May 19, 2011
April is a busy time in employment law and there have been significant changes which employers need to be aware of. As there have been so many changes, readers should to refer to the Spratt Endicott website se-law.co.uk which gives further detail about the various issues covered.
Retirement
This change has been widely publicised. Employers will be aware that under the old rules, employees could be required to take compulsory retirement at age 65, as long as a particular process was followed by the employer. From 5th April, this process has been abolished (although there are transitional provisions which carry on until 1 October 2011.)
This means that older workers need to be treated in the same way as all other staff, so that any termination of employment will need to be carried out following a fair process. The reason for dismissal will also need to be a potentially fair reason such as redundancy, capability or conduct. In certain, very narrow scenarios, an employer may be able to create its own retirement age, however, there are significant risks with this process and employers should take advice before they decide to implement this type of scheme.
Meanwhile, contracts of employment and policies should be reviewed, to remove wording referring to retirement.
Increased Rates
From 6 April 2011, statutory maternity, paternity, adoption pay and maternity allowance increased to £128.73; Statutory Sick Pay increased to £81.60 and the small employer’s relief for statutory maternity pay is reduced.
Increased Paternity Leave
From 3 April Fathers acquired important new rights to share paid maternity leave with their partners. Employers need to be aware of the rights, and to review their Equal Opportunity Policies.
Small employers and start ups
The Government announced in a strategic document called “The Plan for Growth” which was published on 23 March 2011 that it plans to exempt small employers (ones with less than 10 employees) and start ups from all new domestic employment law changes coming into force over the next 3 years with effect from 1 April 2011.
More information on employment law relating to employers or employees can be found on our website. Alternatively, please contact Carol Shaw or Debra Wetters on 01295 204000.
