Category: Employment Contracts News

The eight employment law changes employers need to be aware of this year:

1. Introduction of shared parental leave

From 1 December 2014 couples who have a baby due – or a child placed for adoption – on or after 5 April 2015 will be able to share the mother’s maternity leave and, if available, maternity pay.

More information

• Employers: get ready for shared parental leave

2. Changes to statutory adoption pay and leave

As of 5 April 2015 the qualifying period of 26 weeks for an employee to be eligible for adoption leave will be removed.

Statutory adoption pay (SAP) will be put in line with statutory maternity pay, with it being set at 90% of average weekly earnings for the first six weeks.

Surrogate parents will also be eligible for adoption leave, where the child’s expected week of birth begins on or after 5 April 2015.

More information

• Gov.uk: Statutory adoption pay and leave

3. Right to take time off to go to adoption appointments

From 5 April 2015 the main adopter will be entitled to take time off to attend up to five appointments, and the secondary adopter up to two.

More information

• Acas: Adoption leave and pay

4. Parental leave age limit of children extended

Parental leave is a parent’s right to take unpaid leave which can be used before the child reaches the age of five.

From 5 April 2015 the age limit of the child will increase to 18 years’ old and parents who have sufficient qualifying service will be able to take 18 weeks’ unpaid leave.

Parental leave isn’t connected to shared parental leave.

More information

• Acas: Parental leave

5. Introduction of Fit for Work Service in England & Wales

From April 2015 the government is introducing a new Fit for Work Service, which offers a health and work assessment and advisory service to employees who have been off work due to sickness for four weeks or more.

In England & Wales these employees will be offered access to free occupational assistance.

If employees are recommended medical treatment under the new scheme, employers will be able to claim up to £500 tax relief on the payments on such treatment.

More information

• Fit for Work

6. Restrictions removed on defined-contribution pension schemes

From April 2015 certain restrictions will be removed on how individuals can draw their benefits from their defined-contribution pensions after the age of 55.

paternity pay, statutory maternity pay and adoption pay

All rates are increasing from 5 April 2015.

More information

• 2015 pay rates announced

8. Rate increase of statutory sick pay

As of 5 April 2015 the rate of SSP is increasing to £88.45 per week.

More information

• Gov.uk: Statutory sick pay (SSP)

Published on: January 20, 2015

Following a recent Employment Appeal Tribunal ruling around five million employees could be eligible for backdated holiday pay after it was found that employers should include overtime when calculating holiday pay.

The tribunal ruled on three cases — Bear Scotland v Fulton, Amec v Law and Hertel v Wood  — and found that employers shouldn’t take into account basic pay only when calculating how much their staff should be paid while on holiday.

The decision was made because in two of the cases employees had worked overtime consistently, but it hadn’t been included in their holiday pay so they had received “considerably less” pay when they were on holiday in contrast to when they were at work.

Employment lawyers have told employers, however, not to worry that they will be making massive payouts. Lisa Bryson, from A&L Goodbody, has said that business owners must take a measured approach:

“To a degree, it’s actually welcome news to employers because the ruling was that any underpayment of holiday that occurred more than three months ago wouldn’t be counted, so that appeared to limit the potential financial exposure.”

In fact, any claims from employees must be made within three months of the deduction or three months of the last of a series of unlawful deductions. The ruling also stated that the extra eight days of holiday staff are due will not be included.

However, this ruling isn’t the end of the matter, as the right to appeal has been granted and it’s expected that it will be pursued in the future.

Other information

• New employment law reforms introduced in October

External information

• BBC: Overtime should count in holiday pay

Published on: November 17, 2014

Many employment law reforms have taken effect this year, from the change to flexible working to new rules for dealing with workplace disputes.

More changes have now been introduced this October:

1. Fathers and partners can now take time off work for antenatal appointments

As of 1 October 2014 expectant fathers, or the partner of a pregnant woman, can take unpaid leave to accompany a pregnant woman to their antenatal appointments.

The right is available to:

• A husband
• Civil partner or partner of a pregnant woman
• Father or parent of a pregnant woman’s expected child
• An intended parent in a surrogacy situation.

Employees can use the right on up to two occasions for a maximum of six and a half hours each time.

They don’t need to have worked for the company for a set period of time before they can take the time off. They can use it on ‘day one’.

Agency workers, however, must have met a minimum service requirement of 12 weeks with the same employer to be eligible.

If they so wish, an employer can ask their employee to provide a signed declaration stating:

• That the employee has a qualifying pregnant relationship with a pregnant woman or her expected child;
• That the employee’s purpose in taking unpaid leave is to accompany a pregnant woman to her antenatal appointment;
• That the antenatal appointment has been made on the advice of a GP, registered midwife or registered nurse;
• The appointment’s time and date.

The employee can’t take unpaid leave if their employer asks for such a declaration and the employee doesn’t provide it.

More information

• Department for Business Innovation & Skills: Time off to accompany a pregnant woman to ante-natal appointments: Employer guide

2. Audits for employers who lose an equal pay claim at an employment tribunal

As of October employment tribunals must make employers, who have lost equal pay claims brought on or after 1 October 2014, undertake and publish pay audits.

Equal pay claims are where employees can prove that they are being paid less than members of the opposite sex for performing work of equal value.

The employers who will be affected by this legislation are those who have discriminated on the ground of sex in contractual or non-contractual pay matters where continuing discrimination is likely.

Exceptions to the reforms are if the employer:

• has already carried out an audit in the past three years;
• has transparent pay practices;
• can provide a good reason why the pay audit would not be useful.

More information

• Legislation.gov.uk: The Equality Act 2010 (Equal Pay Audits) Regulations 2014

3. Increase of the National Minimum Wage (NMW)

As of 1 October the NMW increases as follows:

• Adults: From £6.31 to £6.50 per hour
• 18 to 20-year-olds: From £5.03 to £5.13 per hour
• 16 to 17-year-olds : From £3.72 to £3.79 per hour
• Apprentices: From £2.68 to £2.73 per hour

More information

• Gov.uk: National Minimum Wage rates

4. Changes to unfair dismissal for members of reserve forces

As of 1 October 2014, employees who allege their dismissal was to do with them being a member of a reserve force, such as the army reserve (formerly known as the territorial army),won’t need to have the usual two-year qualifying period required to claim unfair dismissal and they can now make a claim immediately.

Reservists will still have to prove that it was unfair to dismiss them because of their absences from work. They won’t be treated as unfairly dismissed automatically.

• Legislation.gov.uk: Defence Reform Act 2014

5. Auto enrolments for employers with 60 employees

As of 1 October 2014 UK employers with 60 or more employees now have to automatically enrol their staff into a workplace pension. There are fines for employers for non-compliance.

• The Pensions Regulator: The essential guide to automatic enrolment

 

Published on: October 17, 2014

From 30 June 2014 the Flexible Working Regulations will be amended, so that all employees will be able to ask for flexible working once they have worked for an employer for a minimum of 26 weeks, removing the requirement that the employee must have caring responsibilities.

Under the current legislation, only the following employees have had the right to request for flexible working once they have worked for their employer for 26 weeks continuously:

• Parents of children aged 16 or under;
• Parents of disabled children under the age of 18; or
• Adult carers.

Also, these carers mustn’t have made another application to work flexibly 12 months before they made a request to their employer. This is still the case with the new legislation.

Now that all employees can apply, employers may receive, for example, requests from employees who want to work a shorter day, work from home, or job-share.

Statutory procedure

The government is also removing the statutory procedure for considering flexible working applications.

Under the current statutory procedure employers must deal with the request within a time limit of 28 days, but with the new legislation being introduced employers will have to consider an employee’s request “in a reasonable manner” and within a “reasonable” period of time. However, the request must be dealt with within three months from receipt of the written request.

A statutory code of practice will be published to guide employers guidance on how to handle requests and what ‘reasonable’ means.

To help employers understand the introductory legislation, ACAS has published a guide on how to handle flexible working requests in a reasonable manner.

However, employers will have the flexibility to refuse requests on business grounds. This includes additional cost, inability to reallocate work to existing staff and not enough work during the hours to be worked under the request.

Other information

• How to prepare your company for the new flexible working rules
• How to deal with a request for flexible working

Published on: June 19, 2014

As of Tuesday 6 May, new employment law legislation has been introduced to reduce the number of workplace disputes ending up at an employment tribunal.

The Enterprise and Regulatory Reform Act 2013 has made it compulsory that employees who wish to take their case to an employment tribunal must notify the Advisory, Conciliation and Arbitration Service (ACAS) first.

Once ACAS has been informed both the employee and employer will then have the chance of resolving the dispute through an ACAS conciliator.

But if one of the parties doesn’t want to conciliate, ACAS will issue a conciliation certificate.

A certificate will also be issued if the parties cannot come to an agreement. It’s only with this certificate that a claim can proceed to an employment tribunal.

The benefits of ACAS being involved

Companies aren’t required to conciliate once ACAS has been informed, but the new legislation can help businesses as it gives them advance warning that a claim is being brought and the reasons why.

This process then gives companies the opportunity to settle the dispute quickly and inexpensively, or the time to prepare their defence, if it’s so needed.

Unless an employee is eligible for help with their legal costs, they will have to pay a fee of £250 if they take the claim to a tribunal. They will also have to pay £950 for the final hearing. As a result, employees may want to settle before arriving at an employment tribunal.

ACAS will provide information about employment law and compensation, but it won’t give an opinion on the claim.

This should help claimants as it will provide them with realistic expectations of the compensation involved and the legal issues they will have to deal with.

The employers will also have advance notice of the size of compensation that the employee is looking for.

The drawbacks of the new legislation

There are strict time limits as to when a claimant can take a workplace dispute to a tribunal.

The introduction of this early conciliation period does make it harder for an employee to know when to meet that deadline.

Other information

• How to solve a workplace dispute

External links

• Gov.uk: Workplace disputes

Published on: May 9, 2014

by Daniel Jones

Qantas has become the latest worldwide firm to roll out a redundancy scheme, having given 4,500 employees until the end of March to make up their minds over whether to take it or not.

The Australian airline was today (March 6th) set to issue staff with expressions of interest in redundancy, which effectively asks them whether they would like to leave their posts.

Australian Services Union New South Wales branch secretary Sally McManus told the Guardian workers have been given until the end of the month to decide, although those at Sydney international airport have only until March 21st.

She warned that the decision to offer redundancy has been taken rather hastily and this could lead to some poor moves being made.

However, Ms McManus promised that the union and Qantas will work together this afternoon in order to run the rule over the company’s plans to reduce its workforce, particular at the check-in desks at Sydney’s major airport.

Qantas is thought to have asked about 2,500 of its employees whether they would be interested in taking voluntary redundancy. In some cases, it’s also willing to offer a part-time role to staff.

“That doesn’t mean that all 2,500 will go. The number that leave the business will be much less than that. After employees have indicated if they want a voluntary redundancy, we will review the applications and consult with those employees,” explained a spokeswoman for the airline.

As with any company that takes steps to trigger a number of redundancies – whether voluntary or otherwise – within its ranks, Qantas must adhere to the regulations governing this particular step.

The spokeswoman for the carrier was keen to point out none of the affected staff would be leaving their posts within the next few weeks, as April and May have been set as the period during which action will be taken.

Flybe has become the latest company to announce it is making a significant number of staff redundant in a bid to get a grip on costs.

The Exeter-based airline has confirmed that it will cut around 500 jobs in an accelerated drive to slash its outgoings as soon as possible. News of the job losses comes despite the firm revealing improved financial results for the six months to the end of September.

In January, Flybe explained it would be carrying out a turnaround plan designed to get it back on a strong footing. By June, it had confirmed 490 people had left their roles within the organisation either through redundancy, resignation or as part of a transfer.

It’s now aiming to cut another 500 positions in what it described as “a new phase of efficiency improvements”. The overall aim of this is to achieve “a strong base for future growth”.

Chief executive Saad Hammad said: “The business needed action now and so today (November 11th) we are explaining our next phase which encompasses a review of everything we do and how we do it. Most of the immediate actions are completed, being implemented or already being consulted on. Unfortunately there is a proposal for further redundancies.”

Three elements of Flybe’s immediate action plan have been revealed, starting with the need to optimise configuration. This will be followed by a stage during which it will look to reduce all costs and, finally, a period of improving commercialisation.

Any of the employees at Flybe who feel their job may be at threat or who have already been approached about taking redundancy may wish to seek expert redundancy advice on the subject.

Employees who have worked for a firm for at least two years will typically be entitled to a redundancy payout, while others should check their rights when it comes to notice periods and offers of alternative work.

Mr Hammad said that the airline is ready to consult with trade unions and employees to ensure it carries out the process fairly and in line with UK regulations.

• Surviving Redundancy – An Essential Legal Guide: Use our essential guide to get expert advice on your employee rights.

Published on: November 11, 2013

The National Minimum Wage (NMW) is rising by 11p today.

The following changes will take effect:

• The adult rate will increase by 11 pence to £6.19 an hour
• The rate for 18-20 year olds will remain at £4.98 an hour
• The rate for 16-17 year olds will remain at £3.68 an hour
• The rate for apprentices will increase by 5 pence to £2.65 an hour
• The accommodation offset will increase by 9 pence to £4.82 per day

This 1.8% increase is slightly lower than the typical rise in earnings and the current rate of inflation, which represents the rising cost of living.

But the TUC union believes that the changes are not enough.

“While we are pleased that government has rejected the siren calls of some employers to freeze the minimum wage for adult workers and apprentices, these increases are still far below inflation and will leave the lowest paid facing a real terms cut,” said the TUC.

“These new rates are a particular blow to younger people who will face the biggest hit on their living standards. There is no evidence that the minimum wage has had an adverse impact on young people’s employment so it is hard to see the logic behind their pay freeze.”

Published on: October 1, 2012

by Sarah Ashcroft

Having a safe and secure whistleblowing policy is vital for employees of a business to expose wrongdoing, which is ultimately to the benefit of the company involved.

However, contained in a small passage of the government’s enterprise and regulatory reform bill (2012) is a section that could silence critics and make it very difficult for whistleblowers to act.

In effect, the changes would mean that whistleblowers are given protection only when the disclosure is made “in the public interest”.

According to ministers, the reform is designed to close a loophole that currently lets employees blow the whistle on breaches of their own employment contract, which they say are of a “purely personal interest”.

The proposals have been met with criticism, however, from one of the UK’s leading experts on whistleblowing law. David Lewis, professor of employment law at Middlesex University and convenor of the International Whistleblowing Research Network, has written an open letter to business secretary Vince Cable that attacks the lack of consultation over the changes.

“These provisions have not been the subject of official review since they came into force in 1999 and there appears to have been no consultation about the proposed introduction of a general public interest test in all cases,” he wrote.

Professor Lewis went on to say that the planned changes could “create uncertainty in many cases” and may ultimately inhibit important disclosures about wrongdoing.

“In my opinion, the current economic crisis underlines how important it is to have tip offs about improprieties. Many employers now recognise this and have policies which promote reporting but do not contain a public interest test,” he added.

Mike Emmott, employee relations adviser at the Chartered Institiute for Personnel and Development, agrees that there has been a lack of consultation over the proposed reforms. Speaking to Personnel Today, he said anything that prevents employees from exposing wrongdoing freely is “unhelpful” both to them and to the organisations they work for.

The changes to the whistleblowing regime are part of a wider package of reforms designed to reduce costs for businesses. However, by making it more difficult for employees to expose wrongdoing, the bill could ultimately increase costs for companies.

• Employment News from Lawpack: Solicitor-approved company Whistleblowing Policy, with expert guidance on how to complete the legal form

by Daniel Jones

Human resources departments need to make every effort to ensure all their documents are up-to-date, which will include full-time employment contracts and other files.

The task is to make sure that the documents truly reflect a company’s current business and are totally legally compliant.

Dechert’s Employment Law Group highlighted that there are some situations where employment contracts will need to be updated more than others, which is determined by the nature of the employer’s business and the position of the worker.

One of the most prominent areas for consideration is garden leave, the group explained, as these files often need to be updated to increase an employer’s protection.

Garden leave is typically used by employers when a senior worker is either dismissed or resigns, as it prevents them from being able to immediately work for a competitor.

It also means that the individual is prevented from acquiring trade secrets and developing further contacts.

• Employment News from Lawpack: Solicitor-approved full-time employment contract template with expert guidance on how to complete the legal form