Latest Solicitors News - May 2009

Alert to Employers on New Legal Rules

Employers need to be aware of new rules covering key employment issues which come into force on 6th April 2009 under the Employment Act 2008. Some of the changes include:

• the Acas Code of Practice on Disciplinary and Grievance Procedures replaces the often derided statutory dismissal and grievance procedures, encouraging employers and staff to resolve workplace difficulties informally and at an early stage. The aim is that more direct communication will reduce the likelihood of costly and time-consuming employment tribunals;

• new penalties for employers if HM Revenue & Customs (HMRC) discover that they have failed to pay the national minimum wage. HMRC compliance officers now have new inspection powers and workers will be entitled to have arrears of wages repaid at current rates;

• trade unions will be allowed to expel or exclude an individual on the basis of their membership or former membership of a political party. The change follows a ruling of the European Court of Human Rights that a trade union could expel a member of the British National Party; and

• a stronger enforcement regime to target employment agencies and employment businesses that fail to comply with the existing standards and laws that regulate their industry, with the potential for unlimited fines for certain offences.

Employers also need to be aware of another measure that also comes into force on 6 April, which gives employees with parental responsibility for children aged 16 and under the right to request flexible working. This extends an existing right to request flexible hours, which previously only applied to carers of children under six, disabled children under 18 and certain adults. Employers must give all such requests serious consideration.

Businesses need to be aware of the new measures and to seek legal advice for expert clarification and peace of mind. If appropriate, they also need to make changes within their business, for example by updating their in-house disciplinary and grievance procedures so that they are compatible with the Acas code.