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CHANGES TO EMPLOYMENT LAW: APRIL 2008

Employment Unit

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April is traditionally a month of legislative change and 2008 is no exception: several important legal changes took place on Sunday 6th April.

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A number of changes will be made to statutory payments from 6th April 2008.

Payment

Rate

Max. Period

Statutory maternity pay (higher rate)

90% of normal weekly earnings

6 weeks

Statutory maternity pay

(basic rate)

£117.18 a week, or 90% of normal weekly earnings if lower

33 weeks

Maternity allowance

£117.18 a week, or 90% of normal weekly earnings if lower

39 weeks

Statutory paternity pay

£117.18 a week, or 90% of normal weekly earnings if lower

2 weeks

Statutory adoption pay

£117.18 a week, or 90% of normal weekly earnings if lower

39 weeks

Statutory sick pay

(standard rate)

£74.50 a week

28 weeks in any three years


Corporate Manslaughter and Corporate Homicide Act 2007

This Act creates a new statutory offence in Scotland of “corporate homicide”.  A similar offence is created in England, Wales and Northern Ireland under the terms of “corporate manslaughter”.  A company may be found guilty of the new offence if its Senior Management Team’s activities amount to a gross breach of the duty of care it owes to its employees, the public or other individuals and as a result of those failings, a person dies.  Individuals are potentially already liable under existing health and safety legislation and in common law.  The Act’s main aim is to create a more effective method for prosecuting companies which has proved difficult under the existing legislative framework.  Courts will be able to impose any remedial measures they see fit, such as publicity orders or unlimited fines. 


Changes to the Sex Discrimination Act 1975

The Equal Opportunities Commission was successful in an application for judicial review of the implementation of the Equal Treatment Directive through the Employment Equality (Sex Discrimination) Regulations 2005, which amended the Sex Discrimination Act 1975.  The High Court found that the Regulations fell short of what was required by the Equal Treatment Directive.  The Government has made further regulations, the Sex Discrimination Act 1975 (Amendment) Regulations 2008, which amend sections of the Act in respect of discrimination on the grounds of pregnancy and/or maternity leave and harassment. 

The three most significant changes for employers are:

1.  The definition of sexual harassment has now been changed.  Previously, the legislation provided that a person subjects a woman (or man) to harassment if, on the ground of her sex, they engaged in unwanted conduct that has the purpose or effect of violating her dignity, or of creating an intimidating, hostile, degrading, humiliating or offensive environment for her.  The new law substitutes the phrase: “related to her sex or that of another person”, for the term “on the ground of her sex”.  As a result, a person complaining of harassment under the Sex Discrimination Act is only required to show that the alleged treatment was connected or associated with sex, and not that it took place because the Complainant was a woman (or man). 

2.  The Regulations impose liability on an employer for failing to protect employees from harassment by third parties, such as customers or clients.  Should an employer fail to take reasonably practicable steps to protect employees from such third party harassment, where such harassment is known to have occurred on at least two other occasions, the employers will be vicariously liable for those acts.

3.   When a person brings a complaint that they have been discriminated against on the ground that they are pregnant, or on maternity leave, they will no longer be required to compare themselves to a woman who is not pregnant/on maternity leave.


Information and Consultation of Employee’s Regulations 2004

These Regulations are now extended to cover undertakings with 50 or more employees.  Under the Regulations, employees have the right to request their employer to inform them of, and consult with them about, business matters which affect their employment.  If 10% or more of the work force exercise this right the employer must set up an appropriate system.


Occupational and Personal Pension Scheme (Consultation by Employers and Miscellaneous Amendment) Regulations 2006

The Regulations which impose a statutory requirement upon employers to consult with members (and prospective members) of pension schemes and their representatives before making any significant changes to future pension arrangements, are extended to cover undertakings with 50 or more employees. 


Conduct of Employment Agencies and Employment Businesses (Amendments) Regulations 2007

The Regulation introduces new provisions aimed at protecting agency workers.  The amendments are technical, and if you are an employment agency and require further advice and assistance please get in touch.

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