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1. New Compensation Limits and Statutory Payments
Under the annual review limits on unfair dismissal compensation, the maximum compensatory award for unfair dismissal is due to be reduced from £66,200 to £65,300 where the effective date of termination is on or after 1st February 2010. This reduction reflects the decrease of 1.4% in RPI over the 12 months from September 2008 to September 2009.
The maximum limit on a week’s pay was increased to £380 in October 2009. This limit will remain in force until February 2011.
The standard rate for Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay will rise from £123.06 to £124.08 per week in April 2010. There will be no change in Statutory Sick Pay which will remain at £79.15.
2. Equality Bill
It is expected that the Bill will receive Royal Assent in April, i.e. before the likely date for the General Election, and the majority of its provisions will come into force in October 2010.
The main purpose of the Bill is to harmonise the various existing strands of discrimination legislation, but at the same time some aspects will be changed and strengthened. There are proposals to make gender pay discrimination more transparent and claims for gender pay discrimination will be able to be based on hypothetical comparators. There will be provision for multiple direct discrimination claims and new types of disability discrimination designed to sidestep the House of Lords’ decision in Lewisham v Malcolm.
One of the more controversial proposals is to broaden the scope of permitted positive action to allow employers to choose between two equally qualified candidates by selecting one from an under represented minority.
3. Fit Notes
New Regulations are expected to be introduced in spring 2010 providing for the new regime of fit notes rather than sick notes. These new forms are intended to provide greater information to employers about an employee’s medical condition. A GP will have the opportunity to state if the individual is fit for work, fit for some work or for no work at all. The GP will also be able to comment on or recommend whether any adjustment would be beneficial such as a phased return to work, altered hours, amended duties or workplace adaptations.
Apparently GPs will be able to issue computerised statements instead of writing them by hand – no doubt a welcome introduction!
Although it is a useful development that GPs will be able to provide more detailed information about the individual’s potential fitness for work and potential adjustments, it will nevertheless remain good practice to seek a specialist medical report or detailed advice from the employer’s Occupational Health Department in many cases, particularly where the employee has a physical or mental impairment which amounts to a disability.
4. Time off for Training
Under the Apprenticeships, Skills, Children and Learning Act 2009 there will be a new right to request unpaid time off work to undertake study or training. This comes into force on 6th April 2010 for employers with 250 or more employees.
The new right to request will be available to all employees who have completed six months employment where they consider that the training will improve both their effectiveness at work and the performance of their employer’s business.
5. Additional Paternity Leave and Pay
The Government intends to introduce additional Paternity Leave, some of which will be transferable from the mother to the father, for parents of babies born on or after 3rd April 2011.
It is thought unlikely that the additional entitlement will be affected by any change of Government at the forthcoming General Election. The current Conservative proposal is to extend the provisions further so as to allow both parents to take paid time off simultaneously.
6. Default Retirement Age
The review of the default retirement age of 65 was brought forward from 2011 to 2010. The Government has commissioned a research project concerning employers’ policies and practices and preferences relating to retirement. The deadline for submissions to this project is 1st February 2010.
Many people think there is a strong likelihood that the default retirement age will be increased if not abolished altogether.
The comments in this note are of a general nature only. Full advice should be sought on any specific problems.
ASHTON BOND GIGG
December 2009
| Christopher Gigg | David Hardstaff | Kathryn Meir |
| cgigg@abg-law.com | dhardstaff@abg-law.com | kmeir@abg-law.com |
| D: 0115 9343310 | D: 0115 9343323 | D: 0115 9343308 |