Written Statement of Terms

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From 6th April 2020, employers will need to provide new employees or workers further details to be incorporated into their Written Statement of Terms.

A Written Statement of Terms is usually the bare bones to be provided to an employee or worker when they first join an organisation.

Under the current law, employers must provide a statement, also known as a Section 1 Statement, (Section 1 of the Employment Rights Act 1996) within one month of the employee starting work.

Under the changes, employers will now also need to provide the following additional information:

1. The days of the week the worker is required to work.

2. Whether the workdays or hours are variable, and if so, how they may vary.

3. Any paid leave entitlement which is additional to the usual annual leave & holiday pay; this is usually maternity leave, paternity leave etc.

4. Details of any additional remuneration or benefits.

5. Whether there is a probationary period, how long, and whether there are any additional conditions attached - for example, obtaining required additional qualifications or passing aptitude tests.

6. Any entitlement to training provided by the employer, and whether it is mandatory and whether provided by or paid for by the employer or if it must be paid for by the worker.

Importantly:

1. The Statement must be now be provided to both employees and workers.

2. The one-month service requirement will no longer apply, so employers must provide a Statement as soon as the employee or worker begins work - "a day one right".

However, some information can be provided at a later date and by instalments by the employer - but must be provided within two months of the employee or worker starting, see below:

1. Pension details and schemes.

2. Collective agreements.

3. Training entitlement - any mandatory training requirements must be detailed on day one. 

4. Details of grievance and disciplinary procedures.

Employers can provide a single additional document to employees or workers that refers them to a staff handbook or HR manual which contains details of incapacity & sick pay, maternity & paternity leave, pensions and grievance and disciplinary procedures.

However, for details of notice periods, the employer should include it in the statement or refer to any collective agreement. Notice periods should not be buried in a staff handbook or HR manual.

Conclusion
With the additional requirements for Statements, we would argue that employers should issue all new employees and workers with a comprehensive employment contract from day one. For all other matters, employees and workers should be given access to the organisation's staff handbook.

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