Of most interest, perhaps, is the proposed repeal of the current statutory dismissal and disciplinary procedures (SDDP), which will be brought in if the Employment Bill is passed through Parliament in the summer. The SDDP will be replaced by a new code of practice on resolving disputes, the details of which are yet to be drafted.
We conducted research in March 2007 into our members' views on employment legislation and fed the results into our response to the Government's ‘employment simplification review'. One member commented at the time that: "This is an area almost impossible to get right without specialist legal help." In our response to the review, we called for a ‘less is more' approach. We are now waiting to see whether this is what employers will get.
If passed, the Employment Bill will introduce also measures whereby employers may be liable to pay a 25% increase in compensation if they fail to comply with the new code of practice. However, if an employee fails to comply, the compensation awarded to employers may be reduced by up to 25%.
Conciliatory periods will be extended also, which could mean fewer cases make it to tribunal. This is good news for members who, in Referendum 179 (Q1 2007), voted for the Advisory, Conciliation and Arbitration Service (Acas) to be involved earlier in the dispute resolution process. One member wrote: "Anything which helps to resolve problems before engaging in the protected, expensive and absurdly complicated employment law is highly welcomed."
The Employment Bill will make provisions for Acas to conciliate throughout the dispute resolution process and before proceedings start, should the parties involved request it. The aim is to reduce the number of cases reaching tribunal. The Employment Bill is being considered in the House of Commons and could come into force as early as October 2008.
The Pensions Bill
The provisions of the Pensions Bill mean that by 2012 employers would be obliged to contribute to employees' (between the ages of 22 and 75) ‘Personal Accounts'. The employer must make contributions of a minimum of 3% of earnings for jobholders earning between £5,035 and £33,540. Jobholders will have the option to opt out of the scheme. Existing pension schemes will have to meet new standards, the details of which will be provided in future regulation.
The FPB conducted member research in 2006 and fed this into the Government's consultation on pension reform. The survey of over 3,000 businesses found that over two-thirds (69%) of respondents already offer some sort of pension provision to their employees. The main reason for those businesses not offering a pension scheme was the increase in cost (37%).
The Pensions Bill will be considered by MPs in the summer.
Temporary workers
In March 2002, the European Commission put forward a draft law which would give temporary workers the same rights to essential working conditions, including pay, as permanent workers in the same company. According to a recent estimate, about 80% of temporary agency workers are employed in four member states: the Netherlands, France, Germany and the UK. The proposal is currently in a stalemate situation as the European member states cannot agree on a suitable compromise.
Under the most recent proposals, temporary workers would be granted the equal employment rights after completing a six-week period in the same company. The European heads of state will meet again in the summer to attempt to reach an agreement.
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