Good Work Plan Quick Start Guide For Employers

The Good Work Plan Quick Guide breaks down the elements of new legislation that came into force on the 6th April 2020.

The Good Work Plan has been dubbed the biggest overhaul of employment law in 20 years.

Whilst some elements of the Good Work Plan have already been in force, all Employers are now required, by law, to adhere to the legislation in full.

With so much information covering a wide range of employment law, NORI HR & Employment Law have created a Quick Start Guide for Employers.

If you would like any further information, or to understand how all or just some of the changes effect your business, get in touch by calling us on 01254 947 829.

We will take the time to listen to your scenario and explain how you can implement the Good Work Plan into your business.

In the meantime, you can follow our Good Work Plan Quick Start Guide below.

The Good Work Plan Quick Start Guide For Employers

Statement of Basic Terms

From April 2020, it will not just be employees who are entitled to receive a written document setting out their basic terms, because the right will be extended to workers too.

As of the 6th April employees and workers are entitled to any Written Particulars from day one of employment.

The additional information you need to include under the Good Work Plan, includes:

How long the job is expected to last (or state the end date of a fixed-term contract).
Terms relating to normal hours of work. This includes day of the week the worker will be required to work, plus whether these days/hours will vary.
How much notice is required from both the employer and the employee.
Details of eligibility for sick leave and Statutory Sick Pay.
Details of any other types of paid leave, including family-friendly leave.
Duration and conditions of any probationary period.
Remuneration.
Which specific days and times workers are required to work.
Training entitlements, requirements, and whether it’ll be paid for by the employer.
Details of other employee benefits, not just those relating to pay.

The exemption for employment lasting less than one month will also be abolished in the Good Work Plan.

Holiday Pay Reference Periods

Prior to the Good Work Plan, when working out a worker’s holiday pay entitlement, you would look back at their previous 12 paid weeks.

However, as of April 2020, this period will be extended to 52 weeks if the individual has been employed for at least 52 weeks.

For workers who’ve been with the organisation for fewer than 52 weeks, the reference period is however many weeks they’ve been employed.

Tips And Gratuities

Rules will be implemented to ensure that tips are passed directly to the individual, rather than taken by the employer.

Information And Consultation Arrangements

Information and consultation arrangements give employees the right to be involved in workplace discussions about an agreed list of topics, such as redundancy proposals.

Prior to the Good Work Plan, support from at least 10% of the workforce was needed for a successful request but we expect that from April 2020 this will be reduced to 2% (although the 15 employee minimum threshold will remain).

Naming And Shaming

Employers who do not pay the compensation awarded by an employment tribunal following a successful claim will now not only face potential enforcement proceedings (where a penalty notice can be issued of up to 50% of the unpaid award), but also the prospect of being publicly named and shamed.

Umbrella Companies

The Employment Agency Standards Inspectorate exists to enforce agency worker rights.

Its future remit will be expanded to allow it to cover umbrella companies too.

Employment Tribunal Maximum Penalty Increase

From 6th April 2019 the maximum penalty you can receive at an employment tribunal is increasing from £5,000 to £20,000 for an aggravated breach.

So, if you are found to have breached any worker rights, and the breach has one or more aggravating features, if the penalty is paid within 21 days, the amount of the penalty is reduced by 50%.

Payslip Changes

On 6th April 2019, the first change of the Good Work Plan came into force.

You must now give all of your workers and itemised payslip. In many cases you’ll also have to put the number of hours worked on a payslip too.

You now need to include the following on your payslips:

Gross salary
The amount deducted from pay, and why
The net amounts

Agency Workers & Swedish Derogation

Swedish Derogation:

These type of contracts, also known as ‘Pay Between Assignment’ contracts, entitled agency workers to receive pay when they are not assigned to an end-user, but exempt the agency worker from equal treatment to pay when they reach 12 weeks’ service within an assignment.

Agency workers will no longer be excluded from the equality provisions of the Agency Workers Regulations 2010.

This guarantees equal wages with comparable permanent workers for all agency workers once they reach 12 weeks’ service in one assignment.

If you employ agency workers, you must inform them that they have the right to equality of treatment. This statement must be given by the 30th April 2020.

Key Facts Page For Agency Workers

The Good Work Plan requires employment businesses to issue agency workers with a Key Facts Page or ‘key information document’.

This document must include information on:

The type of contract.
The minimum rate of pay.
How the individual will be paid (and by whom).
Any deductions or fees that will be taken.
Any monetary benefit entitlements.
Entitlement to annual leave and payment.
An illustrative example of what the above means for their take-home pay.

Changes coming into effect with no set date

Our Good Work Plan Quick Start Guide highlights the elements that have now come into law as of 6th April 2020.

However there are still elements that are coming into effect, currently with no set date.

We have listed these below.

Employment status frameworks for rights & tax.
Due to a significant number of disagreements on employment status in the gig economy, concerns were raised about some individuals not receiving their rights.As a result of this, proposals are to be put forward to align the current employment law framework to fit with this new form of employment status.A consultation has happened, but no progress has been made on creating the desired clarity. Therefore, no changes have been announced.

Enforcement of statutory holiday pay.
Currently, when an employer doesn’t pay holiday pay entitlement correctly, the employee had to take them an employment tribunal.The government is introducing a state-led enforcement regime to assist vulnerable workers. However, there’s no date set for this change to come into force, yet.

Right to a more stable contract
The government have also committed to introducing the right for all workers to request a more stable contract. Those who are happy to continue working variable hours each will still be able to do so. This right just means that those who want more certainty can request a fixed working pattern.There’s no guidance as to what form this will take. For example, you could set fixed hours per week, or certain days of the week. And, if it’s not possible to give a more stable contract, you don’t have to. But you must at least consider the request and judge whether it’s reasonable. Employee can request a more stable contract after 26 weeks’ service. There’s currently no set date for this legislation to come into force.

Break in continuous Service
Prior to the Good Work Plan, a gap of just one week can break an individual’s continuity of service.
Under the new legislation, this break period will be extended from one week to four weeks.

WE hope you’ve found this Good Work Plan Quick useful. If you know any other employers that may require this support, feel free to share this with them.

If you would like any further information, on support with any element of HR & Employment Law, please contact us on 01254 947 829.

You can read the full history of the Good Work Plan direct on the Government website at https://www.gov.uk/browse/employing-people