Employment law update
By Sadiq Vohra
Over recent years we have seen many changes to employment law. The momentum continues throughout the remainder of this year.
Sadiq Vohra, employment lawyer at MWR Solicitors, highlights some of the main changes that have already taken place as well as those on the way. This is an overview of the main changes relating to employment law and not an exhaustive guide.
Redundancy pay
From February 1 2005 the maximum weekly pay rate to be taken into consideration when calculating statutory redundancy payments, basic awards etc will be raised from £270 to £280.
Statutory sick pay
From April 6 2005, the standard rate for Statutory Sick Pay increased from £66.15 to £68.20 per week.
Statutory maternity/paternity/adoption pay
From April 6 2005 the rate for Statutory maternity/paternity/adoption pay SMP, SPP and SAP increased from £102.80 to £106.00 per week (or 90% of average weekly earnings if less).
The Road Transport (Working Time) Regulations 2005 (SI 2005/639)
The new rules came into force on April 4 2005. They implement the provisions of the EC Road Transport Directive which introduced limits on weekly working time and night-time working. They also specify how much continuous work can be done before taking a break. Under the new regulations, working time for mobile workers must not exceed:
- an average 48-hour week;
- 60 hours in any single week;
- 10 hours in any 24-hour period, if you are working at night.
Information and Consultation of Employees Regulations 2004 (SI 2004/3426)
This came into force on April 6 2005 for organisations with 150 or more employees and requires employers to inform and consult employees on any management decisions affecting their future, including changes in organisation of the work or the workforce, and changes relating to the financial situation, structure and employment of staff, including redundancies and job transfers. This is arguably in addition to any duty an employer may have under a collective agreement with the union.
Pensions Act 2004
This came into force on April 6 2005. Its provisions include: creation of the Pensions Regulator to replace OPRA; Pension Protection Fund and Financial Assistance Scheme introduced; changes to pensions rights during paid paternity and adoption leave; changes for transferred employees who qualify for employer pension provision; new responsibilities for trustees; and employers required to consult members before making significant changes to a scheme. Some of the provisions came into force on the above date, whilst others will be phased-in over the next year.
Changes yet to occur
Minimum wage increases
These will take effect from October 1 2005. The adult rate will increase from £4.85 to £5.05 with a further increase to £5.35 in October 2006. The rate for 18-21 year olds will increase from to £4.25 and to £4.45 in October 2006.
Amendments to the TUPE regulations as a result of the Acquired Rights Amendment Directive (2001/23/EC)
Implementation was expected in autumn 2004, but is now expected in October 2005.
Key features are: review of the rules about when TUPE applies; flexibility in relation to insolvency; clarification of the economic, technical or organisational (ETO) defence; and proposals regarding variation of contracts for an ETO reason. The matter is currently undergoing a consultation procedure.
Employment Relations Act 2004
6th April 2005 brings into force a number of provisions. These include the clarification of how the appropriate bargaining unit is to be determined by the Central Arbitration Committee ("CAC") (sections 1 and 4), communications between the union and the bargaining unit, postal voting for workers away from the workplace at the time of a workplace ballot.
Other provisions relate to the speeding up of the de/recognition process.
Section 21 of the Act is also implemented, which gives ACAS the power to require information from parties where it is asked to settle a recognition dispute.
Further provisions commence to deal industrial action. In particular, Section 26 amends the protections which the 1992 Act provides for employees taking lawfully-organised, official industrial action. The protected period is extended from eight to twelve weeks and "locked out" days are disregarded when calculating this period. Section 28 introduces new matters to which a tribunal must regard when assessing whether an employer has taken reasonable procedural steps to resolve a dispute with a union. The duty to have regard to these matters applies where the parties have accepted that the services of a conciliator or mediator will be used.
The implementation of Section 40 amends the Employment Rights Act 1996 so that an employee has the right not to be dismissed or treated detrimentally because he serves on a jury or is summoned to do so. Furthermore, selection for redundancy on the grounds that an employee has been on jury service will be classed as unfair. A claim for unfair dismissal relating to jury service is not subject to the requirement of one year's qualifying service.
Similarly, an employee dismissed for making a flexible working application can complain of unfair dismissal (even when involved in official or unofficial industrial action) regardless of length of service.
Disability Discrimination Bill
The bill was introduced into the House of Lords in November 2004 and is currently progressing through the House of Commons. If it is passed it is expected to come into force in stages from December 2005 to December 2006 and is expected to include the following provisions:
- a third party who publishes a discriminatory advertisement will be liable as well as the party placing the advertisement;
- extending the definition of disability to include those with HIV, Multiple Sclerosis and cancer.
There are other provisions in this bill which are not directly related to employment law issues and therefore beyond the remit of this article.
Equality Bill
The bill was introduced into the House of Commons in March 2005. If passed by Parliament, it will create a new Commission for Equality and Human Rights to bring together the work of the Commission for Racial Equality, the Disability Rights Commission and the Equal Opportunities Commission.
