Its not all about Coronavirus!
Nearly a month into the new year and many of our Clients are still dealing with the impact Coronavirus has had on their businesses and Employees…. But there are few other things this year to consider from an Employment Law perspective.
Originally pencilled for April 2020, the Government postponed the implementation of the new rules regarding IR35 until 6th April 2021.
All Employers who engage anyone to work with their business “off payroll workers” (contractors, freelancers, etc) will be required to identify the individual’s employment status for tax purposes. Small business are exempt from the regulations if they have less than £500k turnover.
If you have prepared now is the time. Have an action plan which includes the following:
- Identify ‘off payroll’ workers
- Undertake a risk assessment and cost analysis and involve relevant stakeholders
- Take appropriate action sooner rather than lateNB: make sure you retain your evidence on how you have identified someone who is inside and outside of IR35, as you will need this in the event that the HMRC audit you.
Job Retention Scheme/Possible Redundancies
The JRS comes to an end on the 30th April 2021 (at time of writing) and we are encouraging all our Clients to start planning now, especially if they have been holding off redundancies. Remember you have an obligation to consult with staff on the proposal to make changes/reductions to your headcount, so you really need to be planning and thinking about what changes you need to make.
The Employment Bill
Whilst there is no set date for the implementation of the Employment Bill, there are a lot of things that HR professionals are waiting to receive an update on. For example, it is suggested that there may be a possible extension to redundancy protection for pregnant employees and leave could be extended for parents who have children in neonatal care, to mention just a few.
As soon as we know…. We will let you know!
Changes to the National Minimum Wage
The new rates will apply from the 1st April 2021, but they have yet to be released. Rumour is that they will not increase as much as previous years due to the continued pressure coronavirus is having on businesses.
We do know that the age that the National Living Wage will apply is due to reduce from 25 to 23 from 1st April 2021 *which could be postponed*
Contact us if you have any questions about the above… we are here to help!