Pictured above: Stephen Hopkins

As businesses across the Midlands are settling into the New Year, Birmingham-based solicitors, the Wilkes Partnership, warns employers to face forthcoming employment legislation head-on to ensure 2011 is litigation free.

There are two key changes to employment law that are set to come into force this April; the abolishment of the default retirement age and the extension of paternity leave. According to Wilkes, the abolition of the default retirement age is the piece of legislation that is set to have the most impact on businesses in the near future.

Stephen Hopkins, employment partner at the Wilkes Partnership, comments: "Employers will legally be affected from 6 April when a six month transitional period comes into force before abolishment of the default retirement age on 1 October. Therefore, after 6 April, an employer will not be able to dismiss an employee based on them reaching a prescribed age. As with any dismissal, businesses will have to have reasonable grounds to issue notice to an employee, such as capability, conduct, redundancy or illegality and they must follow a fair dismissal procedure.

"Therefore, employers only have until 6 April if they wish to retire an employee that turns 65 before 1 October, but this must be carried out in line with existing retirement guidelines. Under the legislation there is room for employers to set their own compulsory retirement age from 6 April, providing they can objectively justify it and present strong business evidence in its favour. But it is important to note that at present it is unclear how self imposed retirement ages will fare in tribunals and must be assessed on a case by case basis by a legal professional."

The provision of paternity leave is another key area of change to employment law for 2011. While this is not likely to have the same immediate impact on businesses as the abolition of the default retirement age - as it is dependent on parental uptake - businesses do need to be aware of employees' rights to ensure all treatment building up to and post-paternity leave is fair and reasonable.

At present, men are entitled to two weeks paid paternity leave but in April, fathers' allowance will be extended to six months, although some of this will be unpaid. New fathers will only be able to take the extra leave after a child is 20 weeks old and the mother has returned to work.

Hopkins continues: "2011 presents businesses with key changes to employment legislation that must be faced head on. The abolishment of the default retirement age will have the biggest impact on employers but they will also feel the effects of a tide of pro-family legislation.

"The remainder of 2011 is likely to present additional legislative developments, particularly with regard to paternity and maternity allowances, as Britain works to step into line with other EU members. We already know there are coalition proposals in place to increase paternity allowance up to 10 months, if the mother goes back to work.

"The key message to employers here is to keep abreast of new legislation and the changes ahead, to ensure all employees are treated equally regardless of age, gender and familial situation. Whenever in doubt, employers must ensure sound legal advice is sought, as discrimination claims are uncapped."