What's New - Legal Update
The recruitment industry, and the rules, regulations and working practices that govern it is constantly evolving and moving forward
In order to effectively support our members, the REC Legal Services team will use this page of the site to inform members of new additions to the Legal Reference Guide, new services and new workshops running, ensuring that our members are always completely up to date.
Redundancy FAQ's
The redundancy section of the Legal Reference Guide has now been updated. Please click here to see a full list of questions.
What do I need to know about identity cards?
From 25 November, UKBA will start issuing identity cards to non-EEA foreign nationals, and their dependants, who are granted further leave to remain in the UK within certain categories (student and marriage / civil partnerships / unmarried couples).
Employment Act 2008
The Employment Act will introduce a number of changes. Amongst these will be the repeal of the current provisions that employers are required to follow to deal with disputes in the work place.
Both the grievance procedures (GP) and dismissal and disciplinary procedure (DDP) will be done away with. Currently if an employer dismisses an employee without following the DDP, the dismissal will be deemed to be automatically unfair, regardless of the reason for dismissal, meaning that the employee can claim compensation. In place of these procedures, employers can instead look to follow guidance set out in the ACAS statutory Code of Practice which covers both disciplinary and grievance procedures. Where an employer (or employee) has not followed these, an Employment Tribunal will have scope to adjust compensation by up to 25% (up or down). The ACAS Code of Practice is currently in draft form – but can be viewed at http://www.acas.org.uk/index.aspx?articleid=2114
Dragonfly Consultancy Ltd v HMRC
On 3 September 2008 the High Court handed down its decision in the above case, an appeal by a Limited Company Contractor contesting its liability to pay PAYE tax and National Insurance under IR35. Click here for full case summary.
Fixed Term Employees (Prevention of Less Favourable Treatment) (Amendment) Regulations 2008
From 27 October 2008, agency workers employed for less than 3 months, will be entitled to claim statutory sick pay for periods of sickness absence.
Maternity Rights Extended for AML
For women with an expected week of childbirth on or after 5 October 2008, non-pay terms and conditions will apply during Additional Maternity Leave as already apply to Ordinary Maternity Leave.
National Minimum Wage increases - from 1 October 2008
On 5th March, the government announced the annual increase to the minimum wage. The adult rate will rise from £5.52 to £5.73.
The rate for 18-21 year olds will increase from £4.60 to £4.77. The 16-17 year old rate will rise from £3.40 to £3.53.
All increases will take effect on 1st October 2008. See BERR Press Release for more details.
Employees to get right to request time off for training
The Government has announced plans for the introduction of a right to request time off to undertake training, as part of its draft legislative programme for 2008/09.
The new right will be modelled on the right to request flexible working. Employers will be obliged to consider seriously requests that they receive, but will be able to refuse a request where there is a good business reason for doing so. Employers will not be obliged to meet the salary or training costs to enable a request for time off to train to be met. The Government is to issue a consultation on the details of the proposals.
The Government intends to introduce the right through the Education and Skills Bill, which will also create a national apprenticeship service and provide a statutory entitlement to apprenticeships for all suitably qualified young people.
Read more about the proposals on the right to request time off for training on the News Distribution Services website here.
Employees to get extended rights to request flexible working
The Government has announced that it intends to extend the right to request flexible working to parents of children up to the age of 16. Currently, only parents of children under the age of six or disabled children under 18, and employees with adult dependants, are able to make flexible working requests.
Imelda Walsh, Human Resources Director of Sainsbury's, conducted an independent review in November 2007, of how the right to request flexible working could be extended to parents of older children. The results of that review have now been published. The Government has accepted the review's recommendation that the right be extended to parents of children up to the age of 16. It is due to consult on implementing the proposals.
To read the review please visit the following link:
http://www.berr.gov.uk/files/file46092.pdf
NEW guidance for employers dealing with the transfer of employee information during a transfer of undertaking
The Information Commissioner's Office has published new guidance for employers providing information about employees in the event of a transfer of an undertaking.
Where employees are transferring to another employer under the TUPE rules, the transferor employer is required to provide certain information about those employees to the transferee employer. Both employers must comply with the Data Protection Act 1998 when handling data about employees. The new guidance is intended to help employers comply with their obligations under the Data Protection Act when information about employees is being provided.
For further information please visit the following links:
http://www.ico.gov.uk/upload/documents/pressreleases/2008/tupe_guidance_final.pdf
Conduct Regulations amended from 6 April
Following consultations with the REC, a number of changes have been made to the Employment Agencies Act Regulations which govern recruitment businesses. Changes are explained via this link: http://www.berr.gov.uk/files/file45239.pdf
Budget Hits Recruitment
Value Added Tax concessions to be withdrawn:
The VAT Staff Hire Concession and the Business Brief 10/04 concession allowing “VAT on margin only” will be withdrawn from 1 April 2009.
See the HMRC notice via this link: http://www.hmrc.gov.uk/budget2008/tn-withdrawal-staff-hire.htm
To see our REC News item concerning this, please click here.
Travel Expenses Dispensation to be tightened
HMRC have given notice that it intends to take a more robust approach to the Dispensation for travel costs, often claimed by “umbrella companies”. The rules relating to Employee and Temp Travel expenses are explained in the HMRC Booklet 490 and the latest notice is at this link:
http://www.hmrc.go%20v.uk/employers-bulletin/bulletin28/dispensation.htm
Overseas tax vehicles under pressure
The Finance Bill will strengthen legislation covering UK residents paid via foreign partnerships comprised of foreign trustees. Agencies which are connected to such arrangements, typically offered from the Isle of Man, will be at risk for unpaid tax under the Tax Avoidance rules. See Budget Note 66 via this link: http://www.hmrc.gov.uk/budget2008/master-notes.pdf
Sexual Harassment redefined
The definition of Sexual Harassment is widened to cover harassment “related to the claimant’s sex or that of another person” rather than harassment “on the grounds of the claimant’s sex”. This means that if A witnesses B sexually harassing C, A could potentially bring a claim for sexual harassment, even if C does not bring a claim.
Employers liable for 3rd party harassment
Employers will now be liable for sexual harassment by third parties, eg customers, if they fail to take reasonably practicable steps to prevent it. There must have been at least two previous occasions when the employee was subjected to harassment, though not necessarily by the same person.
Immigration: New rules since 29 February
The new Guidance on checking right to work came into force on 29 February. This replaces the existing Home Office guidance of 2004. Find a summary via this link:
http://www.bia.homeoffice.gov.uk/
The new points based immigration system started on 29 February. Highly skilled foreign nationals currently working in Britain who want to extend their stay will need to apply under the new system. In April, the new system will begin to be rolled out overseas when anyone from India who wants to work in the UK as a highly skilled migrant will need to apply under PBS. By the summer the new highly skilled system will operate worldwide. More via this link:
http://www.bia.homeoffice.gov.uk/
