Posted: Friday 17 December 2010
Predictions For 2011
As 2010 looks like it will end as it began (with significant snow!), it is time look forward to an interesting year to come. This year has been a busy one with FitNotes, a new Government, several important judicial decisions on a variety of topics and of course the implementation of the long awaited Equality Act. In 2011 legislation and the Tribunals will continue to affect all of our lives and jobs.
The “Big” Issues
Paternity Leave
Fathers will enjoy additional paternity leave rights for children born after 3 April 2011. This change will confer up to an additional 26 weeks leave (on top of the existing 2 weeks paternity leave) for the purpose of caring for a child under one, or (for an adopted child in the first year after being placed for adoption). The leave is effectively transferred from the mother's remaining maternity leave and therefore leave can only be taken once the mother has returned to work and the child is over 20 weeks old, or the child has been with its adoptive parents for 20 weeks. The leave will be paid where the mother would have been entitled to statutory maternity pay although there may be some interesting issues (and potential litigation) arising where female employees at the father's workplace obtain enhanced maternity pay.
The person seeking to claim must satisfy several requirements such as continuous employment, having a qualifying relationship with the mother or adopter as well procedural requirements such as giving appropriate notice to the claimant’s employer.
Default Retirement Age
A certain hot potato is the Government’s plan to phase out the default retirement age (DRA) of 65 and the statutory retirement procedures that go along with it. Although the outcome of the consultation (which closed on 21 October 2010) has not yet been published, the Government’s proposals would see the DRA being abolished on 1 October 2011, with transitional arrangements beginning on 6 April 2011. Employers should be careful to mark the run up to this date in their new diaries as after this they will no longer be able to rely on the DRA to justify a dismissal on the grounds of retirement.
Bribery Act
This new Act is due to come into force in April 2011, introducing a new corporate offence for failing to prevent bribery by individuals acting on behalf of an organisation. Parts of it are subject to consultation at the moment but this is likely to be another area to watch early in 2011. Guidance is expected shortly and employers should ensure their procedures are updated in readiness for the changes as this will assist them in defending any action taken against them under the legislation.
Flexible Working
A belated Christmas present for parents with children under 18 will come on 18 April 2011 in the form of an extension to the right to request flexible working. This is the first stage in the intended extension of the right to all employees. The April change is likely to potentially benefit several hundred thousand parents, but it must be remembered that this is only a right to request and it won’t necessarily mean that the request will be granted. Consultation regarding a further extension of the right is awaited.
Definition of “disability”
Some much needed guidance is also due to be published in the area of disability in April 2011. This follows on from a consultation (which ended in October 2010) on proposed changes to matters to be taken into account in determining the definition of disability. It is expected that this new guidance will take into account the changes made by the Equality Act and recent case law developments.
Agency Workers
Regulations offering additional protection to agency workers will come into force in late 2011. This includes extending certain minimum rights to agency workers after 12 weeks’ work. With the change in Government, there had been speculation that the Regulations (passed under the previous regime) might be watered down following pressure from business groups. This did not come to fruition and so the new Regulations will be effective from 1 October 2011.
Other Things on the Horizon
In addition to the points mentioned above we may well see movement on some of the following issues in the coming year.
Royal Wedding Bank Holiday
I previously blogged on this - Royal Wedding Bank Holiday - but remember the Royal Wedding Bank Holiday on 29 April 2011 and the issues that this may raise.
Qualifying Period for Unfair Dismissal
Marketed as a measure to help small business, the Government was said to be actively considering whether or not to increase the period of qualifying service required for unfair dismissal claims from one to two years. However, it was Lord Young who floated this idea. You may recall that he subsequently resigned due to his “you’ve never had it so good” comments and so this may never see the light of day.
Right to Request Time Off for Training
It already seems that the previous Government’s proposals for the right to be extended to businesses with less than 50 employees has been shelved, but only time will tell if this is the final decision.
Pension Act
Not something that comes into force in 2011 but employers will need to be prepared for 2012 when they have to automatically enrol eligible workers (between 22 and the State Pension Age) who are not already in a good quality workplace pension scheme into a dedicated one. Both employers and employees will require to make contributions at set levels.
Public Sector
We have heard the Government’s proposals regarding cutting costs, but 2011 will be the year when the effect of the changes will start to truly be seen. Already it is clear that there are going to be significant job losses within the public sector and the unions involved have indicated that the changes will not occur without a fight.
It may be that a rocky year regarding industrial relations is about to start.
Conclusion
Of course, this year has already proved that while we can predict some things, other events that can have a radical effects on us all can quite literally erupt or fall out of the sky without warning. Let’s hope that, at least so far as the Icelandic volcanoes and the snow are concerned, it is a quieter year!
