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Statement
of forthcoming employment regulations in 2004
Introduction
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The
Department of Trade and Industry is helping business and other stakeholders
adapt to changes to employment law and practice.
Beginning
in 2004, the DTI will implement those changes, which arise from within the UK
and on which the Department leads, on only two dates in each year.
It
will also say at the beginning of each year, through an annual statement of
forthcoming employment regulations, what those changes are expected to be.
-
The
two ‘Common Commencement Dates’ are:
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The
harmonisation of commencement dates is intended to ensure that
changes to employment policy are made in a coordinated fashion and to
provide businesses, employee representatives and individuals with greater
clarity and awareness about when changes will be made.
This should assist all parties to plan for new measures and help
implement them effectively. Other
government departments are considering how they might follow the DTI’s
lead where appropriate.
-
This
first annual statement details changes to employment law and practice that
are due to commence in 2004 where DTI has the lead.
It comprises of four Sections:
- Section A details
changes to employment law and practice that are due to commence on 6
April 2004
- Section B details
changes to employment law and practice that are due to commence on 1
October 2004
- Section C details
employment regulations arising from Europe where the coming into force
date is different and not aligned to either common commencement date
- Section D details other
key activity by DTI that will impact on the employment law framework in
2004 and beyond
- Further
information on employment laws and the supporting framework is available on
the DTI website.
Section
A
Regulations to
commence on 6 April 2004
Section A details changes to
employment law and practice that are due to commence on 6 April 2004.
| 6
April ’04 |
Conduct
of Employment Agencies and Employment Businesses Regulations |
| These
regulations will apply to the private recruitment industry and will
largely update the existing requirements that govern their conduct.
Regulations that are out of date and unnecessary are being
repealed. |
| Further
information: www.dti.gov.uk/er/agency.htm
|
| 6
April ’04 |
Extension
of Acas Arbitration Scheme to Scotland |
Acas presently provide an
arbitration service to resolve complaints concerning unfair dismissal and
flexible working, as an alternative to resolution at Employment Tribunal
in England and Wales. This
Order will provide arbitration for complaints arising in Scotland.
It only impacts on those employers and employees in Scotland who
are seeking to use arbitration to resolve a complaint. |
| Further
information: www.acas.org.uk |
| 6
April ’04 |
Maternity
leave and paternity, and adoption leave and pay regulations |
| Technical
amendments to fine tune the operation of the new laws for working parents
introduced in April 2003 |
| Further
information: www.dti.gov.uk/workingparents
|
Section
B
Regulations
to commence on 1 October 2004
Section B details changes to
employment law and practice that are due to commence on 1 October 2004.
| 1 October ’04 |
Annual revision of National Minimum Wage |
The Low Pay Commission has recommended that on 1
October 2004 the National Minimum Wage should rise to £4.85 per hour for
adult workers and £4.10 per hour for those aged 18 – 21. It is due to report on any fine-tuning of this recommendation
in light of economic conditions in February 2004.
The Government has also asked the Commission to report by February 2004 on
the possible introduction of a minimum wage for workers aged 16 and 17.
It is possible that a new minimum wage rate may be introduced for
this group in October 2004. The
Government will not make any decision until the Commission has reported. |
| Further information:
www.dti.gov.uk/er/nmw/index.htm |
| 1 October ’04 |
Discipline and
Grievance Code of Practice |
| To take account of the new
statutory procedures a revised version of the widely-used Acas Code of
Practice will take effect. The Code of Practice sets out practical advice
and guidance for dealing with disciplinary and grievance matters in the
workplace. |
| Further information: www.acas.org.uk |
| 1 October ’04 |
Dispute
Resolution Regulations |
| The regulations will
introduce new statutory procedures to encourage the resolution of
dismissal, disciplinary and grievance disputes in the workplace.
|
| Further
Information: www.dti.gov.uk/disputeresolution |
|
| |
| 1 October ’04 |
Employment
Appeal Tribunal (EAT) Rules |
| Amendment
of existing EAT Rules arising out of the Employment Act 2002 relating to
the handling of costs and expenses.
The EAT President has also tabled proposals for changes to the
appeal process. The changes
will only impact on employers and employees who are resolving a dispute at
the EAT. |
| Further information:
www.employmentappeals.gov.uk |
| 1 October ’04 |
Employment Tribunal (Constitution and Rules of
Procedure) Regulations |
| The new regulations and rules of procedure will seek to modernise the
tribunal system and render it more efficient.
The regulations will cover both England and Wales, and Scotland and
will impact on employees and their employers who are seeking to resolve a
dispute at an employment
tribunal.
|
| Further
information: www.dti.gov.uk/er/individual/etregs_consult.htm |
| 1 October ’04 |
Employment Tribunals: New application forms |
| Both applicants and respondents (typically employers)
will be required to use new forms when dealing with an employment tribunal
case. These new forms will
require both parties to share more information earlier in the tribunal
process. The changes will
impact on employees and their employers who are seeking to resolve a
dispute at an employment tribunal. |
| Further information:
www.employmenttribunals.gov.uk |
| 1 October ’04 |
Equal Pay Act, Rules of Procedure in equal value claims |
| The regulations simplify and streamline the complex rules of
procedure relating to equal value tribunal cases.
The aim is to speed up the Independent Expert procedure that
presently can cause delay. |
|
Further information:
www.womenandequalityunit.gov.uk/legislation |
| 1 October ’04 |
Equal Pay Act, “No reasonable grounds” provision |
| A short set of regulations will amend the “no
reasonable grounds” provision in the Equal Pay Act, in order to clarify
it. |
| Further information:
www.womenandequalityunit.gov.uk/legislation |
| 1
October ’04 |
Regulations
to amend the National Minimum Wage to introduce new fair piece rate regime |
| The amendments introduce a
system of fair piece rates for output workers (workers that are paid
according to how many pieces they produce).
Output workers will either have to be paid the minimum wage for all
hours worked, or paid under a system called rated output work.
|
| Further
information: www.dti.gov.uk/er/nmw/index.htm |
|
1 October ’04
(probable) |
TUPE Regulations |
| The revision of the Transfer of Undertakings
(Protection of Employment) Regulations 1981 (TUPE) take on board
amendments to the EC Acquired Rights Directive and will provide more
clarity over whether or not the regulations apply to particular
contracting-out or analogous situations.
They will apply to all businesses in England, Wales, Scotland and
Northern Ireland.
Note: It is possible that the commencement of the
regulations may not take place until 2005. |
| Further information:
www.dti.gov.uk/er/individual/tupe-pl699.htm |
Section
C
Other regulations arising from
Europe which are not aligned to either common commencement date
The
commencement dates of regulations arising from Europe are not fully within the
control of the DTI. Section C
details employment regulations arising from Europe where it has not been
possible to align the coming into force dates with either of the two common
commencement dates.
| 8 October ‘04 |
The European Company Statute |
| The Regulation for the European Company Statute, which
is entirely voluntary, takes direct effect in all Member States on 8
October. The Regulation is
supplemented by a Directive covering the employee involvement arrangements
that apply to a European Company. The
regulations implementing the Statute will also implement the Directive.
It is not possible to align the date with either common
commencement date. |
| Further
information: www.dti.gov.uk/cld/condocs.htm |
Other
key activity
Section
D highlights other key activity by DTI that will have an impact on the
employment law framework in 2004 and beyond.
This is not intended to be a comprehensive list.
Detailed information on new and existing employment regulations and
policies is available on the DTI website.
| 2004 |
Consultations in 2004 |
| Details of new employment policies and issues under
consultation are available on the DTI website.
The web page is updated regularly and contains an option to be
notified by email whenever a news items is added. |
| Further information:
www.dti.gov.uk/er/hot_topics.htm |
| 2004 |
Employment Relations Bill 2003 |
| A new Bill on employment relations is currently being
taken forward by Parliament. The
Bill is
mainly concerned with collective labour law and trade union rights.
It is too early to say with
certainty when any employment regulations arising from the Bill
will commence which will depend on when the Bill receives Royal Assent. |
| Further information:
www.dti.gov.uk/er/erbill_2003.htm |
|
Annually (1
February ‘04
|
Annual revision of Employment Tribunal award
limits
|
| The law
requires the upper limits of the various employment tribunal awards and
payments to vary in line with the movement of the Retail Prices Index.
These annual changes take effect on 1 February each year and impact on employees and their employers who seek to resolve a dispute at
an employment
tribunal.
|
| Further information:
www.dti.gov.uk/er/pay/limits-pl827.htm |
|
Annually (4
April ‘04)
|
Revision of the standard rates of Statutory
Maternity Pay (SMP), Statutory Paternity Pay (SPP) and Statutory Adoption
Pay (SAP) |
| The standard rates of SMP, SPP and SAP are to be
increased to £102.80 per week (or 90% of the person's average weekly
earnings if that is less than £102.80).
The changes will be included in the Department for Work and
Pensions annual uprating order - the Social Security Benefits Uprating
Order 2004. For 2004, the
increased rates will apply from Sunday 4 April.
This is because SMP payment weeks typically begin on a Sunday and
follows the precedent for previous years. |
| Further information:
www.dti.gov.uk/workingparents |
| Spring 2005 |
Information and Consultation Directive |
| Implementation of the Information and Consultation
Directive, which gives employees in larger firms new rights to information
and consultation about the business and the prospects for employment.
The intention is to publish a revised version of regulations and
draft guidance early in 2004, and to lay the final version of the
regulations in Parliament when the Employment Relations Bill has received
Royal Assent in 2004. The
legislation will come into force in Spring 2005. |
| Further information:
www.dti.gov.uk/er/consultation.htm |
| 2005 |
Equal Treatment Directive |
| Implementation of the amended Equal Treatment
Directive, which requires equal treatment for men and women.
It strengthens the principle of equal treatment contained in the
1976 Equal Treatment Directive. It
takes a similar line, where appropriate, to the Employment and Race
Directives under Article 13. Further
consultation will take place during 2004.
Legislation will come into force no later than October 2005. |
| Further information:
www.womenandequalityunit.gov.uk/legislation |
| October 2006 |
Age Discrimination legislation |
| Implementation
of the elements of the European Discrimination Directive which will outlaw
discrimination in employment on the grounds of age. The aim is to make draft regulations by end 2004, after
further consultation in the Spring. To
allow businesses and employee representatives sufficient time to prepare
for the changes, the regulations will not be brought into force until
October 2006.
|
| Further information: www.dti.gov.uk/er/equality/age.htm |
Notes
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The harmonisation of the commencement dates of employment
regulations stems from a recommendation in the Better Regulation Taskforce
2002 report ‘Employment Regulation: Striking a balance’.
The Taskforce reported that a common complaint by employers was that
changes to employment policy seem to happen in an uncoordinated fashion.
It proposed common commencement dates for employment policy.
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The Secretary of
State for Trade and Industry announced on 31 March 2003 that the DTI would
take the following action:
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6 April (the beginning of the tax year) and 1 October
(when the minimum wage is revised) will become the two set commencement
dates for domestic employment regulations for which the DTI is responsible.
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For European legislation there will be a three stage approach:
(i)
the 'coming into force' dates in 2003,
which have been in the public domain for some time, will remain unchanged;
(ii)
from January 2004, the DTI will plan the
'coming into force' dates for Directives where deadlines have already been
set, but which have not yet been implemented, on a case-by-case basis;
(iii)
the DTI will aim to negotiate
three-year transposition deadlines for future EU Directives so that it
will have enough time to consult and still align with the two set dates.
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Beginning
in 2004, DTI will publish an annual statement of forthcoming employment
regulations every January.
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The
DTI will ask central Government to foster inter-departmental co-operation
with these changes.
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In Budget 2003 the Chancellor said other Government
Departments should adopt the same approach.
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An
email alert system now
available on the DTI website for users to subscribe. Over 1000 people have already registered.
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2004
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