors or similar) may, through regular use, have become integrated with the business to such an extent that they would be classed as employees or workers, entitling them to additional rights.
Given the complexity of the reforms, those wanting to know more should download the white paper produced by Citation. It clarifies all the significant changes and what they mean for both employers and employees.
Got any questions?
Call Citation’s friendly team on 0345 844 1111 to ask any questions you have about The Good Work Plan, or get in touch here – just mention you’re enquiring through the ADIA.
You can also visit citation.co.uk/good-work-plan for guidance on The Good Work Plan and how it will affect your business.
Your ADIA member benefit – Citation’s HR & Employment Law support
With complex legislation change on the horizon, there’s never been a better time to consider getting the complete backing of HR experts.
ADIA members are entitled to preferential rates on Citation’s HR & Employment Law support, including:
- A dedicated local consultant
- The 24-hour expert advice line
- Full legal documentation, including staff handbooks and contracts of employment
- Access to Atlas, your one-stop-shop HR management tool.
To find out more or book a free consultation, please get in touch by calling 0345 844 1111, or by leaving your details here – just mention you’re enquiring through the ADIA to claim your discount.