Flint Bishop

Businesses must be first out the blocks to stay ahead of employment legislation

Pictured above: Sally Morris

 

Sally Morris, partner and head of the employment division at Midlands-based MFG Solicitors, discusses the rapidly changing employment law landscape and appeals for an Olympic effort from employers.

1992 Olympic Gold medallist Linford Christie once coined a famous phrase which perfectly summed up the importance of planning. Christie often waxed lyrical about the starting pistol and leaving his blocks "on the B of the bang". It was his strategy. His preparation. 

The sprinter's legendary claim will undoubtedly be repeated by commentators when the Olympic rings land in London next year, but it's also a phrase that mirrors the legal issues faced today by businesses. 

Like Christie, employers need a clear strategy to reach their goals and if they don't prepare for the legislative changes, then that finishing line can loom long into the distance. 

Here, I would like to focus on those goals and the forthcoming changes to employment legislation.

Paternity leave and pay

The new Paternity Leave Regulations are imminent and affect the parents of children due on or after 3rd April 2011. Those qualifying will be permitted to take the maximum of 26 weeks additional paternity leave prior to the child turning one. 

The right to take such leave only applies after one of the parents has returned to work with some statutory maternity leave left untouched.

Additional paternity leave may be available if:

• You are the father of a child due on or after 3rd April

• Your partner is pregnant and due to give birth on or after 3rd April

• You and your partner receive notification that you are matched with a child for adoption on or after 3rd April

• The child's mother is entitled to statutory maternity leave

There will be strict guidelines surrounding the application for additional paternity leave and employees must provide a variety of information so their employer can assess eligibility. Accurate administration will be vital.

Retirement Age

The abolition of the Default Retirement Age (DRA) will have an impact on employers. 

Although the DRA will not be scrapped until October, a timetable setting out transitional arrangements from 6th April will mean employers have little time to get to grips with proposals which the government hope will encourage people to work for longer.

Employers will have two options when dealing with retirement:

• Continue to operate a compulsory retirement age

• Or if they feel strongly enough, discontinue that policy

Whatever their conclusion, employers will be required to give strong justification for their retirement decisions and unfortunately, it will become commonplace to see the growth of employment tribunals. 

The early advice for employers is to review their demographics. Who is close to reaching 65 and who's crossed that threshold? Aside from taking legal advice, these are the kind of questions employers should now be asking themselves.

Training and study

From 6th April 2010 employers with over 250 employees were obliged to consider employees' requests for time off for training or studying. 

Interestingly, the employee has no right to be paid for study time although the employer could agree a single payment or negotiate flexible working.

The types of training a qualifying employee is entitled to consider include:

• Accredited programmes leading to a qualification or skills development

• Training that is supervised or outsourced

• Training within or outside of the UK

The regulations were due to be extended this year to include all employers but that has been put on hold by the Department for Business, Innovation and Skills. However, the regulations still remain important for larger employers given that the maximum penalty for not considering a training request is eight weeks pay. A costly oversight.

Agency Workers Regulations

New legislation giving more rights to agency staff is introduced on 1st October which will change the current landscape. It's a milestone for lobbyists who have campaigned for equal rights. The regulations will give agency staff, who have completed 12 weeks employment, rights to equal conditions such as: 

• Annual leave

• Pay

• Childcare facilities and

• Job opportunities

The regulations rely heavily on the continuity of the worker's role. This can be affected by sickness, unplanned breaks or even an alteration to a job specification. The regulations have a number of anti-avoidance regulations built in and any misuse could potentially cost an employer up to £5,000 in a tribunal.

It's imperative that the UK's 17,000 recruitment agencies start to work in partnership with employers to ensure coherence. Equally, these new, intricate regulations will see scores of employers reaching out for specialist legal advice. 

Being first out of the blocks will see countless employers staying ahead. Many have already started their race. It's all about having a strategy in place to face the changes and, like Christie, timing is everything.

The complexities of all legislation I've discussed will need plenty of consideration. Inertia isn't an option. That is precisely why employers should not shy away from taking legal advice from employment specialists like MFG.

Businesses looking for professional advice on employment law can contact Sally Morris at MFG Solicitors on 0845 555 5321 or email sally.morris@mfgsolicitors.com 

Sally is a member of the Employment Lawyers Association and the Law Society.

 

 

 

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Article published by Midlands Business News on 25 February, 2011

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