Today sees the introduction of some key changes in Employment law which are well worth noting to ensure that your contracts and policies are in line with developments otherwise you could face costly tribunal claims.
1) National Minimum Wage Increases
From 1st October 2010 those aged 21 qualify for the full adult rate of NMW (National Minimum Wage). Previously the adult rate was payable only to those aged 22 or more (see Minimum Wage/2008 and 2009 increases).
The new rates in force from 1st October 2010 are:
£5.93 per hour for low paid workers aged 21 and over
£4.92 per hour for 18-20 year olds
£3.64 per hour for 16-17 year olds
Apprentices NMW
There will be an apprentice minimum wage of £2.50 per hour for apprentices aged under 19, or over 19 and in the first year of their apprenticeship. This will apply to apprentices on traditional contracts of apprenticeship, and employed apprentices on government-supported level 2 and 3 schemes. It will replace the minimum rate of pay of £95 per week that came into effect from 1 August 2009 for apprentices.
2) The new Equality Act is Introduced
The Equality Act today replaces all of the existing equality legislation and applies to the protected characteristics of age, disability, gender reassignment, marriage and civil partnership, race, religion or belief, sex, and sexual orientation, pregnancy and maternity. The Act extends some protections and strengthens some aspects of equality law. As a result, employers may need to review and change some of their policies and practices.
Particularly noteworthy are the following changes:
Disability (new protection)
The Act includes a new protection from discrimination arising from disability by extending it to cover unfavourable treatment due to a factor connected with their disability (for example a tendency to make spelling mistakes arising from dyslexia). This type of discrimination is unlawful where the employer or other person acting for the employer knows, or could reasonably be expected to know, that the person has a disability. The defence of justification is likely to be difficult to establish in such cases.
Additionally, protection against indirect discrimination is extended to disabled people. So a job applicant or employee could claim that a particular policy disadvantages people with the same disability. Unless the policy could be justified it would be unlawful.
Health Questionnaires (prohibited)
The Act also includes a new provision which makes it unlawful, except in certain circumstances, for employers to ask about a candidate’s health before offering them work so it’s definitely time to review such questions in your standard recruitment documents.
Gender reassignment (new definition)
The Act provides protection for transsexual people. A transsexual person is someone who proposes to, starts or has completed a process to change his or her gender. The Act no longer requires a person to be under medical supervision to be protected.
Equal Pay
A sex equality clause will be read into contracts of employment to promote equality between men and women in pay and other contractual terms of employment for equal work and a similar sex equality rule will be implied into the terms of pension schemes.
The Equality Act makes so-called “secrecy clauses” unenforceable in an effort to help women discover whether they are unlawfully paid less than men for the same work, work of equal value or work rated as equivalent. (However, employers can still legitimately enforce secrecy clauses in respect of disclosure of pay rates to third party organisations such as competitors).
Differential treatment
There are some situations in which there is statutory authority to treat a person less favourably because of a protected characteristic such as:
where a job is only open to people with a particular characteristic
where services are intended to be restricted to people with a particular characteristic. **However this is by no means a blanket exception and employers and voluntary organisations should seek specialist advice before discriminating in this way.
where pregnant women are treated differently for their own protection
where people of a particular religion/belief are appointed to specified educational posts
If you require any advice in relation to today’s changes, please do not hesitate to contact us