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Laying down the law: Legislation roundup

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Westminster

The April legislation amendments are upon us again. Matt Henkes takes a look at the changes you need to know about.

 


As the 6 April regulatory implementation date approaches, it's time for HR to make a last quick check that it's not going to trip over some hidden snag. With a number of easily missed changes on the books, here are some handy snippets to keep you on the straight and narrow.

Corporate Manslaughter and Corporate Homicide Act

In the past, it was been notoriously difficult to secure a criminal conviction for negligence against large firms where it was all but impossible to identify an individual directly responsible. However, from April, if it can be shown that a substantial part of the breach of a company's duty of care is down to the way a firm is managed, it is the organisation that will face criminal prosecution.

 

"It is absolutely fundamental senior managers get it right."

Steffan Groch, DWP

"It is absolutely fundamental senior managers get it right," says Steffan Groch, partner and head of health and safety at DWF solicitors. "The suggestion I'm giving to my clients is, at the very least, the directors should understand what the Act is all about."

Companies not taking care to ensure the safety of workers face the possibility of an unlimited fine and a remedial order to correct any substandard systems or processes that led to a breach. Perhaps more worrying for companies that take care to manage their brand perception, prosecution under corporate manslaughter regulations could result in a publicity order compelling them to release details of the incident and subsequent punishment to the media.

Sex Discrimination Act 1975 Amendment

Perhaps the biggest shake up in April's employment regulations will come in the form of changes to entitlement of workers on maternity leave. The changes have an interesting back story. The former Equal Opportunities Commission took the government to court last year over 2005 changes to sex discrimination laws which, they found, actually took rights away from workers. Their claims were upheld by the High Court at a judicial review and the government said it would correct the regulation.

As a result, in tribunals involving discrimination because of pregnancy, the claimant will only be required to prove that discrimination occurred as a result of their pregnancy. According to the 2005 law, this had to be proven comparative to another employee who was not pregnant, introducing an added layer of complexity.

Workers on the first six months of 'ordinary maternity leave' are currently entitled to any benefits, apart from those that relate to cash remuneration – for instance, company cars, health insurance and gym membership. For the second six months of 'additional maternity leave', they are only entitled to key core benefits such as term of notice and disciplinary procedures.

However, the new legislation will entitle workers whose expected week of childbirth falls after October 2008 to full benefits for the whole 12-month term of their maternity leave. The downside is that the law was only published just over a week ago. "Employers would be stumped if they had just weeks to rewrite their maternity policies, but they've got that amount of time to get them changed," says Christopher Davies, professional support lawyer at Halliwells law firm.

Information and consultation

 

Key changes

 

  • Corporate manslaughter: Prosecutions made easier against large firms

 

  • Maternity: Benefits extended to full 12 month term

 

  • Maternity: Pregnancy discrimination claims simplified

 

  • Information: Firms with 50+ employees must provide employee consultation

 

  • Pensions: Firms with 50+ employees must consult staff on any changes

Information and Consultation of Employees (ICE) Regulations have been in effect for companies with over 150 employees since 2004, and have been described as one of the most important pieces of employment legislation to be introduced in the UK in recent years.

The rules give employees the right to know about any issue that may affect their jobs, be consulted and receive regular updates on how the business is doing. From 6 April, the regulations will be widened to include all organisations with more than 50 employees.

It's important to establish a system by which your organisation can adhere to these rules as the law can be triggered if at least 10% of your employees request it. Failure to implement could mean a standard system will be put in place as defined in the legislation.

"The standard provisions may not suit your business needs, whereas a negotiated agreement can be tailored to the needs of the organisation as well as the employees," warns Helen Boddy, partner at Shadbold & Co law firm. "Ideally, you should establish a staff consultative forum as a matter of urgency."

Occupational and personal pension schemes

In a similar change to existing pensions regulation, companies employing 50 or more employees will now have to consult workers or employee representatives on any changes that may affect pension schemes.

It needs to be done through a consultation body in the same way set down in the Information and Consultation regulations. If they haven't got one, firms should elect a representative. In essence, all scheme members must be given notification of any changes before they occur.

Conduct of employment agencies and businesses

The regulations governing the conduct of employment agencies and businesses apply more to procedural elements within the recruitment industry. Essentially, the amended regulations obligate employment agencies and businesses to increase the level of checks on workers to ensure they are suitable for vacancies.

If adequate references cannot be provided, agencies will have to inform the employer and explain the steps it has taken to try to obtain them. Additionally, if a work assignment is less than five days, the amount of documentation required is reduced.

While agencies are not able to charge workers for placing them with a company, apart from certain exceptions within the entertainment industry, they can charge for providing additional services such as transport, accommodation, CV writing and interview training. Under the new amendment, charges must be clearly set out and workers will be able to withdraw from these provisions without suffering any detriment.

 

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