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There is a lot to report this month as new laws take effect relating to sex discrimination, maternity and recruiting foreign nationals. Also you will find new statutory rates coming in from 6 April related to sick pay and pay during "family friendly" leave. But we start with a worrying item about the risks employers continue to run in relation to employing staff. Feel free to contact me if would like any more information about any of these news items.
Regards
Peter Etherington  Tel: 01664 430373
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| Can you afford a claim? |
| Employers run the risk |
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Insurance firm, Hiscox, has warned that the biggest risk to businesses currently is the threat of being sued by an employee (or ex-employee). It points out that employers do not normally think twice about paying out for insurance against the risk of fire to their business, but two-thirds of the firms it surveyed admit that they do not do anything to mitigate the risk of employment tribunal claims. It only takes a small error in the procedure you follow when dismissing an employee or for banter between staff getting out of hand and becoming harassment, for a claim to land on your desk. The resulting cost of defending the claim and potential award could have the same devastating effect on a small firm as a fire.
Whilst taking out expensive insurance against such risks might be too much for some employers, taking advice at the appropriate time and having easy-to-follow but watertight procedures in place does not have to cost a fortune. Don't forget that Peter Etherington Employment Law Services offers a free initial one-hour consultation. If you are worried about the risks you could be running, why not take advantage of this offer to have a free "health check"?
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| Are your employees entitled to more pay? |
| Change to statutory rates |
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From 6th April the following weekly statutory rates will increase:
Statutory Adoption Pay (SAP) and Statutory Paternity Pay (SPP) both increase to £117.18 in line with SMP.
NB Most employers can claim back some of the statutory payments made to staff. Also there are procedures that you should follow when an employee tells you that they wish to take one of the "family friendly" types of leave and you should familiarise yourself with your statutory obligations related to this leave. |
| Have you introduced a harassment policy yet? |
| Changes to the Sex Discrimination Act |
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Some important changes to the Act come into force from 6 April 2008. The Government has been compelled to bring in these changes as the EU had previously decreed that the existing Act did not fully implement the EU's Equal Treatment Directive.
The changes mean that employees can claim sexual harassment even if the harassment is not directed at them (and even if they are not the same sex as the person being harassed). This means that a man who witnesses the harassment of a female colleague can claim sexual harassment himself if he considers the conduct has violated his dignity or if he believes that the conduct creates an environment for him which is offensive or degrading.
Another important change is to the terms and conditions of employment of a woman during maternity leave. Previously employers could limit the contractual terms that applied during Additional Maternity Leave (AML): weeks 27 to 52 of Statutory Maternity Leave. It has been quite common, for example, for employers who give contractual holiday entitlements which are more generous that the statutory entitlement to restrict it during the period of AML to statutory holiday only. This will no longer be lawful in respect of women who expect their child on or after 5 October 2008. This would also apply to benefits such as company cars, mobile phones or corporate gym membership, where applicable.
Those of you who are on a fixed fee agreement with Peter Etherington Employment Law Services can be assured that your terms and conditions, and employee handbooks will be checked and amended in time for this legislative change .
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| Are you making the right checks on staff? |
| Changes to Asylum and Immigration could land employers in prison |
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Recent changes to Asylum and Immigration law mean that employers could now be liable to both a prison term of up to two years and fines running into tens of thousands of pounds if they knowingly employ illegal workers. With the recent big increase in immigrants from Eastern Europe and the increased likelihood for all employers of taking on foreign nationals, it is essential that you ensure you carry out the checks specified by the legislation. What is more, the new law means that you may need to repeat the checks at regular intervals or run the risks of penalties as specified above.
It is essential that employers check the documentation of ALL new staff before they start work. Selectively checking just the documents of those you believe to be foreign nationals can lead to claims of racial discrimination. |
