All work and low pay?
'New Labour, new law' certainly rings true for 1998. There has been a distinct step up in the tempo of change in the field of human resources, albeit that the timetable for some of the changes is by no means certain. Below is a summary of some of the main changes current or proposed and expected dates of implementation.
In 1998 Acts which have already received royal assent include the Data Protection Act (widening and repealing the Data Protection Act 1984), the Public Interest Disclosure Act (to protect 'whistleblowers') and the National Minimum Wage Act. All three pieces of legislation are anticipated to come into force by April 1999. Some parts of the Employment Rights (Dispute Resolution) Act 1998 which received royal assent on 8 April are already in force (for example industrial tribunals have been renamed 'employment tribunals' with effect from 1 August and the categories of case where tribunal chairs can sit alone have been extended). The National Minimum Wage Act, one of the most fundamental pieces of Labour legislation to be introduced this year in the UK, sets a minimum wage for the first time since the abolition of the Wages Councils. The Government has set the rate for adults over 21 at £3.60 an hour despite the unions calling for a target of £5 an hour. The Low Pay Commission will monitor and evaluate progress on implementing the minimum wage targets as well as periodically uprating the figure. Regulations outlining the detail of the minimum wage were published for consultation on 11 September.
The Human Rights Bill at the committee stage of the House of Commons is also set to impact on the UK and will make it unlawful for a 'public authority' to act in contravention of the European Convention of Human Rights. People who have suffered as a result of a public authority's breach will be able to bring proceedings against that authority. There are a number of provisions which will affect the UK including Article 8 which provides a right to respect for private and family life, home and correspondence. This also extends to activities of a professional or business nature. This was seen in practice most recently in the Halford v UK case where the ECHR found it to be a breach of the Convention that Alison Halford's office telephone was tapped by her police employers.
The Government has also consulted on areas such as fairness at work, disability rights (organisations with between 15 and 20 employees are to be brought within the scope of the DDA) and discrimination against transsexuals. The Government's Fairness at Work White Paper published in May contains important and controversial changes (see our May bulletin). A Bill is expected late 1998. Following the appointment of Peter Mandelson as Secretary of State for Trade and Industry with the job of piloting the legislation to implement the White Paper through the Commons, provisions have already been watered down as a result of pressure from the CBI although the Government's plan to place a cap of £50,000 on the level of compensation for unfair dismissal rather than remove the limit completely has been overwhelmingly opposed by the unions. It remains to be seen whether other provisions will be 'watered down' too.
There has also been a deluge of European legislation in addition to the Working Time Regulations 1998 applying to all 'workers', not just employees (see our September bulletin). Directives likely to be implemented next year include the European Works Councils Directive, the Parental Leave Directive and the Part-time Work Directive. The Part-time Work Directive has already been adopted by the UK in December 1997 and will take effect from April 2000. The Directive provides part-time workers with the same benefits as full-time staff and prevents employers from dismissing full time staff who refuse to switch to part-time work and vice versa. Other directives include the Posted Workers Directive due for implementation by December 1999 and the Burden of Proof in Sex Discrimination Cases Directive to be implemented by July of 2001.
What is clear is that employers and businesses generally have a busy time ahead. It is essential that businesses keep up to date with current developments to enable them to prepare for the implementation of new legislation and to asses its impact on existing working practises to ensure that the risk of claims or disputes is minimised.
STOP PRESS
New Rules for Employment Agencies and Businesses
On 25 September Peter Mandelson announced that the Government will introduce new, clear rules governing the conduct of employment bureaux and the rights of workers using them. The new rules will make clear that under normal circumstances 'temps' supplied by employment agencies have their contractual relationship with the bureau supplying them rather than their host employer. This will be part of a package of measures which will be outlined in a consultation document to be published this year. Other issues to be covered include proper standards on reference checking and the prompt payment of workers.
For further information please contact Susan Nickson, e-mail: Click Contact Link , Trinity Court, 16 John Dalton Street, Manchester M60 8HS, UK, Tel: +44 161 830 5000
This article was first published as the October 1998 Hammond Suddards Employment Bulletin
The information and opinions contained in this article are provided by Hammond Suddards. They should not be applied to any particular set of facts without appropriate legal or other professional advice.
'New Labour, new law' certainly rings true for 1998. There has been a distinct step up in the tempo of change in the field of human resources, albeit that the timetable for some of the changes is by no means certain. Below is a summary of some of the main changes current or proposed and expected dates of implementation.
In 1998 Acts which have already received royal assent include the Data Protection Act (widening and repealing the Data Protection Act 1984), the Public Interest Disclosure Act (to protect 'whistleblowers') and the National Minimum Wage Act. All three pieces of legislation are anticipated to come into force by April 1999. Some parts of the Employment Rights (Dispute Resolution) Act 1998 which received royal assent on 8 April are already in force (for example industrial tribunals have been renamed 'employment tribunals' with effect from 1 August and the categories of case where tribunal chairs can sit alone have been extended). The National Minimum Wage Act, one of the most fundamental pieces of Labour legislation to be introduced this year in the UK, sets a minimum wage for the first time since the abolition of the Wages Councils. The Government has set the rate for adults over 21 at £3.60 an hour despite the unions calling for a target of £5 an hour. The Low Pay Commission will monitor and evaluate progress on implementing the minimum wage targets as well as periodically uprating the figure. Regulations outlining the detail of the minimum wage were published for consultation on 11 September.
The Human Rights Bill at the committee stage of the House of Commons is also set to impact on the UK and will make it unlawful for a 'public authority' to act in contravention of the European Convention of Human Rights. People who have suffered as a result of a public authority's breach will be able to bring proceedings against that authority. There are a number of provisions which will affect the UK including Article 8 which provides a right to respect for private and family life, home and correspondence. This also extends to activities of a professional or business nature. This was seen in practice most recently in the Halford v UK case where the ECHR found it to be a breach of the Convention that Alison Halford's office telephone was tapped by her police employers.
The Government has also consulted on areas such as fairness at work, disability rights (organisations with between 15 and 20 employees are to be brought within the scope of the DDA) and discrimination against transsexuals. The Government's Fairness at Work White Paper published in May contains important and controversial changes (see our May bulletin). A Bill is expected late 1998. Following the appointment of Peter Mandelson as Secretary of State for Trade and Industry with the job of piloting the legislation to implement the White Paper through the Commons, provisions have already been watered down as a result of pressure from the CBI although the Government's plan to place a cap of £50,000 on the level of compensation for unfair dismissal rather than remove the limit completely has been overwhelmingly opposed by the unions. It remains to be seen whether other provisions will be 'watered down' too.
There has also been a deluge of European legislation in addition to the Working Time Regulations 1998 applying to all 'workers', not just employees (see our September bulletin). Directives likely to be implemented next year include the European Works Councils Directive, the Parental Leave Directive and the Part-time Work Directive. The Part-time Work Directive has already been adopted by the UK in December 1997 and will take effect from April 2000. The Directive provides part-time workers with the same benefits as full-time staff and prevents employers from dismissing full time staff who refuse to switch to part-time work and vice versa. Other directives include the Posted Workers Directive due for implementation by December 1999 and the Burden of Proof in Sex Discrimination Cases Directive to be implemented by July of 2001.
What is clear is that employers and businesses generally have a busy time ahead. It is essential that businesses keep up to date with current developments to enable them to prepare for the implementation of new legislation and to asses its impact on existing working practises to ensure that the risk of claims or disputes is minimised.
STOP PRESS
New Rules for Employment Agencies and Businesses
On 25 September Peter Mandelson announced that the Government will introduce new, clear rules governing the conduct of employment bureaux and the rights of workers using them. The new rules will make clear that under normal circumstances 'temps' supplied by employment agencies have their contractual relationship with the bureau supplying them rather than their host employer. This will be part of a package of measures which will be outlined in a consultation document to be published this year. Other issues to be covered include proper standards on reference checking and the prompt payment of workers.
For further information please contact Susan Nickson, e-mail: Click Contact Link , Trinity Court, 16 John Dalton Street, Manchester M60 8HS, UK, Tel: +44 161 830 5000
This article was first published as the October 1998 Hammond Suddards Employment Bulletin
The information and opinions contained in this article are provided by Hammond Suddards. They should not be applied to any particular set of facts without appropriate legal or other professional advice.
