| Employment Law’s Past, Present and Future. |
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30 January 2010 2009 was a difficult year for employers and their staff. Constant government changes to case law governing holidays and sickness, immigration systems and flexible working provided a painful headache amidst recurring economic struggles.
But with 2010 no longer on the horizon, it’s important for employers and employees alike to understand what the future legislation may bring, whilst grabbing a reminder of the year just passed.
Decrease in Unfair Dismissal Awards:
The government announced in December that the maximum award for an employee unfairly dismissed will be reduced in order to reflect the retail price index (RPI) for the previous year.
If the RPI for September of one year is higher or lower than the previous September, then the government is required to change the maximum award. As a result, the limit for unfair dismissal will be reduced from £66,200 to £65,300 as stated under the Employment Relations Act 1999.
"Under section 34 of the Employment Relations Act 1999, if the retail prices index for September of a year is higher or lower than the index for the previous September, the Secretary of State is required to change the limits, by Order, by the amounts of the increase or decrease," said the note of Statutory Instrument explaining the caps.
"The revised amounts made by this Order reflect the decrease of 1.4% in the index from September 2008 to September 2009."
The new limits will be applied to cases where an award of payment occurs on or after 1st February.
Long-term Sickness:
Starting a busy April with ministers’ pledges to cut the number of individuals claiming long-term sickness benefits from 2.5m to 1.6m, employee disability claims will experience a major overhaul as the spring begins to set in.
From April 2010, employee ‘sick notes’ will sit alongside ‘fit notes’. Doctors will be given the power to advise employers over staff readiness for work, allowing doctors to not only record an individual’s unsuitability but also whether they are fit to start again. Employers will be given detailed advice on how they can adjust their practices to welcome back those absent over recent months.
While welcomed by those pushing to see the country’s welfare budget slashed, doctors and employees will no doubt disagree in the coming months over what is feasibly attainable in the workplace.
Under current law, employees signed off sick by their GP cannot be forced to don their uniform until they decide they feel capable. But the ‘fit note’ system will allow doctors to recommend light duties for employees they feel are ready, leaving employers open to personal injury and discrimination claims in the process.
Training Time:
Again from April, employees will have the right to request training time, during which they can develop their skill set.
Modelled on the flexible working scheme, which experienced much tampering during 2009, the right to request training time allows employers to refuse workers’ wishes if they have a good business reason for doing so. Employers will also not be obliged to meet the salary or training costs which enable the request to be met.
The Government intends to introduce the right to train for employees in organisations with 250 or more staff this year, with the legislation being extended to cover all employees from April 2011 at the earliest.
Increase in statutory maternity, paternity and adoption pay
And April continues to dominate the legal headlines as statutory maternity, paternity and adoption pay will rise to £124.88 per week, or 90% of a worker’s average weekly earnings if that is less than £124.88.
Employing foreign workers
The government has vowed to decrease the nation’s vast army of unemployed but it seems the quest will hit immigrants the hardest.
Although not fully timetabled, in 2010 employers will have to advertise available positions in job centres for four weeks before interviewing non-European staff. Those foreigners hoping to qualify as skilled workers will also have to command a role with a minimum salary of £20,000 to be recognised, up from the current £17,000 rate.
The Equality Bill
The much lauded Equality Bill will see existing equality laws consolidated into one ‘easy to manage’ bill. Most of the provisions of the Equality Bill are expected to come into force as the Equality Act 2010 in autumn of this year.
The purpose of this legislation is to harmonise the different strands of discrimination law and strengthen protection. Changes in the draft bill include:
The equality bill will most likely be the largest legislative change seen in 2010. The points listed above do not cover the full extent of sweeping alterations and any further information can be found through the UK Parliament website or contact us for assistance.
But what of the year just passed?
2009 saw the minimum wage jump, or lightly hop, from £5.73 to £5.80 an hour for those over 22 years of age, £4.77 to £4.83 for the 18-21 year olds and from £3.53 to £3.57 for those 16 to 17. And those in the service industry were buoyed by the news that tips could no longer be included in calculations for minimum wage payments.
In February, the week’s pay cap relevant to Tribunal awards increased from £330 to £350 and the maximum unfair dismissal compensatory award was increased from £63,000 to £66,200.
In October, amendments to the 2006 Companies Act altered the residential addresses and company registers in an effort to simplify and strengthen business procedures.
Statutory sick pay (SSP) rose to £79.15 per week and those employers operating non-contractual sick pay schemes were forced to amend payroll software to reflect the change.
Combined with the much-maligned star rating system, 2009 was a year of perpetual change for employers.
Yet 2010 will witness inevitable public sector cuts mixed with plummeting employee relations, and looks set to be another year of unpredictable highs and lows for the country’s employers.
But employment law solicitors are always there to offer a helping hand when the tide becomes too strong to paddle against.
A quick phone call or face-to-face meeting could be the life jacket many need for the turbulent months ahead, providing employers with guidance and clear explanations for a shifting employment landscape.
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