The key changes in employment law this year include the following:
February New Tribunal Awards
April Retirement Procedures Now in Force
Changes in Maternity Leave & Pay
Changes in Adoption Leave & Pay
Increase in Maternity Pay Rates
Increase in SSP Rates
Carers get the right to request Flexible working
New Construction industry Scheme
July Smoking Ban
October Increase in Minimum Wage
February
New Tribunal Award Limits Came Into Force
The limit on the amount of the compensatory award for unfair dismissal increased from £58,400 to £60,600 on 1 February 2007.
Other changes that came into force on the same date through the Employment Rights (Increase of Limits) Order 2006 included:
• an increase in the maximum amount of 'a week's pay' for the purpose of calculating basic or additional award of compensation for unfair dismissal or redundancy payment from £290 to £310; and
• an increase in the maximum amount of guarantee payment payable to an employee in respect of any day from £18.90 to £19.60.
April
Retirement Procedures Came Fully Into Force
The full duty to consider procedure relating to retirement applies to retirements on or after 1st April 2007.
The Regulations introduced a statutory default retirement age of 65 for all employers. Employers are able to set a normal retirement age that is above 65, but must be able to objectively justify any normal retirement below 65. The Regulations provide for a prescribed 'duty to consider' procedure to be followed where an employer wishes to terminate an employee's employment by reason of retirement.
Changes to Maternity Leave and Pay
Regulations that made changes to maternity leave and pay came into force on 1st October 2006 and applied to employees with an Expected Week of Childbirth beginning on or after 1st April 2007.
The Regulations also allow employers to have reasonable contact with employees on maternity leave. They also provide that a woman on maternity leave is able to agree with her employer that she will work for up to 10 "keeping-in-touch" days during her maternity leave.
The Regulations also removed the service requirement for Additional Maternity Leave. An employee who qualifies for Ordinary Maternity Leave now also qualifies for Additional Maternity Leave. In addition, they extended the notice that an employee must give in order to return early from maternity leave from 28 days to eight weeks.
Entitlement to Statutory Maternity Pay increased from 26 weeks to 39 weeks. The first six weeks is payable at 90% of the employee's average weekly earnings and the next 33 weeks of payment at the standard rate set by the government for the relevant tax year (or 90% of her average weekly earnings if this figure is less than the standard rate).
Changes to Adoption Leave and Pay
Regulations amending adoption leave and pay took effect from 1st October 2006 and applied where the child was expected to be placed for adoption on or after 1st April 2007.
The Regulations also allow employers to have reasonable contact with employees on adoption leave. They also provide that an employee on adoption leave is able to agree with his or her employer to work for up to 10 "keeping-in-touch" days during adoption leave.
In addition, the Regulations extended the notice that an employee must give in order to return early from adoption leave from 28 days to eight weeks.
Entitlement to Statutory Adoption Pay increases from 26 weeks to 39 weeks.
Maternity, Paternity and Adoption Pay Were Increased
The standard rates of statutory maternity, paternity and adoption pay increased to £112.75 per week from 1st April 2007.
Statutory Sick Pay was increased
The standard rate of statutory sick pay was increased to £72.55 per week on 6th April 2007.
Carers Got the Right to Request Flexible Working
The right to request flexible working was extended to employees who were carers from 6th April 2007.
From this date, carers of adults had similar rights to parents of young children, who have been able to make requests for flexible working since 6th April 2003. The DTI says that the new legislation, which was introduced under the Work and Families Act 2006, defines a 'carer' as an individual who is, or expects to be, caring for an adult who:
• is married to, or is the partner or civil partner of the employee;
• is a near relative of the employee; or
• falls into neither category but lives at the same address as the employee.
A 'near relative' includes a parent, parent-in-law, adult child, adopted adult child, sibling (including an in-law), uncle, aunt, grandparent and step-relative.
CIS Rules (Construction Industry Scheme)
New rules relating to payments for workers in the construction industry caome into force on 6th April 2007. A new verification process for subcontractors replaced the CIS registration cards and tax certificates.
The new rules also included a monthly return to the revenue where the Company is required to confirm that you have considered the employment status of each sub-contractor and are satisfied that they are genuinely self employed. There are penalties for the late submission of monthly returns (£100.00) and also for incomplete or incorrect returns (up to £3000.00).
July
Smoking Ban is implemented in England
In England, the ban on smoking in enclosed public places, including most workplaces, came into force on 1st July 2007. The ban prohibits smoking in 'enclosed' and 'substantially enclosed' premises. There are penalties for smoking offences, including a fine of up to £2,500 for a failure to prevent smoking in a smoke-free place.
October
National Minimum Wage May Rise
The national minimum wage will rise on 1st October 2007 as follows:
• Adult rate (workers aged 22 and over) will increase to £5.52.
• Development rate for 18-21 year olds will increase to £4.60.
• Development rate for 16-17 year olds will increase to £3.40
• The rate for the accommodation offset will increase to £30.10 per week (£4.30 per day).
Commission for Equality and Human Rights is Introduced
The Commission for Equality and Human Rights, designed to tackle all forms of workplace discrimination and promote human rights, will be introduced in October 2007.
The CEHR will replace the Equal Opportunities Commission, Commission for Racial Equality and Disability Rights Commission and take responsibility for promoting equality in the areas of sexual orientation, religion or belief, and age. It will also be responsible for promoting human rights.
Holiday Entitlement
The minimum holiday entitlement will increase to 24 days from 1st October 2007. From October 2008 the minimum will be 28 days. The current minimum is 20 days (pro-rata for part-time employees).
