The Voice of SME's in Engineering

CRONER - 6 APRIL 2020: THE GOOD WORK PLAN

The Good Work Plan comes into force on the sixth of April in 2020, and has been dubbed the “biggest overhaul of employment law in 20 years.” The plan has come about as a result of the independent review conducted by Matthew Taylor.

Although some elements of the plan are still pending further clarity, Croner – our trusted HR partner – explain the areas that businesses can begin to prepare for now.

  1. From April 2020, all workers will be entitled to receive a document that sets out all of the key terms of their contract. This document must be given from day one of their contract. Currently employers only need to provide key terms of employee’s contract within two months. You should liaise with HR to be ready to implement this change – be mindful of any additional administrative burdens this could place upon them.
  2. All workers have the right to request a ‘more stable’ contract. Workers will have this right after 26 week’s service. You should be prepared to introduce a system for processing these requests, which can be similar to how flexible working requests are currently handled. Remember that whilst you can refuse this, you will need to provide sound business reasons for doing so. Also, like flexible working, it looks like there will be a three-month timeframe with which to deal with the request. 
  3. The break in continuous service will increase. Currently, a gap of just one week can break an individual’s continuity of service. This can restrict their access to key rights of employment, and can occur despite the employee working regularly on and off for the same employer. Therefore, as of April 2020, the gap will increase to four weeks, making it easier for those employees who work sporadically to qualify for more employment rights. You should review current processes and liaise with HR and payroll to ensure they are aware of this and are not unlawfully denying rights to workers. Also re-evaluate current processes in light of this to avoid falling into traps – you may end up having to provide rights and entitlements when you don’t intend to because of previous allowances when taking on casual workers.
  4. A big change for those working in the hospitality and catering industry is that employers will be banned from taking “administrative fees” from tips and gratuities - they will pass directly to the individual, rather than be taken by the employer. Organisations are advised to carry out a review of their current tipping practices, ensuring they understand the process in place and whether deductions are being made from tips. Any documentation in place on this practice can also be reviewed. This will ensure the organisation is in a good position to implement the new restrictions placed upon them by the legislation once these are introduced.
  5. There will also be further protections for agency workers. They will have the right to be provided with Key Facts pertaining to the type of contract they are accepting, as well as their rate of pay, who is responsible for paying it, and any deductions or fees that might be taken. You should liaise with HR to be ready to implement this change

For further advice on The Good Work Plan or wider HR matters, contact Croner.

(Full details of Croner were sent in your membership pack or contact EIA Head Office on 0207 298 6455 or email head.office@eia.co.uk)