Wright Hassall’s employment team welcomes you to this year’s first e-bulletin and wishes you all a happy New Year!
As with other years, 2011 is set to see a number of changes to employment law with the most significant change expected to be the abolition of the statutory retirement age in October. In this e-bulletin, we provide an overview of the changes set to be introduced this year.
National Minimum Wage: January 2011
The National Minimum Wage (Amendment) (No. 2) Regulations 2010 came into force on 1 January 2011. They provide that expenses paid to a worker for travelling to a temporary workplace, which are eligible for tax relief under section 338 of the Income Tax (Earnings and Pensions) Act 2003, will not count towards payment of the national minimum wage.
Increase in Employment Tribunal Limits: February 2011
Tribunal awards will increase from 1 February 2011:
- Cap on a weeks pay will rise to £400.00 (from £380.00)
- Cap on basic award will rise to £10,500.00 (from £9,900.00)
- Cap on compensatory award will rise to £12,000.00 (from £11,400)
Paternity rights extended: April 2011
For those parents of children born on or after 3 April 2011, there will be a much more flexible approach to maternity and paternity from April 2011 onwards. Fathers will be entitled to ordinary paternity leave as usual but additional paternity leave will be introduced. Additional maternity leave applies where a mother ends her maternity or adoption leave early and the father is then able to take the remainder of that leave up to a maximum of three months paid at the statutory rate and three months unpaid.
We urge business to ensure that their policies are updated as soon as possible to provide for the forthcoming changes.
Increase in payments: April 2011
- Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay: an increase to £128.73 per week.
- Statutory Sick Pay: SSP will increase to £81.60 per week.
- Maternity allowance: this will increase from to £128.73 per week with the earnings threshold remaining at £30.
- Statutory Sick Pay: SSP will increase to £81.60 per week.
- Maternity allowance: this will increase from to £128.73 per week with the earnings threshold remaining at £30.
Bribery Act: April 2011
The Act will introduce a new strict liability corporate offence of failing to prevent bribery by individuals acting on behalf of an organisation. The only defence open to employers will be to show that they have "adequate procedures" in place to prevent bribery and corruption. The government commenced consultation on 8 November 2010 into what constituted "adequate measures" the response to which is expected shortly together with the final version of the guidance.
Flexible working extended: April 2011
The government has confirmed that the right to request flexible working will be extended to parents with children under 18.
Abolition of retirement age: potentially October 2011
The government has proposed to abolish the statutory retirement age on 1 October 2011, with transitional arrangements beginning on 6 April 2011. Employers giving notice of retirement after 5 April 2011 will no longer be able to rely on the statutory default retirement age of 65. The government’s response to the consultation is expected to be published this month.
Agency Worker Regulations come into effect: October 2011
These will be introduced in October without any further changes.
If you would like more information on any of the articles covered in this employment eBulletin please contact
Suki Harrar or
Ian Besant.
