Legal   Spring 2012

Top

Welcome to our Legal Eagle page.

Employment Legislation is constantly changing and we have set out some of the more important changes that came into effect in October 2011 as well as retaining other matters that are particularly important given the economic climate:

 National Minimum Wage

 With effect from the 1^st October 2011 the National minimum wage for workers (per hour) is:

Ø      aged 21 and over                                                                                £6.08

Ø      aged 18-120                                                                                        £4.98

Ø      aged 16-17 rate for workers above school leaving

age but under 18                                                                                £3.68

Ø      Apprentice rate for those under 19

( or over 19 and in the 1^st year of their apprenticeship)                   £2.60

  You will recall from our previous Legal Eagle page the two following important updates:

 Agency Workers – Equal Treatment

 The Agency Workers Directive has been implemented by the Agency Regulations 2010 and came into force on the 1^st October 2011. This change will give agency workers the right to the same basic working and employment conditions (this is limited to the conditions relating to pay and working time) they would receive if they were engaged directly by an “end user client” to do the same job.

 Agency workers from day 1 will also be entitled to access on-site facilities (provided by the “end user client”) and to be advised by a client of vacancies which arise in the client’s business.

 Abolition of Default Retirement Age

 From the 1^st October 2011 the default retirement age has been abolished. The Transitional period has now ended.

 Please note that following the abolition of the retirement age, an employer who wishes to continue with a compulsory retirement age within the workplace must be able to objectively justify this.

 Retirement (or being of retirement age) is now no longer a fair reason to dismiss an employee.

 Qualifying period for Unfair Dismissal Claims

 The Government is currently considering whether to increase the qualifying period for unfair dismissal claims from one to two years. If this change is accepted and incorporated it will mean that an employee has to have two years’ continuous service before they will be able to lodge a claim for unfair dismissal at the Employment Tribunal.

 Redundancies

Finally, due to the current economic environment, we are noticing an increased amount of queries from Employers regarding redundancies and restructures; therefore, we have retained the summary of redundancy procedures for you. This is a guide only and is not a substitute for taking proper legal advice as the procedure progresses.

 Summary Guide to Redundancy Procedures

1. Gather all Contracts of Employment for the employees that may be affected and review your Redundancy Procedures.
2. Take legal advise to ensure compliance, particularly if you do not have the above two documents.
3. Announce a redundancy situation to all staff that may be affected.
4. Give reasonable consideration to any alternative to redundancy (short time working, Lay Off, shared working, redeployment).
5. Prepare a selection matrix based on objective criteria, being careful not to discriminate against employees whether by direct or indirect means. You may need legal advice in this regard.
6. Indentify a Staff Representative/Trade Union Representative to represent Employees during consultation (employees have the right to elect a staff representative to liaise with the Employer regarding the redundancy procedure).
7. First Consultation meeting with Trade Union/Staff Representative (if Individual Employees – they must be informed that they are entitled to be accompanied by a work colleague or Trade Union Representative). The meeting should deal with:
   1. How the Redundancy Situation has arisen
   2. What Redundancy Procedure is to be followed
   3. Which Employees are at Risk – indentify a pool for selection
   4. Inform about the matrix criteria and how it is to be scored.
   5. Discuss alternatives to redundancy
8. Carry out the selection exercise in accordance with agreed procedure/matrix
9. Invite selected employees to individual Consultation Meeting in writing and inform them of their right to be accompanied by Trade Union Rep/Staff Rep/Work Colleague. This second Consolation Meeting is to confirm the employee is at risk of redundancy, discuss scores as per matrix and reasons for selection and any alternatives to redundancy. Inform employees of the right to appeal.
10. Deal with any appeals regarding selection/procedure.
11. Calculate redundancy pay and pay in Lieu of notice.
12. Final meeting to confirm redundancy and to provide written notice to terminate employment and information about calculated redundancy pay/notice pay.
13. Write to Employee confirming dismissal and stating reason for dismissal.

 Ensure that at all times you act in a reasonable and fair manner which can be justified should your employee later bring a claim for unfair dismissal. Also retain the original matrix and any notes from meetings for your records.

 This is a basic step guide. With every single step of this guide there are matters that you need to be aware of and Annette Jackson is more than happy to discuss your redundancy situation and help you through what is a very complicated process.