Employment Law Update
13/10/09
Employment Law Update
Tuesday 13th October 2009
A number of important changes to employment law come into effect this month, the most significant of which are:
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The maximum amount of a week's pay, for the purpose of calculating certain statutory payments rises from £350 to £380 on 1 October. The weekly maximum is used to calculate statutory redundancy payments and basic awards for unfair dismissal.
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On 1 October, the level of the national minimum wage increases from £5.73 to £5.80 an hour for workers aged 22 and over, from £4.77 to £4.83 for 18 to 21-year-olds, and from £3.53 to £3.57 for 16 and 17-year-olds. The Regulations also change the law so that tips can no longer be used to top up wages to meet the national minimum wage.
In other news, the High Court has upheld the UK’s default retirement age of 65 as being lawful. A challenge to the lawfulness of allowing employees to objectively justify direct age discrimination, was also rejected. The Court did, however, indicate that it is unable to envisage how 65 could remain as a default retirement age after the Government review of the 2006 Employment Equality (Age) Regulations in 2010.
The Government has also announced a consultation on allowing new mothers to transfer some of their maternity leave entitlement to the father. Under the proposals, mothers with maternity leave outstanding in the second six months of a child's life will be able to transfer up to six months of maternity leave to the father. Up to three months of that leave will paid at the same rate as Statutory Maternity Pay if the leave is taken during the mother's 39-week maternity pay period. Consultation on implementing regulations will begin shortly given that the Government intends that the law will be in force by April 2010 and will be effective for parents of children due on or after 3 April 2011.
If you would like any legal advice concerning employment law related issues please contact Richard Brickley at rsb@aeswinterbothams.com