Archived News

EMERGENCY BUDGET

July 2010

George Osborne announced in the full Budget document that he is requiring relevant Government Departments to conduct an immediate review of employment legislation.  The stated aim is to ensure maximum flexibility but also to protect fairness and promote competitiveness.  This will be under the Coalition’s “1 in – 1 out” approach to new legislation plus “sun-set” clauses.  A “Reducing Regulation Committee” is being chaired by the Business Secretary, Vince Cable. 

All legislation in the pipeline will be reviewed.  However it is unclear whether this includes the Equality Act 2010 passed in the final stages of the last Government.  Implementation had been due to commence in October but there has been no statement yet from the Coalition Government on whether this is to change.  Lyme Bay Consulting observes that references to October implementation have mysteriously disappeared from the web site of the Government Equalities Office.  We may know more as further details of the business deregulation are announced.

The Budget confirmed that there will be consultation on removing the default retirement age of 65.

EQUALITY ACT 2010

June 2010

The Economy has been the predominant headline after the formation of the Coalition Government.  So it is perhaps understandable that there has been no news on the Equality Act 2010 that received Royal Assent just before the General Election. 

The expected removal of many controversial clauses did not take place in the final parliamentary stage of the Equality Bill.  However the Conservative Party stated that if it came into power it would not bring into force the Act’s provisions on positive action, the public sector socio-economic duty and provisions on equal pay. 

So far the coalition government has not stated whether it will proceed with the Conservative intention.  With the first provisions of the new Act due to come into force in October this year Lyme bay Consulting is keenly watching for developments so that we can brief clients. Meanwhile all we have to go on is a rather ‘broad brush’ statement in the Coalition Agreement:
We will review employment and workplace laws, for employers and employees, to ensure they maximise flexibility for both parties while protecting fairness and providing the competitive environment required for enterprise to thrive.

EQUALITY ACT 2010

MAY 2010

Just before the dissolution of Parliament for the General Election the Equality Bill received Royal assent. The Act harmonises existing discrimination law and strengthens existing provisions.  A single approach for most of the heads of discrimination should promote improved equality in workplaces and better understanding by employers and employees.  Most existing legislation will be repealed.

The Act strengthens the law in a number of areas:

  • Extends protection against discrimination, harassment or victimisation because of protected characteristics e.g. gender reassignment
  • Extends protection against discrimination by allowing claims of direct discrimination because of a combination of two protected characteristics
  • Organisations to consider how their policies, programmes and service delivery will affect people with the protected characteristics
  • Allows positive action to enable people to overcome or minimise a disadvantage because of a protected characteristic
  • Enables Employment Tribunals to make recommendations to employers who have lost discrimination claims to take steps to remedy matters for the benefit of the wider workforces

The Act will take effect in stages:

  • October 2010: Main provisions.
  • April 2011: The integrated public sector Equality Duty, the Socio-economic Duty and dual discrimination protection.
  • 2012: The ban on age discrimination in provision of goods, facilities, services and public functions.
  • 2013: Private and voluntary sector gender pay transparency regulations (if required) and political parties publishing diversity data.

The fall back retirement age of 65 for employees and the ability of employers to have a contractual normal retirement age has not been changed by the Act, however it will be reviewed during 2010.

Lawyers and HR professionals are busy studying the implications.  With the main provisions taking effect in October, employers do not need to take any immediate action. Lyme Bay Consulting will be providing further information and advice in due course.

Fit Notes

April 2010

From 6th April “Statements of Fitness to Work” will replace doctors’ sick notes (MED 3 & MED 5) that were limited to certifying whether an employee was fit or not fit for work.

The new notes (already being termed “Fit Notes”) concentrate on what an employee may be able to do.  They introduce an option for the GP to say that an employee “may be fit for work taking account of the following advice . . .”    This advice may indicate the impact of the employee’s condition on physical and mental functions and work functions plus ways for an employer to help an employee return to work, such as:

  • a phased return to work
  • flexible working
  • amended duties
  • workplace adaptations.

Getting back to work early can assist full recovery.  It also promotes general wellbeing by indicating to employees that they are valued and wanted. 

GPs should be aware of the nature and type of employees’ work so that they give appropriate guidance to employers in “Fit Notes”.  With this in mind you should ensure that Job Descriptions are up to date and encourage employees to use them as a basis for what they tell GPs about their job.

Employers will now have more information to management absence and sickness.  Therefore it may be opportune to review your sickness procedures; Lyme Bay Consulting can help you with this.

More information is available from www.dwp.gov.uk/fitnote and www.acas.org.uk/index.aspx?articleid=2832

 

Equality Bill

MARCH 2010

The Equality Bill started its progress through Parliament with wide support of the aim of consolidating and simplifying many separate pieces of discrimination law. 

Recently, the Press and Media concentrated on the Pope, Anglican Bishops and other churches and religious organisations criticising the Government’s proposals on religious discrimination.  This concerned the part of the Bill that it was claimed interfered with churches ability to restrict employment in some posts to people whose lifestyles and/or beliefs are compatible with the doctrines and ethos of the church.  However there are other contentious parts of the Bill such as positive action on discrimination, regulating pre-employment questionnaires, and enabling a discrimination claim to be on more than one ground.

It is already clear from the House of Lords stage of the Bill that it may not be enacted without significant amendments; we expect of our parliamentarians to sort out potential anomalies and problems in legislation.  However this may delay progress and depending on the date of the election (not known at the time of writing) the Bill may pass into limbo.  Whether the Bill survives after the election may depend on a new Government’s priorities.  

As the overall aim of consolidation and simplification was so widely supported it will be a great shame if this Bill is lost for whatever reason.  Lyme Bay Consulting will be monitoring and reporting on any developments.

Review Of Statutory Limits & Payments

From 1st February 2010:
Unfair Dismissal – maximum compensation award has fallen from £66,200 to £65,300.

From April, 2010
Statutory Maternity, Paternity and Adoption pay increased from £123.06 to £124.08 per week. 

Exceptionally in October 2009 the Government increased the maximum week’s pay for calculating the Basic Award for Unfair Dismissal and for Statutory Redundancy Pay to £380.  Therefore there will be no increase from February this year and the next review will be in February 2011.

Age of Retirement

February 2010

Informed and uninformed commentators seem to at one in expecting employees to need or to be obliged to work beyond the current age for the State Retirement Pension; the reasons being increasing life expectancy and increasing cost of pension provision. In the background is the age discrimination legislation and there could be amendments to this, probably irrespective of what party is in Government after a General Election in 2010.

Clients of Lyme Bay Consulting probably have formalised terms and conditions that specify a “normal retirement age” – usually 65. This is also the default retirement age in the age discrimination legislation (for employers who do not specify a normal age of retirement). The default age has been subject to legal challenges that have alleged that it does not satisfy the European Directive on age discrimination. All have failed including the most recent in September 2009 at the High Court. Nevertheless the Judge’s decision signalled a possible demise of the default age in the longer term “I cannot presently see how 65 could remain as a default retirement age after the [Government’s] review”. This Review was scheduled for 2011 and has been brought forward to 2010.

Although Lyme Bay Consulting will await developments, it is timely to remind you to:

  • Not to stop personal development planning as employees approach retirement
  • Facilitate & commend handover of skills and knowledge from employees about to retire
  • Consider flexible working applications as employees approach retirement
  • Follow the statutory requirements for retirement notification
  • Support employees preparing for retirement
  • Apply consistent performance and absence requirements & procedures across the whole workforce, regardless of age