Business expert: Employment Law - looking ahead to 2019 and beyond
19th December 2018
By Kay Hamblin, director at Eight Legal
As we come to the end of another year, Eight Legal provides an outlook on the changes in employment law looking ahead to 2019.
Brexit
With a 'No deal' scenario becoming increasingly likely businesses are being told to put contingency plans in place.
Whatever happens with Brexit it looks as though free movement will end but not immediately. EU workers already working here will be able to apply for "Settled status" However it is almost certain that in the future employment of workers from EU countries will be subject to the same rules and restrictions as other foreign nationals.
Reporting Regulations
The Companies (Miscellaneous Reporting) Regulations 2018 come into force on 1 January 2019 and include a requirement that UK listed companies with more than 250 employees report on stakeholder and employee engagement and publish and justify the pay difference, known as the pay ratio, between their chief executive and their average UK worker.
The requirements apply to the financial year of companies beginning on or after 1 January 2019, with companies starting to report their pay ratios in 2020.
The Good Work Plan
The Government has published a series of proposed changes to employment law, following the Matthew Taylor Good Work Review.
The proposals include:
• Employment Tribunal Penalties
From 6th April 2019 the maximum penalty Tribunals can award to punish employers who act maliciously, with gross oversight or spitefully will be increased from £5,000 to £20,000.
• Agency Workers
From April 6th 2020 agency workers will automatically be entitled to the same pay as permanent workers.
• Written Statement of Terms and Conditions
From 6th April 2020 the right to a written statement will be extended to workers as well as employees, and must be given on day one of employment (rather than within eight weeks).
• Calculating Holiday Pay
The reference period for calculating holiday pay for people on variable hours is to increase from 12 to 52 weeks, again from 6th April 2020.
• Zero Hours Contracts
The Government has decided not to ban the use of zero hours contracts which have come in for much criticism. It is proposing to introduce the right to request a fixed working pattern after 26 weeks on a non-fixed arrangement. It's not yet clear what the exact procedure will be, nor what sort of enforcement mechanism might be used
Other Changes in April 2019
The rates for the National Minimum Wage and National Living Wage will increase.
There is expected to be an increase in statutory payments, such as sick pay and maternity pay.
Workers, as well as employees will be entitled to an itemised pay slip.
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Have any questions or in need of additional advice? Contact us on 01242 570161, email info@eightlegal.com or visit our website at www.eightlegal.com.
Please note - the information in this article is provided for general guidance, and is not intended as a substitute for specific legal advice in any particular situation.
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