EMPLOYMENT LAW BULLETIN JAN 10 | Oct 2009 | July 2009 | May 2009 | March 2009 | Dec 2008 | Oct 2008

EMPLOYMENT LAW BULLETIN JULY 2009
NATIONAL MINIMUM WAGE
The government announced in early May that the standard rate for the National Minimum Wage will increase from the current £5.73 to £5.80 per hour from 1st October 2009. The rate for 18-21 year olds will rise to £4.83 and for 16-17 year olds to £3.57. At the same time the government also announced that those aged 21 will be entitled to the full standard NMW rate as from October 2010.

NEW SICK NOTES
With the aim of helping more people stay in work rather than drift into long-term sickness, the Government has unveiled a new medical "fit note" to replace the long-established "sick note". The new note, to be the subject of a 12-week consultation on its design, should enable people to get the best possible advice about staying in work. If they cannot work, it will explain what their employer can do to help them return to employment sooner.
Health Minister Ben Bradshaw said that the fit note would give GPs a new opportunity to benefit their patients and he expected it to be used in surgeries everywhere. Developed with the support of healthcare professionals, employer representatives and trade unions, the new notes will roll-out across Great Britain in the Spring of 2010. The aim is for them to be computer-generated in GPs' surgeries, replacing the current handwritten version.

FORCED RESIGNATION
In recent weeks, a number of MPs have been forced to resign over the part they played in the expenses scandal. This has largely been the result of pressure from party leaders acting in response to public opinion. They’ve been quite clear that wrong-doers can either “jump now” or “be pushed later”. This is to improve the reputation of their parties and show the public that the perpetrators have been punished.
But suppose this happened in your business and they brought your company into disrepute, can you force them to resign?
The answer is no!! Even if it’s absolutely clear that the employee has acted in a way that warrants their dismissal and there’s no defence to their behaviour, you must still go through the disciplinary process. By asking an employee to resign, you risk a claim of unfair dismissal.

DATA PROTECTION
According to a survey by standards body BSI, nearly one in five small businesses admit to unwittingly breaching the Data Protection Act. The survey suggests that half of these firms have repeatedly flouted the act, while 18 per cent were not sure whether they had or not. Two-thirds of the 516 small and medium-sized businesses polled do not provide data protection training for staff, while nearly half have nobody assigned with responsibility for legal compliance despite the law stipulating that all organisations dealing with personal information must have someone assigned as a data controller.
The new British Standard, BS10012, Data protection – Specification for a Personal Information Management System has been developed to establish best practice and aid compliance with data protection legislation. It is the first standard for the management of personal information

RESTAURANT TIPS
Most people who leave a tip in a restaurant expect that it will go, directly or via some form of pooling, to the waiter or waitress who served them. However, there has been a long-standing legal problem about tips whether they are regarded as “wages” for purposes of the National Minimum Wage.
It was established by the Court of Appeal in 1996 that if tips are collected as part of the customer's bill and then paid out by the employer to staff, they count as part of wages but if they are paid direct by a satisfied customer to, for example, a waitress they do not.
A private member's Bill designed to end the practice by which employers can use gratuities and service charges to 'top up' staff wages to meet the National Minimum Wage failed to become law in 2003 but the idea was later taken up by the government. In May 2009, the government has announced that using tips to make up staff pay to minimum wage levels is to be outlawed from October this year.

Time to Reflect
Why not take time now to consider your business's most valuable asset, your staff, and consider whether you are fulfilling your legal obligations to them. Remember, in recent years, the Law has become more supportive to employees rather than employers and staff are now encouraged to challenge, or sue, their employers when things go wrong. Why not take the first positive step in trying to protect yourself and your business, and also the future of your staff, by developing and agreeing contracts of employment. By Law, you have a contract with your staff, even if it is not written down. However, you are actually breaking the Law by not providing a written contract within 8 weeks of an employee commencing work. Rather than rely on hearsay and other people's interpretation of what they think is in the contract, why not produce a legally binding document that confirms all employment details. Give us a ring to see how we can help you now, before you have a problem.
More than 50% percent of UK companies now outsource their business needs, so that they can reduce cost and concentrate on developing their core business. Outsourcing accountancy and personnel issues is becoming more and more popular, as with all the new legislation changes, owners / directors / managers would need to spend a large proportion of senior management time investigating and learning of the new changes, as failure to do so can lead to costly fines or tribunal claims. If you think that Howarth Associates can assist your business in this way, or alternatively if you want any advice about any points in this bulletin, please do not hesitate to contact us on 01772 456554 or by using our contact page. Alternatively, e-mail Jane on jane@howarth-associates.com to arrange a free initial health check on your business.

Disclaimer. The purpose of this briefing is to give a brief introduction to current topical issues on employment law. Although every effort has gone into providing accurate, relevant and up to date information, it must not be relied upon as giving sufficient advice in any specific case. Professional advice should always be taken, before any decision is reached on matters relating to the employment of staff and their rights.