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We wish all visitors to this update everything that they would wish for themselves for 2009 as well as hoping that all have enjoyed the Christmas and New Year holiday.
In this review of the year we look at some of the main developments in 2008 as well as future developments for 2009.
Clearly the year ahead will be dominated by the economy, with the Chartered Institute of Personnel Development predicting job losses during 2009 of 600,000. The situation on the High Street as well as the Banking and Manufacturing sectors is likely to give rise to significant issues on TUPE, redundancies and restructuring. The cost of claims could go even higher with employees demonstrating significant financial losses on unfair dismissals.
Discipline and Grievance
The 2008 Employment Bill has been passed into law and as a result the much disliked statutory dispute procedures introduced by the 2004 Employment Act will be repealed. There is a greater emphasis on the ACAS code as well as facilitating greater involvement by ACAS in conciliation. There will still be scope to vary awards by up to 25% based on the parties conduct. An example of the current regime was a case conducted by this firm, Topliss v NCP Services Ltd at the Central London Employment Tribunal in December 2008. NCP were ordered to pay compensation of £162,042. That sum had been arrived at after a finding that the company had failed to follow the statutory disciplinary procedures and the compensation was increased by 20% as a result.
The Chartered Institute of Personnel Development in its People Management magazine is predicting that there will be an increase in mediation to resolve work place conflict and disagreement. Susan Millar from the City University has quoted “We tend to use mediation where a situation had become a bit fixed and we need to move it along in a way that is helpful for all concerned.” The Employment Lawyers Association echoes the CIPD view that mediation can play a powerful role in settling workplace disputes.
Race
Tarique Ghaffur’s claim for discrimination against the Metropolitan Police and Commissioner Sir Ian Blair has finally been settled after a great deal of acrimony. A report can be seen in the Evening Standard.
The Metropolitan Polices travails on discrimination may not yet be over. In the Guardian on 17th December 2008, it was reported that Dr Ali Dizai, president of the National Black Police Association, is bringing a case against the Metropolitan Police. He was suspended from duty in September 2008 after accusations of misconduct and claims that Sir Ian Blair and Catherine Crawford, the Metropolitan Police’s Chief Executive, colluded to suspend him
Research from the CIPD (Chartered Institute of Personal Development) suggests that black women in the UK earn more than their white female counterparts on average. The figure is approximately 6% more than their white counterparts. However, the Equality and Human Rights Commission suggests that the figures need to be treated carefully as the black population is more concentrated in the South East where the pay gap is generally lower and wages higher. It may also reflect higher educational attainments. To see a report click here.
Minimum Wage
The adult minimum wage is currently £5.73 per hour. The Government is proposing a change to the legislation to ensure that 10% gratuities cannot count towards the minimum wage.
The minimum wage rates are reviewed in October of each year. The British Chambers of Commerce are calling for a freeze on the minimum wage. With inflation likely to fall very rapidly, indeed, with the threat of deflation setting in, it seems unlikely that there will be any significant wage pressure in the economy. Our best bet, therefore, is that the minimum wage will not be changed this year.
Maternity Rights and Flexible Working
The government has delayed the plans to extend maternity and paternity pay and leave until April 2010. The changes were due to come in April 2009.
In our last newsletter we suggested that some of the changes on flexible working may be postponed. Harriet Harman, on behalf of the government, insists that she is not going to back track on the proposed widening on flexible working from April 2009. Amongst the changes is an extension of flexible working to parents of children under the age of 16. The report in the Daily Telegraph can be accessed here.
Compensation
The maximum compensation award for Unfair Dismissal increases to £66,200 for dismissal occurring after 1st February 2009. Maximum redundancy payment increases to £10,500.
Redundancy and Immigration
The Guardian reported in November 2008 that 200,000 skilled jobs in Britain would be closed to non-European migrants from November 27th 2008 when the new points based immigration scheme came into force. This news coincides with the CIPD projection that 26% of firms have plans for new or additional redundancies during 2009. The management consultancy KPMG says that 20% of firms will be stricter in enforcing retirement.
Health and Safety
Managers and Directors need to know that the Health & Safety Offences Act coming into force on 16th January 2009 could face imprisonment for breaches of regulations. The Act amends the existing Health & Safety at Work Act by raising the maximum financial penalty in the Magistrates Court to £20,000 and increases the range of offences punishable by imprisonment.
Compromise Agreements
The tragic case of baby P has lead to the Head of Child Protection at Haringey Council being dismissed with no compensation. Not surprisingly, Haringey Council had been under some pressure to terminate her contract and government ministers welcomed the decision not to pay compensation. The Evening Standard of 6th January 2009 reports that she is now about to bring a claim.
Whilst few would disagree with the principles involved in this decision, there is, nevertheless, a need in all cases, whether high profile or not, to follow due process. Dismissals that follow a vociferous public campaign may be hard to justify in the cold light of day in front of an employment tribunal. We are not privy to the deliberations at Haringey Council and therefore cannot comment on the case itself, but it may be open for the employer to plead that the collapse of confidence and the requirement to keep a good name intact may amount to some other substantial reason justifying dismissal.
Pensions
The 2008 Pension Act comes into force in 2012 and will require all employers to offer a qualifying workplace pension scheme to their workers. They will be able to choose to use the Government’s personal account scheme or some other qualifying scheme. A minimum contribution will be matched by an employer’s contribution and tax relief from the government.
