In the HR news ...

NEW OPT OUT RULES

The 48-hour week is a key feature of the Working Time Directive. Workers cannot work in excess of 48 hours a week on average, including overtime unless they agree to do so and sign an opt out clause.

After several years of protracted debate the EU has recently agreed that the opt-out should stay, although this concession has come at the price of tighter regulation surrounding the use of opt-outs.

The main points of the agreement are:

• On-call time to be split into active and inactive on-call time. Under the agreement, inactive on-call time will not count as working time unless national law or collective agreements stipulate that it is.
• A protective cap of 60 hours a week for those who opt out
• A protective cap of 65 hours for workers who opt out if inactive on-call time is counted as working time
• Workers will not be able to opt out prior to starting work, or in the first four weeks of their employment unless the contract is for 10 weeks or less. Workers will also have to renew their agreement to opt out on an annual basis.
• Current proposals mean workers will be able to cancel their opt-out without notice during the first six months of employment, their probationary period, or the three months following the end of their probationary period, whichever is longer. Even outside this protected period the maximum notice required of a worker will be reduced from three to two months.

Employers will also need to keep more detailed records. At the moment they only have to record the names of workers who have opted out. The proposals require employers to record the hours of all workers who have opted out. They may have to consider introducing timesheets or time recording software to ensure compliance.

The agreed amendments still have to be endorsed by the European Parliament, and we think the changes will be implemented in 2012.

NEW RIGHTS FOR AGENCY WORKERS IN APRIL 2009

The European Union is negotiating with Member States over the terms of an Agency Workers Directive. Unsurprisingly, there has been much conflict in the UK between employers and trade unions over just how far the employment rights of agency staff should go. But after much wrangling, agreement has now been reached with the Government.

It is reported that entitlement to “equal treatment” will be triggered after twelve weeks in a given job. Whilst it is not yet known exactly what this refers to, it will relate to the basic work and employment conditions that an agency worker would benefit from if they were directly recruited, e.g. equal pay. The good news is that it won't extend to benefits such as company sick pay or pension schemes.

Employers with lower paid temps will notice the difference. Staffing companies will be reluctant to swallow the extra costs if they find that they are making a loss. Workplace agreements about what agency workers should be paid will be allowed to override the legislation. This mechanism may actually keep employers' costs down, since agency workers are unlikely to be part of the negotiation and will permanent employees really fight for temps to be paid as much as them?

Action Point

Until we know more, use this time to review your use of agency temps over the last couple of years. This will give you a good idea of how long a typical assignment lasts for. If it for less than 12 weeks, the changes in April 2009 won't affect you. If you find that you do have longer contracts, try to identify why this is and calculate what the extra pay bill might be as a result of these changes.

NEW RIGHT TO REQUEST TRAINING

 This new training scheme was revealed in the Prime Minister's draft Queen's speech and is seen as a way of plugging the growing UK skills gap. Whilst the employee's chosen training doesn't have to be an accredited course, the good news is that there won't be any requirement for you to fund any training that you agree to. As some 22 million people will be affected, this is just as well (though of course any time off will be a cost to your business).

Apprenticeships will also be boosted via the creation of new National Apprenticeships Service. The aim is that all suitably qualified applicants will have a statutory right to an apprenticeship as the programme will be given extra funding in order to expand. The legal status of apprentices will also be clarified. Both proposals are set out in the new Education and Skills Bill, though we're not yet sure when any legislation will be introduced.

Some good news is that this right to request training will be based on the current system for flexible working requests. So you'll have several refusal grounds available, should the time off lead to problems with your business. As there is advance warning of this, you have some time to think about how it may affect you.

Action Point

Look to balance requests based on how they will benefit your business, against the amount of time off requires. It may be that granting some training requests will benefit your company far more than allowing flexible working requests, so make this new development work for you. If this isn't the case, use your size to your advantage by rejecting difficult requests due to, e.g. inability to re-arrange work amongst colleagues or to meet customer demand.

MINIMUM WAGE FOR 21 YEAR OLDS

At a recent meeting of Labour's national policy forum senior party members met with unions and Labour activists to discuss minimum wage strategy. These are expected to be included in Labour's next election manifesto.

The adult minimum wage applies to anyone aged 22 or older, but ministers told the forum they want the rate to apply to 21-year-olds if the Low Pay Commission continues to back the move. So more cost increases on the way for employers.

COMING UP

Minimum wage increases

These will rise from October 2008 as follows:

16 – 17 years £3.40 to £3.53

18 – 21 years £4.60 to £4.77

Adult rate £5.52 to £5.73

Action Point

Ensure that your pay policy reflects these changes for October 2008.

FURTHER CHANGES TO STATUTORY HOLIDAY ENTITLEMENT

In our May Newsletter we let you know that statutory holiday entitlement (paid holiday including 8 public/bank holidays) was changing from 20 days to 24 days on 1 st October 2007 and 28 days on 1 st October 2008 .

The new change is that the increase to 28 days has been postponed until 1st April 2009 . The increase to 24 days is still to be effective from 1st October 2007 .

Action Point

Where you already pay for Bank holidays or have decided to implement the 28 days from 1 st October 2007 this will not affect you. If you are choosing to implement the changes in 2 stages you may like to consider consulting with your staff to advise them that the 2 nd change will not happen until 1st April 2009 .

CORPORATE MANSLAUGHTER LAW

This will become effective from 6 th April 2008 . It will make it easier to prosecute employers when fatalities occur at work. It won't hold Directors and Senior Managers personally accountable but Companies found guilty will face unlimited fines and may be compelled to make details of their conviction public.

Individuals can still be prosecuted for manslaughter under common law and the Health and safety at Work Act 1974.

Action Points

We recommend that you:

• Review your Health and Safety policy regularly and make sure the Company has a ‘safety culture' 
• Appoint and train a Director or Senior Manager to be responsible for ensuring health and safety in the Company 
• Do not ignore it if an employee raises a safety concern with the Company 
• Contact JCV Consulting if you have concerns in this area

STATUTORY DISPUTE PROCEDURES - UPDATE

The wheels of Government can be exceedingly slow sometimes and so it is with this. We still have the 3 stage process as the cornerstone of dealing with disputes – informing employee of issue, holding a hearing and providing an appeal mechanism.

The idea of mediation is still being considered as an alternative but nothing definite has emerged yet.

Action Point

Continue to use the statutory format when dealing with formal disciplinary or grievance issues.

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