E-Innovation
Notable employment law changes expected in 2009
There are a number of key employment law changes expected in 2009 which will affect all areas of business. The following information outlines these changes and aims to provide some guidance for your business.
From February
- The Employment Rights (Increase of Limits) Order 2008 (SI 2008/3055) – will come into force on 1 February. The maximum compensation in an unfair dismissal case increased to £66,200. The maximum weekly pay to be taken into account when calculating statutory redundancy payments and the basic award in unfair dismissal claims increased to £350.
In ‘Spring’
- Points-based immigration - Tier 4, which applies to students, is expected to be implemented in Spring 2009.
- Students from outside of the EEA will be required to score against a points based system to prove that they can sustain a life while studying in the UK.
From April
- Statutory annual leave entitlement will increase from 4.8 weeks to 5.6 weeks – from 1 April.
- Statutory maternity, paternity, adoption pay – the flat rates for SMP, SPP and SAP will increase to £123.06 per week (or 90% of average weekly earnings if less), subject to Parliamentary approval.
- Statutory sick pay - the flat rate for SSP will increase to £79.15 per week, subject to Parliamentary approval.
- Employment Act 2008 is expected to come into force
- The Employment Act 2008 strengthens, simplifies and clarifies key aspects of UK employment law. The Act brings together both elements of the Government’s employment relations strategy – increasing protection for vulnerable workers and lightening the load for law-abiding business.
- Repealing the statutory dismissal, disciplinary and grievance procedures contained in the Employment Act 2002 and the related procedurally unfair dismissal rules in the Employment Rights Act 1996. A revised Acas Code of Practice will replace the statutory procedures and employment tribunals will be able to alter awards by up to 25% where an employer or employee unreasonably fails to comply with it. The Act will also introduce penalties for employers who have paid below the national minimum wage and workers will be entitled to have arrears of wages repaid at current rates.
- The right to request flexible working will be extended to parents of children aged 16 years and under.
From August
- Minimum weekly earnings for all apprentices in England will increase from £80 to £95.
From October
- National minimum wage rates – are likely to rise. In addition, the Government has asked the Low Pay Commission to make provisional rate recommendations for 2010 and advise whether the current apprentice exemptions are still appropriate.
- Safeguarding Vulnerable Groups Act 2006 – delayed from 2007, will introduce a centralised vetting system for people working with children and vulnerable adults.
For a confidential discussion regarding Employment Law changes please call Dale Perrett at Novo on 01275 375588 or email dale.perrett@novoexec.com.