EMPLOYMENT ACT 2002
The
Act supports the Government’s commitment to create highly
productive, modern and successful workplaces through fairness and
partnership at work. It will deliver a balanced package of support
for working parents, at the same time as reducing red tape for
employers by simplifying rules governing maternity, paternity and
adoption leave and pay, and make it easier to settle disputes in
the workplace.
It
marks a significant step towards the Government’s Election
Manifesto commitment to “help parents devote more time to their
children early in life” and meets the Manifesto commitment to
examine reforms which promote efficiency and fairness.
The
Act will have a real impact on people’s lives benefiting
business, parents and, above all, children. It will:
Simpler
rules governing maternity, paternity and adoption leave and pay.
Paternity
and adoption pay at the same rate as maternity pay.
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Facilitate
flexible working
From 6 April 2003, for the first time mothers and fathers of young children
under six, or disabled children under 18, will
have a right to request a flexible working arrangement.
Employers will have a statutory duty to consider such requests
seriously and according to a set procedure. They will only be
able to refuse requests where they have a clear business
reason.
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Help
business
Employers
will benefit, as new parents with their valuable skills and
knowledge will be encouraged to stay in work rather than leave
to care full-time for their new families.
Increased
notification periods for a woman’s start and early return date
from maternity leave.
Advance
recovery of Statutory Maternity, Paternity and Adoption Pay from
Inland Revenue.
Reimbursement
of maternity, paternity and adoption payments made by employers,
with a full 100% recoverable by small employers and an
additional payment on top.
The
Act aims to help to build constructive employment relations and
avoid the need for litigation through better communication in the
workplace and improved conciliation.
It will ensure a modern user-focused tribunal system
providing swift and efficient justice. It will:
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Encourage
internal resolution of workplace disputes by
introducing minimum internal disciplinary and
grievance procedures; encouraging employees to raise
grievances with their employer before applying to the
tribunal; providing limited extension to time limits for
lodging a tribunal complaint to allow procedures to complete;
allowing variation of tribunal awards to support use of the
procedures.
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Facilitate
better understanding of the employment relationship
through wider compliance with the written statement of
employment particulars and removal of the 20-employee
threshold on provision of information on disciplinary and
grievance procedures.
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Alter
the way unfair dismissals are judged so that, provided the
minimum standards set out in the Act are met and the dismissal is otherwise fair,
procedural shortcomings can be disregarded. Employers will
always have to follow the basic procedures, but will no longer
be penalised for irrelevant mistakes beyond that - provided
the dismissal would otherwise be fair. This means that the
dismissal must have been for a fair reason and the employer
must have acted reasonably in treating it as a reason for
dismissing the employee.
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Provide
for timely and amicable settlement through fixed
conciliation.
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Provide
for efficient, swifter delivery of tribunal services
through practice directions, management of weak cases,
revision of the costs regime and mandatory tribunal forms.
In
addition to the legislative measures contained in the Act, the
Government set up an Employment Tribunal System Taskforce
to ensure that the Employment Tribunal system reflects the needs
of its users and the changing environment in which it operates.
The Taskforce reported in July 2002, setting out its vision for an
Employment Tribunal System which is fit for purpose in the 21st
century and making 61 specific recommendations for modernising the
system. The Government response, accepting as a package the
recommendations of the Taskforce, was published in November 2002.
It was announced in March 2003 that the Employment Tribunal System
Taskforce was to be reconstituted as a strategic body to monitor
implementation of its recommendations.
A
Consultation
document, published on the 9 July 2003, sets out draft regulatory
proposals for the introduction of statutory dispute resolution
procedures during 2004. Consultation closed on 29 October 2003 and
the Government's response to the consultation will be published
shortly.
For
further information and advice on disciplinary and grievance
procedures, please contact Acas
(Advisory,
Conciliation and Arbitration Service) – Helpline: 08457
47 47 47.
A
public consultation is currently underway on the proposed draft
revised Employment Tribunal Regulations and Rules of Procedure,
with changes due to come into force in October 2004. The
consultation will close on Friday 5 March 2004.
Flexibility
and Fairness
Measures
in the Act implemented the EC Directive on fixed-term work and will prevent pay and
pension discrimination against fixed term employees.
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Right
for fixed-term employees not to be treated less favourably
than similar permanent staff working for the same employer will
ensure flexible work pays.
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Employers
will need some flexibility to address individual circumstances
when applying the equal treatment requirement to fixed-term
employees. Different treatment may be justified on objective
grounds or where the fixed-term employee has an overall
package equal to a similar permanent employee.
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Limits
on the use of successive fixed-term contracts will ensure
that people are not on a string of contracts in what is really
a permanent job, while allowing for sectoral variations.
The
Fixed-term Employees (Prevention of Less Favourable Treatment)
Regulations 2002 came into force on 1 October 2002. Guidance
on the new regulations has been produced after feedback from
stakeholder groups.
Work
focused interviews for partners of working age benefit recipients
The
Act introduces work-focused interviews for partners of people
receiving working-age benefits, affecting around half a million
partners with and without children. The Government’s strategy
for reforming the system of support for working age people is
based on the principle of work for those who can and support for
those who cannot.
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The
key aim of the interview is to encourage partners of
working age benefit recipients (JSA(IB), IS, IB and SDA)
to see work as a realistic option; to build upon their skills
and potential and help the individual tackle any obstacles to
work; and inform them of the support on offer to find work
through, for example, the New Deal for Partners.
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No
obligation to take up help or to find work.
Partners will receive individual personalised support and
advice through their own personal adviser to find the best way
into work where that is possible.
Time
off for Trade Union learning representatives
The
Act introduces a new statutory right to time off for trade union
learning representatives (ULRs) to ensure that they are adequately
trained to carry out their duties.
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Paid
time off rights for ULRs which are broadly equivalent to
the current rights enjoyed by shop stewards and other lay
union representatives.
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Both
employers and workers stand to benefit.
ULRs are an inexpensive source of expert advice for
employers and the proposals will not place a high
administrative burden on employers.
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Workforce
Development. A key element of Government’s drive to improve the quantity
and quality of workforce development, particularly for those
who generally miss out on training at present – eg. older
men, ethnic minorities, part timers.
An
Employer's Good Practice Guide on Union Learning Representatives
is available on the Department
for Education and Skills website (MS Word 333Kb).
Equal
Pay Questionnaire
The
Act will introduce an equal pay questionnaire in employment
tribunal equal pay cases.
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Equal
pay cases are notoriously slow and complex.
A questionnaire will make it easier for individuals to
request key information from their employer when they are
deciding whether to bring a case; and will help simplify and
speed up the tribunal process benefiting both employers and
employees. This could lead
to settlement or resolution in some cases.
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It is estimated that the introduction of the questionnaire
procedure will result in a 10% reduction in applications, ie.
a reduction of 240 applications per year.
Further
information is available on the Women
and Equality Unit website.
Data
Sharing
The
creation of the Department of Work and Pensions is a key
development in the Government’s Welfare to Work philosophy.
Data sharing provision in the Act will allow the new
Department to use the information it receives across the range of
its functions.
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Data
sharing of National Insurance contribution records will enable
better evaluation of employment and training programmes. This will in turn allow the Government to plan and
deliver more effective services.
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It
would also enable the Government to investigate developing
better payments systems; guard against the possibility of
fraud and to tackle any fraud where it occurs.
Impact of
the Act on Small Businesses
The
provisions in the Act will help to level the playing field by
putting small and large firms on an equal footing.
The Small Business Council and Small Business Service have
been closely involved in the development of these proposals.
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The
Act thought “small first” in terms of the way it
implements paid paternity and adoption leave.
It will ease the cash flow, reducing the burden by
allowing employers to claim money in advance for Statutory
Maternity, Paternity and Adoption Pay payments and simplify
procedures for small employers.
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Dispute
resolution measures are helpful to small firms and will ease
the pressures of tribunal claims by encouraging better
communications in the workplace to prevent disputes escalating
into tribunal applications. In most cases employees will be
required to raise their grievances in the workplace before
making an employment tribunal application. The
introduction of dispute management procedures provides clarity
on how workplace disputes should be handled.
The procedures recognise the needs of small firms.
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Clear
and user-friendly guidance available to all.
Acas advisory work with small business is being stepped
up and Acas, SBS and other advice agencies will work together
to deliver support service.
The
consultation on the regulations for flexible work ended on 10 October 2002. These regulations will also take
effect from April 2003.
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