Recent and Imminent Changes in Regulations

The month of October traditionally brings a range of new regulations that affect employers. In the main these result in new rates of pay for employers to remember.

National Minimum Wage
From the 1^st October 2009 the rates of the national minimum wage have risen:

Workers aged 22yrs and over:            £5.80 per hour (previously £5.73)

Workers aged 18-21 yrs :                    £4.83 per hour (previously £4.77)

Workers aged 16-17 yrs:                     £3.57 per hour (previously £3.53)

Statutory Redundancy Pay
The figure for the maximum weekly pay in the formula for calculating Statutory Redundancy pa rose on the 1^st October from £350 to £380. Remember that any employee that has a normal weekly pay of UNDER £380 will only be entitled to the actual (lower) weekly pay in the calculation of a statutory redundancy payment.

Wages and “tips”
From the 1^st October “tips” cannot be counted towards payment of the national minimum wage. This matter has been addressed in Government Regulations due to a number of high-profile cases brought in the past year or so by restaurant and catering workers (see previous News item on our website for more details). The Government has published a Code of Practice, giving guidance as to how tips and service charges should be treated.

Data Protection Registration
Many employers should already have received a letter from the Information Commissioner’s Office (ICO) on this subject. For some employers there will be a significant increase in the charge for registration with ICO. This is relevant to all businesses that collect, store, or handle personal information (personal “data”). Naturally this applies to personnel records relating to staff- including job applications.

From the 1^st October a new notification fee of £500 applies to register as a data controller (such as an employer) for private organisations with an annual turnover of £25.9 million, AND 250 or more staff. This rate also applies to all public bodies with 250 or more staff, such as a local council authority. All other data controllers (including employers) will continue to pay the current fee of £35 per year, unless they come under any of the relevant exemptions,-such as certain charities.

Trainee Doctors Working Hours
From the 2^nd November 2009 amendments to the Working Time Regulations will provide for the 48 hour working week limit for trainee doctors to be increased to 52 hours per week. Precise details of which trainee doctors are affected by this can be found in lists set out in schedules to the Regulations.

Workers Dealing with Children and “Vulnerable” Adults
For some time there have been vetting requirements for all workers that work with, or in close contact to children and vulnerable adults. The Government introduced official list of people that are prevented from working with three groups, for example under the Protection of Children Act 1999(POVA). From the 12^th October the two separate lists (POCA in relation to children and POVA in relation to vulnerable adults) have been replaced by two new “Barred Lists”. The old lists have been the subject of legal challenges, and the courts have ruled that the PROCESS of an individual’s name being placed on the lists has been unfair. The implications of these legal challenges have yet to be fully addressed by the Government. In the meantime employers are still required to abide by the existing legal requirements of reporting a person to the relevant authorities where the person may pose a danger to children or vulnerable adults.

From 26th July 2010, applicants (including employers) will be able to apply for registration with the Independent Safeguarding Authority (ISA). When the new Vetting and Barring Scheme for checking the suitability of employees to work with the children and vulnerable adults is fully implemented, anyone working OR VOLUNTEERING with children or vulnerable adults in any “regulated activity” will have to be registered with the ISA. Obviously this will have a significant impact on employers and employees working in childcare, care homes, and nursing home. It will become a criminal offence for an employer to hire a person in a “registered activity” without first confirming his or her ISA registration. In addition employers will have a legal duty to refer appropriate information to the ISA.

Consultation over the Default Retirement Age
The saga over the statutory default retirement age continues! We recently wrote about the decision of the High Court to uphold the current default retirement age of 65years. However, one of the reasons why the Court found in favour of the current regulations is the fact that the Government had just announced its intention to bring forward to 2010 a review of the current default retirement age.

The purpose of the review is to consider whether, in light of various issues such as the needs of individuals and businesses in the current economic climate, a default retirement age of 65 years is still appropriate.

The Government has commissioned a survey of employers’ policies, practices and preferences relating to age to examine the use of the default retirement age, and other age-based practices. In addition, the Government has requested the views of employers and individuals to consider as part of the proposed review of the current default retirement age. The Government is seeking evidence on a number of issues, including:-

the practical operation of the default retirement age,

the positive and negative impact on business and individuals of raising or removing the default retirement age,

the reasons businesses have for using a mandatory retirement age.

The closing date for submissions in this consultation process is the 1^st February 2010. It remains to be seen what the Government will do about the default retirement age, but in view of the fact that the UK has a growing population, with an increasing life-expectancy, coupled with the shortfall in many pension schemes, it must surely be expected that the default retirement age will be increased to say 67 or 68 years very shortly.

If you need any further advice and help on the issues raised in this article please do not hesitate to contact us.