1 October 2006 employment legislative changes quick guide

On 1 October a number of important new employment laws come into force. Below is the Wragge & Co quick guide to the changes all employers need to know.

Age discrimination

The Employment Equality (Age) Regulations 2006 come into force outlawing discrimination on the basis of age in employment and vocational training:

• Apply to the young, middle-aged and old alike, and span the whole of the employment relationship including, recruitment, promotion, pay, benefits and termination.
• The legislation is framed in the same terms as the existing discrimination statutes, but has the important distinction that both direct and indirect discrimination can be objectively justified.
• There will be a number of specific exemptions, such as use of length of service criterion.
• The age limits for unfair dismissal protection and entitlement to redundancy payments are removed.
• A national default retirement age of 65 is introduced together with a new requirement for employers to follow a new duty to consider requests to work beyond retirement procedure.
• The application of the Regulations in relation to occupational pensions will not come into force until 1 December 2006.

For more information please see are detailed guides published in June, 'Age Discrimination in the Workplace' and 'Retirement Requirements: The duty to consider request to work beyond retirement'

Work and families

A number of the provisions of the Works and Families Act 2006 in relation to maternity/adoption leave and pay come into force, although only effect employees whose expected week of childbirth/placement for adoption is on or after 1 April 2007.

The main effects are (note corresponding amendments for those on adoption leave):

1. Extension of the period of Statutory Maternity Pay (SMP), Maternity Allowance (MA) and Statutory Adoption Pay (SAP) from 26 to 39 weeks.
2. The removal of the qualifying period for Additional Maternity Leave. All pregnant employees will qualify for 12 months' maternity leave, regardless of their service.
3. The notice that the employee has to give the employer when returning early from maternity leave will increase from 28 days to eight weeks.
4. The introduction of 'Keeping in Touch' days. An employee on maternity leave may work up to ten days anytime during her statutory maternity leave period, except for the first two/four weeks after childbirth (compulsory maternity leave period).
5. Employers will be entitled to make "reasonable contact" with an employee on maternity leave, for example to discuss the employee's return to work.
6. Removal of the small employer's exemption in relation to the existing exemption for employers with five or less employees.

Note: the provisions extending the right to request flexible working to 'carers' are not due to be brought into force until 6 April 2007. A date for the implementation of the provisions in relation to additional statutory paternity leave is still awaited.

Collective redundancies consultation

The Collective Redundancies (Amendment) Regulations 2006 amend s193 Trade Union and Labour Relations (Consolidation) Act (TULRCA) 1992 to clarify the provisions as to when the formal advance notification of proposed multiple redundancies to the Secretary of State must be provided. The notification (form HR1) must be provided:

• at least 30 days (where 20 or more proposed redundancies) or 90 days (where 100 or more proposed redundancies) before the first dismissal takes effect; and
• be made before any redundancy notices are sent to affected employees.

Failure to provided the required notice is a criminal offence.

NMW

The national minimum wage hourly rates increase as follows:

• The main rate for workers aged 22 and over will increase to £5.35 (currently £5.05)
• The development rate for 18-21 year olds is will increase to £4.45 (currently £4.25)
• The development rate for 16-17 years olds will increase to £3.30 an hour (currently £3.00)