Section 1 statements – preparing for April 2020

Now 2020 is here and we have welcomed in the new decade, it’s time to welcome in changes regards the contents of employee’s statement of particulars. 

These changes will take effect from 6 April so giving time to endure January, without whatever treat we are denying ourselves, and get prepared! 

Frequently Asked Questions

Do I need to change all my existing contracts to make sure they are all compliant with the regulations post-April 2020?

These changes will only apply to those starting work on or after 6 April 2020. You do not need to update all your existing contracts, however, you will need to ensure that all new workers from 6 April 2020 are given the correct section 1 statement. There are some situations where transitional provisions apply:

• If an “existing employee” (those whose employment commenced on or after 30 November 1993 and before 6 April 2020) requests a section 1 statement either whilst employed or within three months of the termination of their employment, they must be given a statement compliant with the new legislation. An existing employee can only make one such request; and
• If, after 6 April 2020, there is a change in any of the particulars that are required to be provided to an existing employee in accordance with the amended section and if that employee has not previously requested a more recent section 1 statement, the employer must notify the employee in accordance with section 4.   

What’s a reasonably accessible document?

There is no case law on what this term means; provided the documents are readily available from HR or on the employer’s intranet and all employees and workers have access, this should be sufficient. 

What is the purpose of these changes?

The direction of travel for the Good Work Plan is to protect vulnerable workers and one way of doing this is to ensure that all workers have clear accessible documentation that sets out in detail the extent of their rights. By changing the law so that workers now have the right to a statement of particulars that must include a raft of details, it is hoped this will start to address this issue. 

Can I be fined if I fail to provide the new particulars?

An employee (and a worker), as from 6 April 2020, can make a complaint to the tribunal if they have no section 1 statement or if it is inaccurate or incomplete. Once that worker’s employment has expired, they have three months to bring a claim. The Tribunal can make a declaration that the particulars be amended but they will not award compensation to the worker in those circumstances. The only time that a tribunal will make a financial reward is if the failure to provide a section 1 statement is brought together with a substantive claim i.e. for unfair dismissal, discrimination etc. and then the employee (it can only be an employee in certain substantive claims) will be entitled to a minimum of two weeks’ pay. The tribunal may award a higher amount of four weeks’ pay but only in certain circumstances.    

How do I prepare?

• Draft new contracts for all workers and employees starting after 6 April ensuring they are compliant with the changes
• Update HR managers and other relevant staff so they understand the new legislation and the reasons for the changes
• It may be a useful opportunity, if time pressures allow, to start an audit of other contracts and look to bring them up-to-date with the new statutory section 1 guidance
• Seek specific advice on issues within your organisation that throw up unique issues and questions when faced with these changes

Further information

For further information on how to prepare for these changes, please contact Matt Wort.

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