Field Fisher Waterhouse

Employment Update

9 October 2009

In this update: Legislative changes in October | ET and EAT Statistics | Vento guidelines should increase with inflation | Consultation on draft additional paternity leave regulations | EHRC - new report on integration in the workplace | CIPD – guidance on business transfers and service provision changes

 

 


Legislative changes in October   


A number of changes to employment law came into force on 1 October 2009. The key changes include the following:

  • The maximum limit of a week's pay increased from £350 to £380. It will remain unchanged until February 2011. The maximum limit is used to calculate certain statutory payments including statutory redundancy payments and basic awards for unfair dismissal. 


  • The national minimum wage increased from £5.73 to £5.80 an hour for workers aged 22 and over; from £4.77 to £4.83 for 18 to 21-year-olds; and from £3.53 to £3.57 for 16 and 17-year-olds.

  • Employers will be prohibited from using service changes, tips and gratuities to make up national minimum wage pay. The Department for Business, Innovation and Skills has published a 'Code of Best Practice' on service charges, tips, gratuities and cover charges. 


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Employment Tribunal and EAT Statistics 2008/09  


The Tribunals Service has published the Employment Tribunal and EAT statistics for 2008/09.

 

The key statistics indicate that:

  • the number of tribunal claims accepted by Employment Tribunals decreased by 20% from the previous year. There were 189,300 claims in 2007/08 and 151,000 in 2008/09


  • the number of multiple claims (where a number of people bring similar claims against one employer and they are processed together) has fallen by 13%


  • the number of single claims has increased 15% to 63,000 in 2008/09


  • unfair dismissal claims rose by 29% and redundancy pay claims rose by 48%


  • the average award for an unfair dismissal claim was £7,959


  • for discrimination claims, race cases received the highest average award (£32,115), followed by disability (£27,235), sexual orientation (£23,668), sex (£11,025), religion (£10,616) and age (£8,869)


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Vento guidelines should increase with inflation


According to reports, the Employment Appeal Tribunal has handed down a judgment confirming that the Vento guidelines on compensation for injury to feelings in discrimination cases should be increased in line with inflation. The new figures are reported to be:

  • lower band: £6,000 (formerly £5,000) 

  • middle band: £18,000 (formerly £15,000)

  • higher band: £30,000 (formerly £25,000)


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Consultation on draft additional paternity leave regulations   


Following our report in the last Employment Update about the Government's plans to introduce the right to additional paternity leave from April 2011, the Government has now launched a consultation on the draft regulations.

 

Additional paternity leave and pay will enable eligible fathers to take up to 26 weeks' additional paternity leave. This leave may be paid if taken during the mother's maternity pay period. Leave taken after this period has ended would be unpaid. This new provision would be available during the second six months of the child's life, providing parents with more choice and flexibility in childcare responsibilities.

 

It is the Government's intention that the legislation comes into force from April 2010, with effect for parents of babies due from April 2011. Consultation on the draft regulations closes on 20 November 2009.


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EHRC - new report on integration in the workplace


The Equality and Human Rights Commission (EHRC) has launched a new report into how a range of UK organisations have established equality policies encouraging employees from diverse backgrounds to participate fully in the workplace.

 

The report looks at eight employers to see what policies and practices they have adopted to encourage lesbian, gay, bisexual and older employees and those with differing religions or beliefs to take up recruitment, promotion or advancement opportunities in the workplace. The report will be used by the EHRC to develop guidance for employers on implementing effective equality policies.


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CIPD – guidance on business transfers and service provision changes 


The Chartered Institute of Personnel and Development (CIPD) has launched practical guidance on the people management requirements of organisations involved in business transfers and service provision changes.

The guide sets out standards for all involved parties to aid understanding and business transactions during the preparation and transfer of staff. It also provides practical help through tools that can be directly applied.


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9 October 2009

Welcome to our fortnightly round-up of what's happening in employment law.
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