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october employment changes: what you need to know

9 October 2008

Agency workers

Agency workers on contracts of less than three months are from 27 October 2008 entitled to statutory sick pay during periods of sickness absence.

Employers liability

From 1 October 2008 Employers can display their employers liability insurance certificate in electronic form so long as it is reasonably accessible to employees (Employers Liability (Compulsory Insurance (Amendment) Regulations 2008).

The national minimum wage

The adult rate of the national minimum wage rises from £5.52 to £5.73 per hour; the development rate rises from £4.60 to £4.77; and the rate for workers aged 16 and 17 rises from £3.40 to £3.53 per hour.

Maternity and adoption leave

For those whose expected week of childbirth or adoption is on or after 5 October 2008 the following changes will apply.

The right to all benefits (apart from remuneration) will continue during additional maternity leave as if they had not been absent. These include reimbursement of professional subscriptions, health benefits, company cars, company mobile and contractual holiday entitlement.

The employers liability to pay pension contributions, however, is limited by Schedule 5 of the Social Security Act 1989 to the period of paid maternity leave (39 weeks for Statutory Maternity Pay but it could be longer if the contract provides for maternity pay for a longer period). The employers contribution is based on full pay but the employees contribution is based on their maternity pay.

Employment and support allowance

A new requirement to have a work capability assessment in order to claim disability benefits is to be phased in over the next two years from 27 October 2008. Those considered to have some capacity to work will be required to make efforts to find employment or lose payments. The Department for Work and Pensions estimates that the new assessment will only reduce the number of people entitled to full benefits by 60,000. However, other commentators have suggested that the figure may be closer to 1.3 million. A significant number of disabled applicants may therefore come into the labour market.

Employers must ensure that they give proper consideration to such applicants - otherwise they may face costly disability discrimination claims. It should not be assumed, for example, that because they have not worked for a lengthy period that they lack skills or are work-shy. Those applicants whose condition qualifies under the Disability Discrimination Act 1995 (DDA) are entitled to have reasonable adjustments made to working conditions and premises to overcome any disadvantages they would face in employment as a result of their disability. Thought must be given to how realistic adjustments might be made for them as part of the application process.

training and events

17Sep

In-house lawyers' update Manchester office

Our next in-house lawyers' sessions will give in-house lawyers the tools and strategies for dealing with some of the problems caused by recent changes to the law.

View event

25Sep

In-house lawyers' update Nottingham office

Our next in-house lawyers' sessions will give in-house lawyers the tools and strategies for dealing with some of the problems caused by recent changes to the law.

View event

focus on...

Brexit resources

Contract drafting and Brexit: considerations for local authorities

As Brexit Day inches closer there are many things for local authorities to consider. One of which is whether contracts already in place or currently being negotiated will still be accurate or support council business after Brexit.

View brexit resources

Guides

An introduction to EMI share options

Share options granted under the Enterprise Management Incentive Scheme (usually referred to as EMI options) are a popular choice for SME and start-up companies who want to reward and incentivise employees in alternative ways to simply paying them more amounts of cash.

View

Guides

An introduction to EIS and SEIS tax efficient investing

Where a start-up or SME company is looking for external investment, and one or more individuals are looking for investment opportunities which can provide significant tax advantages, it is well worth considering the Enterprise Investment Scheme (“EIS”) or the Seed Enterprise Investment Scheme (“SEIS”).

View

How to have a settlement discussion with an employee - hear from Kerren Daly

The Acas Code on settlement agreements provides limited guidance on how to conduct settlement agreement negotiations with an employee

View

The content on this page is provided for the purposes of general interest and information. It contains only brief summaries of aspects of the subject matter and does not provide comprehensive statements of the law. It does not constitute legal advice and does not provide a substitute for it.

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