HR Update for 2010.

Last year was a reasonably quiet year with regard to employment legislation. However there were a few changes and some changes planned for the next year or so therefore we have summarised these as follows:

Tribunal Claims

The year 2008/2009 recorded the highest level of claims ever at 151000 which was to be expected due to the recession with large numbers of employees being made redundant or laid off unfairly.

Perhaps the most controversial change allows employers to positively discriminate in favour of disadvantaged groups when recruiting candidates who are otherwise equally suitable.

Senior clerics have warned that Harriet Harman's Equality Bill suggests some rights are considered "more important than others". The Bishop of Winchester said that clauses in the bill that attempt to prevent "harassment" could be used to punish Christians who simply offer to pray for someone or tell them: "God bless you."

Employers will also be prevented from stopping employees from discussing their salaries with other employees in order to aid equal pay claims.

Statutory holidays

The statutory minimum for full timers increased to 28 days in April 2009. Most reports seem to overlook the disproportionate affect this has had on part timers - particularly those who do not normally work on a Bank Holiday. As part timers need to be treated the same as full timers (but pro-rata). For instance an employee working three days is entitled to 16.8 days which he/she can take over the full 5.6 weeks. Whereas most full timers only have a say on when they may take four weeks holiday - the rest taken up by bank holidays.

Our advice is to set out the rules to ensure that employees take no more than 4 weeks "annual" holiday and allocate the remaining days over bank holidays - regardless of whether or not the employee would normally work on that day. Holidays need not be taken during working time so employers may pay all or part of the holiday entitlement on days that the employee does not normally work.

Remember that payments cannot be made in lieu of holidays not taken - except when an employee leaves.

Also, employees on long term sick are entitled to continue accruing holidays and are able to take those accrued holidays in a following year. This rule only applied to the basic 4 weeks statutory entitlement so ensure that your contracts of employment reflect this.

Sickness

The government believes that replacing GP's sick notes with "fit notes" this April will get people back to work sooner. We believe that this will only assist where there is available "light duties" and where there are none employees will expect roles to be created for them.

Maternity Leave

Employees due to give birth or to adopt on or after 3 April 2011will be allowed to transfer up to 6 months of their maternity/adoption leave and 13 weeks of their pay to the father/partner. Government plans to extend maternity pay to 12 months have been shelved due to a shortage of money!

Discipline and grievances

Sigh of relief that during 2009 the statutory dispute resolution procedures were replaced with a revised ACAS Code of Practice on Disciplinary and Grievance Procedures!

The fixed periods on ACAS help were also removed and they extended their helpline hours.

The new code does have some peculiarities. The right of appeal of dismissal on the grounds of redundancy and ill health seem to have been omitted and "verbal" warnings seem to have been discontinued. Our advice is to continue to allow for appeals in these situations.

Tips

From 1 October 2009, employers are no longer allowed to include tips, gratuities or service charges within the calculation of the NMW.

Minimum Wage

It is expected that from October 2010 21 year olds will receive the standard adult rate so employers should be looking to accommodate this change.

Retirement

The national retirement age of 65 is up for review during 2010 and likely to be extended sometime in the near future. This should not make a lot of difference to most employers except when dealing with employees who are increasingly less capable due to their health - particularly in manual jobs.

It is important therefore that performance management policies and procedures are in place and regular reviews take place with the employee. Reasonable adjustments may enable the employee to carry on and contribute to the business but sudden decisions that an employee is "not up to the job" after a great number of years without complaint is bound to raise questions if their employment is terminated without apparent good reason.

Pensions

Coming in to force in 2012 will be the compulsory requirement for employers to contribute to the new personal account pension scheme, which employees will automatically join when they start a new job.

Alternatively employers may provide an alternative which is as good or better.

Trade unions

From April 2010 it will be illegal to refuse employment or dismiss anyone who appears on a so-called 'Trade Union blacklist' (for that reason)

Safeguarding of Vulnerable Groups Act

Employers of people who work with children or vulnerable adults are now required to follow a centralised, pre-employment vetting procedure. This builds on the existing Criminal Records Bureau checks and will allow employers to do a simple online check of an applicant's barred status and to be informed immediately if an employee becomes barred. The barred lists can be checked as part of an enhanced CRB check.

Employers who fail to carry out these checks could face a five-year prison sentence or fines of up to £5,000.

From July 2010 people who have not previously worked with children or vulnerable adults, or who are changing jobs, can voluntarily apply to become ISA registered. This becomes mandatory in October 2010 and all existing employees and volunteers who have not changed jobs will need to register.

Right to Training

From April 2010, employees of organisations employing more than 250 employees and who have been employed for more than 26 weeks will have a right to request unpaid time off for training.

Agency workers

Coming in to force from December 2011 will be the requirement to employ agency workers on the same terms and conditions as their employed colleagues after 12 weeks employment.

Data protection

As from April 2010 the Information Commissioner will be able to fine any Data Controller who knowingly or recklessly breaches the Data Protection Act.