Employment law timeline 2020: key updates for employers

National Living Wage for workers aged 25 and over increases to £8.72 per hour. The national minimum wage (NMW) increases:

• from £7.70 to £8.20 for 21 to 24 year olds
• from £6.15 to £6.45 for 18 to 20 year olds
• from £4.35 to £4.55 for 16 and 17 year olds
• from £3.90 to £4.15 for apprentices

New statutory rates

Statutory sick pay (SSP)

SSP increases to £95.85

A week’s pay

The maximum amount of a week’s pay (used to calculate statutory redundancy payments) increases to £538

Maximum compensatory award 

The maximum compensatory award for unfair dismissal increases to £88,519 (from £86,444) where the effective date of termination is on or after 6 April 2020

Termination payments

Termination payments above £30,000 to be subject to employers’ national insurance (Class 1A NICs)

Right to a written statement

All workers entitled to receive a written statement of terms on or before the first day of employment. Written statements to include additional particulars of employment

Link to briefing

Information and consultation

Reduction of threshold to request information and consultation arrangements

Agency workers

Abolition of the Swedish derogation relating to pay for agency workers

Employment businesses/agencies to provide agency workers with a Key Information Document setting out key facts at the start of an assignment

Holiday pay

Increase in holiday pay reference period from 12 weeks to 52 weeks

Parental bereavement leave

Right to parental bereavement leave and pay comes into force

Posted workers

Revised Posted Workers Directive set to be transposed into national law

Free movement

Free movement of EU workers due to end