Employment Law Update

Are you ready?

Further changes in the employment law come in on October 1. myhrdept.co.uk’s Bill Larke explains what you need to know.

The national Minimum wage increases to £4.85 for workers aged 22 and over to £4.10 for workers aged 18-21 inclusive on October 1.

A new minimum wage for 16 and 17-year olds is also introduced at £3 per hour.

Disability discrimination

The existing exemption for employers with fewer than 15 employees is scrapped. From October 1 all employers will be required to carry out reasonable adjustments in order to accommodate an otherwise suitable employer or applicant. What is reasonable of course is open to interpretation and ultimately case law will give some guidance. Previously, small employers have not been open to prosecution on the grounds of discriminating against disabled employees or applicants but this will change in common with the duty to make reasonable adjustments. If you have not already done so you would be well advised to obtain a suitable policy to cover these issues from myhrdept.co.uk (the document reference numbers are HRR041 and HRR042).

Dispute Resolution Regulations 2004

These regulations require employers to develop, and make available to employees, minimum statuary procedures for resolving grievances and dealing with allegations of misconduct and poor performance in the workplace.

Employers who fail to do so when disciplining or disciplining or dismissing an employee will almost certainly find that their actions will be ruled unfair. All employers should implement a disciplinary and grievance policy and procedure now and ensure that all future contracts of employment refer to these. These documents can also be obtained from http://www.myhrdept.co.uk.

During 2002-3 unfair dismissal compensation averaged £6,800, with the maximum award being £68,000. 20% of cases exceeded £10,000. it can cost £5,000 to contest and application to tribunal. With October changes and yet more on the way, employers are advised to take their employment law obligations extremely seriously and to implement contracts of employment and suitable policies and procedures.

Reproduced with kind permission from BiiBusiness magazine issue 129, September 2004.