A Brief Round Up Of Recent and Future Employment Developments - Employment Law News Spring 2007

01 April 2007

New compensation limits On 1 February 2007, there was an increase in the limits applying to certain awards of employment tribunals and other amounts payable under employment legislation.

The new rates apply in cases where the event giving rise to compensation or payment occurs on or after 1 February 2007:

• The limit on a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal increased from £290 to £310; and
• The maximum compensatory award for unfair dismissal increased from £58,400 to £60,600. New rates of statutory maternity pay and sick pay From April 2007 the new rates are as follows:
• The standard rate of maternity, paternity and adoption pay increased from £108.85 to £112.75 per week; and
• The standard rate of statutory sick pay increased from £70.05 to £72.75 per week.

Ban on smoking

The Health Act 2006 comes into force on 1 July 2007. This will lead to a ban on smoking in enclosed (wholly or substantially) public places including offices, factories, pubs and bars and, therefore, most workplaces. It will not, however, cover outdoors or private homes.

The ban will cover workers and visitors; businesses that fail to take reasonable steps enforce the ban will face fines of up to £2,500. Employers’ should implement a smoking policy, which should be drawn up following consultation with employees. Where it is reasonable to do so, it is anticipated that some businesses will make provision for those who continue to wish to smoke, for example, by providing an external shelter.

Extension of minimum entitlement to holiday.

It is planned to increase a worker’s minimum right to paid annual leave under the Working Time Regulations 1998 from four weeks to 5.6 weeks per year. This represents an increase from 20 days per year to 28 for full timers (pro rated for part timers), to reflect the eight bank holidays per year, which many employers currently already give in addition to the four weeks annual leave, but many do not.

Under the current proposals, the statutory annual leave entitlement would be increased in two stages, rising to 4.8 weeks (24 days) on 1 October 2007 and 5.6 weeks (28 days) on 1 October 2008.

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