There are some major changes to the legal requirements concerning contracts of employment coming into force on 6 April 2020.

What are the main changes? 

From 6 April 2020

Now

What this means for you?

Contracts must be issued to both employees and workers

Only employees are legally entitled to a document setting out their basic employment terms

Employers will need to create a template contract for workers and know how to identify who is a worker

The contract must be issued on or before the first day of employment/engagement

Employers have 2 months to provide the paperwork

Employers will need to act faster

Additional detail will need to be included, including details of paid leave entitlements, probationary periods, benefits, training and greater clarity over days and hours of work

There is a shorter list of prescribed information

Employers will need to update their template contracts to ensure all the details are covered

All employees will become entitled to receive the document, regardless of their length of service

Only employees with 1 month or more of service have the entitlement

Employers may need to issue more contracts than they did previously

Who does this apply to?

It will apply to all new joiners, as well as existing employees who are either issued new contractual documentation or who request an updated contract of employment.

What should I do now? 

You should update your employment contract template and create a worker contract template so that you can be ready to start issuing them. Whilst there is no legal requirement to start doing this until 6 April 2020, there would be no harm in adopting this practice at an earlier stage.