Defining employment status
At the heart of these reforms is the issue of correctly identifying the employment status of those who work for your business, as employment rights are governed by this. The Government concedes that this is an area of unacceptable uncertainty and has promised legislation to clarify this, but there is no sign of this on the horizon.
Many employers in the nursery sector may find that individuals who start working for them on a casual basis may, through regular use, have become integrated with the business to such an extent that they would be classed as employees, with the additional rights this entails.
Support from NDNA – we’ve got you covered
NDNA will be working closely with our long-standing partner, Citation, to proactively keep members updated.
Recent research carried out by Citation indicated that over half of UK businesses have not heard of upcoming changes – it’s our joint mission to make sure NDNA members feel prepared. This is particularly important given the unique impact these reforms will have on the nursery sector and settings.
To help employers understand the changes and better get to grips with what they should be doing, Citation has created an in-depth white paper, which can be downloaded here.
Here’s a summary of the support available to members:
- Keep an eye on this page – NDNA will keep it updated it with new resources and guidance
- Free advice – call HR & Employment Law experts, Citation, on 0345 844 1111, to claim your member benefit of a free piece of advice.
A brief look at the changes
Key changes taking effect from 6 April 2020 include:
All businesses will have to give statutory statements of main terms to employees and workers and the deadline for doing this will be day one of their employment/ engagement.
Currently, employers have two months to issue this and they are only required to do so for employees. Workers are considered to be those who provide personal services to the business on a casual basis, with no obligation on the business to offer work or on the individual to undertake it.
This information will have to be given by day one of their engagement (currently employers have two months to do this).
The information which needs to be included in these statements is changing to include:
- The actual days of the week the individual will work
- Whether the days or weeks will vary and if so, how that variation will be determined
- All benefits provided
- Details of any probationary period, its length and the conditions for passing
- Details of training including any mandatory training and mandatory training which will not be paid for by the business.
Changes to holiday pay
The method for calculating holiday pay for people working variable hours will change significantly from taking an average of the previous 12 weeks worked to calculating the average over the previous 52 weeks worked.
The Government has a host of further changes in the pipeline, with consultations recently closing on their plans to tackle unfair flexible working practices (by introducing the right to reasonable notice of working hours and compensation for cancelling shifts at short notice) and the introduction of a unified labour market enforcement agency with powers to enforce holiday pay for vulnerable workers.
Got any questions?
Look out for more guidance from NDNA and Citation in upcoming weeks and months, on this page and in NDNA’s communications to members.
Alternatively, give Citation a call today on 0345 844 1111 to receive free advice from their team, or get in touch here.