What’s boiling in the Employment law melting pot for 2006?

The main legislative development for 2006 concerns age discrimination. To implement the EU’s Equal Treatment Framework Directive, the UK is required to introduce national legislation prohibiting discrimination on the grounds of age and come into force on 1 October 2006. The Government will develop guidance documents to help employers implement the changes. Other organisations such as ACAS have also indicated that they will produce guidance. Employers need to start preparing for these changes now.

Other changes in the pipeline include the much-delayed revisions to regulations governing the transfer of undertakings;

Expected in April

• Amendments to the TUPE regulations as a result of Acquired Rights Amendment Directive (2001/23/EC) – implementation was expected in Autumn 2004 but, following consultation on the draft regulations, is now expected in April 2006. The final version may contain significant differences from the draft currently available. Key features are: review of the rules about when TUPE applies; flexibility in relation to insolvency; clarification of the economic, technical or organisational (ETO) defence; and proposals regarding variation of contracts for an ETO reason. Draft regulations are published for consultation.
• Statutory maternity/paternity/adoption pay and statutory sick pay - Gordon Brown announced in the Pre-Budget report on 5 December 2006 that the flat rates for SMP, SPP and SAP will increase to £108.85 per week (or 90% of average weekly earnings if less). The standard rate for SSP will increase to £70.05 per week.

Expected in October

• Age discrimination legislation – it is expected that this legislation will: ban age discrimination in recruitment, promotion and training, ban all retirement ages below 65 (except when objectively justified), remove the upper age limit for unfair dismissal and redundancy rights, introduce a duty for employers to consider employees' requests to continue working beyond retirement, and introduce a requirement for employers to give written notification to employees at least six months in advance of their intended retirement date to allow people to plan for their retirement.
• National minimum wage increases - The adult rate is expected to rise from £5.05 to £5.35. The development rate is expected to rise from £4.25 to £4.45.

Bills currently before Parliament

• Equality Bill - After failing to reach Royal Assent in the previous session, the Bill was re-introduced into the House of Commons in May 2005. If passed, it will create a new Commission for Equality and Human Rights from October 2007 to bring together the work of the Commission for Racial Equality, the Disability Rights Commission and the Equal Opportunities Commission. It also includes measures to prohibit discrimination on grounds of religion or belief, create a duty on public authorities to promote gender equality and prevent sex discrimination in the exercise of public functions.
• Immigration, Asylum and Nationality Bill - Part of the on-going implementation of the Government's five-year strategy for immigration and asylum published in February 2005. Will introduce fixed penalty fines for employers who employ illegal workers and create a new criminal offence of knowingly employing an illegal worker.
• Work and Families Bill – Proposes extending the period of statutory maternity pay and statutory adoption pay, introducing new rights for mothers to transfer part of their maternity leave and pay to the father, and extending the right to request flexible working to other groups with caring responsibilities.
• Health Bill - Includes provisions to make enclosed public places and workplaces (apart from licensed premises that do not serve or prepare food and private members' clubs) in England smoke-free from summer 2007. (The Government have announced that in Northern Ireland, smoking will be banned from enclosed public places and workplaces from April 2007, and in Scotland, the Smoking, Health and Social Care (Scotland) Act 2005 introducing a ban on smoking in public places including workplaces will come into force on 26 March 2006.)

Source CIPD

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Nervous bosses are hoarding staff

A report on how employers' fears over the costs of firing and hiring have slowed the pace of productivity.

Labour hoarding, along with the rapid growth in public sector employment, has emerged as a key factor behind last year's sharp fall in productivity.

Economists believe the reluctance of companies to shed more jobs as the economy slowed because of concerns about recruiting labour when business picked up again was a contributory factor.

The hoarding theory has been advanced by the Chartered Institute of Personnel and Development in an analysis of "puzzling" developments in the labour market last year. Companies de?ed convention as the economy slowed by continuing to recruit and slowing the rate of redundancies. They shrugged off what the Chancellor Gordon Brown described as the "toughest year" since Labour came to power by maintaining a bigger labour force than justified by the economic climate with the result that productivity growth was the slowest for more than a decade.

Most companies – 85 per cent of them – reported difficulty in filling vacancies with the longstanding twin headaches of lack of skilled and experience workers largely to blame, but economists say the hoarding factor means many companies are overstaffed.

The upshot is that demand for labour in the first quarter this year is likely to be the lowest for two years, according to the institute's projections. A large number of companies feel that it would have been more expensive to follow the economic cycle by firing and hiring employees. The change in corporate behaviour is one of the key findings about changes in the world of work in an institute report based on the views of 10,000 employers and human resource managers.

This article can be read in full by clicking here

Source The Daily Telegraph

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What should HR be doing to prepare for a potential avian flu pandemic?

Dr Neil Nerwich, Group Medical Director - Assistance, EMEA and Americas, International SOS explains.

But the failure of an outbreak to materialise immediately should not prompt complacency. For the corporate multi-national, it is a major issue. This very much relates to the potential substantive impact of a pandemic on business continuity.

The threat is real. A pandemic will eventually happen; it is just a question of when.

The current avian flu is a virus that appears to have the potential to mutate into a subtype variant capable of causing a human influenza pandemic. By the term pandemic we mean a new subtype of the influenza virus to which people have little or no immunity, it is easily transmissible between humans, and is capable of causing substantial illness and death on an international basis.

When a droplet is borne it can be transferred both through direct and indirect transmission via surfaces contamination and therefore it is a highly contagious disease. It has a significant morbidity; although we do not know exactly what the mortality rate will be when the pandemic subtype of the virus emerges. We anticipate it could be as high as 30%.

We need to remember that we are not only talking about an impact confined to an isolated region of the world. Whilst the pandemic may originate in a specific region of the world, by the nature of a pandemic, influenza transmission combined with the extent of current international travel, the spread is likely to be reasonably rapid and global in nature.

Therefore, planning is the best approach for an organisation to mitigate risk, both with respect to the duty of care to staff and minimisation of the impact on business continuity.

Business and the HR community face a number of issues in relation to a pandemic, amongst them:

• Employee health and safety – determining the best way to reduce risk and protect health.
• Management of essential services and business continuity.
• Employee travel and HR policies.
• Communicating plans and processes.
• Implementing risk reduction strategies.

To read this article in full click here

Source - HR Zone, 17-Jan-2006

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As you begin 2006 are you confident that the pace of change in your organisation is fast enough to deliver the results you demand?

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Air crew ordered not to wear crucifixes on flights to Saudi

Air crew on the only British airline that flies to Saudi Arabia have been told not to wear crucifixes or St Christopher medals on flights there so as not to offend the country's Muslims.

Stewardesses at BMI have also been told to cover themselves in the long abaya robes that Saudi women have to wear in public before they disembark in the capital Riyadh. In some instances, they are also advised to wear a headscarf.

The airline insists that the rules are part of its "obligation" to "respect the customs" of Saudi Arabia, a strictly conservative Muslim kingdom.

However, one unnamed BMI employee told a Sunday newspaper: "It's outrageous that we must respect their beliefs but they're not prepared to respect ours. BMI are asking too much of their staff on this one.

"My gran gave me a crucifix shortly before she died and I wear it at all times. It's got massive sentimental value and I don't see why I have to remove it."

BMI is the only British carrier currently operating flights to Saudi. It began the service last September, offering three flights a week to Riyadh.

Phil Shepherd, the airline's spokesman, said any staff who did not wish to adhere to the requirements could transfer to short haul routes. There was no difference in salary, he added.

Mr Shepherd also denied a report that up to 40 BMI staff had complained and were planning to take the company to an employment tribunal, insisting that only "one or two" had raised it as an issue.

"There are certain sensitivities in operating in a country like Saudi Arabia," he said.

"We worked closely with the Foreign Office in finding the best way to manage it and as far as we are aware there is not a major problem. The channels are there for staff to discuss any concerns they have with their managers."

Source The Daily Telegraph

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Minimum Wage Rates Across Europe

In Europe, statutory minimum wage rates range from just 23 euros a month in the Russian Federation to 1,503 euros a month in Luxembourg. In all but a handful of countries, these rates provide a standard of living that is close to, or even below, subsistence levels. Austria, Denmark, Finland, Germany, Italy and Sweden do not operate statutory minimum rates, but nevertheless have binding sectoral collective agreements that jointly cover a high proportion of the working population.

The International Labour Organisation establishes minimum rates for seafarers. This is currently set at $500 US per month.

Monthly gross statutory minimum wage rates
Full-time adult employees, aged 23+ (*)
Approximate conversions to euros are shown in red

NOTES:
* Where official rates are expressed by the hour or week, they have been converted to monthly rates on the basis of a 40-hour week and 52-week year. Minimum wage figures are gross (pre-tax) rates and exclude any 13th or 14th month payments that may be due under national legislation, collective agreements, custom or practice.
** Minimum wage levels last updated.
*** Unmarried white collar workers only
# Unskilled workers only
† The terms of this wage order entitle a worker to 13 or 14 monthly payments per year.
†† France: based on statutory 35-hour week
‡ Starting salary in non-unionised sectors (increases after six months' service). Rates apply only in six occupations.

Source FedEE Services Ltd 2005

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Possible UK ban on hiring smokers

Last week, the World Health Organisation (WHO) announced a ban on hiring smokers, which some employment lawyers believe could lead to a similar UK ban on the recruitment of smokers. In a memo to staff, the WHO justified the ban by stating that it has a responsibility to ensure its aims are reflected in its recruitment practices. Although many employers already have non-smoking offices, there is nothing in the law as it currently stands to prevent employers going a step further and refusing to recruit smokers altogether.

Tony Bourne, partner at Glovers has stated " as such a measure would apply to all potential employees, it could not be viewed as discrimination and could even be defended as a rigorous application of health and safety procedures. Bourne also commented that although the law seeks to protect individuals from discrimination on attributes they have no control over, such as race and sex, the law does little to protect individuals in relation to "issues which could be construed as bad habits".Source Shepherd & Wedderburn

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Issue 21 - January 2006

Welcome to the January Issue of encore enews our first for 2006.

So looking ahead, what joys lie in store for business managers and HR Departments? The belated, newly revised TUPE Regulations 2006 (don't hold your breath … for health and safety reasons) in April and the Age Regulations in October. So, more fun, that is more challenges, await us all !

Greg Latham

Managing Director