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Good Work Plan: How will it impact your business?

15 May 2019

The government has recently published its Good Work Plan, in which it details a number of proposals to reform employment practices in the UK economy and further strengthen employee rights. These proposals will have a significant impact on employers.

There are a number of key proposals (the timetable for regulations has not been included in the published plan unless otherwise stated):

  1. From the 6th April 2020, the right for all workers from day one to be given a written document setting out their basic terms.
  2. A right for those with flexible working (such as zero hours contracts) to request a guaranteed minimum number of hours of work after 26 weeks of employment.
  3. Making it easier for casual staff to establish continuity of employment by increasing the gap needed to break continuity of service from 1 to 4 weeks.
  4. From 6th April 2020, the repeal of the “Swedish derogation,” to guarantee pay for all long-term agency workers that is equal or comparable to that of permanent workers.
  5. A requirement to provide a key facts page to every agency worker so that they better understand their basic terms.
  6. Legislation to improve the clarity of employment status tests to reflect modern working, in conjunction with the production of online tools and guidance to help general employment status understanding.
  7. From 6th April 2020, legislation to lower the threshold required to request the setup of information and consultation arrangements from 10% to 2% of employees, with a minimum threshold of 15 employees.
  8. From 6th April 2020, extending the reference period used to calculate holiday pay from 12 to 52 weeks.
  9. A ban on deductions from staff tips.
  10. Enhancements to enforcement of employees rights with;
  • employers who fail to pay tribunal awards being publically named and shamed;
  • an extension to the remit of the Employment Agency Standards to cover umbrella companies;
  • state enforcement where employers fail to pay holiday correctly;
  • a state led awareness campaign of employees and workers’ rights to holiday pay; and
  • from 6th April 2019 an increased penalty for aggravated employment law breaches.

If you want to further understand how these changes might affect you or your business, or get more detail on the other changes proposed, please contact us.

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