Many of the most recent and forthcoming changes in employment law are driven by the European Union, and will be only-too-familiar to most security managers (next year’s implementation of the Fixed Term Work Directive being a good case in point).
However, some are indeed new, reflecting at least in part the Government’s response to prevailing issues (including the desire to improve the over-burdened employment tribunal system, and encourage more flexible working practices). That should keep you all – if you’ll excuse the pun – on your guard.
What, then, are the key changes coming into force that managers will need to know about in order to serve their guarding workforce and supervisors’ needs?
In October and November, of course, the National Minimum Wage finally came into being. There has been an increase in the adult rate (which now stands at GB pound 4.10 per hour), while the National Minimum Wage for youths rose to GB pound 3.50 per hour from 1 October) (see www.dti.gov.uk/er/ for further details).
October also saw the implementation of the Sex Discrimination (Indirect Discrimination and Burden of Proof) Regulations 2001. These regulations formally shift the burden of proof in sex discrimination tribunal complaints from the applicant to the respondent. This will not present a significant change for employers, as it’s really no more than already happens in practise in the tribunals.
In addition, the definition of indirect discrimination has been slightly amended, but again this will not make a significant difference (a useful Internet link is www.eoc.org.uk).
Providing for employee pensions
Stakeholder pensions are the new low cost pension schemes set up by the Government for people that, historically, have not made any pension provision. As from 8 October, companies employing five or more staff should have provided access to a Stakeholder scheme if there is no qualifying workplace pension scheme already available. There is no requirement to offer access to a Stakeholder pension to any employee who has less than three months’ service, or who earns less than the National Insurance lower earnings limit.
It’s not necessary to set up and run a pension scheme, and employers do not have to contribute to a scheme. However, employers must ensure that contributions are automatically deducted from employees’ pay, and must maintain records of all payments made to the scheme. As a result, all employers need to look at how they organise their payroll and accounting systems such that these deductions are always made, and then send them on to the scheme providers.
Security managers should also take great care not to advise their employees on the benefits or otherwise of joining a given scheme. The choice is very much down to the individual. Indeed, there are strict statutory controls governing who can and cannot give such advice. Useful tips can be found at www.dss.gov.uk
The Working Time Regulations
Now to the Working Time Regulations. As a result of a judgement by the European Court of Justice last June, the Government issued a consultation paper during the late summer containing proposals aimed at amending the Working Time Regulations. The proposals sought to remove the 13-week qualifying period before the minimum four-week paid annual leave entitlement is activated, and to provide for monthly accrual of the entitlement in the first year of employment.
The decision is impacting upon particular industry sectors, namely those – like the security industry, at least in part – that rely on short-term employees and workers who have hitherto been denied paid holiday.
In terms of dispute resolution, the Government has also expressed concern at the three-fold rise in applications to employment tribunals over the past decade, and is convinced that many of these disagreements could be resolved successfully in the workplace. With this in mind, it has published a consultation document outlining proposals to promote dispute resolution in the workplace, encourage conciliation and to modernise employment tribunals.
The proposals include the introduction of a tribunal issue fee for applicants, increasing awards at those tribunals where a basic new dispute resolution procedure has not been used by the employer and introducing a fixed period of time for all parties to reach agreement through ACAS. The consultation period ended in October.
Given that there were many outcries from some Labour MPs and the Trade Union Congress, its likely that the Government will drop some of the more controversial changes when it introduces the final legislation. See www.dti.gov.uk/er/ for more information.
TUPE and extended employment
The European Directive relating to the transfer of undertakings – the sale of a business – was of course amended by European Union mandarins back in 1998. The result? The Government has been discussing the general reform of TUPE ever since, an issue that is close to the hearts of many in the security sector.
The Government’s basic proposals for change were set out in a consultation paper issued on 10 September this year. The consultation period ends just before Christmas, with new TUPE Regulations expected in the summer of 2002.
The application of the current TUPE Regulations to changes of service providers remains unclear, whether you’re talking labour-only contracting-out or competitive tendering situations. The Government proposes to remove any uncertainty by, for example, opting for a general extension of the TUPE Regulations to include most service provision changes.
Westminster also suggests amending the legislation to ensure a degree of protection for occupational pension rights on transfer, and to clarify exactly when changes to contractual terms might be made.
Security managers should know that the Secretary of State has the power to extend employment rights to individuals who are currently excluded under the terms of the Employment Relations Act 1999. For instance, the Government may propose that certain categories of worker should qualify for unfair dismissal rights, in addition to employees.
Parental leave and fixed term work
Earlier this year, the Secretary of State announced an extension of parental leave rights. The proposal is to extend parental leave to all parents with children under the age of five years, as opposed to only those parents of children born after 15 December 1999. In addition, parental leave is to increase from 13 to 18 weeks for parents of disabled children – leave which can be taken until the child reaches the age of 18. This legislation is due before the end of this month, and will be crucial to security managers’ scheduling for next year.
Consultation on measures to implement the European Directive on fixed term work concluded in May of this year, and new legislation was due by 10 July. However, the Government then announced that it would take advantage of the option to delay implementation by anything up to a year. Accordingly, any new Government-driven legislation must now be implemented by 10 July 2002 at the very latest.
The proposals include measures to protect fixed term employees from less favourable treatment simply because their job is for a fixed term. It will seek to limit successive renewals, and require employers to inform fixed term employees of any permanent vacancies within their organisation.
With this in mind, security managers are advised to audit the terms and conditions of all their fixed term workers, and consider whether any differences identified can be objectively justified in advance of this new protection. Again, www.dti.gov.uk/er/ is a useful web site for additional clarification.
Maternity and paternity allowances
The Government has stated its intention to introduce several changes from April 2003 onwards. There will be an increase in statutory maternity pay to GB pound 100 per week.
In addition, there will be an extension of the period of maternity pay from 18 to 26 weeks, regardless of an employee’s length of service.
For those employed for six months by the expected week of birth, there will be an additional unpaid leave entitlement of 26 weeks – giving a total leave period of one year.
The Government is also proposing to give employees’ rights to two weeks’ paid paternity leave, paid at the same rate as statutory maternity pay. The powers-that-be are also looking at plans for 26 weeks’ paid adoption leave, and an extra 26 weeks of unpaid leave. Browse www.dti.gov.uk/er/ for details.
