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Law: Government plans on Employment law for the coming year

The Government has recently published proposals for the Employment Simplification Bill. We like simple. The two main measures that will affect clients are:

  • implementing the findings of the Gibbons review of workplace dispute resolution. This will involve a repeal of the statutory dispute resolution procedures and introduction of a ‘simpler’ alternative, to encourage early / informal dispute resolution and also changes to the Employment Tribunal system.

  • Clarification and strengthening of the enforcement frameworks for employers who flout the National Minimum Wage requirements.

    The other notable change is that the Government has opted to delay the introduction of the 28-day statutory holiday entitlement until 1st April 2009 (previously 1st October 2008).

    The change to 4.8 weeks (24 days for a 5 day week) will still occur on 1st October 2007. There is also a transition time until 1st April 2009 to allow employers to give pay in lieu of the extra 0.8 week.

    This caters for those employers who find it difficult to get cover for the increased leave. The maximum statutory paid leave will still be capped at 28 days irrespective of the number of days worked.

    To calculate how much annual leave employees will be entitled to when the law comes into force an employer must calculate the fraction of the leave year up to 1st October multiplied by 4 weeks and add on the remaining fraction of the leave year multiplied by 0.8.

    The calculations may result in part days.

    They cannot be rounded down to the nearest whole day nor do they need to be rounded up to the nearest whole day. The employer can come to an agreement so long as it isn’t to the detriment of the employee.

  • Visit or call 0870 26 77 118 for more information.
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