Employment Law Changes April 2011

April 2011 sees a raft of new changes in employment law, explained here.

The Equality Act

Although most of the provisions under the Equality Act became law in October 2010, some of them will be coming into force from April 2011. The key one relates to positive action in recruitment and promotion. As an example, if an employer needed to employ more women, they would legally be able to advertise saying they were actively encouraging applications from women. They could also, under this provision of the Equality Act, choose to employ a female candidate over a male candidate IF they are both equally qualified for the position.

The Bribery Act

Employers will be required to have procedures in place to prevent bribery and corruption. Despite the fact that the Government have announced a review and possible reassessment of the Bribery Act, it’s not clear whether the review will make any meaningful changes. In the meantime, however, employers are advised to re-visit their procedures in relation to:

  • Financial controls - employers should review the levels of signature required for different levels of transaction and it is recommended that multiple authorisation is required for significant transactions.
  • Training on anti-corruption - training should be given to all employees who may potentially be involved in situations where bribery could occur. This training should make clear to employees what is and what is not acceptable and how to act if caught in a situation where bribery is attempted.
  • Whistleblowing - companies are recommended to review their whistleblowing procedures to ensure that there is specific mention of situations involving corruption and bribery.
  • Gifts and hospitality procedures -companies are recommended to review their gift and hospitality procedures and to consider whether the controls that have been put in place are sufficient to prevent bribery from occurring.
  • Contracts of employment - whilst it is never possible to list all potential examples of gross misconduct it is recommended that specific mention should be made of corruption and bribery situations in disciplinary procedures. A specific clause relevant to bribery and anti-corruption should be included in contracts of employment where appropriate.
  • Risk assessments -risk assessments of relevant situations where bribery could occur should be carried out. The named senior employee responsible for anti-corruption should review these risk assessments and identify actions that should be taken.
  • Anti-corruption policy - all organisations should have an anti-corruption policy that is made available to all employees.

The Default Retirement Age

Planned changes to the Default Retirement Age will take place this year and as always, there is a lot to do with timing. The DRA will be phased out from 6th April. It’s key to remember that if you wish to dismiss an employee because they are 65 or over, you must do so before 30th March because the statutory procedure says you have to give them six months’ notice. The phasing out of the DRA means the statutory retirement procedures will also disappear. You will only be able to retain a compulsory retirement age if it can be objectively justified.

For more information on dealing with retiring employees, get in touch.

Immigration Law Changes

1st April this year will see changes to immigration law as a limit on migration from non-European countries is introduced. If this affects you and you’d like to find out more about the changes, get in touch.

Additional Paternity Leave (APL)

This applies to those with a baby due on or after 3rd April 2011. The father (or the mother’s partner) will be allowed to take on part of the mother’s maternity leave so the mother can return to work.  More information. 

New statutory rates

Rates for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP) and Statutory Sick Pay (SSP) will all increase in April. SMP, SAP and SPP will go from £124.88 to £128.73 and SSP will increase from £79.15 to £81.60.

National Insurance Contributions

If the National Insurance Contributions Bill 2010-11 is passed by Parliament, the rates of NI contributions paid by employees, employers and the self-employed will go up by one percentage point from 6th April this year.

Flexible Working

From 6th April again, parents of all children under the age of 18 will be granted the right to request flexible working (note – just the right to request it, not the automatic right to have it). There is a possibility that this right will be extended to all employees but that will be subject to Government consultation.

Time off for training

The right to request time off for training was due to be extended to all employees but it is currently under Government review.

Additional Public Holiday

And finally, there will be an additional public holiday on Friday 29th April 2011 to mark the Royal wedding. Many employers have requested clarification on whether or not they have to give their employees that day off and pay them for it.  Despite what your employees may think, they are not automatically entitled to an additional day of paid holiday. It depends on how their contracts are worded.

You are legally obliged to give your employees 5.6 weeks paid holiday and their entitlement is worked out by multiplying the number of days per week worked by 5.6. So a full-time employee working 5 days a week gets 28 days paid holiday.

If employment contract says “twenty days holiday plus bank holidays” then the employee will be entitled to the royal wedding bank holiday as paid leave. If the contract says “28 days holiday per year” there is no contractual entitlement to the royal wedding bank holiday. If the contract of employment specifies particular bank holiday dates then it will also be the case that the employee is not contractually entitled to the royal bank holiday.

You need to think about the impact on staff morale if you insist that they have to come to work on that day when the rest of the country is seen to be marking the occasion. Either way, it would be wise to check your contractual position before making your decision. Another great reason to make sure you have contracts of employment in the first place!

 

For questions or queries about any of the points raised above, give us a call on 0800 458 6582.