Are you ready for April?

legal updates

April 2020 will see changes to the minimum wage rate and also the written statement of particulars of employment.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

April 2020 will see changes to the minimum wage rate and also the written statement of particulars of employment.

These changes are noted below.

Changes to Minimum wage rates
Employers are advised to review all wages at this time to ensure that employees are working for at least the minimum wage for their age. If an employer fails to pay the correct rate they can be reported to HMRC who may issue a notice of arrears and a penalty. 
The scheduled increase means that from 1 April 2020 the minimum wage will now be as follows:

  • 25 and over: £8.72
  • 21-24: £8.20
  • 18-20: £6.45
  • Under 18: £4.55
  • Apprentices: £4.15

The above rates start to apply from the next ‘pay reference period’ after the increase. 

Remember that the apprentice wage only applies to those who are undertaking an apprenticeship through a third party training provider and having to attend school or colleague as part of their training.

Further this rate applies to apprentice until they are 19 only, an apprentice over the age of 19 will be entitled to this rate for the first year if their apprenticeship and will then be entitled to the minimum wage for their age range. 

Changes to statement of particulars of employment
Currently employees who have been employed for one month are entitled to a written statement of particulars of employment, also known as a Section 1 statement. 
The following changes to Section 1 statements are due to take effect from 6 April 2020: 

  • There will be no minimum service requirement. The right to a Section 1 statement will be a day 1 right. 
  • The right extends to workers, as well as employees. 
  • The majority of written particulars must be provided in a single document on or before the date on which the employment starts

The statement itself will need to contain the following additional particulars: 

  • The days the worker is required to work, whether the days and working hours may be varied and how any variation will be determined. 
  • Any paid leave entitlement.
  • Details of any other benefits provided by the employer.
  • Any probationary period, including its duration and any conditions.
  • Any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker.

The above changes will only apply to new workers and employees commencing work on or after 6 April 2020. Existing employees or workers are not required to be provided with a new revised statement unless their contract is terminated and they start work under a new contract on or after 6 April 2020. 
We are currently in the process of updating our contracts on HR Manager in line with the above requirements. Look out for further updates in due course. 

If an employer fails to pay the correct rate they can be reported to HMRC who may issue a notice of arrears and a penalty. 

The scheduled increase means that from 1 April 2020 the minimum wage will now be as follows:

HaswentWebsites for dealers small and large

Composer is a next-gen automotive platform that has been designed from the ground up to give you an intuitive way to promote your stock. You have extensive stock management options, and you'll gain a brilliantly responsive new website to advertise your stock, starting at just £39.99/month.

  • 25 and over: £8.72
  • 21-24: £8.20
  • 18-20: £6.45
  • Under 18: £4.55
  • Apprentices: £4.15

The above rates start to apply from the next ‘pay reference period’ after the increase. 

Remember that the apprentice wage only applies to those who are undertaking an apprenticeship through a third party training provider and having to attend school or colleague as part of their training.

Further this rate applies to apprentice until they are 19 only, an apprentice over the age of 19 will be entitled to this rate for the first year if their apprenticeship and will then be entitled to the minimum wage for their age range. 

Changes to statement of particulars of employment
Currently employees who have been employed for one month are entitled to a written statement of particulars of employment, also known as a Section 1 statement. 
The following changes to Section 1 statements are due to take effect from 6 April 2020: 

  • There will be no minimum service requirement. The right to a Section 1 statement will be a day 1 right. 
  • The right extends to workers, as well as employees. 
  • The majority of written particulars must be provided in a single document on or before the date on which the employment starts

The statement itself will need to contain the following additional particulars: 

  • The days the worker is required to work, whether the days and working hours may be varied and how any variation will be determined. 
  • Any paid leave entitlement.
  • Details of any other benefits provided by the employer.
  • Any probationary period, including its duration and any conditions.
  • Any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker.

The above changes will only apply to new workers and employees commencing work on or after 6 April 2020. Existing employees or workers are not required to be provided with a new revised statement unless their contract is terminated and they start work under a new contract on or after 6 April 2020. 

We are currently in the process of updating our contracts on HR Manager in line with the above requirements. Look out for further updates in due course. 

Katie FitzjohnLegal AdvisorRead More by this author

Related Legal Updates

Dos and Don’ts of Employment Contracts

You must provide a contract of employment for your new staff on or before their employment begins!

Change management

The consequences of failing to manage workplace change effectively can increase employee resistance and deplete employee engagement.

Can a notice to terminate employment be withdrawn?

An employee’s refusal to agree to treat the notice as ineffective and to continue employment may have serious consequences.

The primary purpose of a contract of apprenticeship is training

If you take on an apprentice it is vital you have an apprenticeship agreement in place which is a contract of service.

Pandemic impact on annual leave entitlement

The change in March 2020 allowed for four weeks of annual leave to be carried over. So, as a reminder, any carried over leave must be used in 2022!

Right to work – adjusted checks extended to 30 September 2022

Job applicants and existing employees can send scanned documents or a photo of documents for checks using email or a mobile app, rather than sending originals.

“Your hours cut or you’re fired!” ultimatum resulted in an unfair dismissal finding

Employment contract variation is a matter which should be approached with care and any opposition should not be written off without consideration.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.