Employment Eye - Alert: Changes to Section 1 Statements

Employers are obliged to provide employees with a written statement of certain terms of their employment, sometimes referred to as a “section 1 statement”.

From 6 April 2020, new legislation (the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 (SI 2018/1378) and the Employment Rights (Miscellaneous Amendments) Regulations 2019 (SI 2019/731)) will increase the scope and applicability of section 1 statements for those starting work on or after that date.

Who?

Perhaps the biggest change is that the right to receive a section 1 statement will be extended to workers, whereas the right presently only applies to employees whose employment is to continue for longer than a month.

Indeed, there will no longer be any minimum service required for a worker to be entitled to receive a section 1 statement either.

The existing rules will continue to apply to employees already employed at the time of the changes, unless their contract terminates and they start work under a new contract after 6 April, or if the employee requests an up-to-date section 1 statement.

When?

The right to receive a section 1 statement is to become a “day 1 right”.

Previously, employers had up to two months to provide section 1 statements; from 6 April, the majority of section 1 statement particulars must be provided on or before the employment begins.

There are some particulars, however, which the employer will continue to have up to two months to provide.  These relate to pensions, collective agreements, training entitlements and disciplinary and grievance procedures information.

What?

From 6 April, section 1 statements will also be required to contain the following additional particulars:

• days of the week required to work, whether days or hours are variable, and if so, how such variation will be determined;
• paid leave entitlements;
• details of any other benefits provided by the employer which are not already included in the statement;
• any probationary period (including details of any conditions and its duration); and
• any training entitlement provided by the employer, including whether any training is mandatory and/or who will pay for it.

Where?

All required particulars must be contained in the section 1 statement, except for those which may be contained in supplemental, reasonably accessible document. These are particulars relating to incapacity and sick pay, paid leave entitlements, pensions and non-compulsory training for which the employee does not have to pay.

However, any such supplementary document must be referred to in the section 1 statement.

How can we help?

Our team of specialist employment lawyers can advise your organisation on these legislative changes, and the steps your organisation should take to ensure it is ready for 6 April 2020. We can review and update template contracts of employment to ensure compliance with the new legislation for a fixed fee.

If you would like to discuss this further, please contact Alastair Currie or Naomi Compton.