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Employment Update for Small Businesses
May 2009
Dear Reader,
 
In this issue: discrimination laws are about to receive a long-awaited spring clean with the introduction of a new Equality Bill and there are a few surprises in store.  There is some rare good news coming out of the EU with employees retaining their right to opt-out of the statutory cap on working hours.  The economic climate has also had an impact on planned increases to the National Minimum Wage.
 
In my last newsletter I told you that the statutory cap on a week's pay for redundancy purposes was to be increased from £350 to £380.  We now know that this will come in from 1 October 2009.
 
Finally I would like to tell you about a series of networking events that are to be held in aid of two East Midlands charities - LOROS and Rainbows.  Read on for more.
 
Please contact me if you would like to find out a bit more about these issues.  If you need any help or advice why not take advantage of my free initial consultation.
 
Please forward this email to any of your contacts who might find it of benefit. 
 
Holly
Regards
 
Peter Etherington
Tel: 01664 430373
Are you ready for new equality laws?
New Equality Bill replaces 9 pieces of legislation
The Government has finally published its long awaited Equality Bill.  The Bill brings together all the various pieces of discrimination legislation into one and irons out the minor differences between them.
 
Controversially, one of its aims is to force employers with 250 or more employees to publish information which identifies differences in pay between men and women (although this particular aspect will not come in for another four years or so).

It also outlaws the use of clauses in employment contracts which bar employees from disclosing their pay to other employees.
 
Another new introduction is the outlawing of discrimination by association.  This has come about as a consequence of the case of Coleman v Altridge Law, which was decided in favour of Mrs Coleman in the European Court of Justice.  In brief she claimed that her employer treated her less favourable than other employees when she sought flexible hours to care for her disabled son.  Her claim of disability discrimination failed under UK law because she was not disabled.  The ECJ however, said that this bit of the UK law was incompatible with the EU directive.
 
This will be quite far reaching, as it will not only apply to disability cases - it would apply, for instance, if an employee was being teased by colleagues because their son was gay (under the provisions of discrimination on the grounds of sexual orientiation).   
 
So far the Bill has just had its second reading in Parliament, so it will be some time before it is enacted - watch this space!
 
If your pay structure is informal and if there are significant differences between employees' pay levels that are difficult to justify, it would be a good idea to carry out a review now in order to plan a strategy to address these differences in an affordable way. 
How long is your employees' working week?
The EU scraps plans to remove the opt-out agreement
You may remember that I reported in my December newsletter that an employee's right to opt-out of the 48 hour cap on a working week was to be outlawed by the EU.  It seemed like a foregone conclusion as the EU had voted in favour of an amendment to the Working Time Directive which would include this aspect. However, since then the members have been unable to reach an agreement over the opt-out.  The UK government was joined by a number of other members who objected to the removal of the opt-out.

It is possible that a new proposal could be brought in and that the process could start from scratch, but it seems very unlikely.  For now, if there is a chance that your workers could work more than 48 hours per week over a 17 week average (including any work they do elsewhere), you should still ask them to sign an opt-out agreement.
Can you afford an increase in pay rates?
National Minimum Wage to rise in October
The Government has announced an increase in the National Minimum Wage to take effect from 1 October 2009.  As you would expect in the current climate, the increase is not very large:

Age         Current rate      New Rate
22+            £5.73            £5.80
18-21         £4.77            £4.83
16-17         £3.53            £3.57
 
Fancy promoting your business whilst helping local charities?
Charity networking in support of LOROS and Rainbows
The BNC are holding a whole host of Charity Networking events in June this year and aim to raise over £1,000 for two very worthy charities: LOROS and Rainbows.

This is a fantastic opportunity for you to help promote your business knowing that you've also made a generous contribution to these worthwhile charities.

Want to know more? There's more information on BNC's website.

Want to book? Then please use the special Charity Event Booking Form.
 
At least £10 of your booking fee will go on to the charities; in some of the events your full contribution will be passed on.

Finally, if you can't make any of the events but want to make a donation anyway, please do so. There's a special "donation only" event on the Charity Event Booking Form that shows you how.
 
I will be at both the Leicester City and Loughborough events and hope to see some of you there.

Peter Etherington Employment Law Services
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