In this latest update we highlight some changes in employment and related legislation which will imminently affect employers and the terms and conditions under which they employ their staff. These changes require early review and likely updates to employment contracts, handbooks, policies and procedures.
The Equality Act 2010
The first wave of legislation under the Equality Act 2010 comes into force on 1st October 2010. It brings together into one Act the various laws that have been passed in recent years on discrimination. It clarifies all the groups covered by legislation, now collectively defined as “protected characteristics”. Essentially there are no new additions to the groups covered. The Act does, however, broaden the protection of some of these groups and the types of discrimination covered. We are, for example, already familiar with direct and indirect discrimination; from 1st October discrimination by perception or by association will also be covered.
Other items of note in the Act include a new provision which makes it unlawful, except in limited circumstances, for employers to ask about a candidate’s health before making them a job offer. Pay secrecy within the workplace will also become unlawful.
Employers should now be reviewing their employment contracts, handbooks, policies and procedures, including those on equal opportunities, bullying & harassment and recruitment, to ensure they comply with this new legislation.
Paternity Leave
Despite the fact that new regulations for extended paternity leave came into force on 6th April 2010 employers will only now begin to see the effect – if only from employees requesting further information. This is because the new rules apply to fathers and partners of mothers expecting a child on or after 3rd April 2011 (or in adoption cases those matched with a child on or after 3rd April 2011).
In brief, where a mother or main adopter decides to return to work and does not use full entitlement to additional maternity or adoption leave, it may be taken up by the father or partner. This is in addition to the current 2 week entitlement. The maximum potential transfer is 6 months and part of the period may be paid.
Employers need to make sure they are up to speed with the new provisions and incorporate them into their maternity and paternity policies. They should also be aware, however, that Theresa May has suggested recently that the coalition government is considering scrapping these regulations. We may be in for yet another change in the future.
Removal of the default retirement age (DRA)
The government has confirmed it will phase out the DRA of 65 by 1st October 2011. Employers need to be aware that transitional arrangements come into force on 6th April 2011. Effective from this date they will not be able to rely on the DRA in issuing any new notifications of retirement to employees. They will only be able to terminate an individual’s employment on the grounds of retirement if this can be objectively justified. Otherwise they will need to rely on one of the other potentially fair reasons, in law, for dismissal.
Immigration Quotas
On 19th July 2010 interim quotas were introduced on applications submitted under Tier 2 (General) of the Points Based System. This is already causing problems for employers who sponsor foreign (i.e. non-EEA) workers. Such employers are experiencing less flexibility in recruitment and face a difficult balancing act complying with the quota yet continuing to meet business needs. They can find themselves in the awkward position of being unable to extend a migrant worker’s permission to work in the UK because they have no certificates of sponsorship left. Equally they may be restricted on the extension of permissions to work in the UK for existing employees and be forced to draw up justifiable criteria for their choice to avoid discrimination or other potential employment law related problems. Now would be a good time for employers to review Tier 2 extensions potentially required over the coming months to ascertain the nature of any problems and to explore possible alternative solutions.
If you need any further information or assistance in reviewing and updating your employment contracts, handbooks, policies and procedures please contact one of our HR team members:
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Sandra Toppin 0207 152 1134
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Madeline Fox 0207 152 1105 |
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Nigel Sellens 0207 152 1104
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Debbie Forecast 0207 152 1102 |
For immigration assistance contact:
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Keith Smith 0207 152 1106
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Simon Higson 0207 152 1107 |
