2005 changes in employment law announced

The DTI has announced that from 6 April 2005 certain provisions will come into force. These are:

1. Employment Relations Act 2004

• Amendments to the statutory procedure by which trade unions can obtain recognition for collective bargaining purposes and the corresponding procedure by which they can be derecognised;

• Clarification of the law to ensure that dismissal on grounds of trade union membership or activities is unlawful regardless of length of service or age;

• The right for employees not to be dismissed or suffer other detriment because they are summoned or have been away from work on jury service;

• Provision for the Secretary of State to make grants for trade union modernisation;

• Measures to improve the enforcement of the national minimum wage.

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2. Information and Consultation of Employees Regulations

The Information and Consultation of Employees Regulations implement EC Directive 2002/14/EC, which establishes a general framework for informing and consulting employees in the European Community. From 6 April 2005 employees of employers with 150 or more employees in the UK will have new rights to be informed and consulted by their employers on an on-going basis about developments in the organisations they work for.

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3. National Minimum Wage Regulations 1999 (amendment) Regulations 2004

These amend the National Minimum Wage Regulations 1999 to require a more generous rate to be set out for all output (piecework) workers.

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4. Statutory maternity, paternity, and adoption pay dispute resolution regulations

Amendments come into force on 6 April 2005 to ensure that when an employee is reinstated or re-engaged following a statutory dispute resolution procedure, their employment will be treated as continuous for the purposes of calculating entitlement to SMP, SPP and SAP.

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1 October 2005 changes:

National minimum wage increases

The national minimum wage will increase from £4.85 per hour to £5.05 per hour with effect from 1 October 2005 - and will increase to £5.35 per hour from 1 October 2006.

The youth rate, for 18-21 year olds, will increase to £4.25 in October 2005 and £4.45 in October 2006.

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If you have any queries or would like any advice on employment law issues please contact Simon Jeffreys at [email protected] or on +44 (0) 20 7367 3421 or Anthony Fincham at [email protected] or on +44 (0) 20 7367 2783 or Alexander Green at [email protected] or on +44 (0)1224 622002.