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Article: Employment
and the Law by Louise Fernandes-Owen
As 2010 draws to a close, Louise Fernandes-Owen of Field Fisher Waterhouse LLP looks ahead to 2011 and highlights a few of the key employment law developments to look out for over the coming year…
Extension to flexible working
The Coalition Government confirmed earlier this year that it will "extend the right to request flexible working to all employees, consulting with business on how best to do so".
The Department for Business, Innovation and Skills (BIS) has published its business plan which sets out the relevant timescales for 2011-2015. The plan sets out that proposals will be published in January 2011 and businesses will be consulted on the extension of flexible working to all employees in March 2011. Legislation to extend flexible working to parents of children under 18 will be in place in April 2011 and detailed plans on the extension of the right to request flexible working to all employees will be developed during April 2011 to December 2011.
Shared parental leave
The Coalition Government proposed from the outset that it would review employment and workplace laws, for employers and employees, to ensure they maximise flexibility for both parties. Key to this proposal has been their commitment to encourage "shared parenting from the earliest stages of pregnancy – including the promotion of a system of flexible parental leave".
At the time of writing, there are no further details about this proposal. However, prior to the election, the Liberal Democrats indicated that they wanted to give fathers the right to time off for ante natal appointments. The BIS business plan sets out that the proposals on the new system of shared parental leave will be published in January 2011. Businesses will be consulted by March 2011 and detailed plans on shared parental leave will be developed during April 2011 to December 2011.
Agency Workers Regulations
The Government recently announced that it will not be amending the controversial Agency Workers Regulations 2010. BIS will now develop guidance with key stakeholders, representing the interests of agencies, hirers and agency workers, which should be published in draft in early 2011. This guidance is intended to allow the necessary time to adjust to the changes in advance of the regulations coming into force in October 2011.
Default retirement age
The Government has announced that it will remove the default retirement age (DRA) of 65 introduced by the Employment Equality (Age) Regulations 2006. The proposals are subject to a consultation which closed on 21 October 2010.
The Government proposes to abolish the DRA on 1 October 2011, with transitional arrangements beginning in April 2011. Employers wishing to have a compulsory retirement age for their workforce going forward will only be able to do so if they can objectively justify it. The BIS business plan confirms that it is developing guidance, working with ACAS, from November 2010 until September 2011. This guidance will be particularly important for employers, so that retirement discussions can take place without the risk of disputes or litigation.
Equality Act 2010
Whilst most of the Equality Act 2010 came into force on 1 October 2010, consolidating and harmonising previous discrimination legislation, the Government is still in the process of considering a number of provisions.
These include combined discrimination. This new provision will enable those who have experienced less favourable treatment because of a combination of two protected characteristics (i.e. “dual discrimination”) to bring a direct discrimination claim. Other provisions still under consideration by the Government include the requirement to publish gender pay gap information and positive action in recruitment and promotion.
Theresa May, the Home Secretary and Minister for Women and Equality, has just confirmed that the proposed socio-economic duty on public authorities under the Act will be scrapped. May commented that "in reality, [the socio-economic duty] would have been just another bureaucratic box to be ticked. It would have meant more time filling in forms and less time focusing on policies that will make a real difference to people's life chances." Expect more announcements over the coming months.
Change in unfair dismissal qualifying period?
Earlier this month, it was confirmed that the Government may consider doubling the period of qualifying service required for ordinary unfair dismissal claims from one year to two years as part of its effort to support small businesses.
It was intended that Lord Young would investigate what changes are necessary to make Government more small and medium-sized business friendly (including the potential change in the qualifying service for unfair dismissal), and report back by Spring 2011. However, Lord Young recently resigned and, at the time of writing, it has not been confirmed whether this review will go ahead.
Louise Fernandes-Owen is the Senior Associate (PSL) in the Employment and Pensions Group at Field Fisher Waterhouse LLP and can be contacted at
louise.fernandes-owen@ffw.com
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