Salons and barbershops must understand and comply with new employment laws following two recent court cases and fresh legislation.
This blog post covers:
- Getting legal advice
- Jack's Law - paid bereavement leave
- Keeping detailed records of working hours
- New employees: day-one rights to written terms and conditions
- Updated employment contracts from April 2020
- Holiday pay calculations
- Coronavirus and annual leave
- Off-payroll working – new rules
Parents in the UK who lose a child will be entitled to two weeks’ paid bereavement leave from April 2020.
The new law, known as 'Jack's Law', applies to parents who lose a child under the age of 18 or who suffer a stillbirth from 24 weeks of pregnancy. They will be able to take bereavement leave as a single block of two weeks or as two separate blocks of one week during the first year after the death. All employees will have this right, irrespective of how long they have worked for their employer.
A recent ruling in the European Court of Justice has introduced stricter rules for recording the number of hours your employees work.
You must now keep an accurate record of the hours your employee works every day including any overtime hours.
This new ruling will still apply post-Brexit.
From April 2020, a new employee must be given a written statement that includes all the terms and conditions of their job on the first day of their employment.
NHBF Members can use free contracts and staff handbooks which cover this new legal requirement.
The NHBF is advising Members who employ staff to update their employment contracts and staff handbooks to ensure they comply with new laws that will apply from April 2020.
“As a Member, you can download the NHBF’s updated employment contract and staff handbook free of charge,” says NHBF director Tina Beaumont-Goddard, “and we’re also providing a letter that you can give to your employees to explain the changes. You must use the updated contract for new staff employed from 6 April 2020.
“However, you only need to give existing staff the updated contract if they ask for one or if their terms of their employment change. You would have to do this within one month.”
The changes in the contract and handbook cover a number of different issues, including:
- Hours of work.
- Rights in relation to different types of leave.
- Training requirements.
- Performance improvement procedures (PIP).
- Use of work telephones for personal calls.
For more information about this, please call our friendly membership team on 01234 831965, 9am-5pm, Monday-Friday.
A recent ruling in the Court of Appeal has changed the way that employers must work out holiday pay in some cases.
The ruling relates to employees who volunteer to work overtime on a regular and ongoing basis.
The new ruling states that payments for regular overtime must be taken into account when calculating holiday pay.
The government has introduced emergency legislation which says that employees can carry over up to four weeks’ (20 days for those who are full time) paid statutory annual leave from their current leave year into the next two annual leave years where it was not reasonably practicable to take it in the current leave year as a result of the effects of the coronavirus outbreak. This is to ensure that employees who could not take their statutory annual leave due to coronavirus will not lose it. Find out more on the government website.
New off-payroll working rules will apply from April 2020. However, it’s unlikely that this will affect salons or barbershops.
Off-payroll workers are not paid via a company’s PAYE system. For example, they could be freelancers or consultants (not self-employed) who are normally hired for a set amount of time or to complete a particular project.
The new rules apply to off-payroll workers who offer their services via a personal service company (PSC). This is a limited company for one person. From April 2020, companies who receive services from off-payroll workers will be responsible for ensuring tax rules in relation to off-payroll workers are complied with. The aim is to reduce tax avoidance.
• Always get legal advice if you are unsure about any aspect of employment law.
• You now need to keep detailed records of the hours your employees work every day.
• Employees are now entitled to written details about their terms and conditions of employment from the day they start work with you. Members can use the NHBF's free contracts and handbooks to cover this.
• Regular, ongoing overtime must now be included in holiday pay calculations.
• New off-payroll rules have come into force – but these are unlikely to affect salons and barbershops.
New holiday pay calculations