Agenda 2011: Employment law key dates

Among the key employment law changes in 2011 are: the abolition of the default retirement age (with transitional arrangements from April in advance of its repeal in October); the introduction of additional paternity leave and pay; the extension of the right to request flexible working to parents of children under 18; new offences under the Bribery Act 2010; and the enactment of further parts of the Equality Act 2010. 

 

Legislation key dates

JANUARY

National minimum wage: travel expenses to temporary workplaces no longer count
From 1 January 2011, expenses for travel to a temporary workplace can no longer form part of employees' pay for national minimum wage purposes. 

FEBRUARY

New tribunal award limits come into force
The limit on the amount of the compensatory award for unfair dismissal increases from £65,300 to £68,400 on 1 February 2011. 


APRIL

Transitional provisions for abolition of default retirement age
From 6 April 2011, employers will be prohibited from issuing new notifications of retirement using the statutory retirement procedure and notifications issued before this date must relate only to employees whose retirement dates fall before 1 October 2011. 

Right to request flexible working extended to parents of children aged under 18
On 6 April 2011, the right to request flexible working will be extended to parents of children aged under 18 (it currently applies to parents of children aged under 17, or 18 if the child is disabled). 

Single public sector equality duty is introduced
The Equality Act 2010 is being implemented in stages and more of its provisions are expected to come into force in April 2011, including the introduction of a single public sector equality duty on 6 April 2011. 

Positive action provisions in the Equality Act 2010 are enacted
From 6 April 2011, the Equality Act 2010 will allow employers, in defined circumstances, to recruit or promote a person with one protected characteristic in preference to another person who does not have the protected characteristic, provided that they are equally qualified for the post. 

Right to make a request in relation to training may be extended to all employees
The right for employees to make a request in relation to study or training, which currently applies to employees in organisations with 250 or more employees, is due to be extended to all employees from 6 April 2011. However, the Government is reviewing the legislation so this extension is in doubt. 

Additional paternity leave and pay available
Additional paternity leave and pay allows fathers to benefit from up to 26 weeks' additional paternity leave if the mother returns to work before using her full entitlement to statutory maternity leave. The new right is available to parents of children with an expected week of childbirth beginning on or after 3 April 2011. 

New corporate offence of failing to prevent bribery
The Bribery Act 2010 will introduce a corporate offence of failing to prevent bribery by persons working on behalf of a business, which comes into force in April 2011. 

Maternity, paternity and adoption pay are increased
The standard rates of statutory maternity, paternity and adoption pay will increase from £124.88 to £128.73 per week from 3 April 2011. Statutory sick pay will also increase from £79.15 to £81.60 per week from 6 April 2011. 


OCTOBER

Default retirement age is completely abolished
The default retirement age will be abolished completely after a six-month transitional period, and employers will be prohibited from retiring employees in reliance on the default retirement age on or after 1 October 2011. 

New rules on equal treatment for agency workers
The Agency Workers Regulations 2010 will entitle agency workers to equal treatment on basic employment conditions after 12 calendar weeks in a given job, including pay and holidays, from 1 October 2011. 

National minimum wage may rise
The national minimum wage may rise on 1 October 2011, subject to the prevailing economic conditions and the Low Pay Commission's recommendations to be delivered to the Government in February 2011. 

 

Consultations 2011

Consultations that remain open in the first months of 2011 include: directors' remuneration; removing legal aid for employment claims; and the reform of the PAYE system. The Government has announced that in early 2011 it will consult on extending the right to request flexible working and increasing the flexibility of parental leave. It is expected that the Government will announce the outcome of its review into the vetting and barring scheme in early 2011. 


CONSULTATIONS STILL OPEN IN 2011

Directors' remuneration
The Government is consulting on arrangements to address the conflict faced by directors in setting their own pay. Shareholders have the power to influence directors' remuneration, but directors' pay does not match company performance. 

Withdrawal of legal aid for employment claims
The Government is consulting on proposals to remove legal aid for most employment claims in England and Wales. 

Reform of the PAYE system
The Government is consulting on the reform of the PAYE system. It is introducing "real time information", a scheme that will enable HM Revenue and Customs to collect information about tax and other deductions each time an employer pays its employees. 


CONSULTATIONS EXPECTED IN 2011

Flexible parental leave
The Government has announced that it intends to introduce a new system of flexible parental leave because leave options for families are too rigid. 

Extending the scope of flexible working
The Government has announced that it intends to extend the right to request flexible working, because it considers that treating employees equally means dealing with them as individuals, rather than on the basis of their caring responsibilities. 

Future of the vetting and barring scheme
In June 2010, the coalition Government announced its intention to review the vetting and barring scheme to take it back to "proportionate and common sense levels". It commenced the review in October 2010 and is expected to make an announcement on the future of the scheme in 2011.