Changes to business regulations - 2011

A number of government departments issue their changes to regulations twice a year, on the common commencement dates (CCDs) 6 April and 1 October and tax changes tend to occur in January and April. See a summary of recent changes below:
   

Default retirement age scrapped

 
March 2011
 
The last day that employees could be compulsorily retired using the Default Retirement Age (currently 65) was 30 September 2011. This meant that the last day to provide six months' notice required by the default retirement age provisions was 30 March 2011.
 
After this date, employers cannot prescribe a compulsory retirement age, unless it can justify it as "a proportionate means of achieving a legitimate aim".  
 
For more information, members can call our helpline on 0845 130 1722
  

Paternity leave changes

 
3 April 2011
 
In April 2010, changes were made to paternity leave that meant that mothers are able to transfer up to six months of their maternity leave to fathers, to give parents additional choice and flexibility as to how they use maternity and paternity leave.
 
This law started to take effect for children due on or after 3 April 2011. 
 

Statutory maternity, paternity and adoption pay

 
3 April 2011
  
The standard rate of statutory maternity, paternity and adoption pay increased from £124.88 to £128.73.
 

Social Security (Contributions) (Amendment No.2) Regulations 2011

 
6 April 2011
 
The Regulations amended the lower and upper earnings limits for primary Class 1 National Insurance contributions and the  primary and secondary thresholds for primary and secondary Class 1 contributions for the tax year beginning 6 April 2011.

Statutory sick pay increase

 
6 April 2011
 
The standard rate of statutory sick pay increased from £79.15 to £81.60 per week
 

Positive action provisions of the Equality Act

 
6 April 2011
 
The provisions of Section 159 of the Equality Act 2010, which permit employers to treat individuals with a protected characteristic more favourably than others in connection with recruitment or promotion, came into force on this date.
 
The law applies only to candidates of equal merit and the more favourable treatment must enable or encourage an individual to overcome or minimise a disadvantage, or participate in an activity where he or she is under-represented in that activity.
 

Bribery Act

 
1 July 2011
 
The Bribery Act 2010 introduced new anti-corruption legislation that aims to promote anti-bribery practices among businesses of all sizes.
 
The part of the Act that will most concern businesses is a new corporate offence of failing to prevent bribery, which applies to businesses and partnerships which are either incorporated in the UK or which conduct business, or part of a business, in the UK. The penalty for businesses is an unlimited fine, with the penalty for individuals a maximum of 10 years' imprisonment.
 

Equal treatment for agency workers

 
October 2011
 
The Agency Workers Regulations 2010 gives agency workers the same basic employment conditions as direct employees after 12 weeks in a job.
  
 
For more information or advice on implementing regulation changes,
call our member helpline on 0845 130 1722.