January 2010
This factsheet gives introductory guidance. It:
- summarises the main changes to employment law in 2009
- looks at the major changes expected in 2010.
This factsheet outlines the major changes to employment legislation in 2009 and 2010. CIPD members can see fuller and more detailed lists, plus information on case law with implications for employers, and our Latest news page which is updated weekly, all in our Recent developments pages in the Employment Law at Work area of our website.
Also for CIPD members, Stephen Taylor, our Professional Development Scheme Examiner for Employment Law, has written an update, primarily for tutors and students studying the employment law module of our PDS, but which HR practitioners may also find useful.
Changes to employment law in 2009
From February
- The Employment Rights (Increase of Limits) Order 2008 (SI 2008/3055) – came into force on 1 February 2009. 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.
From March
- Points-based immigration rules - from 31 March, Tier 4 which applies to students is implemented, as are amended rules applying to business visitors, and a change in the financial and academic requirements for highly skilled workers (Tier 1).
From April
- Statutory annual leave entitlement increased from 4.8 weeks to 5.6 weeks – from 1 April.
- Statutory maternity, paternity, adoption pay – the flat rates for SMP, SPP and SAP increased to £123.06 per week (or 90% of average weekly earnings if less) - from 5 April.
- Statutory sick pay - the flat rate for SSP increased to £79.15 per week, – from 6 April.
- The statutory dismissal, disciplinary and grievance procedures contained in the Employment Act 2002 and the related provisions about procedural unfairness in dismissal cases – are repealed from 6 April in England, Scotland and Wales. A revised Acas Code of Practice replaces the statutory procedures and Acas's powers of conciliation are extended. Employment tribunals can alter awards by up to 25% where an employer or employee unreasonably fails to comply with the Acas Code. In Northern Ireland the Department of Employment and Learning (DELNI) are consulting on the reform of the dispute resolution procedures.
- Employers who have paid below the national minimum wage face penalties and workers are entitled to have arrears of wages repaid at current rates – from 6 April.
- The right to request flexible working is extended to parents of children aged under 17 years in England, Wales and Scotland – from 6 April.
From August
- Minimum weekly earnings for all apprentices in England increased from £80 to £95 – from 1 August 2009
- Junior doctors are restricted to working 48 hours a week under the Working Time Regulations (increased to 52 hours for certain doctors in training until 31 July 2011).
From October
- The limit for a week’s pay for calculating statutory redundancy pay and certain tribunal awards increased from £350 to £380 – from 1 October. (It will not be uprated again in February 2010 as is usually the case.)
- Annual increase in the national minimum wage: the standard rate rose to £5.80, the development rate to £4.93 and the youth rate to £3.57 – from 1 October.
- Tips, gratuities, service and cover charges can no longer be paid to a worker through a payroll as part of the national minimum wage – from 1 October.
- The House of Lords was replaced for judicial purposes by a new United Kingdom Supreme Court.on 1 October 2009.
- Safeguarding Vulnerable Groups Act 2006 – introduced a new centralised Vetting and Barring Scheme for people working with children and vulnerable adults, run by the Independent Safeguarding Authority (ISA) – the scheme started from 12 October with further elements being implemented in 2010. It is now an offence for an employer to knowingly use or employ a barred person, and employers are required to notify the ISA if an employee who may pose a risk is dismissed or resigns.
Employment related Bills
- Apprentices, Skills, Children and Learning Act – received Royal Assent 12 November 2009. It reforms education, training and apprenticeships with all young and suitably-qualified adults having the right to an apprenticeship place from 2013, From 6 April 2010, employees in organisations with 250 or more staff will have the right to request time off for training. (The right will be extended to all sizes of organisation from 6 April 2011).
- Welfare Reform Act – received Royal Assent 12 November 2009. It improves support and incentives to move people from benefits to work and provides greater choice and control for disabled people.
- Equality Bill – to consolidate and simplify existing discrimination law in England, Wales and Scotland by bringing it into one piece of legislation. It will also address continuing pay inequality and increase the possibility of positive action to promote equality at work. The Bill started its Parliamentary process in the 2008/09 session and continues in the 2009/10 session. It is likely to receive Royal Assent in April 2010 with most of the provisions expected to come into force in October 2010.
In addition, a number of Private Member’s Bills have been introduced in the current parliamentary session.
European developments
- EU Working Time Directive opt-out - in April 2009 the European Parliament and European Council of Ministers failed to reach a compromise. The European Commission now has to decide whether to draft new legislation or drop the amendment altogether. The current Directive still remains in force.
- EU Temporary Agency Workers Directive 2008/104/EC - in May 2009 the UK Government launched a consultation on implementing the Directive and there will be a second stage consultation on draft Regulations. They must be implemented in member states by December 2011.
- Recast European Works Council Directive - was adopted in April 2009 and member states have until 5 June 2011 to implement it at national level.
Changes to employment law expected in 2010
While some legal changes in 2010 appear to be timetabled at certain times of the year, the outcome of the General Election is likely to determine the direction and content of many of the legal developments which follow it.
As regional governments continue to implement their own take on particular policies, in some cases, the Scottish and Northern Ireland situation may differ from that in England and Wales. CIPD members can see our factsheet outlining the key differences between Northern Ireland and Great Britain.
In February
- Compensation limits for unfair dismissal will go down (for the first time ever) from £66,200 to £65,300 – from 1 February 2010. (The maximum weekly pay to be taken into account when calculating statutory redundancy payments, and the basic award in unfair dismissal claims, was increased to £380 in October 2009 and is not changed again.)
‘Early’ in 2010
- Following a consultation process in 2009, proposed regulations on union blacklisting are expected to come into force.
‘Spring’ 2010
- The Social Security (Medical Evidence) and Statutory Sick Pay (Medical Evidence) Amendment Regulations 2010 will introduce new 'fit notes' that will replace sick notes in England, Wales and Scotland.
From April
- Statutory maternity, paternity and adoption pay - the standard rates of SMP, SPP and SAP will increase to £124.88 a week. (The standard rate of Statutory sick pay (SSP) will remain unchanged at £79.15 a week.)
- Following consultations in 2009, amendments to the Conduct of Employment Agencies Regulations are expected to come into force.
- Regulations are expected to come into force which will allow parents of children due on or after 3 April 2011 to transfer part of the mother’s maternity leave to the father.
- Under the Apprentices, Skills, Children and Learning Act 2009, after a minimum of six month’s service in organisations with 250 or more staff, employees will have the right to request time off for training which they believe will make them productive and effective at work. As in the existing arrangements covering flexible working, employers will have a duty to consider seriously any such request. There will be no requirement for an employer to pay for the training or time off. (The right will be extended to all sizes of organisation from April 2011.)
From October
- Provisions of the Equality Act expected to come into force.
From November
- Under the Safeguarding Vulnerable Groups Act 2006, people seeking work in a ‘regulated activity’ must register with the Independent Safeguarding Authority (ISA), although they may register from 26 July 2010.
Other developments
- The planned review of the default retirement age (DRA) has been brought forward to 2010. In October 2009 the Government called for evidence on the DRA to feed into the review to be submitted by 1 February 2010.
Useful contacts
More information on employment law
CIPD members can find detailed information on employment law developments, including key case law and its implications for employers, in the Recent developments and Frequently Asked Questions sections of our Employment Law at Work area.
See the text of all legislation listed in this factsheet
Acas
Business Link - free business advice and support service
Government departments
Government department websites usually contain useful summaries of recent and forthcoming legislation. The main departments for employment law are:
This factsheet was written and udated by CIPD staff.