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Employment Update for Small Businesses
July 2010
Dear Subscriber,
 
First of all I would like to thank those of you who sponsored my 50 mile bike ride in aid of Cancer Research UK and Rainbows.  I made it!  It is not too late to sponsor me still if you like.
 
This month we review the newly published Employment Tribunal statistics, which show a dramatic increase in claims.  Also, I have had a number of queries recently about employing people from Eastern Europe, so I have provided a brief overview of the law and the dangers of ignoring it!  Finally, you will find the new rates of the National Minimum Wage to help you with your budgets for the back end of the year.
 
Please contact me if you would like to find out a bit more about any of these items.  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. 
 
Peter Etherington
Regards
 
Peter Etherington
Tel: 01664 430373
 
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Can my employees bring a claim?
More and more disgruntled employees choose to take legal action
236,100 claims were made to the Employment Tribunals in 2009-2010, an increase of 56% on the previous year.
This is an incredible figure and it is likely to be due to the number of redundancies made as a result of the economic downturn over the same period and the fact that there have been very few vacancies available for redundant employees.  It may well be a case of ex-employees feeling that they have nothing to lose through bringing a claim.
 
There is nothing that an employer can do to prevent an employee or ex-employee bringing a claim; it is so important, therefore, that you make sure that you follow robust procedures and do everything you can to make sure that any such claim is unlikely to succeed.
Can I employ an EU National?
The Rules on Employing non-UK Citizens
UK citizens and citizens of states that joined the EU prior to 2004 are free to work in the UK without restriction.  Citizens of states that joined the EU during or after 2004 are entitled to enter and live in the UK, but there are different rules regarding their eligibility to work here.
 
Citizens of Bulgaria and Romania need permission to work here, and have to apply for permission to the UK Borders Agency (there are different rules relating to seasonal agricultural work, however).  Citizens of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia need to register to work here, if they wish to work for longer than one month.  The UK Borders Agency website has all the information needed for potential employees wishing to register or apply for permission to work.
 
As an employer, you need to be aware that you could be fined up to £5,000 if you employ one of these EU citizens if they have not applied for permission or registered to work here.  You should not employ them unless and until you have seen documentary evidence to confirm their eligibility, and you should take a copy of the documentation and keep it safe.
 
In order to avoid claims of racial discrimination, you should always check the identity of any potential new recruit and keep a copy of the documentation that proves their eligibility to work in the UK.  For British citizens and citizens of EU states that joined before 2004, that could simply be a copy of their passport.  For citizens of newer EU states, that will be a copy of their registration form or permission to work certificate.
 
This is a complex area and I would always advise you to contact me if you are ever unclear about your responsibilities.
Do you need to increase pay?
New National Minimum Wage Rates Announced
The Government has now enacted the anticipated increase in the National Minimum Wage, as previously announced in my April newsletter.  This will take effect from 1 October 2010: 
  • £5.80 to £5.93 an hour for workers aged 21 and over
  • £4.83 to £4.92 an hour for workers aged 18 to 20
  • £3.57 to £3.64 an hour for workers aged 16 and 17

Peter Etherington Employment Law Services
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