New Statutory Compensation Limits and Statutory Benefit Rates
The maximum compensatory employment tribunal award for unfair dismissal claims has decreased from £66,200 to £65,300 from February 1st 2010

Statutory Payment Changes
The statutory maternity (SMP), paternity (SPP) and adoption (SAP) allowance will increase from £123.06 to £124.88 per week (or 90% of normal weekly earnings, if lower) from 6th April 2010. This applies for payment weeks starting on or after 4th April 2010.

The weekly rate for statutory sick pay (SSP) will remain at £79.15.

The lower earnings limit for qualifying for SSP, SMP, SAP and SPP will increase from £95.00 to £97.00
From 1st October 2010, National Minimum Wage rates are expected to increase from:

•£5.80 to £5.93 an hour for workers aged 21 and over
•£4.83 to £4.92 an hour for workers aged 18 to 20
•£3.57 to £3.64 an hour for workers aged 16 to 17

Additionally, the adult rate of the minimum wage will be extended to 21 year-old workers from October 2010. Currently it applies to workers aged 22 years and over.

From October 2010 Apprentice Minimum Wage will be £2.50 an hour. The new rate will apply to apprentices under 19 years old and apprentices aged 19 years and over, but in the first year of their apprenticeship.

Additional Paternity Leave
Additional paternity leave will apply to parents of babies due on or after 3rd April 2011. Employees will be permitted to take up to six months leave if the child’s mother returns to work having not taken her full entitlement.

New Pension Scheme Allowances
The individual allowance will increase from £245,000 to £255,000 from 6th April 2010. The individual lifetime allowance will increase from £1.75 million to £1.8 million.

Training
From April 6th 2010 employees can request time off work to undertake study or training. This right applies to employers with 250 or more employees. To qualify employees must have more than 26 weeks’ service. Any training must be for improvement in the role in which they are employed, and for the performance of the employer’s business. This is expected to be extended to employers with less than 250 employees from April 2011.

‘Fit for Work’ Notes
The new ‘Fit Notes’ will be effective from 6th April 2010. GPs will now only be able to certify that that an employee “may be fit for work”, rather than “fit for work”. The new rules allow GPs to consider if a patient may be able to return to work should suitable support be offered. Employers will still need to carry out their own risk assessment on the employee’s return. Fit notes can be issued for a maximum of three months within the first six months of an employee’s sickness.

Data Protection
From 6th April 2010 the Information Commissioner’s Office (ICO) will have the power to impose fines of up to £500,000 for breaches of the Data Protection Act 1998.

The ICO’s new power to impose monetary penalties applies where:

•There has been a serious breach of one of the Data Principles;
•This breach was likely to cause damage or distress
•The breach was deliberate, or the data controller knew or ought to have known there was a risk of data breach and that it would be likely to cause substantial damage or distress and failed to take reasonable steps to prevent it.

Failure to follow an enforcement notice may result in a fine of £5000

Future Proposals for Employment Law Reform

•The government has announced in its publication ‘A Smoke-free Future: comprehensive tobacco control strategy’ that it is considering extending the smoking ban to cover the area outside entrances to workplaces and offices.

•The government is proposing to amend the NMW regulations relating to travel and subsistence schemes for temporary workers.

•The European Parliament committee has passed draft legislation to extend maternity leave to 20 weeks full pay. The women’s rights committee voted in favour of extending maternity leave provisions through the Pregnant Workers Directive.

•Online guidance has been published on the BIS and Business Link websites on the interaction between paid annual leave and sick leave. This is ahead of the possible amendments to the Working Time Regulations 1998 to deal with the recent ECJ decisions in Stringer and Pereda.

Equality Bill
The Equality and Human Rights Commission is consulting on draft codes of Practice on Employment and various sets on Non-Statutory Guidance relating to the Equality Bill. The Equality Bill has now completed the final stage of its passage through parliament and will now become law.

The Equality Bill is the biggest overhaul of anti-discrimination law in UK for 35 years. It has been designed to simplify existing – and confusing – anti-discrimination measures including gender and disability discrimination. The bill contains reforms that could see vegans, cult members and atheists having the same protection as those with religious beliefs.

What Employers Should Be Doing Now
Relevant references to handbooks and also policies and procedures should be updated to reflect recent changes.

Should you require any further information on the above or wish to discuss how this may affect your business please contact us on 0161 493 1963.