What does the ‘Good Work Plan’ mean for businesses?

Earlier this year, The Government implemented the ‘Good Work Plan’ with the aim to improve the employment rights and workers.

As a result, businesses are being expected to familiarise themselves with the planned changes and take measures to prepare for the rules to come into force from on 6 April 2020.

So what are the key proposals to the plan?

A written statement regarding your job

Employees will be entitled to receive a written statement, which provides details of the employees’ contractual terms and working conditions from the first day of employment, rather than the current requirement of two months.

The Legislation also requires the document to contain information of paid leave, the duration of any applicable probationary period and information on any benefit entitlements.

Contracts of Employment

A new right for workers is to be added, which will mean employees who have 26 weeks continuous services are able to request more secure and stable contracts. Employers will be given three months to respond to these requests.

Casual or zero hour workers are most likely to benefit from this ruling, as they can request a guaranteed number of hours or certainty as to the days on which they will be asked to work.

Formal guidance on these contract requests is expected to be provided closer to the implementation.

Breaks in Continuous Service

The current rules allow employees who have up to a week-long break in their employment to qualify for certain employment rights. The reforms will change this to a four-week gap, to allow for employees who work casual hours or those that work at irregular intervals.

They will now be able to benefit from the rights awarded by the length of continuous service.

Better rights for agency workers

The new reforms will close a loophole known as the ‘Swedish derogation’ in a bid to offer more protection to agency workers.

The removal of this loophole will mean that the option to opt out of entitlement to the same level of pay as a permanent worker and instead be paid a separate rate based on assignments will be removed.

Changes to holiday pay calculations

The reference period to calculate an employee’s holiday pay is to be changed from 12 weeks to 52 weeks, to provide fairness in calculations for those workers whose hours vary.

Incorrect holiday payments can be backdated for up to two years.

How can we help?

We understand the importance of businesses taking the necessary measures to implement the changes to relevant policies and procedures ahead of the new legislation in April 2020.

That is why our expert employment law team are ready to help ensure a smooth transition for your business. Contact us today to find out how we can help you.

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