Employment Changes - April 2005

This month brings a new wave of legislation on employment law and yet more obligations upon employers. The main provision relates to larger businesses, which have more than 150 employees.

From 6 April, employees in this size of business can get together and make a request that a Works Council be set up. The employer must then do a ballot to check that 40% of the workforce supports the request. If they do, the employer has to establish, within a fairly short time period, a suitable system for providing information and consultation to the employees. The basis of this system must either be agreed with the workforce or if this is not possible, comply with a set of rules set out in the Information and Consultation of Employees Regulations 2004.

The rules are every empowered (or interfering?) employees dream, setting out when consultation should take place, the topics it should cover and even the ‘spirit’ in which consultation was to occur. For example, under the rules, information must be given to employees on the probable development of the business and if there is any threat to employment. This could raise significant problems in relation to confidentiality and motivation. What would you do if news of impending redundancies sent shock waves through your clients and customers? The downfall of Rover could have been much sooner had suppliers had the full picture of the impending closure months or years earlier due to staff consultation. How would this fit in with any plans to sell on the business or put it into liquidation? What would you tell the employees? It is a far cry from the days when the bosses made all the decisions and the staff had to simply lump it.

As with all the present employment legislation, there are ways in which these obligations can be minimised and dealt with. Careful planning by employers and accurate practical advice given at the right time from a solicitor will reduce risks.

April 2005 also brings some smaller changes that affect all employers. In brief these are:

Employees are now protected from being treated badly as a result of undertaking jury service. If you have an employee who is asked to do this service, you are obliged to let them have the time off without any penalty. Any dismissal of the employee would be automatically unfair. The good news is that this you do not need to pay them for this leave, unless it is a term of their contract that you would.

Regulations have come in extending the Working Time provisions and imposing maximum hours that can be work by commercial drivers, crews of heavy good vehicles and public service vehicles such as busses and coaches. This will affect many long haul drivers in the UK who should now only work for 10 hours at night in any 24-hour period and 48 hours per week on average.

The protection for employees making a request for flexible working has been extended. Employees who have less than one year’s service with the employer can bring a claim for unfair dismissal if the request is not dealt with in accordance with the statutory rules.

Finally, statutory maternity, paternity and adoption pay has been increased to £106 per week. Statutory sick pay has also increased to £68.20 per week.

If you require assistance in managing your obligations in this regard or in relation to the new information and consultation requirements, do contact The Employment team at Follett Stock, the Business Solicitors.