Human Capital Services Business Matters 23rd September 2008 Upcoming Changes In this business matters we remind you of a few legal changes that are imminent, giving you an opportunity to get your paperwork up to date. We also take a look at legislation that we need to be preparing for over the coming year. Imminent changes - Maternity - this is your last chance to update your maternity policy to reflect the changes that come into force in just a few weeks time. Applicable to all those whose babies are expected on or after 5th October 2008, women will be entitled throughout the entire maternity leave period to all non remuneration terms and conditions. Currently women are only entitled to these terms during the first 6 months of maternity leave. This will affect for example, cars, bonus, accrual of holiday, etc.
- Minimum Wage – If you have any staff paid at this end of the pay scale then you need to increase rates from the 1st October 2008 onwards. The adult minimum wage (aged 22+) is rising from £5.52 per hour to £5.73 per hour, for workers aged between 18 – 21 the minimum wage will rise from £4.60 per hour to £4.77 per hour and for workers aged 16 – 17 it will rise from £3.40 per hour to £3.53 per hour.
- Employing Migrant Workers - With the new tiered system about to come into force in November, now really is your last opportunity to apply for the necessary sponsorship licence if you wish to employ immigrants. This is not always the easiest of processes so you will need to start the paperwork ASAP! HCS have some useful briefing documents to aid you in the process of applying for your sponsorship licence, please email Claire on claire.connor@humancapitalservices.co.uk for a copy today.
- Agency Workers - Another change coming into force in October is that agency workers on fixed term contracts of less than 3 months will now be entitled to SSP if they fall ill during the term of their contract. As with all other staff, SSP entitlement starts on day one of employment.
- Holidays - The statutory minimum holiday entitlement rises to 28 days in April 2009 so if your policy is still, for example, showing 24 days then you need to make some amendments. This number of days is of course inclusive of bank holidays. It may also be appropriate for those of you who have traditionally paid 25 days plus bank holidays just to check the actual wording used so that none of your employees hearing media reports of 28 days feel that you are under paying them!
Ones to Watch...We await the detail of the agency worker directive which is likely to give Temporary Workers the same rights - including the right to the same rates of pay - as permanent staff from their first day of employment. We will keep you updated.
We are also waiting for flexible working rights to be extended to parents with children up to the age of 16. This is due to come into force in April 2009 and as this is on its way, now may be a good time to review your flexible working policy to ensure it will be appropriate for your business needs given this forthcoming extension of rights will cover so many in the workforce.
There has been much in the press recently about the proposed Equality Bill which is expected to come into force in 2010. This bill is expected to allow employers to be able to choose an applicant who comes from an under-represented group in the work force over an equally qualified applicant who does not come from an under-represented group. An interesting one to come, so watch this space! If HCS can support you with revising or drafting any employment documents then please do get in contact. There will even be those amongst you that have had either a contract or handbook that needs reviewing sitting at the bottom of your in tray for over a year, perhaps now is the time to pass it on to us!
21 October 2009, webeditor