News

Health & Safety, Employment Law and Jobs - January 2010

Local Area Labour Market - January 2010
On 29 January 2010, the Office for National Statistics (ONS) published statistics on UK labour markets. ONS say that in order to understand the labour market of an area, a number of different indicators are needed. ONS has developed a framework for presenting the overall picture painted by these indicators, which is based on the concepts of labour supply, labour demand and labour costs.

Statistics relating to the employment, unemployment and benefit dependency of the resident population of the area provide indicators of labour supply.
Statistics relating to jobs and vacancies at workplaces in the area provide indicators of labour demand.
Earnings statistics provide indicators of labour costs relating both to labour supply and labour demand.
The median earnings of the resident population of the area are a characteristic of the labour supply provided by people living in that area.
And the median earnings of people with a workplace in the area are an indicator of the nature of the labour demand arising from employers in the area.

Details statistics and indicators are available at:
www.statistics.gov.uk/downloads/theme_labour/LALM_statistical_indicators_Jan10.pdf
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Fathers to get six months paternity leave
On 27 January 2010, the Government announced new paternity regulations that will allow fathers to take up to six months off on paternity leave while their baby's mother returns to work.

The regulations will mean:

Fathers will be entitled to up to six months extra leave, which can be taken once the mother has returned to work;
This new provision will be available during the second six months of the child's life, giving parents the option of dividing a period of paid leave entitlement between them
Some of the leave may be paid if taken during the mother's 39 week maternity pay period. This would be paid at the same rate as Statutory Maternity Pay (currently £123.06);
Parents will be required to "self certify" by providing details of their eligibility to their employer. Employers and HMRC will both be able to carry out further checks of entitlement if necessary.

The new rulings will mean that fathers will have a legal right to take the place of the mother at home for the last three months of her nine-month maternity break, during which time they would be eligible to statutory government pay of £123 a week. Subsequently they can take an additional three months off unpaid, amounting to a combined family total of 12 months of parental leave. Currently, fathers are only entitled to two weeks of paternity leave when their child is born.

The measures have been brought about to allow mothers with a greater earning capacity than their partners to return to work earlier. Government statistics show that over 60 percent of working mothers who give birth return to work;
The changes will come into force in April 2011 and apply to children born after that date. Ministers expect no more than eight percent of parents to use the new flexible rules and therefore the effect to businesses will be minimal;
After the poor level of recovery recorded for Q4 of 2009 in recently released figures, the economy is still in a very fragile condition and business groups are expected to be infuriated with yet more regulations being introduced at this stage of the UK's economic recovery.

The British Chambers of Commerce (BCC) pointed out that the new measure would be one of eight extra costs to businesses already planned for next year. In total, business leaders estimate that red tape and planned increases in national insurance will cost £25.6billion over the next four years. £14 billion will come from employer National Insurance contributions which are due to be increased by 1 percent from April 2011.

Between April 2010 and April 2014, there is a raft of planned changes in the pipeline, with no less than eight major changes in 2011 alone.

The most costly regulations planned include:

2010: The Equality Bill will have a one-off cost to business of £190m
2011: The Agency Workers Directive will have an annual recurring cost to business of £1.5bn
2012: Pensions Reform will have an annual recurring cost to business of £4.8bn

The BCC argues that the crippling extra costs support their campaign for a three-year moratorium on new employment laws in the UK which would give time for planned regulations to bed-in, promote job creation, and help drive economic recovery. They are also urging the UK government to lead a campaign for an EU-wide moratorium.
Source: http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=410677&SubjectId=2
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TUC launches new guide to family friendly working
On 26 January 2010, a new guide on how to persuade employers of the benefits of introducing family friendly policies at work was launched by the Trades Union Congress (TUC).

In the past, unions have pioneered more family-friendly working practices, looking for employers to work with them towards better work-life balances for staff, an issue on which union representatives are increasingly being asked for guidance.

The guide features case studies where unions have negotiated forward thinking policies with employers and shows how family friendly working practices benefit staff and their employers with the end results of increased productivity, morale and staff retention.

There is a warning that damage can be done by poorly managed workplaces which often lead to long and unsocial hours.

Employees' rights are explained in the guide, including annual leave entitlements and the right to request flexible working.

Unions often work towards to brokering policies that exceed the legal requirement and challenge employers stereotype of the 'normal family'. The guide highlights the exclusion of many workers such as fathers and lesbian, gay, bisexual and transgender (LGBT) people, who also have rights as parents and carers.
The TUC guide is available to download from: www.tuc.org.uk/extras/familyfriendlyguide.pdf
Source: http://www.tuc.org.uk/work_life/tuc-17481-f0.cfm
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Vocational training actions for women co-financed by the European Social Fund
On 26 January 2010, the European Court of Auditors released an analysis of whether vocational training actions for women co-financed by the European Social Fund during 2000-2006 were appropriately selected and adequately monitored.

The funding was intended to help promote equal opportunities between men & women by making vocational training available at a cost of €3 billion and is in isolation to any programmes being implemented independently by the Member States.

Conclusions reached by the Court found that:

Programmes were not in response to an analysis of labour market requirements and the measures failed to focus sufficiently on specific target groups;
Traditional female roles were still being focussed on rather than roles that were under-represented by women;
The information gathered from the audited programmes was insufficient to evaluate whether the vocational training actions for women achieved their stated objectives;
There is still a need for further monitoring for reliable data to be collected so that conclusions to be drawn as to the effectiveness and efficiency of the co-financed actions.

Source: Europa
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Employers likely to shorten assignments as agency worker rules change
On 21 January 2010, the Agency Workers Regulations 2010 ruling was laid before Parliament. Implementation has been delayed until October 2011:

The changes under the new law mean that, after 12 weeks of employment temporary workers will have the same rights to pay, holiday and other basic working conditions aspermanent staff;
As a result of the new rules, employers are likely to cut back on their use of Britain's 1.3 million agency workers. Although most assignments are limited to 12 weeks as the norm, longer assignments may be curtailed as a result of the law;
Some employers recruiting habits may change with less reliance on agency workers and more emphasis on an in-house bank of casual staff. Others may expect their existing workforce to incorporate extra work into their normal working day rather than using temps;
There will be penalties of up to £5,000 for flouting the laws and for utilising staff in different roles to avoid the 12-week period.

Employer groups have raised concerns that the cost and administrative burden of the new rights might restrict job creation and flexibility.
Source: People Management
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Jobs, training and work experience for every young person out of work for six months
From 25 January 2010, every young person who has been unemployed for six months will be guaranteed the offer of a job, training or work experience, supported by up to 470,000 opportunities over the next 15 months through the Government's 'Young Person's Guarantee'.

Latest figures show up to 100,000 unemployed young people will be eligible to benefit from the guarantee straight away. Despite last week's welcome fall in youth unemployment, Ministers believe it's time to do more and increase the help as the economy recovers.

As the guarantee becomes available across the UK, Ministers are calling for businesses to keep 'Backing Young Britain' by creating even more opportunities for young people. They will promise Government support to businesses who give young people a job, apprenticeship or internship.

Young people are already getting help from the major increase in education and training places this year, and the expansion of specialist help and support through job centres working with local employers. Hundreds of thousands of young people have already received help to find work, training or an education place. However Ministers believe more help is needed as the economy recovers to avoid the problem of youth unemployment continuing to rise for years after the recession has ended.

The Young Person's Guarantee, which is part of the wider Backing Young Britain Campaign designed to address youth unemployment, offers:

the opportunity to apply for new jobs created through the £1bn Future Jobs Fund;
extra training and support to get an existing job - with help especiallytargeted at key employment sectors with high levels of recruitment;
work-focused training;
a place on a Community Task Force;
help with self-employment;
internships for Graduates and non-Graduates.

To date there have been over 104,000 successful bids to create jobs through the Future Jobs Fund over the next fifteen months, with the first young people having already started work in jobs ranging from housing officers to football coaches. Over 480,000 people, including almost 100,000 18-24 year olds have been placed into jobs and work trials through the Local Employment Partnerships scheme. So far, 50,000 employers have signed up to work with Jobcentre Plus through this partnership.
Source: Department of Work and Pensions (DWP 017/10)
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Cash bonus to give young jobless a start in social care
Employers across Britain will get £1,000 for taking on a young person who is struggling to find work.

Additional free pre-employment training packages will also get young recruits off to a flying start through the 'Care First Careers' initiative announced on 25 January 2010 by Care Services Minister, Phil Hope and Work and Pensions Minister, Jim Knight.

'Care First Careers' is part of the Government's young person's guarantee that everyone between the ages of 18 and 24 who has been looking for work for six months will get a job offer, work experience or training. It makes £75 million available to fund up to 50,000 jobs.

To support the introduction of 'Care First Careers', a series of 11 regional launch events will take place in January and February 2010 throughout England, Scotland and Wales. These will involve inviting adult social care employers from each region to learn more about the scheme and employing young people in general.

To find out more about these events and to learn how to apply for the subsidy, employers can visit www.jobcentreplus.gov.uk/carefirstcareers.
Source: Department of Health Press Release 25/1/2010
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Is there a hidden agenda in the Equality Bill?
Employment lawyers and HR professionals would be well advised to keep a close eye on the progress of the Equality Bill, currently being debated in the House of Lords. Initially intended as a legislative sweep-up, it now proposes major policy changes.

This Bill (review it at: http://services.parliament.uk/bills/2009-10/equality.html) began life as a piece of legislative house-keeping, designed to pull together disparate and sometimes even conflicting regulations and laws on equality that had developed piece-meal over the last 30 years.

Equality law had become hard to navigate and even harder to actually use, so two and a half years ago the Government began the process of consolidating it into one big, consistent whole. The horizons of the Government's ambitions soon broadened. In fact, so radical are some parts of the proposals now that the Bill seeks to introduce into the UK entirely new legal concepts, such as positive discrimination.

It's well worthwhile reading the article by Selwyn Blyth, an employment law partner at Pinsent Masons, the law firm behind OUT-LAW.COM.
Read full article at: OUT-LAW News, 21/01/2010
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Increase in violent attacks at work
Following the publication of figures on 21 January 2010 in the British Crime Survey, the Trades Union Congress (TUC) expressed grave concerns over the sharp rise in the number of physical assaults against workers in 2009. TUC General Secretary Brendan Barber warned that both the Government and employers needed to take action and encourage a culture of zero tolerance on abuse in the workplace.

He blamed added stress and changes to licensing laws as part of the reason for the increase. He cited binge drinking as a factor and, with an increased level of attacks on emergency workers happening on an almost daily basis, he stressed that action should be always taken against the perpetrators as a deterrent to future acts of abuse.

Figures published were lower than a decade ago, with the decline attributed to the efforts of both unions and employers working jointly together.
Source: Trades Union Congress Press Release 21/1/2010
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'Train to Gain' scheme under attack
On 21 January 20, the government's 'Train To Gain' scheme came under attack from a committee of MPs. The group criticised the scheme as having been too ambitious and mismanaged. They also claim that expectations of demand were overinflated. A report published by Policy Exchange says the UK's current skills policy is centrally driven and too focused on meeting government qualifications targets rather than delivering the skills that students, employers and the economy need.

Aimed at increasing workers' skills, the scheme came with a multimillion-pound price tag.

The Public Accounts Committee reported that around 5 percent of the UK's workforce had taken advantage of the scheme, with support given to 1.4 million learners by last summer, and management of the scheme controlled by the Learning and Skills Council, which comes under Lord Mandelson's Business Department.

With just 50 percent of employers who used the scheme saying that they would have found similar training independently elsewhere, the first two years saw it under spend by £151 million against a budget of £747 million from public subsidy. The third year saw demand outstrip capability to provide support, due in part to the recession and widened eligibility, and employers are now being turned away.

Skills Minister Kevin Brennan pledged continued commitment to the programme, stating that business productivity and employee skills have both been improved as a result of the scheme and that this would aid the economy.
Source: The Independent BBC News Telegraph TES Connect
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Increase in People Achieving High-Level Apprenticeships
On 21 January 2010, the Department for Business, Innovation and Skills (BIS) announced that the number of people achieving an advanced level Apprenticeship has increased by approximately a third. The provisional data released by BIS shows that an extra 2,700 people completed their advanced Apprenticeship, which is the equivalent of two A Levels, in the first three months of the 2009/10 academic year compared to the same period in 2008/09. This is an increase from 9,700 to 12,400.

'Skills for Growth' - the national skills strategy - sets out the Government's ambitions to create a modern class of technicians to secure the UK's economic future and drive growth, and to boost the numbers of advanced Apprenticeships for young adults aged 19-30.

The provisional data also shows:

There were 95,800 apprenticeship starts in the first quarter of the 2009/10 academic year;
Overall, there were 36,500 apprenticeship framework achievements in the first quarter of the 2009/10 academic year;
Learners started 146,300 Train to Gain courses in the first quarter of the 2009/10 academic year;
Learners achieved 111,600 Train to Gain qualifications in the first quarter of the 2009/10 academic year;
Learners have started over 1.54 million Train to Gain courses since the scheme was launched in April 2006, and achieved over 960 thousand qualifications through Train to Gain.

Source: BIS Press Release
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Fairness for Agency Workers, Flexibility for Employers
Legislation to give Britain's 1.3 million agency workers important new rights was laid before Parliament on 21 January 2010.

As agreed in 2008 by the TUC and CBI, the changes will give agency workers the right to the same pay, holidays and other basic working conditions as directly recruited staff after 12 weeks in a given job.

The Regulations give agencies, hirers and agency workers time to prepare and plan before the law comes into force in 2011.

In 2008 the Government secured a deal in Europe on the Agency Workers Directive that allowed Britain's rules to be based on an agreement reached in the UK between the CBI and TUC. Since then the Government has consulted extensively with stakeholders, launching policy consultations in May and November 2009. Over 300 organisations took part, representing all interests - trade unions, employment agencies, business groups and employers of all sizes from both the private and public sectors. Consultation events were also held across the country, enabling the Government to hear first-hand about the issues at stake.

For the first time agency workers will be entitled to equal treatment on basic working and employment conditions, including pay and holidays, as if they had been recruited directly by the hirer after 12 weeks in a given job. The rights on pay will apply not just to the basic hourly rate, but to all pay for work done, including bonuses that are directly related to the performance of the agency worker personally. But, as set out in the Directive, they will not extend to some of the wider benefits that permanent staff can enjoy in the context of their longer-term relationship with their employer, such as occupational pensions and sick pay.

To ensure that workers are not deprived of their rights by those who would seek to avoid equal treatment the Regulations include provisions that will deal with repeat assignments designed to prevent workers acquiring equal treatment rights. Agencies and hirers will face the prospect of having to pay out up to £5,000 to the worker if an Employment Tribunal finds that these specific anti-avoidance rules have been breached. And to provide a greater deterrent in low-value cases there will be a general minimum award of two weeks' pay, subject only to Tribunal discretion if that level of award does not seem reasonable.

Other benefits that agency workers will gain from the first day of their assignment include:

information about internal vacancies to give them the same opportunity as other workers to find permanent employment;
equal access to on-site facilities such as child care and transport services.

Source: NDS - Department for Business Innovation & Skills
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Unemployment and Youth Unemployment fall as Government Increases help for Unemployed
The number of people unemployed in the UK has fallen unexpectedly for the first time in 18 months: on 20 January 2010, the government welcomed the drop in the December 2009 unemployment and youth unemployment figures but warned that the jobless total was still expected to rise again before the summer.

The Office for National Statistics (ONS) statistics show a 7,000 drop in the ILO measure of unemployment, a 15,000 drop in the claimant count and a 7,600 drop in the youth claimant count in December 2009. The employment level fell by less than in previous quarters and the number of vacancies increased. A significant increase in the number of full time students has increased the inactivity figures.

These figures mean that unemployment is 450,000 lower than predicted at the time of the 2009 Budget, reflecting the £5 billion extra investment in expanding education and training, supporting jobs and helping the unemployed back to work. More support for young people is being introduced later this month.
Full release of statistics available at: UK National Statistics releases
Source: Department of Work and Pensions press release
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Worrying trends hidden beneath positive labour market figures
On 20 January 2010, Chief Economist at the British Chambers of Commerce (BCC), David Kern, expressed concerns that the labour market figures just published, although showing positive returns, masked the fact that the number of level of economically inactive people has increased due to a fall in employment.

He also recommended a freeze on public sector pay to improve the shortfall in the UK sustainable budget. He added that the gap between public and private sector wages had widened and action was needed to prevent public sector wages overtaking those in the private sector.
Source: British Chamber of Commerce - Policy & Representation
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New guidance for local authorities to help improve health and safety in the waste and recycling sector
New guidance, released on 19 January 2010, is now available to help local authorities understand the importance of a sensible approach to health and safety when it comes to procuring and managing waste and recycling services, in a bid to help reduce death and injury.

The recycling industry has nine times more fatal accidents than the national average and four times as many workers suffer injuries.

The Health and Safety Executive (HSE) identified that a contributing factor may be that some local authorities are unclear what their legal duties are and mistakenly believe that putting a service out to contract relieves them of all health and safety responsibilities.

The new online guidance gives practical information on how to make health and safety an integral part of the procurement and contract management process.

HSE will be running a series of regional events giving LA representatives the opportunity to hear more about the guidance, share experiences with others and seek advice on potential management solutions .

Case studies of councils that are already working well with their service delivery partners in waste and recycling are also available online.

HSE will begin targeted inspections of local authority waste services departments later in the year. Inspectors will be looking closely at the working relationships LAs have with contractors and at any changes that have been made to improve the health and safety standards.

The new guidance and more details about procuring and managing contracts is available at www.hse.gov.uk/waste/services^[1Source: http://www.hse.gov.uk/press/2010/hse-1212010.htm
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Fit notes and sickness absence management
One of the major issues for employers is handling long-term sickness absence. A recent study published in the journal Occupational Medicine, found that guidance for GPs was not always applied, with large variations in the period for which long-term patients were being signed off. ]

The research claimed that only one in 20 GPs follows government advice on sick leave and often employees were getting certified sick absence for far longer than the time recommended. Also, there was a variation in the time that some patients would get from GPs for the same illness. It discovered that most GPs had not received any training in sickness certification. It was felt that GPs and their patients had equal leverage on determining any length of absence.

Around £100 billion annually is lost to the economy as a result of absence and unemployment due to ill health. Working for a Healthier Tomorrow, a report (see hyperlink below) published by Dame Carol Black (National Director for Health and Work) in March 2008, recommended a review and overhaul of the current system of certification, and a new electronic 'fit note' which is to be introduced in April 2010.

Fit notes are aimed at shifting the focus from sickness to fitness, with the GP asked to assess levels of fitness and capability to return to work, with a focus on a return to work on phased recuperative duties as fitness improves. Concerns have been raised however that GPs are not trained in occupational health issues and assessments could prove difficult. As a result it is still essential for employers to maintain detailed sickness policies which have milestones for action throughout sickness absences, with the possibility of referral to an independent specialist for further unbiased assessment.

It was stressed that any policy should promote dialogue and support between employer and employee with compromise being a key factor.
Dame Black's full report available at: Working for a Healthier Tomorrow
Source: Personneltoday.com
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£25.6 billion employment bill risks job creation and recovery, argues BCC
On 19 January 2010, the British Chambers of Commerce (BCC) published new research which criticises Government plans to introduce new employment regulations and taxes which will cost UK businesses a mammoth £25.6 billion over the next four years and could have a detrimental impact on job creation.

As unemployment rates spiral, likely to exceed 2.5 million within the next few days, and trading conditions remaining difficult, the Government still plans to go ahead with this new level of bureaucracy and introduce taxes directly related to employment. The timescales for these changes are scheduled for April 2010 to April 2014, with eight major changes in 2011 alone.

£14bn of the cost of introducing these new measures will come from employer National Insurance contributions, which will increase by 1 percent from April 2011.

The most costly regulations will include:

2010: The Equality Bill will cost business£190 million
2011: The Agency Workers Directive will cost business £1.5 billion annually
2012: Pensions Reform will cost business £4.8 billion annually

The BCC are campaigning for a three year moratorium on new employment laws in the UK. The business group is also calling on the UK government to lead a campaign for an EU-wide moratorium.
Source: British Chambers of Commerce
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Maternity pay and leave
On 13 January 2010, the House of Commons Library issued a Standard Note (SN/BT/1429) clarifying the difference between maternity pay and leave. The Note gives a brief account of the current law on maternity pay and leave entitlements. It also sets out some proposed changes to the entitlements both from the UK Government, the European Commission and the Equality and Human Rights Commission.

Maternity pay and leave are two separate entitlements:

In regard to pay, many women are entitled to up to 39 weeks' Statutory Maternity Pay (SMP), paid by their employer, during maternity leave. The first 6 weeks of SMP are earnings related at a weekly rate equal to 90% of average weekly earnings. The remaining 33 weeks are paid at the weekly standard rate SMP of £123.06. To qualify, a woman must satisfy two criteria: the continuous employment rule and the earnings rule. If a woman does not satisfy either of these criteria, she may have an entitlement to Maternity Allowance (MA), which is again payable for 39 weeks. The MA rate is also £123.06 per week. Both rates are likely to be revised in April 2010.
In regard to maternity leave, all pregnant employees are entitled to 52 weeks of leave, irrespective of length of service. There currently a compulsory period of two weeks leave following the birth of the child that most employees must take. Apart from that, a woman can choose how long the period of maternity will be; she does not have to take the full 52 week period. A woman can choose when to start her maternity leave at any date from the beginning of the 11th week before the week the expected week of childbirth.

In December 2004 the Government announced a goal of extending maternity pay to twelve months, from what was then six months. Press reports in 2009 speculated that this goal is now on hold. In September 2009 the Government did announce plans to allow for the last six months of maternity leave to be transferred to the father. The announcement explained that as maternity leave is currently paid for nine months, the father could then receive the final three months of the paid leave entitlement if the mother returns to work after six months. After consultation the Government hopes to introduce regulations to introduce this scheme by April 2010, to have effect for parents of children due on or after 3 April 2011.

A current EU Commission legislative proposal seeks to remove the limits on when a woman can commence her maternity leave before the birth and to increase the number of weeks of compulsory maternity leave to six weeks. The Government has consulted on this proposal.
Source: http://www.parliament.uk/commons/lib/research/briefings/snbt-01429.pdf
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Charities are toughest places to work in Britain
Recent research into workplace practices undertaken by Cardiff University and the University of Glamorgan Charities has found that charities are among the toughest places to work in Britain. The research analysed nearly 4,000 interviews with UK employees. Indicators showed that charity workers are more likely to experience intimidating behaviour from people at work and are four times more likely to be humiliated or ridiculed in connection with their work.

Respondents are more likely to report negative behaviour such as violence, threats and injury but such behaviour is often perpetrated by clients or users of third sector services.
Source: Charity Times article 11/1/2010
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Default retirement age could be ditched in the Equality Bill
There is increasing pressure on the Government to use the Equality Bill to scrap the default retirement age (DRA), Personnel Today reported on 15 January 2010.

A proposal tabled in the House of Lords by Anthony Lester aims to remove the mandatory retirement age from the new equality legislation, and it is thought that it is likely to be debated in the very near future. If it is passed, the Bill would need to go back to the House of Commons for agreement. This follows on from comments from women's minister Harriet Harman who hinted that the government intends to scrap mandatory retirement by referring to the cut-off age of 65 as "arbitrary".

There is a suggestion that the government wishes to get the Bill onto the statute books before the general election this year so it can be implemented in October 2010.

However there have been warnings that rushing the legislation may cause problems for employers in the long term. To be passed, agreement would have to be reached between both Houses.
Source: Personneltoday.com
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Employers urged to help tackle youth unemployment
The Secretary for Work and Pensions, Yvette Cooper, has urged employers to do more to get 18-24-year-olds back into the workplace. The Government recently launched the Backing Young Britain campaign which aims to create new opportunities for young people during the recession.

Two million businesses across the UK are being encouraged to get involved and make a real difference. It has been reported that at least 20 percent are keen to take on graduates and most would like to take on an apprentice.

A spokesman for The Third Age Employment Network (TAEN) reminded employers to strike a balance and not to forget those people over 50.
Source: Recruiter
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Employment tribunal claims and the Public Interest Disclosure Act
Complaints can be made to an employment tribunal where claimants believe they have suffered a detriment at work or have been dismissed, for making a protected disclosure under the Public Interest Disclosure Act (PIDA). For example, employees who are protected by the provisions may make a claim for unfair dismissal if they are dismissed for making a protected disclosure. In 2009, employment tribunals received some 1,700 claims involving (PIDA) allegations. The employment tribunal hears the employment claim and makes a judgment according to the facts of the case. The employment tribunal does not make any assessment or take any action on the issue of the underlying PIDA allegation, which could relate to serious fraud, health and safety issues, financial irregularities, care home standards, etc. The Government does not believe that employment tribunals are best placed to do so as their expertise and knowledge is about employment rights. The relevant regulator does, however, have the necessary knowledge and expertise.

The Government committed to explore whether there was a practical process to allow the substance of allegations giving rise to PIDA claims to employment tribunals to be forwarded to the relevant regulator so that the allegations of the underlying issue can be investigated where appropriate by the regulator.

On 15 January 2010, the Department for Business, Innovation & Skills (BIS) published its response to a review on Employment tribunal claims and the Public Interest Disclosure Act. The response includes summaries of public responses to the consultation and a draft statutory instrument.
Source: http://www.berr.gov.uk/files/file54221.pdf
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Workplace bullying on the increase
A recent survey by the Advisory Conciliation and Advisory Service (ACAS) has shown that bullying in the workplace has increased during the recession:

One in ten employees reporting harassment and bullying;
Another survey undertaken by Unison has found that more than 30 percent say they have been bullied during the last six months, double the number recorded ten years ago;
Managers are tending to be more demanding and critical as stress level rise;
Increasingly, allegations of bullying are featuring more in claims for unfair dismissal and discrimination;
Recently several high-profile cases have been featured in the media and, as a result of this raised awareness, support groups are becoming increasingly stretched as more request for help are received;
There has been a long-established link between economic depressions and bullying, and the decline of trade unions is thought to be a factor of the increase.

It is estimated that over 13 million working days are lost every year as a result of stress and depression attributed to bullying. The Government says bullying is unacceptable and is working to tackle the problem.
Source: The Guardian
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CEO succession planning sadly lacking in firms
On 13 January 2010, research undertaken by global talent management firm Korn/Ferry showed that as few as 1 in 10 of UK firms they surveyed have adequate CEO succession planning.

In spite of the greater turnover of CEOs happening as a result of an unstable economy, they found that most firms still fail to have a clear focus on the impact that changing a CEO can have, with more than 90 percent of FTSE chairmen and chief executives taking part in the survey rating their succession planning as less than excellent.

The research also showed the main motivators for CEOs to be achievement, challenge and recognition, all of which being hard to identify and measure using traditional methods. Power and money featured but to a lesser degree.

Intelligence, courage and influencing skills were considered to be important attributes for potential CEOs.
Source: Recruiter
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New compensation limits and statutory payments for 2010
The Employment Rights (Revision of Limits) Order 2009, which contains revised tribunal compensation limits applicable from 1 February 2010, has been published on OPSI. The Adoption and Sick Pay applicable from April 2010 have been announced.

The Order revises, from 1st February 2010, the limits applying to certain awards of employment tribunals, and another amount payable under employment legislation, as specified in the Schedule to the Order. The revisions made by this Order apply where the event giving rise to the entitlement to compensation or other payment occurred on or after 1st February 2010.

Figures changed

Maximum compensatory award for unfair dismissal £65,300 (currently £66,200)
Maximum guarantee payment per day £21.20 (currently £21.50)

Figures unchanged

Maximum compensation limit on a week's pay £380
Minimum basic award for certain unfair dismissals (dismissals for reasons of: trade union membership or activities; health and safety duties, pension scheme trustee duties; acting as an employee representative) £4,700

Statutory payments increase
The Government has also announced increases to Statutory Maternity, Paternity and Adoption Pay from April 2010:

The Standard Rate for Statutory Maternity Pay, as well as the rates for Statutory Paternity and Adoption pay, will rise to £124.08 a week (currently £123.06). Statutory Sick Pay will remain the same at £79.15 a week.
The weekly earnings threshold for all the above payments will rise to £97 a week (currently £95).

The Order is published on OPSI at: The Employment Rights (Revision of Limits) Order 2009
The Explanatory Notes are published at: www.opsi.gov.uk/si/si2009/em/uksiem_20093274_en.pdf
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Publication of Right to Request Training Guidance
On 13 January 2010, Guidance was published to inform employers about the new right for employees to request time for training:

The guidance for employers is being made available through Business Link and is being published 12 weeks before the right comes in on 6 April 2010;
Guidance has also been published on the DirectGov website to inform employees about how they make a request under this new right.The right to request time to train was included in the Apprenticeships, Skills, Children and Learning Act, which received Royal Assent in November 2009.

The introduction of the right will be phased and will be made available to employees in organisations with 250 or more employees from April 2010 before being extended to all employees from April 2011. This will give smaller organisations and businesses more time to prepare for the introduction of the new right.
Guidance for employers is available at: www.businesslink.gov.uk/timetotrain
Guidance for employees is available at: www.direct.gov.uk/timetotrain
Information about the Apprenticeships, Skills, Children and Learning Act is available at:
Information about the Act
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Statutory payment rates: 2010-11
On 13 January 2010, HMRC announced the statutory payment rates for 2010-11.

Changes for 2010-11
Employers may have to pay employees statutory sick pay (SSP), statutory maternity pay (SMP), statutory paternity pay (SPP) or statutory adoption pay (SAP). The following statutory payment rates have been announced for 2010-11. However these rates are still subject to parliamentary approval.

SSP: £79.15 per week (this remains unchanged from 2009-10)
SMP: Six weeks at 90% of the employee's average weekly earnings followed by a further 33 weeks at £124.88 per week or 90% of average weekly earnings - whichever is lower.
SPP: One or two weeks' at £124.88 per week or 90% of average weekly earnings - whichever is lower. If the employee opts to take two weeks' leave, they must be taken together.
SAP 39 weeks at £124.88 per week or 90% of weekly earnings - whichever is lower.

For employees earning £97 or more per week in 2010-11, the above rate of SSP will apply from 6 April 2010, and for SMP, SPP and SAP the above rates will apply for complete pay weeks commencing on or after 4 April 2010 (the first Sunday in April).

Because the rate of SSP remains unchanged the daily rate table in the 2009-10 edition of the employer helpbook E14 can continue to be used until the 2010-11 edition is published.

The threshold for recovery of SSP under the percentage threshold scheme remains unchanged from last year at 13 per cent.

From 6 April 2010 employers who do not qualify for small employers' relief can recover 92 per cent of the SMP, SAP and SPP paid to their employees.

From 6 April 2010 employers who do qualify for small employers relief can recover 100 per cent of the SMP, SAP and SPP paid to their employees, plus 4.5 per cent compensation for the additional National Insurance Contributions (NICs). These figures are unchanged from last year.

For the 2010-11 tax year, a small employer is an employer who has paid or was liable to pay total gross Class 1 NICs of £45,000 or less in the individual employees qualifying tax year. This is unchanged from last year.
Source: www.hmrc.gov.uk/NEWS/statutory-payment-rates.htm and Business Link
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Unemployment rate increases in Euro area
On 8 January 2010, a report from Eurostat has found that in the euro area (EA16), the seasonally-adjusted unemployment rate has risen to 10.0 percent in November 2009, compared with 9.9 percent in October. At the same time last year, it was 8.0 percent.

The EU27 unemployment rate also showed a slight increase to 9.5 percent in November 2009, compared with 9.4 percent in October 2009. It was 7.5 percent in November 2008. This represents the highest rate since August 1998 for EA16 and for the EU27 (since January 2000).

All Member States have recorded an increase in their unemployment rates, with the lowest rates being recorded in the Netherlands (3.9 percent) and Austria (5.5 percent), and the highest rates in Latvia (22.3 percent) and Spain (19.4 percent).

By comparison, in November 2009, the unemployment rate was 10.0 percent in the USA and 5.2 percent in Japan.
Source and access to full report available at: Europa
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2010 Pay deals likely to be affected by inflation
On 8 January 2010, the Labour Research Department (LRD) said that positive inflation is likely to dictate levels of any pay deals in 2010.

They said that it is too early to say whether this will outweigh the effects of recession or public sector pay curbs. As there are fewer long-term deals still in effect, private sector deals being newly negotiated are likely to set levels.

The retail prices index (RPI) returned to a positive stance in November 2009, after eight months of negative figures and is expected to rise further.
Source and access to full report available at: The Recruiter
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HR warned about testimonials
HR professionals have been warned by Judith Van Roy of the dangers of using employee testimonials.

Employee testimonials on corporate career websites are the contemporary method of providing jobseekers with a view of the company from the inside, but frequently the reports are unrealistic and untrustworthy.

An analysis carried out by Van Roy found testimonials on websites that were no longer current and featured an employee that no longer worked for the organisation.

She advised that, while testimonials proved a powerful way to present an organisation or brand, issues of trust and honesty could surface where attention to detail and content was not constantly reviewed.
Source and access to full report available at: The Recruiter
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Free advice for firms affected by the snow
On 7 January 2010, Business Link published help and advice to businesses hit by the wintry weather conditions affecting the country.

Advice on crisis-management and how to combat the affects of the adverse weather is offered on the Business Link website at: www.businesslink.gov.uk/crisismanagement.

Business Link adviser, Mark Barber, stressed the importance of contingency planning and advised companies to visit the website for interactive tools which help to assess areas of risk.
Source and access to full report available at: The Recruiter
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Gay-friendly employers list proves attractive
A record number of organisations have competed for the title of Britain's most gay-friendly employer, according to gay rights campaigner Stonewall. Over 350 applications for this year's competition have been received and the winner is due to be announced this month:

The number of companies participating in the index has more than doubled since its inception in 2006;
The minimum index score to win a place in the current Top 100 was10 per cent higher than in 2009;
The index was complied by assessing organisations' submissions on equality practices and considering anonymous feedback from over 7,000 employee surveys;
Every organisation in this year's top 100 offered diversity training thatcovered lesbian, gay and bisexual (LGB) issues, and collected monitoring data on the sexual orientation of their employees;
Over 90 per cent of the top 100 employers had an openly gay employee who acted as a role model within their organisation;
There are 23 new employers in the top 100 - including 16 new entries andseven re-entries - and of the 19 sectors represented in the 2010 index, local authorities are the single largest sector featured in the list.

Source and access to full report available at: People Management
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What happens if I don't turn up for work today because of the weather? Will I get paid?
Spotted on 9 January 2010: With thousands of people unable to get to work, Sky News Online asked employment expert Kate Hodgkiss from lawyers DLA Piper what rights employees have.

There's no right to be paid if you don't turn up for work, even if prevented by the weather. Some employers will use their discretion and not deduct pay if employees have made attempts to get to work, and of course these days many employees can work from home, but the employee has no right to be paid unless they actually work. Technically, yes, failure to turn up to work is a disciplinary offence but in cases of extreme weather conditions it would usually be unfair for the employer to take disciplinary action if the employee has either attempted to get to work or has been unable to access public transport.
Source: Sky News article
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Snow: TUC urges firms to allow staff to work from home and not risk treacherous journeys to work
Employers are being urged to allow staff to work from home and not risk treacherous journeys into work as the deep freeze continues to grip the UK. The TUC, which has issued advice for employers and workers on how to handle the freak conditions, comes as up to 40cm of snow fell across parts of the south-east of England overnight. With snow causing problems for the UK's transport network, the TUC said it made sense for employers to allow staff who are able to do so to work from home rather than struggle with a lengthy commute to work.

The Chartered Institute of Personnel and Development (CIPD) has also called on employers not to pressurise employees into "risking life and limb" to get to work or encourage workers to drive where it is requirement for their job.

Employers have also been advised to keep an eye on the weather and ensure measures are in place to ensure staff do not get trapped at work.
Read the full story at: Personnel Today
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UK job appointments see largest rise for nearly two-and-a-half years
The number of permanent job placements continued to rise in December 2009, with the largest increase for nearly two-and-a-half years. The latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs found that:

permanent placements rose to 62.8 in December 2009 from61.7 in November 2009- the fifth consecutive month the figure has been above 50, which separates growth from contraction, and the highest level since July 2007;
The index of temporary staff placements also increased to 59.7 from 56.1 in November, representing a 30-month high.

Read full story at: Personnel Today
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UK workers are giving away £27 billion of unpaid overtime
Over five million workers across the UK gave away £27.4 billion in unpaid overtime in 2009, according to a Trades Union Congress (TUC) analysis of official statistics published on 7 January 2010:

The TUC study shows that 5.07 million people regularly worked unpaid overtime in 2009, a decline of 168,000 since 2008;
Staff who did unpaid overtime worked an average of 7 hours 12 minutes a week, worth £5,402 a year - the highest amount since records began in the late 1990s - and an increase of £263 since 2008;
The biggest rises in the value of unpaid overtime have taken place in London (+£498), the North West (+£492) and the North East (+£474). Wales is the only area in which the value of unpaid overtime fell (-£392);
Of the five million employees who worked unpaid overtime, nearly 900,000 regularly worked more than ten hours a week for free. Workers in Northern Ireland (23.1 per cent of those who worked unpaid overtime), the East Midlands (21.3 per cent) and London (20.6 per cent) were the most likely to do more than ten hours of unpaid overtime a week.

With many employers and staff agreeing to reduce hours in order to avoid job losses, the reduction in working time has had a knock on effect on the number of people working paid and unpaid overtime, the TUC says. If everyone who worked unpaid overtime did it from the start of the year, they would start getting paid on Friday 26 February. The TUC has declared this day Work Your Proper Hours Day and will call on bosses to thank staff for the extra work they are putting in to help businesses through the recession.
Source: www.tuc.org.uk/work_life/tuc-17393-f0.cfm
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Employee absenteeism because of bad weather could cost £230 million
On 5 January 2010, the Forum of Private Business (FPB) warned that the cost of a single day of employee absenteeism because of the freezing winter conditions could be at least £230 million. The calculation was made using information including the daily GDP figure, anticipated vehicle breakdown levels from the AA, average salaries and official data reflecting an expected fall in retail sales.

For more information about the Guide, which is available online or as a hard copy, call 0845 612 6266 or go to: www.fpb.org/shop/13/Employment_Guide_2009. In addition, the FPB has launched www.smallbusinesschannel.co.uk to provide entrepreneurs with free, concise, video-based information on business-related issues including employment law.
Source: FPB press release 5/1/2010
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The Competition Test could cost jobs
Last October, the Competition Commission (CC) recommended to the Department of Communities and Local Government (CLG)-and the devolved administrations in Scotland, Wales and Northern Ireland-that they take the necessary steps to introduce a competition test in planning decisions on larger grocery stores. The CC has been carrying out further analysis on the effectiveness, benefits, costs and proportionality of the competition test following a ruling by the Competition Appeal Tribunal (the Tribunal). The competition test would prevent supermarkets' groceries developments, including extensions to existing stores, by retailers with a strong presence in a local area, to make competing developments from rival retailers easier.

On 2 January 2010, the Telegraph reported that the industry had warned that twenty-five thousand new supermarket jobs will be blocked over the next decade if the Government's proposed Competition Test goes ahead. In fact, the controversial planning test - which is designed to stop any supermarket from becoming too dominant in any area - would also have prevented 5,000 jobs from being created between 2006 and 2008 if it had been in place: some 2,800 of those 5,000 jobs would have been at supermarkets other than Tesco, whose significant market share the test is presumed to be aimed at hobbling, according to industry research.

The Competition Commission published its final report into supermarkets in April 2008 and found that the UK groceries market was broadly competitive but proposed a raft of remedies, including an extended supplier code of practice, an industry ombudsman, remedies affecting restrictive covenants and the introduction of the Competition Test. While retailers such as Asda and J Sainsbury support the Competition Test, Tesco opposed it and appealed to the Competition Appeal Tribunal (CAT). The CAT upheld the appeal last year, saying that the Commission had failed to address its proportionality and effectiveness. However, last October the Commission recommended that a tweaked version of the test be implemented.
Source: The Telegraph article 2/1/2010.
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Whistleblowing in the Workplace
Public Concern at Work (PCAW) is the whistleblowing charity. PCAW is the independent authority on public interest whistleblowing. Established as a charity in 1993 following a series of scandals and disasters, PCAW has played a leading role in putting whistleblowing on the governance agenda and in developing legislation in the UK and abroad. All their work is informed by the free advice they offer to people with whistleblowing dilemmas and the professional support we provide to enlightened organisations. They have four activities:

offering free, confidential advice to people concerned about crime, danger or wrongdoing at work;
helping organisations to deliver and demonstrate good governance;
informing public policy; and
promoting individual responsibility, organisational accountability and the public interest.

Whistleblowing resources and information is available at the PCAW website: http://www.pcaw.co.uk
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Prince's Trust fears unemployment effect on young people
Unemployed young people could face a lifetime of poorer health and lower happiness, warns a report published by The Prince's Trust. In a poll based on interviews with 2,088 16-to-25-year-olds, it showed that over one in 10 (11 percent) of those who had been out of work had turned to drugs or alcohol abuse.

The Prince's Trust YouGov Youth Index reveals that those out of work are significantly less happy with their health, friendships and family life than those in work. According to the report, unemployed young people are also more likely to feel ashamed, rejected and unloved more of the time. If trends follow those of previous recessions, these can become permanent psychological scars.

And those not in education or training were twice as likely to feel down, depressed, isolated or rejected. Latest figures show almost a million 16-25s are classed as unemployed.

The Prince's Trust provides loans to young people to help them back into work and is calling on the government and businesses to do more to help the younger generation escape unemployment. This is the second year of The Prince's Trust YouGov Youth Index which is the largest poll of its kind.
Source: www.princes-trust.org.uk/news/100104_youth_index_2010.aspx
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Health & Safety, Employment Law and Jobs - January 2010