Pay and Conditions
Many local employers find they fall foul of complex employment law provisions ranging from maternity rights to the minimum wage. This is an area on which regular legal advice can be very helpful. From October 2005 the adult rate of the national minimum wage for those aged 22 or more will increase by 20p from £4.85 per hour to £5.05 per hour and to £5.35 per hour from October 2006. The youth rate, for 18-21 year olds, will increase to £4.25 per hour in October 2005 and £4.45 per hour in October 2006.
Paul Seath an associate in our Employment Department says: “There will be no increase in October 2005 to the £3 per hour rate for 16-17 year olds. The Low Pay Commission is to keep this under review and will report in 2006. Those employers who do not pay the minimum wage risk liability. In addition it was recently announced that not all employers are giving the minimum statutory 4 weeks paid leave a year, which is now also required by law.
Another major change from 6 April is the obligation to consult employees. Employees in larger organisations gain new rights to be informed and consulted about developments in the workplace. The legislation implements the EC Directive on Informing and Consulting Employees. It is based on a framework agreed with the CBI and TUC.
From 6 April 2005 employees in organisations with 150 or more employees will have a right to be informed and consulted on a regular basis about issues in the organisation they work for. Organisations with 100 or more employees will come within the scope of the legislation in April 2007, and ones with 50 or more employees in April 2008.
The requirements in the legislation do not apply automatically. An employee request must be made by at least 10% of employees in the organisation (subject to a minimum of 15 employees and a maximum of 2500 employees). Existing agreements on information and consultation may continue where they enjoy the support of the workforce. The new law is designed to encourage employers, employees and their representatives to agree information and consultation arrangements that suit their particular circumstances – it does not spell out the subjects, method, timing or frequency of the arrangements that are allowed. Agreed arrangements may cover more than one company, or establish different processes in different parts of an organisation. Standard provisions based on the Directive apply as a fallback in situations where no agreement is reached on information and consultation arrangements. These require the employer to inform employee representatives about the organisation’s activities and economic situation, and consult them on employment issues and major changes in work organisation or employees’ contractual relations.”
If you need advice on your obligations as an employer then contact Paul Seath for further information on
(0117) 929 0451 or e-mail pseath@metcalfes.co.uk
This press release summarises the law on issues which we believe may be of interest to your business. It is not a comprehensive review of the subjects and accordingly is published without responsibility for loss occasioned to any person(s) acting or refraining from action as a result of information published