Employment legislation in 2012 - Are you Ready? 

Here’s a summary of the main expected employment law developments in 2012 together with the likely start dates:

    1 February 2012

• The limits applying Employment Tribunal Awards will increase.
• Maximum amount of a ‘week’s pay’ (used for calculating an unfair dismissal basic award and statutory redundancy payments) will increase from £400 to £430.
• The maximum unfair dismissal compensatory award will increase from £68,400 to £72,300.

• The qualifying period for an employee to bring an unfair dismissal claim will increase from one year to two years.
• Substantial changes to employment tribunal practice and procedure will take effect.
• The weekly rate of statutory sick pay (SSP) will increase from £81.60 to £85.85
• The lower earnings limit for qualifying for SSP, SMP, OSPP, ASPP and SAP will increase from £102.00 to £107.00.

• The standard weekly rate of statutory maternity pay (SMP) and the weekly rates of ordinary statutory paternity pay (OSPP), additional statutory paternity pay (ASPP) and statutory adoption pay (SAP) will increase from £128.73 to £135.45.
• Unpaid parental leave will increase to four months.

Self Employed or Employee? Weight Watcher Leaders Beware!

Self Employed or Employee? Do You Run and Arrange or Conduct A Weight Watchers Meeting?

Being an Employee has very serious legal repercussions for the "employer" As people they deemed as Self Employed Contractors may now have gained full employment rights and also this will have a knock on effect on how pay taxes are now paid and recorded?   

So are you an Employer or Self Employed? Previous cases established three key tests to establish this
a) Mutuality of obligation (ie the obligation to give work when it is available and to accept work when it is offered);
b) Control; and
c) whether other factors are consistent with a contract of service.
Further to establish the relationship the Employer and Employee should look at the obligations of the parties in practice, not just at written terms which may fail to reflect the genuine position. 

In relation to Weight Watchers, a tax tribunal held that "Leaders" engaged to arrange and conduct meetings of Weight Watchers’ members were employees, despite detailed documentation describing them as independent contractors, and despite many years’ prior practice of treating them as such. Weight Watchers and several Leaders appealed on the grounds that the three tests for employee status listed above had not been correctly applied. Their appeal was rejected on all points. 

In relation to the mutuality of obligation test: When considering what would happen if a Leader could not run a meeting (maybe due to illness), it was decided because the Leaders could not discharge their contractual obligations simply by providing another person. There was therefore sufficient mutuality of obligation for the relationship to be one of employment. 

In relation to the control test, the Leaders’ contracts stated that they had "absolute discretion" in conducting meetings. However, it was held that the various requirements and restrictions set out in contractual and other documentation, in addition to the practical realities of the relationship, meant that Weight Watchers had sufficient control for them to be classed as employees. 

This case highlights the importance of ensuring that the practical realities of relationships with employees and independent contractors reflect all relevant documentation.

Bribery Act 2010

The Bribery Act 2010 will take effect on the 1 July 2011 and will apply to all businesses throughout the UK.

The Bribery Act 2010 contains four main criminal offences: -

     (a) Offering, promising or giving a bribe;
     (b) Requesting or agreeing to receive or accepting a bribe;
     (c) Bribing a foreign public official; and
     (d) Failing to prevent a bribe being paid on an organisation’s behalf.

As a result, businesses throughout the UK will need to ensure their employees are adhering to an anti-bribery policy.  Salena Dawson & Co. provide HR services and if you require an anti-bribery policy, please contact the office on 01953 883535 for a fixed fee appointment.

Previous news:

Supreme Court Rule Pre-Nuptial Agreements Are Valid

It has been decided by the Supreme Court that pre–nuptial agreements which are entered into freely by Husband and wife are valid if the parties appreciate the implications of the agreement and the agreement is fair to uphold.

This decision changes English Law regarding the validity of pre–nuptial agreements and will lead to more couples entering into such agreements prior to marriage.

National Minium Wage

There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates (from 1 October 2011) are:

• £6.08 - the main rate for workers aged 21 and over
• £4.98 - the 18-20 rate
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

Equality Act

On 1st October 2010 the majority of the employment related provisions of the act came into force. The Equality Act 2010 simplifies the current laws and puts them all together in one piece of legislation. Also, it makes the law stronger in some areas. So depending on your circumstances, the new Act may protect you more. This covers areas such as race, sex, disability, age etc but also makes it easier to bring a discrimination claim and includes carers.