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Don’t overlook the Good Work Plan

If you are not fully up to speed with the new Good Work Plan employment rules – which came into effect on 6 April – now is the time to take action.

Despite the current Coronavirus pandemic, which has resulted in the Government delaying a number of new employment initiatives – such as IR35 for private companies – the Good Work Plan legislation has not been affected.

The new legislation is now in force and has been dubbed the biggest overhaul of employment rules in 20 years, so it is important that you understand how it could impact your business.

Here’s a quick summary of what you need to know:

Consultation rights: New legislation will reduce the threshold required to set up information and consultation arrangements from 10 per cent to just two per cent of employees. The minimum 15 employee threshold will remain the same, however.

Redundancy protection: The Government will extend the redundancy protection period for pregnant women from the point the employee informs the employer she is pregnant and six months after a mother has returned to work. Extended protection periods will also apply to those taking adoption leave.

Holiday pay: The holiday pay reference period will increase to 52 weeks. This will impact on seasonal and flexible workers.

Workers’ rights: Employers must set out basic terms from day one of employment, regardless of worker status. The information to be included in the written statement is also being expanded.

Contracts: workers will gain the right to request a more predictable and stable contract after 26 weeks of employment.

Agency workers: An agency worker will be entitled to receive the same level of pay as a permanent worker after 12 weeks of service.

Tips and gratuities: Tips must be passed on directly to the worker, rather than taken by the employer.

Compensation: Employers who do not pay compensation awarded by an Employment Tribunal will face additional fines, as well as the prospect of “naming and shaming”.

Many of these points may have an impact on your payroll function, particularly the new rules surrounding agency workers and gratuities. If you need advice on any of these changes, please speak to our team.

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