There have been many changes to Employment Law over the last twelve months. We look at the top ten changes that employers should be aware of:
1. New compensation limits came into force on 1 February 2011
The notable changes are:-
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The limit on the amount of a week's pay for the purpose of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £380 to £400.
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The maximum compensatory award for unfair dismissal rises from £65,300 to £68,400.
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Guarantee pay increases from the rate of £21.20 a day to £22.20 a day.
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The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £4,700 to £5,000.
The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2011.
2. Statement of Fitness for Work (fit note)
What has changed?
The fit note allows the employees doctor to provide you with more information on how their condition affects their ability to work.
The changes mean that the doctor can advise when the employee may be fit for work with some support, suggest common ways to help the employee return to work, give information on how the employee's condition will affect what they can do.
Understanding the fit note
When the doctor provides a fit note they will advise on one or two options. Either the employee will be 'not fit for work' (the doctor will choose this option when they believe that the employee's health condition will prevent the employee from working for a stated period of time) or they may be 'fit for work' (the doctor will choose this option when they believe that the employee may be able to return to work whilst they recover with some help from the employer).
The doctor may include some comments which will help the employer understand how the employee is affected by their condition. If appropriate, they can also suggest one or more common ways to help the employee return to work.
This could include a phased return to work, altered hours, amended duties, changes to your workplace.
3. Time to train: Request time at work to learn new skills
The right to request 'time to train'
If you are an employee and you work in an organisation with 250 or more employees you have the right to request time for study or training, 'time to train'.
From 6 April 2011 the right will apply to all employees working in organisations of all sizes, regardless of how many employees there are.
You do not have to use the right for every training request. If you already have a system with your employer for making training requests you can continue to use that.
To make a statutory request for 'time to train' you must:-
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Be an employee;
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Have been working for your employer continuously for at least 26 weeks before you apply.
4. Additional Paternity Leave Regulations in force April 2010, but only where baby is due on or after 3 April 2011
When will the new rights come into force?
Although the relevant regulations came into force on 6 April 2010, the new right will only apply in respect of babies due (or children placed for adoption) on or after 3 April 2011.
How much extra leave will fathers be entitled to?
Currently, fathers are entitled to just two weeks statutory paternity leave. This will be extended so that eligible employees will also be able to take up to 26 week additional paternity leave (APL) for the purpose of caring for a child under one.
How much notice must an employee give if they wish to take additional paternity leave?
An employee must give eight weeks' written notice before taking paternity leave.
When will someone taking additional paternity leave be entitled to receive statutory paternity pay?
Mothers are currently entitled to take up to 52 weeks maternity leave. Statutory maternity pay (SMP) is available during the first 39 weeks of this leave (assuming certain conditions are met).
A father will only be entitled to be paid at a flat rate that is equivalent to SMP (from April 2010 £124.88 a week) during APL if they take the leave during what would have been the mother's paid maternity period. Certain other eligibility requirements will also apply.
5. Protection against blacklisting for trade union members
From 2 March 2010, you have the right not to be 'blacklisted' by any individual, business or other organisation because of your trade union membership or activity.
Blacklisting trade union members
'Blacklisting' is where an organisation collects information on trade union members to enable that organisation or others to treat workers or job applicants less favourably because of their trade union membership or activities.
In the past, trade union blacklists have focused on prominent trade union members, for example shop stewards or other workplace representatives. However, they have also identified ordinary members.
From 2 March 2010, it became unlawful for any individual, business or other organisation to compile, supply or sell or use a blacklist.
It also became unlawful for an employer to:-
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Refuse you employment for a reason related to a blacklist;
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Dismiss you for a reason related to a blacklist;
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Subject you to any other detriment for a reason related to a blacklist (e.g. refuse you a promotion or pay rise).
It is also unlawful for an employment agency to refuse its services to you for a reason related to a blacklist.
Employers and employment agencies could be acting unlawfully if they:-
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Directly access the blacklists;
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Access them indirectly via middle men or other intermediaries.
6. The Equality Act 2010
Probably the most extensive piece of employment legislation. On 1 October 2010 the Equality Act came into force to replace most of the anti-discrimination laws in one fell swoop.
For those of you who missed our seminar in October, basically it harmonises and unites the various strands of anti-discrimination law into one Act. In addition though, there are more extensive measures such as protection from discrimination by association and even mistaken perception of discrimination
There is also extended liability for third party harassment.
There is also wider scope for disability discrimination claims and perhaps one of the most significant parts of the act is the limitations on pre-employment health enquiries and also protection when discussing potentially discriminatory pay.
These were the intended changes. There was also one unintended change which relates to the enforceability of Compromise Agreements which cause lawyers a major headache but hopefully this error will be sorted out in due course.
There are numerous provisions in the Act which have not come into force. There could be parts of that which will in fact never come into force.
The single equality duty is due to be introduced in April 2011. This will oblige public authorities to have regard to the need to eliminate discrimination, harassment, victimisation and other prohibited conduct when exercising their functions.
The positive action provisions of the Act also come into force in April 2011 which permit employers to treat individuals with protected characteristics more favourably than others in connection with recruitment or promotion. This only applies to candidates of equal merit and the more favourable treatment must enable or encourage an individual to overcome or minimise a disadvantage or participate in an activity where he or she is under-represented in that activity. Whilst we have had positive discrimination laws in the United States for a considerable period of time, it is very much a newcomer to English Law and it will be interesting to see how this develops.
7. Apprentice minimum wage
From 1 October 2010 the apprentice minimum wage of £2.50 per hour was introduced for the first time. This applies to apprentices under 19 or those 19 and over in the first year of their apprenticeship.
8. Right to request flexible working extended to parents of children under 18
The new Regulations have extended this right to parents with children under the age of 18 which is due to take effect on 6th April 2011. The right is currently for parents with responsibility for a child under the age of 17 or under the age of 18 if the child is disabled.
The Government is currently considering the extension of the right to request flexible working to all employees.
9. Agency Workers' Regulations 2010
Again, for those of you who missed our seminar in October 2010, the Agency Workers' Regulations were passed in 2010 but are due to come into force on 1st October 2011. Agency workers or 'temps', will have the same rights to pay, holidays and basic conditions of employment as permanent staff doing the same kind of work after serving a 12 week service qualification. Therefore if you employ agency workers you are going to have to think about how the Regulations are going to impact upon your business. Not only will there be increased costs (and the costs of the Regulations are estimated to be £1.8 billion pounds per year) but it is also estimated that there will be an additional 1.5 hours of HR managers' time per agency worker which is going to be an increased bureaucratic burden.
10. Bribery Act 2010
This basically aims to promote anti-bribery practices amongst business by modernising the law on bribery. The Act introduces a corporate offence of failure to prevent bribery by persons workings on behalf of a business. A business has a defence if it has adequate procedures in place to prevent bribery. The penalty however is an unlimited fine. For individuals it will be a criminal offence to give, promise, or offer a bribe and to request, agree to receive or accept a bribe. The legislation raises the maximum penalty for bribery by individuals from seven to ten years imprisonment. The Act comes into force in April 2011 and is going to make many a marketing department have a rethink about some of the corporate gifts and entertainment currently provided!
