Employment Update: New Requirements for the Statement of Terms of Employment
Currently, employers are required by section 1 of the Employment Rights Act 1996 (“ERA 1996”) to provide their employees, who will be employed for more than one month, with a written statement of the terms of their employment (a “section 1 statement”), however the requirements are soon to change.
How the requirement will change
As of 6 April 2020, the requirements relating to section 1 statements will change, including to whom they are to be provided, when they are provided and what they should contain.
- Who should a section 1 statement be given to?
Once the changes come into force, it will be necessary to provide a section 1 statement to both employees and workers regardless of the length of their engagement. Therefore, the contract need not continue for more than one month before there is requirement to provide a statement.
Existing employees may also request a written statement containing details of any additional terms that their employer was not previously required to provide which must be provided within one month.
- When should a section 1 statement be given?
Irrespective of the length of engagement, the statement must be provided on the date that the contract commences.
It is therefore important that employers ensure that their contracts and procedures containing details of the required terms are made available on day one of an engagement as not to fall short of the amended requirements.
- What must a section 1 statement contain?
The major amendment to section 1 statements relates to the contents of the statement which must include (in one comprehensive document):
- the names of the employer and employee;
- the date employment commences;
- the dates of any period of continuous employment;
- hours of work including
- normal working hours,
- the days of the week the worker is required to work, and
- whether or not such hours or days may be variable, and if they may be how they vary or how that variation is to be determined;
- pay and the interval of payment;
- holiday entitlement and holiday pay;
- Any entitlement to paid leave, including maternity leave and paternity leave;
- Any other remuneration or benefits provided by the employer which are not covered by any other term.
- Any probationary period, including any conditions and its duration;
- The notice periods for termination by either side.
- Terms relating to absence due to incapacity and sick pay.
- Pensions and pension schemes;
- Terms as to length of temporary or fixed-term work.
- Terms related to work outside the UK for a period of more than one month.
- any training entitlement provided by the employer, including any part of that training entitlement which the employer requires the worker to complete; and
- any other training which the employer requires the worker to complete and which the employer will not bear the cost of.The employer must also provide in another reasonably accessible document, within two months of engagement, details of:
- the employer’s disciplinary procedures;
- pensions and pension schemes; and
- Any collective agreements that apply (or if none, then the fact that none apply must be stated).
Failure to comply with the new requirements could entitle an employee or worker who successfully makes a claim before the Employment Tribunal against an employer to an additional award of compensation between two and four weeks’ pay (subject to the statutory cap which is currently £525 per week).
Please contact one of our experienced Employment solicitors for further advice. We would be happy to assist you with your section 1 statements, employment contracts and policies to ensure that you do not fall foul of the requirements.