Legal Resources Your Recruitment Business Needs for April 2020
Legal news and views
April 2020 is a busy time for employment law changes but we have created lots of templates for you to use and guidance for you to follow!
We understand it can be a minefield but our extensive resources are here to help make it a little more manageable. Use this document as a map to locate where all of the helpful stuff is! It will be updated when more resources are created.
- Coronavirus
- IR35
- Key Information Document
- Written Statement of Particulars
- Repeal of Swedish derogation
- Change to holiday pay reference period
- New Statutory Bereavement Leave and Pay
- New statutory pay rates
- Other resources
The information will be updated when more resources are created.
Don't forget, the legal helpline is available via phone on 020 7009 2199 or email at legal.services@rec.uk.com
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1. Coronavirus (COVID-19) guidance
2. IR35
- IR35 legal guide – this answers your FAQs, plus we’ve got loads of other documents you can use like template documents (see our summary below), tax guides and factsheets that you can give to your clients and contractors.
- Tax legal guide - we cover general tax topics like VAT, the construction reverse charge, loan schemes etc.
- IR35 hub – lots of information about the policy behind the changes, market insights and links to our legal-specific guides too.
- Status Determination Statement – you can send this to your public sector or medium/large private sector client, asking them to fill it in with their IR35 tax decision and their reasoning, and then return it to you and the worker.
- Small companies exemption declaration – this is for your private sector clients where they meet the small companies definition. Legally, they must tell you that they are small and exempt from making the IR35 decision.
- Template contracts - we'll upload these after the legislation is confirmed - hopefully it will be confirmed with the Finance Bill on 19 March 2020.
- Croner – our business partner can offer you a specialist tax helpline for your nitty-gritty tax questions - just in case we can't give you an answer! Give us a call and we can put you through to them.
3. Key Information Document
- Template forms – our template K.I.D.s for PAYE agency workers, umbrella workers and personal service companies are ready to use!
- Key Information Document (K.I.D) legal guide – does what it says on the tin - answers FAQs about what the K.I.D is and when to use it. We've also got links to the REC templates here.
- Good Work hub – we cover lots of topics related to the government's Good Work Plan here - you'll find government guidance on the K.I.D and links to our legal guide.
- Legal bulletins – we cover lots of topics in our bulletins, including in-depth K.I.D questions, so do have a look. Our 19 March 2020 release looks at the K.I.D in depth. At the end of this document, we provide more information on our legal news services.
4. Written Statement of Particulars
- Written Statement of Particulars (WSOP) legal guide – we answer lots of FAQs and discuss the requirement from 6 April 2020 to issue this statement to agency workers as well as employees.
- Good Work hub – provides lots of information about the policy behind the changes, market insights and links to our legal-specific guide too.
- Written Statement of Particulars x 2 (standalone documents)
- WSOP for employees; and
- WSOP for workers (standalone) use these to issue to an employee or agency worker on or before the day they start their employment /assignment.
- Updated Assignment Details form with combined WSOP
- Template contracts – you’ll find the WSOP attached to the relevant contracts for your convenience.
5. Repeal of Swedish derogation contracts
- Swedish derogation legal guide – we cover the repeal in detail with our toolkit and checklist. You can also find general information on the Agency Worker Regulations 2010 (AWR).
- Steps to take – this helps you identify if the changes apply to you, make a plan about how to talk to your clients and affected staff, and plan your next steps.
- Toolkit – we’ve outlined the changes and what your options are for changing, retaining or terminating contracts. People on Swedish derogation contracts are employees so please take advice on how to deal with their contracts before taking action. This will help to protect you from unfair dismissal claims, etc.
- Factsheets – we have lots of factsheets on different parts of AWR; look at number 7 for Swedish derogation information.
- Good Work hub – brings together information about the policy behind the changes, market insights and links to our legal-specific guide too.
- Template forms – you can give our template repeal statement to your Swedish derogation employees to let them know they're entitled to equal pay from 6 April 2020. You have a legal obligation to issue this statement no later than 30 April 2020.
- Template contracts – we have updated contracts to reflect a Swedish derogation employee's right to equal pay. We've also removed the contractual right to pay between assignments.
- Legal bulletins – we cover lots of topics in our bulletins, including discussions about the repeal. Have a look at the November 2019-2020 issue in particular, and the end of this document for more information on our legal news services.
6. Holiday pay reference period
- Holiday leave and pay for temps legal guide – when you're working out what to pay someone who has variable hours or pay, you'll have to work out an average over 52 weeks, not 12. This guide will help you.
- Holiday pay calculator – does what it says on the tin. Put your figures in, click calculate and Bob's your Uncle…
- Holiday accrual % rates – don’t know how to work out what 28 or 50 days of holiday is as a percentage? Fear not, we've done it for you!
7. Statutory bereavement leave and pay
From 6 April 2020, employees have a right to take 2 weeks' leave on the death of a child (under 18).
Agency workers who are not employees are not entitled to leave but they may be entitled to the statutory pay if they are classed as an 'employed earner' and meet the eligibility criteria.
- Pay rates – amount of pay for the period of bereavement leave.
- Legal guide –this will be updated soon with a dedicated section. In the meantime, please call the legal helpline.
- All new 2020-2021 rates
- PAYE document issue timeline – step by step timing for issuing the K.I.D, contracts, assignment details, WSOPs etc.
8. New statutory payment rates
9. Other resources
- Legal bulletins – every other month, this covers lots of topics in-depth, particularly the changes to IR35 and the topics above, so do have a look.
- Legal bitesize – we try to cover a hot topic at the time of writing - unsurprisingly, a lot have been IR35 or AWR related of late!
- Legal news – keep an eye out for breaking news and the latest announcements here.
- Updated internal employee contract - https://www.rec.uk.com/legal-resources/model-document-library/model-terms-and-conditions/internal-employee-contracts
- Updated PAYE agency worker contract - https://www.rec.uk.com/legal-resources/model-document-library/model-terms-and-conditions/temporary-workers
10. When will other documents be uploaded?
By Friday 13 March 2020
- PAYE contract for services - the contract between you and your directly engaged agency workers
- Updated Assignment Details Form - combining the Written Statement of Particulars (if you want to issue them together)
- Updated internal employee contract
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