Fixed term employees
This coming October marks the fourth year since the regulations regarding fixed-term workers came into force which stipulate that fixed-term contracts cannot be renewed indefinitely, but are considered permanent contracts after four years.
If you have any fixed-term employees, who were so before October 2002, they will be considered permanent employees as of October and entitled to all the relevant rights - you will not be able to dismiss them on the grounds of non-renewal of a fixed-term contract, and they will have more than the one year's service requirement for making claims of unfair dismissal.
You will also be required to provide them with a "written statement of variation" to confirm that their contract is now permanent. This must be done within one month of the fourth anniversary for the employee, and failure to do so could result in an award of 2 to 4 weeks pay.
Challenge to the Age Discrimination Regulations
Heyday, a not-for-profit membership organisation for people approaching retirement, has lodged an application in the High Court to challenge the Government on the legality of the new Age Discrimination legislation due to come into force this October.
The organisation, following a poll of over 60,000 people from the baby boomer generation, claims that the regulations - which do not afford employment rights for those over 65 - contravene the European Directive outlawing age discrimination; and coupled with the mandatory retirement age of 65, effectively deny those over 65 the right to choose to continue working.
If the case is successful this could result in changes to the Age Discrimination Regulations, so watch this space for further news.
National Minimum Wage
The NMW goes up in October this year. The new rates are as follows:
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£5.35 per hour for workers aged 22 and over (previously £5.05)
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£4.45 per hour for workers aged 18 - 21 (previously £4.25)
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£3.30 per hour for workers aged 16 - 17 (previously £3.00)
Holiday Entitlement - Q & A's
Consultation is currently under way (June 06) as to increasing the statutory holiday entitlements to 28 days per year to reflect the number of permanent public/bank holidays.
Does this mean the entitlement is increased to include bank holidays, or that bank holidays will be a statutory entitlement?
The holiday entitlement is being increased to reflect the number of permanent bank/public holidays, not to make them statutory. Employees will be able to take equivalent leave if they are required to work bank holidays (i.e., there will be no statutory requirement for employees to take bank holidays off as this could have a detrimental effect on the economy).
Why is this measure being taken?
This measure is being taken because the Government recognises that some workers - notably those lower paid - are required by their employers to include bank holidays in their annual entitlement, effectively giving them only 12 days to take when they choose. As many workers receive the bank holidays in addition to their statutory 4 weeks this is perceived to be unfair on lower paid workers. The measures seek to address this issue.
The provision amounts to a statutory 5.6 weeks of holiday, rather than the previous 4 weeks. What impact will this have on employees who work - for example - 6 day weeks. Will they receive 33.6 days holiday?
The statutory provision will be to provide employees with 5.6 weeks holiday. However, the amount of statutory entitlement will be capped at 28 days. An employee who works a 6 day week will be entitled to 28 days only, not 33.6, but their employer may give them more if they choose.
Will ant of this entitlement be able to be carried over into the following year, or - as with the current four weeks - will this need to be taken within the holiday year (cf. European Working Time Directive)?
This is one of the issues where the Government is seeking feedback. The current proposal is for the additional 1.6 week entitlement (over the requirements of the EWTD) to be allowed to be carried over into the following year, although it is recognised that this may create operational issues for companies.
Will employers be able to give payment in lieu of the extra holidays?
This is a possibility, as to do so for the additional 1.6 weeks will not contravene European law. This is also a subject for consideration and the Government are seeking feedback on what operational issues this may provide. A further element under discussion is whether employees should be given a choice in this matter, or whether employers can determine whether the additional leave will be paid in lieu or not.
When will these proposed changes take effect?
To enable businesses to prepare operationally for the changes the Government proposes that the introduction of the increased entitlement is staggered, with it going up to 24 days (4.8 weeks) in October 2007. The introduction of the remaining part of the entitlement is under discussion, with the following options put forward: 1) To introduce the remainder in one go in October 2008; 2) To delay and introduce the remainder in one go in October 2009; 3) To increase the amount to 26 days (5.2 weeks) in October 2008 and to 28 days (5.6 weeks) in October 2009.
HR Initiatives Ltd does not accept any liability for loss or negligence or claims whatsoever as a result of this information, which is intended for briefing advice only.