Section 1 Statement

On 6 April 2020 The Requirement For Employers To Provide A Section 1 Statement To New Employees Changed.

The main change is that the right to a section 1 statement became a ‘day one’ right. This means that all new employees are entitled to receive a written section 1 statement on or before their first day of employment (only limited information can be provided after this point). The rules about what must be included in the Section 1 Statement also changed. This means there is less opportunity to refer out to another document such as an Employee Handbook. The aim of the changes around the Section 1 Statement were to increase transparency between employees and employers as well as improving the enforcement of employment rights.

Changes To Be Brought In Through The Employment Rights Bill

The Employment Rights Bill will extend the list of essential content of a Section 1 Statement to include a statement that the employee has the right to join a trade union. The specific content of this statement will be set out in future secondary legislation.

The Employment Rights Bill Delivery Roadmap the Government will consult on the package of trade union measures, including the duty to inform employees of their right to join a trade union in Autumn 2025. The measures are then expected to take effect in October 2026.

Section 1 Statement Post April 2020

From 6 April 2020, the issuing of Section 1 Statements became a day 1 right. Meaning the Section 1 Statement must be provided on or before the first day of work. Therefore, removing the two-month grace period.

The legislation also extended the list of information that must be included in the Section 1 Statement.

The following information must be contained in all section 1 Statements issued on or after 6 April 2020:

• Names of employer and employee
• Address of the employer
• Date employment and continuous employment started
• Job description / job title
• Probationary Period: including its duration and any conditions that apply (such as a shorter notice period) during the probation;
• Job location;
• Pay: including how pay is calculated, how it is paid i.e. bank transfer, cash or cheque and the frequency of payment i.e. weekly, monthly etc;
• Benefits: such as pension scheme, death in service benefits etc, both contractual and non-contractual benefits should be included;
• Working Hours: specifically, normal working hours, normal working days of the week, whether such working days are variable and if so, the basis on how that variation is determined and whether the employee is expected to work overtime or unsocial hours;
• Holiday Entitlement: including bank and public holidays and how holiday pay is calculated;
• Sick Pay and Absence Reporting Procedures
• Other Paid Leave including maternity, adoption and paternity leave, shared parental leave and the new right to paid parental bereavement leave
• Training Entitlements: including details of any compulsory training, including whether the employer will pay for it;
• Notice Periods: length of notice of termination required from employer and worker.
• Details of any collective agreement that directly affect the employee’s conditions of employment; and
• If the worker is required to work outside the UK for over a month: arrangements for working outside the UK (including period, currency of pay, additional pay and benefits and return terms)

Information Which Can Be Provided After Employment Has Started

The following information can be provided within 2 months of the start date of the new employee:

• Any non-compulsory training provided by the employer
• Disciplinary and grievance procedures

What About Existing Employees?

The changes are not retrospective and only apply to new appointments on or after 6 April 2020. There is no requirement to issue new statements to existing staff unless you have made a change to the content of the statement which affects existing employees.

Existing staff will, however, have the right to request new Section 1 Statements at any time, including up to three months after the end of their appointment/employment, and you will have one month to comply.

Failure To Comply?

Employees and workers will not be able to bring a freestanding claim for a failure to provide a written statement. However, if an employee or worker brings a separate, successful claim in the employment tribunal, and they are able to show that they were not provided with a compliant written statement, they may be awarded an additional 2 to 4 weeks’ pay (subject to a statutory cap, currently £525/week and due to increase slightly on 6 April).

The penalty for breaching this requirement is quite small, although total costs might be significant if a number of employees bring claims as part of some other litigation.

Top Tip

Although you probably already have much of the required information available for employees/workers care will, however, be needed to ensure that an appropriate level of detail is included within the Section 1 Statement itself, as there is less scope to rely on ancillary documents such as policies in an employee handbook.

Kea’s Bespoke Section 1 Statement Writing Service

I have many years’ experience in writing Section 1 Statements from scratch and can help you decide which types of contracts are right for your business. When you authorise me to produce your section 1 statement, and any associated documentation, I will create a statement that establishes a clear understanding of the terms and conditions of employment you provide and reflects your working practices. It will also provide a legal framework for managing issues such as confidentiality, alcohol and drugs, flexible working requests, and termination of employment. Your new statement will reduce the risk of disputes, clarify expectations and take into account your business needs, future goals, culture and values.

I can help you:

• Decide on the right types of employment contracts for your business
• Draft legally sound contracts
• Manage any contract changes
• Make sure your business remains legally compliant

Read more about the Bespoke Contract of Employment Writing Service …

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