The Good Work Plan
The Good Work Plan is a new set of employment laws that came into law in April 2020. The report commissioned by the government made over 50 recommendations, and accepted most of them.
Statement of Main Terms
As part of the Good Work Plan, the provision of the statement of main terms became a day one right for both employees and workers from 6 April 2020. Previously, employers had two months from the start of employment within which to provide this document and it only needed to go to employees. It must now be provided by the commencement of employment, and ‘workers’ are within scope of the law too meaning that a greater pool of the workforce are legally entitled to receive it.
Some Other Key Points
In addition, the statement must also now contain the following additional details:
- the days of the week the worker will be required to work and whether these days/hours may vary and if they do, how they vary
- paid leave entitlements such as family-friendly leave
- how much notice is required from both the employee and employer
- all employee benefits/remuneration, not just those relating to pay, such as benefits in kind or other financial benefits
- terms relating to probationary periods
- details of training entitlement.
- the reference period for calculating holiday pay has been increased from 12 weeks to 52 weeks. (or the length of service if the employee has been employed for less than a year.)
- the threshold for consultation arrangements has been lowered from 10% to 2% of employees
- agency workers should receive a ‘key information document’. It should include details on how, when and by whom they will be paid, any deductions, holiday pay/entitlement and what their expected take home pay will be.
Failure to Comply
A failure to provide a statement, or where a statement is provided which does not contain the required information, could lead to the employee making a claim to an employment tribunal to determine their terms of employment. Additionally, an employee may receive compensation of up to 4 weeks’ pay.
The Good Work Plan can be downloaded from the government website.
If you would like to ensure your business is compliant, contact me and we can discuss your HR setup.