Employment update 2020

December 15, 2020

Are your employment contracts still fit for purpose?


Given the ongoing pandemic it is quite likely that a number of new regulations have flown under the radar. Employment law is ever evolving and so it can be difficult to keep track of everything.


If you are an Employer there are a number of things you should be aware of:


1.      If your employee does not have fixed hours the calculations to work out holiday pay have changed


2.      After 12 weeks agency workers are entitled to equal treatment in a number of areas


3.      Contracts of employment must be provided from day one of employment but should also include a number of new things, including a training clause, amongst others


4.      There has been a consultation on banning restrictive covenants in contracts including non-dealing and non-solicitation – a decision is likely to be reached next year


5.      Exclusivity clauses are already banned in zero hours contracts but this is now being looked at by government in all contracts


6.      National minimum wage for over 23’s goes up to £8.96 from April 2021


7.      Termination payments are to be an area of particular scrutiny in any PAYE audits by the HMRC so it is now imperative that these are dealt with correctly to avoid underpayments and ultimately penalties and fines


There are a number of new things that need to be considered and addressed, particularly relating to employment contracts. If you are an employer you need to be sure your contracts are legally compliant and commercially fit for purpose. If you aren’t sure please contact us for advice.

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