Section 1 statements are changing - make sure your business isn’t caught out

23rd January, 2020 by Matthew Potter

What is a Section 1 statement?

Currently, employers are required to provide employees (who will be working with them for at least one month) with a written statement. This statement should set out the key terms of the employment and must be given to employees within two months of their employment start date. Some terms must be given in a single document (“the Principal Statement”) and others can follow in reasonably accessible documents (e.g. a staff handbook) or supplementary statements.

When do the changes come into force and will they affect me?

The changes will apply where:

You employ someone who will start work on or after 6 April 2020.
You employ someone who commences a new contract on or after 6 April 2020.
An existing employee (either during their employment or within three months of them ceasing work for you) requests a section 1 statement from you on or after 6 April 2020.
An existing employees section 1 statement needs to be updated. This could apply in the case of a promotion where the particulars in the original section 1 statement are no longer correct. A new statement should be issued within 1 month of the change of the particulars.

The requirement to provide a Section 1 statement will also be expanded on 6 April 2020 to all workers (as opposed to just employees). The statement will become a day 1 right and should be given no later than the commencement of employment.

What information must currently be provided in the Principal Statement?

The names of the employer and employee.
The date the employment commences and the date the employee’s period of continuous employment begins.
The amount of pay (or how it should be calculated) and the intervals of payment (e.g. weekly or monthly).
The hours of work, including what amounts to “normal working hours”.
An employee’s entitlement to holiday entitlement and holiday pay.
The employee’s job title or a brief description of the work.
The employee’s place of work.
The name of a person to whom an employee can appeal if they are dissatisfied with any disciplinary or dismissal decision.
The name of a person to whom the employee can apply to seek redress of any grievance, together with information on how to make an application.

What additional information will be required in the Principal Statement as of 6 April 2020?

Which days of the week the worker is required to work, whether this is variable and where applicable, how they can be varied.
Any other benefits provided by the employer.
Information in relation to any probationary period, including its conditions and duration.
Information in relation to any training that the worker is required to complete.
Information in relation to any other required training which the employer will not pay for.
The notice periods for termination.
The length of any temporary or fixed-term work.
A term in relation to any work which must take place outside the UK for a period of more than one month.

What information can currently be provided in another reasonably accessible document?

Information relating to absence due to incapacity and sick pay.
Terms in relation to disciplinary and grievance procedures.
Information in relation to pension schemes.

What additional information can be included in another reasonably accessible document as of 6 April 2020?

Information on any training which is to be provided by the employer.
Terms relating to any paid leave (other than in relation to sick pay).

What information can be provided in a supplementary statement up until 5 April 2020 (within two months of the employment start date)?

Information relating to any work outside the UK for a period of more than one month.
The length of any temporary or fixed-term work.
Information about disciplinary and grievance procedures (although this should mainly be contained in the Principal Statement).
Information relating to any collective agreements which effect the employment.

What information can be provided in a supplementary statement as of 6 April 2020 (within two months of the employment start date)?

Information relating to pensions and pension schemes.
Information relating to any collective agreements which effect the employment.
Details of any training which will be provided by the employer.
Information about disciplinary and grievance procedures (although this should mainly be contained in the Principal Statement).

What happens if I do not comply with the new regulations?

From 6 April 2020, all workers can bring a claim against you if you have failed to provide a Section 1 statement. This also applies if you have provided an inaccurate or incomplete statement. Although a worker cannot claim compensation for the failure to provide the statement alone, it can be tagged onto some existing claims if the statement had not been provided at the time the claim was issued.

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.