ON December 31, the Government announced that low-paid workers will receive a 6.2 per cent pay rise with a new National Living Wage (NLW) of £8.72 per hour, the biggest cash increase ever. Sajid Javid stated: "We want to do more to level up and tackle the cost of living, which is why the NLW will increase further to £10.50 by 2024 on current forecasts."

From April 1, 2020 there will be

• An annual pay rise of up to £930 for full-time workers

• National Living Wage (NLW) rise from £8.21 to £8.72

• New NLW rate starts on 1 April 2020 and applies to over 25-years-olds

There are also five other key changes:

• Changes to the IR35 rules for the Private sector will come into effect on April 6

• Adjustment to the holiday pay reference will come into force on April 6. The change will see the pay reference period increase from 12 weeks to 52

• Amendments to Agency Worker Rules. Once agency workers have satisfied the 12-week qualifying period, they will be entitled to equal pay to workers who are engaged directly by the employer. Plus, they will be entitled to a ‘key fact statement’ setting out their terms of work

• All new employees and workers will have the right to a written statement of particulars from their first day of employment and this will come into effect from April 6, 2020

• The Parental Bereavement Leave and Pay Regulations, or Jack's Law, will be introduced from April 6, 2020.

Bereaved parents will have the right to two weeks statutory leave following the loss of child under the age of 18, or a stillbirth after 24 weeks of pregnancy.

These changes could have a significant impact to businesses, so careful preparation before the April deadlines will ensure you’re compliant and covered before these changes come into force.

To discuss these issues contact Sarah Ashton on sashton@garbutt-elliott.co.uk or call 01904 464122.