The Good Work Plan was announced by the Government in 2018 following the Taylor Review into Employment Practices. This review was designed to improve the rights of employees and workers, particularly those on zero hours contracts. In this blog, we have summarised the main changes of the Good Work Plan. If you’d like to download a free PDF which goes into more detail, email us by clicking here or fill in the below form.
Written terms and conditions of employment
Currently, employers have 2 months after the employee has started to provide a written document confirming the main terms and conditions of employment. From 6 April 2020, the Good Work Plan makes this a day one requirement (or before where possible). The scope of the contract is also extended to include the following:
- Normal working hours.
- Other non-monetary benefits such as vouchers, meals, accommodation etc.
- The conditions and duration of probation periods.
- Sick pay entitlement (whether this is just SSP or enhanced).
- Details of statutory paid leave (such as maternity, paternity, shared parental etc).
- Mandatory training that employees need to complete.
Whilst you don’t need to reissue all of your contracts straight away, if existing staff do request a new contract, you will need to provide it within a month of the request.
Calculating a week's pay (for holiday pay)
Where hours and therefore pay are variable, a week’s pay will now be calculated over 52 weeks rather than 12 weeks. This change has been made so that staff don’t lose out if they take leave after a quiet period of the year.
Continuity of employment
Whilst we have no implementation date for this as yet, it is proposed that the gap between periods of employment be increased whereby continuity of employment can be gained. So instead of a one week break being sufficient to remove continuous employment rights, this will extend to four weeks. What does this mean in practice? Well after 2 years continuous service, employees can claim unfair dismissal and redundancy payments amongst other things. The Good Work Plan could bring a large number of fixed term workers into employment rights for the first time.
Another major change that the Good Work Plan has introduced is that employers will no longer be allowed to make deductions from tips earned by staff. There have been a number of high profile media cases about this practice so it didn’t come as a surprise to see it included. We don’t, however, have an implementation date for this as yet.
After 26 weeks service, where a zero hours worker works a certain number of hours each week, they will be able request a contract that guarantees this number of hours. The request needs to be considered carefully by the employer, in the same way that a Flexible Working request should be reviewed.
If you have agency workers in your organisation then you will no longer be allowed to pay them less preferably than employees. The so called ‘Swedish Derogation’ will be repealed from 6th April and the impact on you is that after 12 weeks’ continuous work, you have to pay them the same rates as any internal employee who performs the same role.
If you’d like to talk about anything you’ve read here about the Good Work Plan or any other HR activities that we can help you with, call Rob on 07494 161169 or Nicci on 07908 875146. We’d love to hear from you!
For a full PDF guide on the Good Work Plan, please complete the below form to download your free copy.