Good Work Plan Legislation Update

Following on from the recommendations in last year’s Taylor Review and the subsequent proposals in the government’s ‘Good Work Plan’, the government has brought forward legislation as promised.

The REC has been engaging with the government from the outset to ensure that the recruitment industry’s voice has been heard. We supported many of the principles and recommendations in the review – our task now, as legislation is introduced, is to ensure the government guidance is clear and works for recruiters.

Itemised payslips

From 6th April 2019, all workers will be entitled to receive a payslip. This must document any variation in pay across the time worked.

The introduction of a key facts document

The key facts document legislation is currently going through parliament. It will require employment businesses to provide work-seekers with a ‘key facts’ document before terms are agreed between the employment business and the work-seeker from April 2020. The legislation gives a clear outline of what information should be included. The principle behind the legislation is to increase transparency for the work-seeker on what they will be paid in different scenarios, for instance when an umbrella company is involved. This will also link with the government’s plan to increase worker awareness of holiday pay entitlement. We have raised our concerns with BEIS about possible duplication, but also the need for clear guidance.

Swedish Derogation

As expected following the Taylor Review the government confirmed in December that they would abolish so-called Swedish Derogation contracts from April 2020. Secondary legislation to enact this has been published and we will be working with our members to help manage the transition away from Swedish Derogation contracts, as well as ensuring the government’s guidance is helpful for REC members.

Written statement

From April 2020, an amendment to the Employment Rights Act 1996 will mean that work-seekers are entitled to a written statement about their employment status, entitlements, contract and pay etc. from day one of their employment. Again, we have raised our concerns with BEIS.

Holiday pay legislation and guidance

The government is currently campaigning to promote the entitlement to holiday pay and has laid legislation (from April 2020) and provided guidance to aid in the calculation of holiday pay entitlement for irregular hours. The legislation will increase the pay reference period from 12 to 52 weeks.

Future regulation on umbrellas

Finally, one of the announcements made in the Good Work Plan is the government’s intention for umbrellas to be regulated by the Employment Agency Inspectorate – something the REC welcomes as this aids transparency. We will continue to keep members updated about this.

The Good Work Plan will be a key feature of our upcoming blogs, sector meetings and webinars, which we will use to keep members updated. Remember to tune into our Policy and Legal Webinar on 5 March.