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Employment law update: summer 2011
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2011 has already seen a number of significant changes to employment law and the landscape is set to change still further during the remainder of the year, with the introduction of several new pieces of legislation.
The default retirement age is now a thing of the past - 5 April 2011 was the last date on which notice of retirement could be given to retire employees whose 65th birthday falls before October this year.
An employer must now objectively justify any compulsory retirements to avoid claims of age discrimination and unfair dismissal. Businesses must now decide whether to retain a fixed retirement age (in which case they would need to show that it meets a real business need and there is no other less discriminatory way to achieve that need) or remove fixed retirement ages altogether and rely on other potentially fair reasons for dismissal (which no longer include retirement).
Fathers of babies born after 3 April 2011 are now entitled to take additional paternity leave (APL). There is no automatic right to APL and it will only occur if the mother with a right to maternity leave wishes to return to work prior to the end of her maternity leave entitlement and transfer some of her cover to the father. In these cases, the right is for a maximum of 26 weeks' APL, to be taken in a single block.
The Government has finally decided to review the way in which employment tribunals operate. Lawyers and employers have long been frustrated at the inefficiencies in the system, which have led to excessively costly and time-consuming litigation, and made it too easy for employees to make unmerited claims.
Proposals include increasing the qualifying period for bringing unfair dismissal claims from one to two years; increasing the powers of tribunals to tackle weak and vexatious claims; measures to encourage early settlement and the introduction of financial penalties for employers found to be in breach of their employment obligations.
From October 2011, agency workers will receive far greater rights. After completing a 12 week qualifying period, agency workers will have the right to the same basic working and employment conditions as are ordinarily included in the contracts of comparable workers recruited directly by the hirer (such as pay and holidays).
They will also be entitled to access the same on-site facilities and amenities as the organisation’s permanent employees and the right to be informed of permanent job opportunities.
The long-awaited Bribery Act 2010 came into force on 1 July 2011 and could result in businesses facing prosecution if they fail to prevent their staff or agents from offering bribes.
The new legislation places the responsibility for preventing bribery firmly on the shoulders of companies themselves and I would urge all businesses to take the necessary steps to ensure that their employees are fully aware of the legislation and to put in place their own anti-bribery policies. Employers need to understand the risks they run if they do not make an active effort to abide by the act.
Lastly, it is worth noting that the right to request time off to train, which formed part of the Government's 'Plan for Growth', which was announced with this year's budget, will not be extended to employers with fewer than 250 employees - and the extension of the right to request flexible working (to cover parents of children aged 17), which was due to come into force on 6 April 2011, will not now go ahead.
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