Following a lengthy debate and a number of concessions, The Growth and Infrastructure Act 2013 received Royal Assent on 25 April 2013. The Government intend on implementing this, third, new type of employment status in autumn this year.
The additional concession of the new status renders it invalid unless the employee has received independent legal advice from a relevant advisor, before entering into the contract. The employee will be deemed as a normal employee, even if they sign the contract, if they have not taken advice beforehand.
Interestingly, regardless of whether the employee accepts the role, there is a requirement that the employer pay for the reasonable legal costs associated in taken this advice.
Of course, this concession is in addition to those we have previously discussed, namely:
Before you make any decisions on switching existing employees or advertising for new employees under this new contract please call Jodie or Simon at Milners on 0113 245 0852 to discuss the benefits to your business and the costs associated in doing so as the real benefit to employers remains questionable.