New and Forthcoming Legislation - 2009 Employment law changes in October 2009
The UK based world of employment law is ever changing and the following changes come into effect as from October 2009. We offer a range of products and services to assist a business in complying with the law and best practice.
The National Minimum Wage Regulations 1999 (Amendment) Regulations 2009
Date effective: 1 October
These regulations implement the annual increases in the National Minimum Wage hourly rates. The main rate will increase from £5.73 to £5.80. The development rate (for workers aged 18 to 21) rises from £4.77 to £4.83, and the youth rate (for 16- and 17-year-olds) from £3.53 to £3.57.
Work and families (Increase of Maximum Amount) Order 2009
Date effective: 1 October
The maximum weekly amount for calculating unfair dismissal and redundancy payments increases from £350 to £380.
Data Protection (Notification and Notification Fees) (Amendment) Regulations 2009
Date effective: 1 October
Under a new two-tier structure public authorities and private organisations that have been in existence for more than one month, have annual turnover of at least £25.9m and have 250 or more employees (Tier 2 organisations) will be subject to a £500 registration fee. The previous flat fee of £35 will still apply to all other, Tier 1 organisations. Charities and small occupational schemes will always fall into Tier 1 regardless of size and turnover
Tips: National Minimum Wage Regulations 1999 (Amendment) Regulations 2009 prevents tips being included in minimum wages
Date effective: 1 October
This will change the way that tips, service charges and tronc payments are treated for NMW purposes. Troncs operate where tips are centrally pooled and then distributed by an employee appointed as troncmaster.
Employers will not be permitted to take into account any gratuity payments paid to workers when assessing whether the NMW is being paid, irrespective of whether they are paid directly to the workers, paid by the employer through its payroll or paid through a troncmaster. Employers should therefore ensure that their basic wages rates comply with the NMW without any service charges or gratuities being taken into account.
Police Act 1997 (Criminal Records) (NO 2) Regulations 2009
Date effective: 12 October
The regulations make changes to the process of issuing certificates by the Criminal Records Bureau (CRB) and introduce a new Vetting and Barring Scheme (VBS). The VBS was established under the Safeguarding Vulnerable Groups Act 2006. The VBS will become the first centralised system for those working with children and vulnerable people.
Employers must ensure they carry out enhanced checks now and that any new employees, those moving jobs and volunteers will be ISA registered.
Safeguarding Vulnerable Groups Act 2006
Date effective: 12 October
The Act introduces a centralised vetting system for people working with children and vulnerable adults. The new Independent Safeguarding Authority (ISA) will be operational from 12 October 2009. Employees and volunteers will need to apply to register with the ISA and will be assessed using data gathered by the Criminal Records Bureau. Only ISA-registered persons can undertake regulated activity, involving frequent or intensive contact with children or vulnerable adults. Employers who employ an unregistered person could be imprisoned or fined up to £5,000. Registration and checking will become mandatory in November 2010.
For further advice and guidance please contact the Employment Team on 01455 850000 or alternatively if you are interested in a product please contact our Sales and Marketing Team on 01455 852028.
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