Bad Weather, Employment Law Reform & Pension Changes

Employment Update for Small Businesses

December 2011

Dear Subscriber,

Last month, as this newsletter was published, reports were coming in of a raft of proposed employment law changes, some of which I reported to you. This month I have produced a summary of all the key changes which I hope will provide greater clarity. With reports of snow earlier in the month in the north of the country, I explain what the rules are in relation to employees unable to come to work due to bad weather. Also, a brief update on the forthcoming pension reforms.

Finally I would like to wish you all a very merry Christmas and a happy New Year.

Please contact me if you would like to find out a bit more about any of these items or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.

Regards

Peter Etherington

Tel: 01664 430373

www.etherington.co.uk

Employment Law Changes Just Around the Corner?

Proposals for Employment Law Reform

After many months of rumour, the government has recently announced its proposals for what is claimed to be the biggest shakeup of employment law for decades.

The main proposals are:-

unfair dismissal qualifying period to increase from one to two years from April 2012
compulsory lodging of all claims through Acas, for an attempt at mediation, before they can be lodged with the tribunal
consultation on the introduction of 'protected conversations', with the proviso that they will not extend to protect discriminatory acts
a call for evidence, with a view to consultation, on reducing minimum period for redundancy consultation to 60, 45 or 30 days (currently it is 90 days where it is proposed to make 100 employees or more redundant)
options for a 'rapid resolution scheme', to enable simple claims to be settled within three months
financial penalties to be introduced on employers who breach employment rights, payable to the Exchequer, subject to a discretion exercisable by Employment Judges
a fundamental review of employment tribunal rules of procedure, to include changes to costs and deposit orders
Employment Judges to sit alone in unfair dismissal cases
CRB checks to be portable, so no need for a fresh application when moving jobs
maternity and paternity leave to be 'modernised', with emphasis on greater involvement for fathers

I will keep you informed of progress as these matters develop.

Will snow stop your employees getting to work?

Weather Disruption and Employer Obligations

Unless your contract of employment states otherwise, you do not have to pay staff who are unable to make it into work because of bad weather. However, if you have to close your business due to bad weather and, therefore, cannot provide your staff with work, you may have to pay them.

Of course, if employees do not come to work when the Met Office has officially warned against travelling, it puts employers in a difficult position. You don't want to be seen to be pressurising employees into putting themselves at risk.

An added complication is when schools close. Employees have the statutory right to take time off work (unpaid) in this situation to look after their children. If you decide to pay employees who are unable to come into work due to the snow, but not to pay those who take time off because their children can't go to school you could find yourself facing a claim of less favourable treatment.

Most employers will find a workaround in these circumstances which may be to allow some home-working, to let staff use their holiday entitlement, or to have paid time off and make the time up later on. However, for larger employers or those who have found the recent bad weather particularly difficult to manage, it may be best to formulate a policy to cover this issue.

If you would like help with such a policy or would like to discuss this issue further, please contact me.

What is the latest on the pension reforms?

Government Announces Pensions Delay

In the September newsletter I reported on forthcoming reforms to pensions and the fact that employers will be obliged to provide pensions for staff and to contribute to them.

The Government has now confirmed that automatic enrolment will begin on time in autumn 2012 and all employers will remain in scope but it will be delayed for small businesses to give them more time to prepare.

Under the revised timeline, small businesses (with fewer than 50 employees) will begin automatically enrolling their staff in May 2015, instead of the previous timing of April 2014.

Peter Etherington Employment Law Services