Whats New for Employers, New Regulations and Employment Legislation

Date

Recent and Forthcoming Developments

1 October 2010

Equality Act 2010

The Equality Act received Royal Assent on 8 April 2010. Some of the key new provisons are as follows.

The Act repeals and consolidates nine statutes and numerous statutory regulations into one, substantive piece of legislation to deal with all discrimination issues known as Protected Characteristics in the workplace.

The Act codifies various additional concepts that have arisen out of case law including:-

provisions to protect against third party harassment across all of the Protected Characteristics;
the broadening of the definition of direct discrimination to include "associative" discrimination;
the introduction of "perceptive" discrimination (the concept of how people may perceive for example the behaviour or attitude of any of the Protected Characteristics)
the concept of "discrimination arising from a disability" with the intention being that it will make it easier to raise a claim for disability related discrimination.

The Act effectively bans the use of pre-employment health checks unless they are "instrinsically necessary" for the role. This provision has been introduced to prevent a situation where disabled people, particularly those with mental health issues, were discouraged from applying for roles by reason of the fact they had to complete pre-employment health checks. In addition it is likely on the whole to be unlawful to ask health questions in an application form or at interview prior to an appointment offer.

There is a new provision which makes pay secrecy claims in contracts of employment unenforceable.

1 October 2011

National Minimum Wage

The Government has announced the following increases in the National Minimum Wage to take effect from 1 October 2011: -

· the standard adult rate (workers aged 21 and over) will rise to £6.08 per hour from £5.93

· the development rate (workers aged between 18 and 20) will rise to £4.98 per hour from £4.92

· the young workers rate (workers aged under 18 but above compulsory school age who are not apprentices) will rise to £3.68 per hour from £3.64

· the rate for certain apprentices (those under 19 years of age or those aged 19 and over but in the first year of their apprenticeship) will rise to £2.60 per hour from £2.50 but all other apprentices will continue to receive the National Minimum Wage at the appropriate age rate

· the accommodation offset will rise to £4.73 per day from £4.61.

A clarification of the status of “interns” means that many now qualify for the NMW.

1 October 2011

Retirement Age

With effect from 1^st October 2011 (but really effective from April 2011) the ability to impose a retirement age has been made unlawful (apart from specific occupational groups). Employers can remain in employment for as long as they want, with no requirement to submit to medical examinations unless as part of the usual capability process should the need arise.

1 October 2011

Agency Workers Regulations 2010

The Agency Worker Regulations 2010 (the Regulations) will come into force from 1 October 2011. This is a key piece of new legislation that will probably affect most organisations that regularly use temporary workers from agencies.

These Regulations have come in on the principle of equal treatment between agency workers and staff recruited directly via a company and if you use temporary staff via agencies, this change is going to affect you. They do not change the employment status of agency workers.

The rule of thumb on what these Regulations mean as ‘equal treatment’ is that they must simply be treated as if they have been recruited directly for the position.

The Regulations mean that:-

· from day one the agency worker will have:-

o the right to be informed of job vacancies – this information can be covered in inductions as to where vacancies are posted

o the same access to facilities, i.e. toilets, canteens, work place crèches, staff rooms, mother and baby rooms, prayer rooms, food and drinks machines, car parking but this does not cover off-site facilities such as an off-site gym that is provided as part of a benefit package given as a reward for long term service and loyalty

· agency workers are entitled to the same or no less favourable treatment as “comparable permanent employees” once they complete a qualifying period of 12 weeks in a particular job which means the same basic working and employment conditions (backdated to day one) as those employees recruited directly agency workers including:-

o contractual holiday pay

o overtime pay

o shift Allowances

o unsocial hours premiums or bonuses

o bonuses linked to individual performance (the agency worker has to be employed at the time when a bonus falls due or if a service period is required.

o luncheon or transport vouchers

but they are not entitled to:-

o occupational pensions

o Company sick pay

o contractual notice pay

o maternity and other similar pay

o redundancy pay

o benefits in kind (Company car allowances or health insurance) or financial participation schemes (i.e. share options) or where there is a discretionary or non-contractual bonus scheme that is not paid as a matter of custom and practice or share participation scheme that reflects long term performance or reward loyalty.

· after 12 weeks a pregnant agency worker will have the right to reasonable paid time off work to attend ante-natal appointments

· other absences that suspend continuity are where the employee has sickness absence, annual leave, jury service or absence due to Company shutdown or industrial action

· continuity of service continues to accrue during absences related to pregnancy, childbirth, statutory maternity, paternity or adoption leave

· the agency worker has the right to request that their agency provides them with a written statement that gives them the information about the basic working and employment conditions of the assignment.

February/April 2012

Statutory pay rates

A reminder that:-

· maternity/paternity/adoption pay is currently at £128.73 per week which is due to be reviewed in April 2012; and

· statutory redundancy pay a maximum of £400 gross weekly and due to be reviewed in February 2012.

July 2012

National Employment Savings Trust (NEST)

The Government is introducing five statutory instruments, under the Pensions Act 2008, to establish the National Employment Savings Trust pension scheme (NEST).

The NEST pension scheme will provide low cost pensions for moderate to low earners who do not currently have access to a quality workplace pension scheme. Employers will be able to use the scheme to fulfil their duty to automatically enrol eligible jobholders into a pension scheme.

If you want further information or wish to discuss any of the above please call or email now!