The Employment Law Blog

Employment Law changes in 2020 – part 3

Now we’re into 2020, there are upcoming employment law changes that you need to be aware of. Here is the third of our blogs explaining what to expect in 2020.

Changes to Agency Worker rules

From 6 April 2020, the Swedish Derogation will be abolished. Currently, this derogation allows employment agencies to avoid pay parity between agency workers and direct employees where the agency pays the individual between jobs.  As a result of this abolition, after 12 weeks, all agency workers will be entitled to the same rate of pay as their permanent colleagues. Employment agencies must inform their agency workers that the Swedish Derogation no longer applies by 30 April 2020.

In addition, every agency worker employed through an employment agency must receive a key information document setting out the employment relationship, terms and conditions with their agency.

Further, employers must also be aware of the fact that if an agency worker is classed as an employee, they will be protected from unfair dismissal and suffering a detriment if the reasons are due to them asserting their rights under The Agency Worker Regulations 2010.

Parental bereavement leave

The Parental Bereavement (Leave and Pay) Act 2018 will entitle an employee the right to two weeks leave if they lose a child under the age of 18 or if they suffer a stillbirth from 24 weeks of pregnancy. This will be a day one right.

However, in order to claim the pay for this period, the individual must satisfy the eligibility criteria; they would need to have had 26 weeks’ continuous service to claim parental bereavement pay.

From 6 April 2020, The Parental Bereavement (Leave and Pay) Act 2018 will give an employee the right to two weeks leave if they lose a child under the age of 18, or if they suffer a stillbirth after 24 weeks of pregnancy”.

Taxation of termination payments

From 6 April 2020, all termination payments above the £30,000 threshold will be subject to class 1A employer’s national insurance contributions as well as income tax. This is something to factor into the cost of offering a Settlement Agreement.

Please note this article should only be considered as guidance and should not be taken as specific legal advice. For further advice on this topic contact Sabrina Rahman by emailing or call 0114 218 4000.

Sabrina Rahman

Sabrina is a trainee solicitor in our highly successful employment law team. Sabrina graduated from the University of Sheffield with a Law Degree and after enjoying undergraduate life, decided to stay to study the legal practice course at the University of Sheffield.

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