The Good Work Plan and Payroll

The Government’s Good Work Plan has gone live. Even though not all of it is actually up and running yet, there are implications for employers and payroll providers across the UK. Some parts of the Good Work Plan won’t come into force until 2020, whilst some elements have not even been drafted yet. In this article we look at the current situation and give you some tips on what you need to do to ensure your payroll is compliant.

Good Work Plan Items that are Already Live

As of 6 April 2019, all workers are now entitled to a payslip, which must include hours worked for hourly-paid workers and employees, making it easier for workers to check that they are being paid for the right hours at the right rate.

If you outsource your payroll to a company such as J L Payroll, then hose changes should have been made already. If you handle payroll in house, it’s worth checking to ensure your payroll team are following the law.

Good Work Plan Items that are Coming Soon

Much more of the Good Work Plan is coming into force from April 2020, as follows:

  • The reference period for calculating a week’s pay for holiday purposes will change from 12 to 52 weeks. This is primarily to protect seasonal workers.
  • Workers and agency workers will be entitled to a statement of written particulars or key facts document from day one of their employment, giving them essential details about their employment and clarity over pay. The intention is to bring an end to any worker starting with an employer or agency and not knowing what to expect from their wage.
  • Around 120,000 agency workers will benefit from the end of what is known as the ‘Swedish derogation’. This is a loophole which effectively enabled agency staff to be paid less than permanent workers. From April 2020, all workers – both agency and permanent – will be entitled to the same pay rates after 12 weeks.
  • Employees will no longer need 10% of workers to sign up to consultation requests. The new threshold will be 2% 2

Good Work Items in the Pipeline

There are many more aspects of the Good Work Plan that we know are being worked on by the Government. No date has been given for their activation, but we understand the are likely to include:

  • The banning of employers from making any deductions from staff tips or gratuities.
  • An increase in breaks in employment to 4 weeks before counting as breaching ‘continual service’.
  • Zero hour workers to have the right to request a more predictable and stable contract (although the plan doesn’t remove zero hour contracts altogether).
  • Greater redundancy protection before, during and after maternity leave.

If you need more advice on the Good Work Plan or are looking to talk to an outsourced payroll specialist to help ensure that your systems are complaint, please call us on 0121 422 0550 or contact us for an initial chat.

Comments are closed.