Employers, are you ready for the October changes?
ARE YOU READY FOR THE OCTOBER CHANGES?
October is the second time in the year when new employment legislation is introduced, the other month is April. However, you needn’t worry as the HR Dept will give you the low down in plain English of what the main changes are.
These are:
National minimum wage increases
Amendments to maternity and parental leave regulations
Fixed term employees regulations
Employment and support allowance regulations
Companies act
1 October 2008: National Minimum Wage
From October 1<sup>st</sup> the following hourly wage will apply:
22 years old and over - £5.73 an hour instead of £5.52
18-21 years old - £4.77 an hour instead of £4.60
16-17 years old - £3.53 an hour instead of £3.40
So if you have any staff that fall into these categories and are on minimum wage it is important to make arrangements to amend this by October 1<sup>st</sup>.
5 October 2008: Amendments to the Maternity and Parental Leave Regulations
Currently maternity leave is split between ordinary and additional maternity leave. During additional maternity leave women were entitled to limited company benefits. This amendment has ensured that now women are entitled to the benefit of all the terms and conditions of employment which would have applied except for remuneration throughout their maternity leave. This means things like company cars, gym membership, mobile phone and any other non pay related benefit will continue during the whole of the maternity leave. Companies need to bear in mind the cost of continuing these benefits and also need to update their policies and inform their staff.
It has however, sparked a debate about what constitutes paid benefits and there are still some grey areas like pension.
For an up to date maternity policy please email me on ruth.sangale@hrdept.co.uk
October 2008 – Fixed Term Employees (Prevention of Less Favourable Treatment) (Amendment) Regulations 2008:
This amendment ensures that an agency worker on a contract less than 3 month is entitled to statutory sick pay with effect from 27<sup>th</sup> October. Agencies need to be aware of this change and amend their policies accordingly. Potentially this may mean the increase cost is passed on the client company.
Companies Act
This change makes the minimum age for a company director 16. Any director who is less than 16 will automatically cease to be a director.
Like will most changes in the law no time is allowed to prepare for them and employers are expected to have implemented the above by the dates indicated or may be at risk of fines or being taken to court.
OFFER OF THE WEEK
For a free review of all your HR documentation including employment contracts and handbooks, email ruth.sangale@hrdept.co.uk
Get an up to date maternity policy for just £25 – offer ends in October.
Date: 22/09/2008
Category: BUSINESS EDITORIAL