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New Government Announces Employment Law Changes

31st May 2010
The new coalition government has announced its proposals on employment law changes.
There are a number of proposals that have been made. These include:-
1. Limits on the application of the Working Time Directive,
2. Default Retirement age to be phased out,
3. A review of the state pension age,
4. Partial scrapping of the proposed increase in the National Insurance tax rise,
5. Clampdown on "unnacceptable" bonuses within the banking sector,
6. Review of IR35,
7. Scrapping the Identity Card Scheme.
8. Extending the law on flexible working arrangments.
The Chartered Institute of Personnel and Development (CIPD)has welcomed the phased abolition of the default retirement age. They express the view that the default retirement age might encourage some managers to avoid efficient management of senior workers nearing retirement. They also express the view that the abolition could have a dramatic effect on the way older workers are perceived in the workplaceand their ability to contribute their energy and experience to delivering the business objectives of their employers. We rather doubt that any such change will be quick to happen. There is also the fact that this cahnge may not be entirely welcomed in a period of recession, especially as the numbers of the young unemployed continue to increase, and make up almost 1 Million people.
The Federation for Small Businesses and the CIPD both welcomed the partial scrapping of the rise in National Insurance. It has been widely welcomed as a reversal of proposals that would discourage employers from developing business through recruiting new staff.
No real attempt has been made to define how the Government will clampdown on "unnacceptable" bonuses within the banking sector, nor indeed on what amounts to "unnacceptable". There is also the question outstanding on how the Government proposes to deal with bonuses within the banking sector in a clear way that will not encroach on other businesses and industries.
The identity card scheme has been controversial thoughout its development. The Government is proposing scrapping the scheme by the end of August 2010, and invalidating all existing cards on the 3rd September 2010.
Proposals have been made to extend the right to request flexible working arrangments, so that a broader range of employees will be able to request such arrangments. As ever, the devil will be in the detail when the draft legislation/ regulations are published. 
If you want further help and advice on these issues, contact us. 
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