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

National Minimum Wage increases
The National Minimum Wage increases take effect from 1st October 2008. The new rates are as follows:
Workers aged 22 and over - £5.73 per hour
Workers aged 18 – 21 - £4.77 per hour
Workers aged 16 and 17 - £3.53 per hour

Maternity and Parental Leave and the Paternity and Adoption Leave (Amendment) Regulations 2008
Following the publication of the draft Maternity and Parental Leave and the Paternity and Adoption Leave (Amendment) Regulations 2008, women whose expected week of childbirth begins on or after 5 October 2008 will have the right to the same terms and conditions during additional maternity leave as they currently enjoy during ordinary maternity leave. For example accrual of holiday entitlement, company car, health insurance cover etc. Employees on maternity leave, including additional leave, also have the right to be consulted about any potential redundancies or changes to their job roles.
These changes also mean that previous distinctions between ordinary and additional adoption leave are removed, where the date of placement for adoption is on or after 5th October.

Repeal of Statutory Dispute Resolution Procedures
The Employment Bill will repeal the statutory dispute resolution procedures that were introduced in October 2004, and implement a package of replacement measures to encourage early/informal resolution via ACAS. This is likely to be implemented in April 2009.

Statutory Holidays
From April 2009, the statutory minimum paid holiday entitlement will increase from 4.8 to 5.6 weeks (i.e. 24 to 28 days for those working a five-day week). It would be beneficial to start considering how this will impact on your staff with next year’s holidays. A “holiday entitlement calculator” is available on www.businesslink.gov.uk under the section Employing People.

Fixed –term Employees (Prevention of Less Favourable Treatment) (Amendment) Regulations 2008.
These regulations come into force on 27th October 2008 and will make it clear that agency workers with contracts of less than 3 months are entitled to Statutory Sick Pay.

Companies Act 2006
The remaining duties placed upon directors introduced by the above Act, come into force on 1st October 2008. This includes –
• The duty to avoid conflicts of interest
• The duty not to accept benefits from third parties
• The duty to declare any interest in a proposed transaction or arrangement with the company

Employers’ Liability (Compulsory Insurance) (Amendment) Regulations 2008
These also come into effect on 1st October 2008, amending the precious 1998 Regulations.
An employer’s liability insurance certificate that is displayed electronically is sufficient, so long as it is reasonably accessible to employees.

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.