Employment law forecast 2009

10 February 2009

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The year ahead is predicted to be a challenging time for those involved in HR and employment, but it isn't all bad news. Here, we take a look at what changes to HR and employment law we can expect in the upcoming months.

So far this year, we have already seen a change in the amount of Statutory Redundancy Pay as well as the increase in tribunal awards. Since 1 February, redundancy pay has increased to a maximum of £350 per week. For more information, click here.
The most important change for employers will be the end of the Statutory Dismissal Procedure, which will be replaced by a new approach using the revised ACAS code. Businesses need to obtain professional advice on their discipline and grievance process to see that they comply with the new requirements and make them easier to understand, now that a less structured approach is required.
At some stage during the year, a bill will be introduced to tidy up all the various bits of equality and discrimination legislation. Many employers may wish for a more pragmatic approach to much of the discrimination legislation, which could be cripplingly expensive for many small companies.
The final tranche of holiday benefit comes into effect on 1 April when Working Time Regulation changes are implemented to increase the minimum holiday entitlement to 5.6 weeks (28 days). Don't forget that bank holidays are still not compulsory, but, if you do give bank holidays, add those to the other contractual ones given and provided it comes to 5.6 weeks then you are fine.
The right to request flexible working is extended to parents who have children aged 16 or under from 1 April 2009. It is crucial to remember that this is not a right to flexible working, but a right to ask for it. As an employer, you can always refuse, but you should always take professional advice to ensure that the reasons for refusal are sound legal reasons.
On 5 April 2009, the standard rate of pay for maternity, paternity and adoption leave will increase to £123.06 a week. On 6 April 2009, the Statutory Sick Pay rate increases to £79.15.
April 2009 will also see the implementation of an extended right to take time off for civic duties, although the roles envisaged are unlikely to affect large numbers of employees.
With training very much in the Government's mind as it looks for ways to help employers during the recession, the right to request time off for training will be introduced during the course of the year. Employers will be able to reject requests on good business grounds, but this is a legal minefield so employers should always seek professional advice when faced with these situations. These flexible regulations also present employers with the need to look at policies and procedures in their company handbooks.
The leisure and hospitality industry needs to keep a careful watch out for the implementation of changes during the year in relation to the use of tips. The National Minimum Wage rules will be changed to stop tips being included in staff wages. The Government will also implement changes in the penalties for failure to pay the National Minimum Wage so businesses that operate wage rates close to the limit will need to ensure that they interpret the regulations on what can and cannot be included, otherwise they may face more robust and costly action from the enforcement agency.
After a number of delays, the new centralised vetting system for people working with children and vulnerable adults should take effect from 12 October 2009. Employers who fail to make relevant checks, or knowingly employ a barred person, could face fines of up to £5,000 so you need to make sure that your processes are tightened and proper checks are undertaken where relevant.

In a moderately busy year for legislation, legally minded people will be keeping an eye out for some cases that could have ramifications. These include the famous Heyday case regarding the mandatory retirement age.

A potentially costly case that is likely to be decided this year is that of Stringer (formerly Ainsworth), which will determine whether employees on long term sickness can accrue statutory annual leave and whether they have an entitlement to be paid.

The Government will also, no doubt, bring in more consultation documents relating to training and support for various sectors. So, you will need to be aware of political trends to help your business take advantage of these opportunities.

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This article was provided by Qdos Consulting, who provide the FPB's 24-hour legal helpline and legal expenses insurance package.

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