The Good Work Plan

How are Start Ups and SMEs preparing for the changes that are coming into force, there are some important changes coming and one of these is the obligations on employers to issue a written statement of particulars of employment before the date on which employment starts, therefore becoming a ‘day 1 right’. But before we explore this how are you as the CEO ensuring your that you are ready for all the changes?

Described by the government as the “largest upgrade in a generation to workplace rights”, the "Good Work Plan" unveiled by business secretary Greg Clark on 17 December 2018, introduces legislation that will:

  • repeal the Swedish derogation, which allows organisations to pay agency workers on cheaper rates than permanent staff.

  • extend the holiday pay reference period from 12 to 52 weeks to ensure that those in seasonal roles are able to take the time off they are entitled to.

  • extend the right to a written statement of rights from a person’s first day in their job to workers, going further to confirm their eligibility for sick leave and pay, as well as other types of paid leave including maternity, paternity and shared parental leave.

  • give all workers, including agency staff, the right to request a more stable contract.

  • extend the amount of time considered to be a break in continuous service from one week to four, making it easier for workers to access their rights.

  • quadruple the maximum fines handed out at employment tribunals to employers that have shown malice, spite or gross oversight from £5,000 to £20,000.

  • lower the threshold required for a request to set up information and consultation arrangements from 10% of employees to 2%.

The Government’s Good Work Plan comes into force on 6 April 2020 so are you ready? Lets explore just one of these changes in more detail:-

The obligation on employers to provide a written statement of particulars to workers as well as employees.

The written statement of particulars must be provided on or before the date on which employment starts, therefore becoming a ‘day 1 right’ and the Employer need to provide in the statement the following information

  • the days of the week the worker is required to work, whether the working hours may be variable and how any variation will be determined;.

  • any paid leave which the worker is entitled to;.

  • details of all benefits provided by the employer;.

  • any probationary period, including any conditions and its duration;.

  • any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker;.

The changes will only apply to those starting work on or after 6 April 2020, or who enter into new contracts commencing on or after this date.

 The main benefits of providing a complete employment contract on ‘day one’ under the new rules are:-

  • There can be no dispute as to what terms bind the arrangement or any inconsistencies between documents, which prevents an employee subsequently arguing that they are entitled to contractual terms other than those set out in the contract.

  • Employers ensure they comply with requirements to issue a statutory written statement of particulars by issuing a contract with all the terms required on day 1.

  • Employers can deal with contractual terms in a way that is less administratively burdensome, by ensuring that the terms which bind employees and workers are clearly defined and contained within one document.

 Justine Brown, CEO and Founder of Just Global HR Services Limited advised “It has always been good practice for Employers to provide offer letters and contracts before Employees commence employment. Would you really go and work for a Company if you did not know the terms to which you are being employed? Not only does it protect the Employer but it protects the Employee as well. The last thing any Start Up or SME needs is an employment tribunal as they fall foul of this new obligation.”

If you are an Start Up and SME and need HR Support to ensure you are compliant then please contact hello@justglobalhr.com, visit our website www.justglobalhr.con or call 07806 227915 for more information.

Sam Brown