2019 promises to be another year of change with regard to employment law so businesses need to be prepared and plan ahead for these changes.

Here are some of the key changes to expect during 2019 and into 2020.

Brexit – March 2019

With the government’s Brexit vote due to take place in January 2019, there is still a great deal of uncertainty. If the UK does exit the EU on 29 March 2019, free movement of EU workers will end.

The government has introduced the EU Settlement Scheme for EU workers who are already living in the UK. This means that EU workers who successfully apply will be able to stay in the UK after December 2020. Full details about the EU Settlement Scheme can be found in the Government’s Online Toolkit.

EU citizens arriving in the UK after December 2020 will be subject to the Government’s new immigration system and will not receive preferential treatment.

Businesses should ensure that they communicate with their EU employees and make them aware of what they need to do with regard the Settlement Scheme. Employers may also wish to consider funding the £65 application fee. Employers should also consider how reliant they are on EU workers and should consider other sources of labour.

Note – dates may be subject to change depending on whether a Brexit deal is secured.

Minimum Wage & Statutory Payment Increases – April 2019

The National Minimum Wage (NMW) increases for April 2019 were announced in the Chancellor of the Exchequer's Autumn Budget. The increases are set out below.

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Age	Current Rate	April 2019 Rate	% Increase
25+ (NLW	£7.83	£8.21	4.9%
21-24	£7.38	£7.70	4.3%
18-20	£5.90	£6.15	4.2%
16-17	£4.20	£4.35	3.6%
Apprentice	£3.70	£3.90	5.4%

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Statutory payment increases are as follows:

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Statutory maternity pay, maternity allowance, paternity pay, shared parental pay and adoption pay	£148.68 / week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate)
Statutory Sick Pay (SSP)	£94.25 / week
Earnings threshold (lower earnings limit)	£118.00 / week

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Pension Auto-enrolment contributions – April 2019

From April 2019 the minimum contributions for auto-enrolment pension schemes will increase for both employers and employees. Currently, automatic enrolment requirements mean employers must contribute a minimum of 2% of an eligible worker’s pre-tax salary to their pension pot, with the individual contributing 3% themselves. However, under the new requirements, employers and employees will now have to contribute a minimum of 3% and 5% respectively.

Right to receive a payslip – April 2019

The right to receive a payslip is to be extended to all workers (currently it only applies to employees). In addition, employers will be required to state on payslips the hours being paid for; where pay varies depending on hours worked e.g. casual, temporary or contract workers.

During 2019, businesses should also plan for some significant changes which are likely to take effect in 2020.

2020 – The Government’s Good Work Plan

On 17 December 2018, the Government revealed proposals to implement various employment reforms, which mainly stem from the Taylor Review. These reforms are set out in the Government's Good Work Plan.

Changes include; abolition of Swedish Derogation contracts from April 2020, the right for agency workers to receive a ‘key facts document’ detailing their employment rights, greater focus on the awareness & enforcement of holiday pay, the holiday pay reference period to change from 12 weeks to 52 weeks, the right to request a more stable contract after 26 weeks etc.

2020 – IR35 in the private sector

The IR35 tax rules will be extended to the private sector in April 2020. Responsibility for determining the tax status of workers who supply their services via an intermediary, such as a personal service company, will transfer to the end user; as is currently the case in the public sector.

In summary, there are going to be some interesting times ahead for businesses as Brexit looms large and the government looks to create a fairer working environment for all. Business need to plan and budget for these changes to minimise any impact.