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The National Minimum Wage



The full rate for those aged 22 and over will increase by 7p to £5.80 an hour. Meanwhile, the rate for 18-21 year olds will rise 6p to £4.83, and for 16 and 17 year olds will increase 4p to £3.57.


The response to the changes has divided along traditional lines.


The Chartered Institute of Personnel and Development argued that it would put pressure on employers who were already struggling. Charles Cotton, reward adviser, said he had called for a freeze, and explained: “We are concerned that this decision will increase the risk of job losses in low paid sectors. This should have been avoided at a time when deflation on the RPI measure of inflation will limit the impact of a national minimum wage freeze on people’s real living standards.”


Meanwhile, Brendan Barber, general secretary of the Trades Union Congress welcomed the increase, saying: “Low paid workers will be relieved to see a further increase in the minimum wage this year. The LPC was right to withstand pressure from business to freeze the minimum wage.


“This increase is a very slender one. The LPC must be much more generous when the economy recovers next year."


The LPC also announced that from October 2010, the full national minimum wage rate would be extended to cover those aged 21 and over.




Posted On Tue, 12 May 2009


Changes in Employment Law April 2009




1. Abolition of the Statutory Dispute Resolution Procedures

The statutory dismissal/disciplinary and grievance procedures were repealed on 6 April 2009 and will no longer apply, subject to transitional provisions relating to disciplinary matters or grievances already in progress.

2. Revised ACAS Discipline and Grievance Code of Practice Now in Force

The revised ACAS Code of Practice on disciplinary and grievance procedures came into force on 6 April 2009. Tribunals can increase or decrease an award by up to 25% for breach of the new code.

3. Minimum Statutory Holiday Entitlement Increased
The minimum statutory holiday entitlement under the Working Time Regulations 1998 increased from 24 days (4.8 weeks) to 28 days (5.6 weeks) for full time employees on 1 April 2009. This minimum can include bank holidays.

4. Statutory Payments Increased

The standard rate for statutory maternity, paternity and adoption pay increased from £117.18 to £123.06 per week on 5 April 2009. Statutory sick pay increased from £75.40 to £79.15 per week on 6 April 2009.

5. Increased Penalties for Failure to Pay National Minimum Wage

On 6 April 2009 increased powers for the enforcement of the national minimum wage (NMW) were introduced. This includes a new method to calculate arrears of pay taking account of any increase in the rate of the NMW, and the imposition of a financial penalty at the same time as issuing a notice of underpayment (up to £5,000).

Enforcement officers will also have additional powers to investigate alleged breaches of the NMW and offences under the Act are now triable in the Crown Court as well as magistrates' courts, with potentially unlimited fines.

6. Flexible Working Regulations 2009 Come into Force

The right to request flexible working arrangements was extended to parents of children up to the age of 16 on 6 April 2009.

Under the previous legislation employees were only eligible to make a request in relation to a child under six years old (or 18 years old if the child is disabled).

Eligibility

The Flexible Working Regulations 2009 do not alter the eligibility criteria that employees must meet to make a request for flexible working. An employee will still need to have 26 weeks’ continuous employment and must not have made another application to work flexibly in the preceding 12 months to making a request.

It remains the case that an employee can only make a request if they are either:

• The child’s mother, father, adoptive parent, guardian or foster parent; or
• The spouse, civil partner or partner of the child’s mother, father, adopter, guardian or foster parent.

Procedure

The procedure to be followed by parties in making or handling a request remains the same:

• The employee submits a written application to request flexible working setting out their entitlement to make the request. Assistance in this is available to members by contacting Central Office
• The employer must respond to the request within 28 days and arrange a meeting with the employee to discuss the application.
• The employer must write to the employee within 14 days of the meeting confirming whether the request has been accepted or rejected and on what grounds.
• The employee has a right to appeal within 14 days of a request being rejected.


Posted On Fri, 8 May 2009


 
 
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