Employment law changes for salon employees: April 2020
6 April 2020 sees some significant changes to employment law which affect every salon owner who employs a team.
In this blog we look at these changes which cover:
- issue of written statement of employment
- calculating holiday pay
- parental bereavement leave
- National Minimum and Living Wage increases
1. Changes to written statements of employment terms
Salon employees who have been continuously employed for more than one month must be provided with a written statement of terms within two months of commencing employment.
New law effective 6 April 2020
From 6 April 2020 all new employees have the right to a statement of written particulars from their first day of employment.
To meet this new deadline you’ll need to prepare the statement of particulars during the recruitment stage, so it’s ready to hand to your new employee on their start date.
Also, from 6 April the written statement must contain additional information by law, including:
- the hours and days of the week the employee is required to work, whether they may be varied and how
- entitlements to any paid leave
- any other benefits not covered elsewhere in the written statement
- details of any probationary period
- details of training provided by the salon employer.
We look at the importance of onboarding and what you need to consider in this blog.
2. Holiday pay reference period adjustment
Currently, holiday pay is calculated on the pay that an employee receives during the 12 weeks worked prior to taking a holiday.
New law effective 6 April 2020
Come 6 April 2020, the holiday pay reference period increases from 12 weeks to 52 weeks (or the number of weeks of employment if someone has been employed for less than 52 weeks).
Salon employers will now need to look back at the previous 52 weeks where an employee has worked and received pay (discarding any weeks not worked or where no pay was received) to calculate the average weekly holiday pay.
Fairer holiday pay
The government believed the current 12 week reference period causes problems. Fluctuations in pay can lead to higher holiday pay if leave is taken immediately following peaks, and result in lower holiday pay if it is taken following troughs. The 52 week period is intended to iron out these fluctuations for team members on variable pay.
For Subscribers Loop HR will automatically calculate the average holiday pay in line with the new regulation from 06 April 2020.
3. New parental bereavement law
There is no current law.
This is effective from 6 April 2020 and provides for at least two weeks’ leave for employees following:
- the loss of a child under the age of 18 or
- a stillbirth after 24 weeks of pregnancy.
Employees with 26 weeks’ continuous service will be entitled to two weeks of paid leave at the statutory rate, while other employees will be entitled to unpaid leave.
4. National Minimum & National Living Wage increases April 2020
National Living Wage for salon employees
This applies to your employees aged 25 and over. It increases from £8.21 per hour to £8.72 per hour from 1 April 2020 (not 6 April, unlike the employment law changes above).
The National Minimum Wage for salon employees
The National Minimum Wage rates will also increase from 1 April 2020:
- from £7.70 to £8.20 for 21 to 24 year olds
- from £6.15 to £6.45 for 18 to 20 year olds
- from £4.35 to £4.55 for 16 and 17 year olds
- from £3.90 to £4.15 for hair & beauty apprentices
A salon apprentice over the age of 19 who is in the second year of their apprenticeship must be paid the appropriate NMW/NLW for their age as set out in the table above.
The Loop HR salary list will be updated from 01 April 2020 with the increased rates. Subscribers can use the Compliance Report to quickly and easily identify if any salon employee’s pay needs adjusting to comply with the new rates.
Loop HR: keeping you legal
Employment law is constantly on the move. At Loop HR we keep track of the latest employment law changes for salons so you don’t have to. Created especially for the hair and beauty business, cloud-based Loop HR software will transform how you manage and run your salon team.
Streamline your HR processes into one centralised cloud-based system – team rotas, pay, commission & bonuses, sickness absence, holidays and much more. Try our FREE 60 day trial (no credit card needed).
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