Sharokh Koussari, Howard Kennedy

Legislation wise this will be another very busy October with legal
changes being implemented covering a wide range of issues with most of
the new legislation to be introduced in October emanates from
Department for Business Innovation and Support. Whilst they cover a
wide range off issues, not surprisingly, bearing in mind the current
economic crisis, the areas affected tend to relate to employees pay and
entitlements, in particular minimum wage and minimum entitlement in
redundancy.
The Department for Business, Innovation and skills has announced
that from the first of October 2009, the National Minimum wage will be
increased from £5.50 an hour to £5.80 for workers aged 22 and over
(standard adult rate). Those between the ages of 18 and 21 will also
benefit from an increased hourly rate of £4.83 (Development Rate) and
those between 16 and 17 (Young workers rate) will be entitled to £3.57
per hour. Also worth noting is that the government has said that form
October 2010, the national minimum wage will also be extended to 21
year olds.
The amount allowed to
be offset when an employer provides a worker with accommodation will
rise from £4.46 to £4.51. Another change in the area of minimum wage is
the government's announcement that as of 1 October 2009, tips
gratuities and service charges can no longer count towards deciding
whether a worker is receiving the national minimum wage.
Further,
the Department for Business, Innovation and Skills has published its
final impact assessment on the Work and Families (Increase of Maximum
Amount) Order 2009 and confirmed that the maximum limit of a week's pay
will be increased from £350 to £380 from the 1st of October 2009. This
is again a recession driven piece of legislation - the idea is to
provide more support for individuals made redundant in the current
economic climate. This increase in the limit will affect all
compensation payments to which the week's pay limit is relevant. The
introduction of this one-off increase in October 2009 also the up
rating which usually takes place in February each year will be
suspended in respect of 2010. These rates will therefore remain in
place until February 2011.
More interesting to lawyers is the is
the replacement of the Appellate Committee of the House of Lords by the
New Supreme Court which will take place from October 2009. Whilst this
will has not attracted a great deal of profile, it does represent a
very important constitutional change formally cutting all ties between
the legislature and the judiciary. The rules setting out the procedures
used in this jurisdiction are called "the Supreme Court Rules" and will
come into force from October 2009. Looking at these rules, they
certainly seem less archaic and more user friendly than their
predecessors.
Another important area affected by the October
changes is in respect of employees working with children and vulnerable
adults. The Safeguarding Vulnerable Groups Act 2006 will introduce a
centralised vetting system for people banned from working with children
and vulnerable adults. There will be a fine of £5000 for employers that
"knowingly" employ individuals on the list or fail to make relevant
checks (which will be available online). Clearly, employers potentially
affected by this must ensure that they are fully aware of the
implication of this legislation. They must ensure that adequate systems
are put in place to deal with this.
For more information visit www.howardkennedy.com
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Post Date: September 17th, 2009