Updates on Employment Law
02 February 2010
Crucial Updates on Employment Law
Employment Law Legislative Developments - Pipeline 2010
Introduction of the long awaited Equality Bill
Arguably the most important and long anticipated piece of legislation which is due to come into force in 2010. The Bill is expected to receive Royal Assent in April, with the majority of its provisions coming into effect in October 2010.
The purpose of the Bill:
- To harmonise discrimination law and to strengthen it. Existing discrimination legislation will be brought together and strengthened, creating a unified approach where appropriate. There are also further significant changes proposed within the Bill including greater transparency in respect of gender pay discrimination, a widening of the definitions of direct discrimination and harassment to cover claims based on “association” and “perception” and two new types of disability discrimination;
- The Bill will also broaden the scope of permitted positive action to allow employers between two “equally-qualified” candidates by selecting one from an under-represented minority.
Extending the rights of employees incidentally creates an increase risk of Tribunal claim to the employer. Ultimately employers following a fair and reasonable procedure should be able to limit the risk of a claim against them however employers should also remain pro-active in managing staff and reducing the risk of a claim against them.
‘Fit’ notes to replace ‘sick’ notes
A 2009 Government consultation proposed the introduction of ‘fit notes’ to replace the existing ‘sick note’ system. The ‘fit’ notes are due to come into use in Spring 2010 and unlike the previous blanket ‘sick’ note which allowed an employee to stay off work until fully recovered, GP’s will now have the opportunity to state if the patient is fit for work, fit for some work, or fit for no work at all. GP’s can also comment of the usefulness of potential adjustments which are designed to aid an employee’s return to work more swiftly, for example, altered hours, amended duties, workplace adaptations. Ultimately the new ‘fit’ note will provide employers with greater information on an employee’s medical condition and will provide greater opportunity to get staff back to work more quickly in accordance with GP’s guidance on which elements of a job an employee is ‘fit’ to perform.
New right to request time off to train
From 6 April 2010 employers with 250 or more employees must implement the provisions of The Apprenticeships, Skills, Children and Learning Act 2009 giving a new right on staff to request unpaid time off work to undertake study or training. To enforce the ‘right’ employees must have completed 6 months employment with the Company and consider the training to improve both effectiveness at work and the performance of their employers’ business.
Safeguarding Vulnerable Groups Act 2006
From November 2010 individuals who seek to work in a regulated activity with children or vulnerable adults must register with the Independent Safeguarding Authority (ISA). Individuals will be able to begin registering with the ISA from July 2010.
Whistle blowing: regulators to be informed of PIDA Claims
A Government consultation took place in 2009 on the ability of Employment Tribunals to pass on details about whistle blowing cases to industry regulators. The proposal which resulted from the Consultation was that with Claimant consent given with the ET1, an Employment Tribunal would pass on details of the alleged malpractice to the appropriate regulator, who would then be in a position to investigate the alleged malpractice. The Consultation closed on 2 October 2009 and a response has yet to be published by BIS. However, the Government has previously stated that the new regime would apply to all Tribunal claims brought on or after 6 April 2010.
Financial Services Bill
The purpose of the Financial Services Bill is to enable the FSA to regulate remuneration within the financial sector in order to promote effective risk management, compliance with international standards and provide a greater link between risk and reward. The FSA would have the ability to make rules to govern the sector more tightly, with changes to be implemented into both current and future contracts.
Although the Financial Services Bill was introduced into the House of Commons in November 2009, the Government has made it clear that it intends to pass the Bill before the forthcoming elections.
Additional Paternity leave and pay
The Government intends to introduce additional paternity leave for parents of babies born on or after 3 April 2010. Businesses will need to ensure their policies are updated by mid 2010 to provide for the upcoming changes which will also allow for some of the leave to be transferrable between parents. The Conservative party have also committed to extending paternity provisions and so these provisions are unlikely to be affected by a change of Government.
Default retirement age consultation
Government review of the default retirement age has been brought forward from 2011 to 2010 following the High Court’s comments in the “Heyday” case that forced retirement at the age of 65 is lawful, for now, and there is a strong likelihood following this decision that the Government will increase this default retirement age in the near future. A research project has been commissioned and submissions on the topic are due by 1 February 2010.
Protect your Company in 2010
To avoid the potential pitfalls and avoid the risk of your Company being involved in expensive Tribunal claims we strongly recommend that you keep yourself up to date with the expected changes in employment law legislation throughout 2010. Sign up to our FREE E-NEWS to receive regular updates of when legislative changes are being introduced and how they can impact your Company.
For further information on the forthcoming changes in Employment Legislation or to sign up to our FREE E-NEWS updates please contact Lindsey Kidd on 01244 31 81 31 or via email at ljk@law.uk.com.
