Although the government is currently busy with more pressing matters, it has still scheduled some updates to current employment laws in April 2020. Usually, at this point in the year we do have an increased number of proposed changes however Employment Law has not factored overly highly on the government’s agenda this year; perhaps deliberately whilst it considers the recommendations of the Taylor Review and as a consequence there are only three points to note at this moment in time.
Parental Bereavement (Pay and Leave) Act 2018
In April 2020, the Parental Bereavement (Pay and Leave) Act 2018 will provide employed parents with 2 weeks’ paid leave if they lose a child under the age of 18.
Extension of IR35
By April 2020, IR35 will be extended to medium and large sized businesses in the private sector. The proposal has been described as potentially being “catastrophic for the economy” seeks to remove tax advantages which can be gained by providing services via a limited company for individuals who are not truly in business on their own account.
National Minimum Wage review delayed
As a consequence of the November 2019 Budget being cancelled, the Chancellor has no forum in which to set out minimum wage rates due to take effect in April 2020.
Typically, the Low Pay Commission (LPC) would present its recommendations at the end of October and the Government would then set out its response; with any changes confirmed in the Budget mid-November.
In effect, this means that minimum wage rates may not be announced until January 2020, meaning that employers with a 1 January pay review date may have to set their 2020 pay without knowing if they will comply with the minimum wage rates which would come into effect in April of the same year.
If you want to discuss any of these upcoming legislative changes or, understand how they may affect your business please contact member of the Employment Law team on 01274 864999.
