The New Miscellaneous Provisions Act 2018 – What Does it Mean?

Why?

The act has been introduced to help improve the security and predictability of working hours for employees on insecure contracts or variable hours.

Terms of Employment

Within five days of an employee commencing employment, the employer must notify the employee in writing of certain core terms of employment.

The five core terms to include are as follows:

• the full names of the employer and the employee;
• the address of the employer or principal place of business;
• the expected duration of a contract, if temporary or, the end date of a fixed term contract;
• the rate or method of calculation of the employee’s remuneration and the pay reference period;
• the number of hours which the employer reasonably expects the employee to work—
• per normal working day, and
• per normal working week.

Zero Hour Contracts

There is a new provision under the Act; substituting section 18 of the Organisation of Working Time Act 1997, to prohibit zero hours contracts except in very limited circumstances, such as where there is a genuine casual employment requirement or the need to provide cover in emergency situations.

Minimum Payments

If an employer requires an employee as a matter of contract to be available for a certain number of hours per week that employee is entitled to at least 25% of those contracted hours or to at least 25% of the hours for which work of the type which the employee is required to make himself available to do has been done for the employer (the “25% figure”). If the employee is not provided with such work, he or she is entitled to be paid in respect of that 25% figure or for a total of 15 hours’ work (whichever is the lesser). The rate of pay to be applied in respect of those hours is 3 times the national minimum wage or 3 times the minimum hourly rate specified in any applicable employment regulation order.

Banded Hours

The Act amends the Organisation of Working Time Act 1997. The Act enables employees whose actual hours of work are greater than those hours in their contract of employment to request to be placed within a band or range of hours, which better reflects their actual hours worked in the previous twelve months. The bands of weekly working hours are:

What do Employers Need to Do?

Employers will need to reassess any arrangements with casual workers and ensure these comply with the provisions of the act. Most notably, employers need to ensure they provide basic terms and conditions of employment within a 5-day limit to avoid any criminal sanctions. As well as this the employer will need to ensure they have a comprehensive record of hours worked by an employee.

Contact Us

If you need further information on The New Miscellaneous Provisions Act 2018, need any assistance or you have any questions that need addressing regarding the implications of this act for your business, don’t hesitate to get in touch with us.