So, business managers up and down the country are preparing to bid farewell to 2008 and usher in a whole new year. Over the last 12 months, we’ve seen changes to flexible working, dispute resolution and even how companies that cause a person’s death are dealt with. What’s in store for 2009? Well, here are a few changes to business law that we will definitely see occurring, so prepare to update all your employment contracts and business documents as necessary!
Redundancy and Unfair Dismissal Becomes More Expensive
At a time when there may be many thousands of redundancies, the cap for maximum redundancy and unfair dismissal payments have been increased. When it comes to calculating the weekly wage for statutory redundancy pay, the maximum has increased from £330 to £350. The maximum statutory redundancy payment or basic award is now £10,500, up from £9,900, and the maximum compensatory award for unfair dismissal has gone from £63,000 to £66,200.
Right to Time Off for Public Duties Expanded
In April 2009, the rights to time off for public duties will be extended to include membership of a wider range of roles including youth offender panels, court boards and probation boards. It’s worth noting that although they will be given the time off, there is no obligation to pay them for this time.
Right to Request Flexible Working Expanded
Currently, the right to request flexible working hours in employment contracts is only open to parents with children under the age of six or who are disabled. In April next year, this right will be extended to parents of children all the way up to 16, opening up the option for some 4.5 million more parents. Under the legislation, employers won’t be obliged to grant the request but they will have to have legitimate reasons to reject it.
Trainee Doctors get Reduced Maximum Working Hours
In August, the notoriously overworked trainee doctors will have their working hours reduced in the final stage of the phase in to a 48 hour week. In 2004, the maximum was reduced to 58 hours, and in 2007 it was reduced to 56.
Tips no Longer Count Towards Minimum Wage
Under current rules, employers can process service charges and gratuities paid through the payroll as part of their obligation towards minimum wage. From 2009 this will no longer be allowed.
Minimum Holiday Time Increased to 28 Days
In 2007, the minimum days paid leave for most UK workers went up to 24 days including bank holidays. In April 2009, the second part of this act is passed and it is raised to 28 days including bank holidays. This will have no effect on those giving bank holidays in addition to the minimum holiday day allocation, but if you are only giving your employees 24 days in total at the moment, be sure to update your business documents and employment contracts to reflect the changes.
Acas Code of Practice for Discipline and Grievance Procedures
April also sees the revised Acas Code of Practice on disciplinary and grievance procedures introduced. This means that where there is a breach in the Code of Practice, a tribunal can change the award granted by 25 up or down.
Centralised Vetting System for Workers Dealing with Children and Venerable Adults
In October, the Safeguarding Vulnerable Groups Act will come into force, creating a centralised vetting system for those banned from working with both vulnerable adults and children. Employers will be able to make checks online using a constantly updated database and, where possible, employers will be informed if an individual in their employ is added. There will be fines of up to £5,000 for employers who either knowingly employ people from the list for these roles, or fail to make relevant checks.
Health and Safety Offences Act
At the very start of 2009, the Health and Safety Offences Act will come into effect. As long as you are doing everything that needs to be done with regards to health and safety already you can safely ignore this one, as it only changes the available punishments. From January 16th, a maximum 2 years imprisonment and/or a maximum £20,000 fine will be available to those who breach Health and Safety regulations. Additionally, while such offences were only available for prosecution in the Magistrates Court, from January they can be tried in the Crown Court. With such hefty punishments soon to be available, it might be a good idea to ensure your business documents pertaining to health and safety are fully in order, just in case!
These aren’t the only laws and regulations changing in the next 12 months, but they are amongst the most important to most business owners. Make sure that you’re aware of the upcoming changes that apply to you and get your business documents and employment contracts in order for when the laws change!
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