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

Employment Act 2008
Parts 1-7 of the Employment Act 2008 will repeal the Statutory Disciplinary, Dismissal and Grievance procedures that were introduced in October 2004. These statutory procedures have not worked well in practice and have been heavily criticised for over-complicating disputes in the workplace.
In their place will be a new, semi-voluntary ACAS Code of Practice which will take effect on April 6 2009. In addition, the Act removes the right of employees to claim automatic unfair dismissal where an employer fails to follow the statutory procedures.
The new Code now encourages the parties to resolve disputes informally, with the assistance of a third party mediator, if necessary. In the event of a successful claim, a tribunal will have the power to increase any award by up to 25%, if it feels an employer has unreasonably failed to follow the Code. Conversely, a tribunal will be able to decrease any award by up to 25% if it feels that an employee has unreasonably failed to follow the guidance laid down in the new Code. The Code will not, however, apply to dismissals due to redundancy or the non-renewal of fixed-term contracts on their expiry.
Companies need to be aware that there are transitional procedures for anyone who commenced disciplinary action before 6th April 2009.

Increase in Statutory Holiday Entitlement
From 1 April 2009, workers will be entitled to 5.6 weeks of paid holiday (28 days if they work a five-day week). The current statutory holiday entitlement is 4.8 weeks (24 days for a worker working a five-day week). The 5.6 weeks is a minimum entitlement, so you can choose to offer more.
For part-time workers, holiday entitlement is worked out on a pro-rata basis. Any days off for public or bank holidays can be counted towards a worker's statutory holiday entitlement as long as it is paid leave.
From 1 April 2009, payment in lieu of holidays will not be allowed - although payment in lieu of any leave above the statutory entitlement can be allowed depending on the employment contract.
As the increase in holiday is a beneficial change in the terms and conditions of employment for the employee, there is no need to reissue contracts. However, you do need to let staff know about the increased entitlement in writing by issuing a staff letter to all staff.

Extension to Flexible Working
From April 2009, the Government will extend the right to request flexible working to parents of children up to and including the age of 16 years of age.
The right to request flexible working is currently open to parents of children under six or parents of disabled children under 18, and since 6 April 2007, to carers of adults.

Statutory Payment Rates
The Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP) and Statutory Paternity Pay (SPP) rates for 2009-2010 are shown below. These take effect from April 2009.
• The Lower Earnings limit for 2009-2010 is: Weekly £95 and Monthly £412
• The weekly rate of Statutory Sick Pay for days of sick absence, commencing on or after, 6 April 2009 is £79.15.
• The weekly rate of payable for Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay on or after Sunday 5 April 2009 is £123.06.

Redundancy Pay
All employees who have at least two years’ employment with you, are now entitled to a statutory redundancy payment, regardless of their age. The exact amount of the redundancy payment is dependent on their age, length of service (up to 20 years’ service can count) and gross weekly wage. The latter is subject to a statutory cap on earnings, which is reviewed each year and stands at £350 from February 1 2009. The maximum statutory redundancy payment is £10,500. The law used to have an upper age limit of 65 and a lower age limit of 18 on redundancy payments. However, these have been removed, as has the provision which, permitted the tapering of redundancy payments for employees aged between 64 and 65.

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.