Employment Law Changes 2020

Changes in Employment Law April 2020


There are some important changes in employment law happening in April 2020. Some, like IR35, may have an impact on how you operate your business. We know that it can be difficult to keep on top of all the employment law changes so here are the five key ones that you need to know.


The decision on whether a self-employed freelancer or contractor is outside of IR35 is going to become the responsibility of the private company rather than the contractor. This means the business now has to decide if a contractor should be paying tax and National Insurance contributions as an employee or if they are to continue with self-assessment.

This is going to affect medium and large organisations, with small business as exempt. HMRC defines a small business as:

  • Annual turnover must not exceed £10.2 million
  • Assets outlined on the balance sheet must not total more than £5.1 million
  • No more than 50 people employed by the company

At the moment, your contractor decides whether or not they are working outside of IR35. If you’re unsure if this affects your company, do get in touch.

Holiday Pay

For staff working on a part-time or seasonal basis, holiday pay from April 2020 will be calculated based on the previous 52 weeks of work, rather than the previous 12 weeks as is the current calculation. 

Statement of Terms

From April 2020, employers have to issue a Statement of Terms to their employees and workers from their first day of work. Previously employers have had a two-month window to provide these to employees who have worked with them for a month. 

If you’re unsure what you need to include in a Statement of Terms, get in touch as we can help.


Parental Bereavement Leave

Known as Jack’s Law, parents will be entitled to two weeks’ of unpaid bereavement leave following the death of a child under 18 years old or a still-birth after 24 weeks of pregnancy. This applies from the employee’s first day of work. 

Amendments to Agency Worker rules

Once agency workers have completed 12-weeks of work at a business they are entitled to the same pay as those employed directly with the organisation. At the moment, there is a ‘Swedish derogation’ clause in agency workers contracts. Those who have this clause need to receive written notification from their agency by 30 April 2020 saying it no longer has any effect. 

April is an important time to review what you have in place for your employees. It is your chance to check that your contracts and policies are fit for business, and that they reflect these new changes.

You will need to update or get contracts of employment drafted and new policies are needed. If you are a small business and concerned about the costs of being compliant with these changes, contact us for business services packages which includes affordable payment plans.

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