Reid warns new EU partners not to turn up without a permit

The Home Office has spent nearly £280,000 on an advertising campaign warning Bulgarians and Romanians not to come to Britain unless they are skilled and have been offered a job.

The campaign is designed to deter nationals from the two newest EU members who join from this month from arriving in the UK in search of work only to find they are liable to be fined for illegal entry.

The Government has been heavily criticised for underestimating the number of migrants likely to seek work in the UK after the last major expansion of the EU, when eight former communist states became members in May 2004.

In October, the Home Secretary, John Reid, risked accusations of xenophobia by announcing strict measures to restrict the number of arrivals, including fines up to £1,000 to any who take jobs without a permit. The only Bulgarians and Romanians permitted to work here will be a small number of highly skilled employees with jobs waiting for them, 20,000 agricultural workers, and the self-employed.

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Source The Independent

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Employment Law – will 2007 be the year of the family?

2006 was the year of TUPE and Age in the field of employment law. A look to the future suggests that in 2007 HR managers and employment law specialists will be focused on the family as developments in the areas of work/life balance and parental leave come to the fore.

Julian Hemming, head of employment law, Osborne Clarke commented:

"We've seen two huge legislative changes impacting the employment policies of business in 2006 - the new TUPE and age discrimination rules. You might think 2007 would be time for a breather and a chance to see those rules bed in. Instead, the pace of change at both UK and EU level looks set to continue as we head into 2007.

"Expect litigation in relation to both the new TUPE and age discrimination rules. This will hopefully clarify certain areas of the legislation currently unclear or open to misinterpretation.

"The publication of a final report from the Equality Review is on the cards, looking at the causes of persistent discrimination and inequality in British society. We will also hear further from the parallel Discrimination Review, which aims to put in place a single Equality Act by the end of this Parliament.

Maternity and Adoption - The Government has now implemented legislation containing various new family friendly proposals that apply to employees expecting babies or who are due to adopt on or after 1 April 2007. The rules extend paid maternity leave from six to nine months, remove the current length of service requirement for additional maternity leave and introduce keeping in touch days

Flexible Working - from 6 April 2007 the right to request flexible working will be extended to carers of adults.

Increase in compensation limits - The Employment Rights (Increase of Limits) Order 2006 increases compensation limits for a variety of tribunal awards and other statutory payments from 1 February 2007. Changes include increases in the maximum award for unfair dismissal, with the maximum compensatory award rising from £58,400 to £60,600

Information and Consultation - from 6 April 2007, rules that require employers to consult with employees about any significant developments in the business, and rules which require employers to consult affected employees regarding changes to pension provision, will both be extended to cover employers with 100 or more employees.

Smoking Ban – All work premises must be smoke free if enclosed. Work vehicles including company cars will be covered. Employers must display prominent "No Smoking" signs of at least A5 size, including the "No Smoking" logo and prescribed wording at all entrances and in vehicles. Failure to display the necessary signs is subject to a fixed penalty of £200.

Equality Act - Provisions of the Equality Act will start to come into force in 2007. In particular, a single commission for Equality and Human Rights will be established as of October 2007 taking over the functions of the Equal Opportunities Commission, the Disability Rights Commission and the Commission for Racial Equality.

Holiday - The Government has recently consulted on increasing statutory holiday entitlement from four weeks to 5.6 weeks. This will ensure that all employees get a minimum holiday entitlement equivalent to 20 days' annual leave plus bank holidays. This increase is expected to be effective from October 2007.

Statutory Dispute Resolution Procedures - the DTI has indicated that it will undertake a review of the statutory dispute resolution procedures during 2007.

Case Law - 2007 should also hopefully provide an answer to the question of whether employees on long-term sick leave are entitled to paid holiday under the Working Time Regulations.

Working Time - An issue throughout 2006, EU Ministers have failed to reach agreement over the future of the UK's opt out of the 48 hour maximum working week. The European Commission alleges that UK Government guidance on rest breaks encouraged breaches;

Discrimination - the European Parliament has published a recast Directive on equality between men and women in matters of employment and occupation,.

Immigration – the introduction of the Immigration, Asylum and Nationality Act 2006 is expected in 2007. This provides for a new civil penalties system including 'on the spot' fines for employing foreign nationals illegally

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DTI looks at proposals to increase minimum annual leave

The government is looking at proposals to increase workers’ holiday allowance from 20 days per year to 28.

Research has found that up to six million employees could benefit from the extra days because some employers currently include the UK’s eight bank holidays as part of workers’ minimum annual leave entitlement which is currently 20 days.

The Department of Trade and Industry (DTI) is launching a second public consultation on the implementation of the changes. Statutory annual leave entitlement would be increased in two stages, rising from 20 to 24 days on 1st October 2007, and from 24 to 28 days on 1st October 2008.

Jim Fitzpatrick, DTI minister for employment relations, commented: "Most companies already recognise that good holiday provision makes good business sense. Holiday entitlement can be a key factor in recruiting and retaining staff. Holidays are also important for productivity as they help minimise sick leave and keep people motivated and refreshed.”

An increase would bring the UK into line with the rest of the EU where workers typically enjoy more annual leave.

Source – The Recruitment Consultant

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2 Years of success – How British Gas and Encore have forged a creative partnership that has stood the test of time

The National Parts Centre for British Gas has been a permanent fixture on Aylestone Road in Leicester for over 10 years. A need arose for another staffing supplier after the incumbent agency were not fulfilling agreed targets

Encore were given the opportunity to support the operation because of their experience in industry leading warehouse skills testing, structured fulfilment planning and the application of KPI criteria.

Over the past two years Encore have added workers that possess the skill sets that British Gas demand and have achieved the status of ‘preferred supplier’

2006 has been a challenging year for British Gas as they are in the process of moving to a purpose built NDC (National Distribution Centre). The increased operational pressure in this transitional period has meant even more demand in terms of temporary staff and Encore is an essential component in supporting this process.

‘As our busy season approaches and we begin the transfer process to our National Distribution Centre at Grove Park the relationship between Encore and ourselves will be key in ensuring uninterrupted, quality service to our customers’ - Martin Storey (Warehouse Manager – National Parts Centre) 2006

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Skills shortage forces Rolls-Royce overseas in search for staff

British manufacturers are being forced to recruit employees from Germany and other European countries due to the massive skills shortage in the UK.

Sir John Rose, the chief executive of Rolls-Royce, said yesterday there was an urgent need for a pipeline of top quality staff in the UK. "The competitive landscape is changing rapidly as a result of globalisation and demographics which are transforming the nature of work and the demand for particular skills" he said.

" The UK will have to compete on knowledge and ideas."

He said that, although Rolls-Royce has no difficulty in recruiting the required skills at graduate level, the biggest challenge for the firm was finding the right skill sets at mid-career level - those with 10 years' experience who may want to switch firms.

"This is a reflection of the 1 million manufacturing jobs lost over the last 10 years and the loss of critical mass," he said. "This is not a debate about science versus arts or manufacturing versus services - the issue is whether the UK educational system is able to deliver the high-value and high-quality people the UK will need in the new knowledge economy."

This article can be read in full by clicking here

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Five tips for recruitment

Everyone has their own idea of what the most important factors to consider are when recruiting a new employee. Here, we take a look at it from a legal angle, with our five top tips on getting it right.

1. Regularly review your job adverts and application forms to avoid inadvertently discriminating against applicants. Since 1 October 2006, age discrimination is unlawful – can you really justify asking for the date of birth or age of a candidate?
   
   Other potentially discriminatory questions to avoid include: asking for details of marital status, medical history, whether the candidate holds a current driving licence and/or spent convictions. These questions must be relevant to the post to be justifiable; however, it would be difficult to argue that marital status could ever be a relevant factor.
2. If a candidate has disclosed a disability in their application, take steps to make reasonable adjustments to facilitate the candidate at interview. If they turn out to be the best candidate, provision will have to be made so that they can carry out their work effectively once employed.
3. When offering a position, make the offer in writing, and subject to signature and return of the contract of employment, plus receipt of satisfactory references. Surprisingly, businesses often fail to follow-up references. Always take up at least two references. Many impressive candidates do not tell the whole truth at interview!
4. Obtain two forms of identification from the successful candidate. If the worker requires a permit to work in the UK, ensure that you obtain the correct written documentation to avoid criminal liability and a fine of up to £5,000 per illegal worker.
5. Stay up to date with employment law changes. New legislation is introduced every year and you leave your business wide open to prosecution if you ignore the changes

Source: FPB

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Fines for minimum wage non-payers

Employers who refuse to pay the minimum wage could face a £200 fine for every worker they had underpaid, Trade and Industry Secretary Alistair Darling announced recently.

Employers already have to pay back arrears they owe to the worker and now those who refuse to pay up will be penalised.

Alistair Darling said:

"Workers have the right to a decent minimum wage and we are determined they get it. To those employers avoiding the minimum wage the message is don't pay it and you'll pay the fine. In the last year alone the government's enforcement teams across the UK helped over 25,000 workers get more than £3m back in unpaid wages. The vast majority of good employers need to know they are operating on a level playing field. These measures will help deliver that."

In cases where workers complain they are not getting the minimum wage, Her Majesty's Revenue and Customs (HMRC) investigate the employer. If the complaint is upheld and the employer will not pay then he is given a warning to repay the arrears within seven days. Those employers who do not pay within seven days risk a fine.

To read this article in full click here

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Prisoners to be Given Training to Tackle Skills Shortage

In response to the current skills shortages in the workforce, employers in some areas are looking towards the prison service to find trained workers.

Phil Hope, skills minister, illustrated how the measures would work. He said that in addition to training inmates in "soft skills" such as punctuality and teamwork, prisons could be asked to train inmates in the specific skills required by companies who may be experiencing a shortage of skilled workers.

Previous use of prisoners to fill skills gaps has proven successful. Alison Itani, director of Wilant Industries, looked to the prison service on the advice of Jobcentre Plus and had a positive experience.
The education secretary, Alan Johnson, has described the new measures as a "win-win situation for employers and offenders while also protecting the public by cutting crime". He said the training would be designed with employer input and pilot schemes would "offer offenders access to training programmes designed to meet the needs of employers".

The measures have received the support of Baroness Scotland, the criminal justice minister, who believes that in is in the interest of business to get involved in prisoner training. Adopting the "win-win" approach she said: "This is about creating the best environment to help the UK be really competitive. It is also about reducing crime in areas where businesses operate. Businesses are corporate victims of crime too."

(Financial Times, 14 December 2006)

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Random checks 'a legal minefield'

Apart from the rail industry, where drug testing is allowed by the Transport and Works Act 1992, the use of screening is a legal minefield, a lawyer said yesterday

According to Gillian Leach, an employment specialist, in theory any company can impose substance misuse testing but it can be extremely tricky to implement.

Even if an employer has it written into a contract, it is still no guarantee that it is does not contravene the human or employment rights of the worker.

The difficulty arises because drug testing involves taking a hair, saliva, urine or blood sample from an employee and that needs consent.

Taking it forcibly would amount to a physical assault.

If an employee refuses to allow the testing, they may claim any subsequent action resulted from an infringement of their rights to privacy which is protected under the Human Rights Act of 1998.

Furthermore, the sacking of workers following random screening, even if positive, has also yet to be fully tested in employment law.

This story can be read in full by clicking here

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Employers Must Help Employees Boost Their Health

With research by the Work Foundation indicating that 3-5 per cent of the UK workforce is away from work through illness and 25 per cent of those at work are underperforming because of physical or mental illness, the National Institute for Health and Clinical Excellence (Nice) has published recommendations aimed at employers to help boost workers' health.

From encouraging workers to cycle to work or take the stairs instead of the lift, to offering healthy alternatives in the canteen, the recommendations are wide ranging. In addition, employers are encouraged to provide information that will aid an informed choice for their workers, including "tailored educational programmes" on healthy eating.

Nice has pre-empted the argument by employers that it is up to individuals to manage their own diet and activity by adding that workers do not have enough free time to engage in sports and therefore that activity needs to be built into the working day.

The Work Foundation also says that employment status is as important to health outcomes as exercise. David Coats, Associate Director at the Foundation said: "Workers in lower status jobs enjoy worse health and lower life expectancy than workers in higher status jobs. The argument can be summarised quite simply. Workers in lower status jobs are exposed to more stressors than their more highly paid and highly qualified colleagues, which, in turn, increases the risk of mental illness, gastro-intestinal conditions and coronary heart disease. Contrary to the popular misconception, the security guard in the entrance lobby is a more likely heart attack victim than the archetypal "highly stressed" senior manager on the executive floor."

The Work Foundation recommends an extension of the "right to request flexible working" to all groups of workers and a general change in working practices, such as allowing more home-working, to help improve employee health.

(Workplace Law, 11 December 2006)

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Issue 33 – January 2007
Welcome to the January issue of Encore enews.

On behalf of all of us at Encore we would like to offer all of our readers the very best for the coming year.
In terms of employment legislation 2007 will undoubtedly be the year of the family with new rules ranging from the extension of paid maternity leave to the possible increase in statutory holiday entitlements. HR managers and employment lawyers - expect another busy year!
Our second news item lists in more detail employment legislation changes expected this year.

Greg Latham
Managing Director

This months business news round up: