The Good Work Plan will give workers a real voice
BUSINESSES are being urged to prepare for the introduction of new legislation that will significantly alter current employment law practices following the implementation of some of the recommendations made by the Government’s Good Work Plan (GWP).
The GWP, which was billed as “significantly changing the enforcement landscape” around employee and worker rights, seeks to enhance the position of some the most vulnerable UK workforce, including so called ‘zero hours’ workers.
Charlotte Geesin, head of employment law and business immigration at Cleckheaton-based HR employment law and health and safety consultancy, Howarths, says it will be easier for employers to be called into account if they fail to adhere to new working practices and legislation that come into effect in April.
Ms Geesin explained: “The Good Work Plan implements the recommendations of the Taylor Review on Modern Working Practices.
“It’s intended cumulative effect is to significantly change the enforcement landscape when it comes to employee and worker rights and enhance the position of the most vulnerable among the UK workforce, for example zero hours workers.”
Ms Geesin said the Good Work Plan intended to offer employees and workers “a greater voice” around employment practices and that “the legislative changes which are coming into force now and in the future will help to provide them with additional stability and comfort”.
She added: “The GWP extends to all businesses. Its main purpose is to bring increased parity between employees and workers, such as individuals who undertake work on a casual or seasonal basis and there are equal amounts of change affecting all statuses of worker.”
Ms Geesin said key changes coming into effect in April include a new right to parental bereavement leave, a change to tax rules on settlement agreement payments where national insurance contributions will become due at 13.8% of the balance over £30,000 and an increase in holiday pay reference period from 12 weeks to 52 weeks when employers calculate holiday pay for workers whose hours of work and rates of pay vary.
“Employers with employees who do not work standard hours must be very aware of the changes in respect of the calculation of holiday pay,” she said.
“This change will completely shift the current practices and may result in higher holiday pay bills.
“The enforcement landscape is also changing and there will be harsher sanctions for employers who find themselves in employment tribunal, including a 50% uplift in any award made by a tribunal against an employer for aggravated breaches of employment law and the naming and shaming of employers who do not adhere to tribunal judgments.”
Ms Geesin said there are several steps businesses can take to prepare for the introduction of the Good Work Plan.
She explained: “It’s important businesses ensure they have the appropriate internal systems in place to manage the issue of contractual documentation and amended holiday pay calculations for new starters on the first day of employment, instead of after two months, which is the current requirement.
“Policies should be reviewed and updated accordingly, especially family friendly working policies which should include reference to the new right to parental bereavement leave under the GWP.
“Employers may also want to review their practices if they are captured by IR35 rules and review relationships with any employment agencies they use to ensure full compliance with the new regulations.”