Many businesses should be aware of the two key months in the year when new employment legislation is introduced - April and October. April is upon us now and there are a number of important Regulations and Orders being released that could have an effect on your business:
The Corporate Manslaughter and Corporate Homicide Act 2007
The act introduces a new offence of corporate manslaughter and applies to companies but not individuals, e.g. directors. It replaces the common law offence of manslaughter by gross negligence for companies.
Under the act a company commits an offence if the way in which its activities are managed or organised causes a person's death, e.g. an employee, or amounts to a gross breach of a relevant duty of care owed to that person, e.g. health and safety. When hearing a case the jury will be able to take into account attitudes, policies, and systems that may have encouraged a management failure.
If a company is convicted of this offence the penalty will be an unlimited fine but not imprisonment, which would be inappropriate for a company. The court could also impose a remedial order requiring the company to remedy the management failure, or a publicity order requiring the company to publicise the conviction.
It is clear that there could be serious consequences for any company that does not comply with this Act, and we would encourage businesses to become familiar with its contents and to review their own policies regularly to ensure they do not fall foul of the legislation.
The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2007
These regulations amend the Conduct of Employment Agencies and Employment Businesses Regulations 2003 and will enhance protection for those people seeking work and will reduce the regulatory burdens placed on employment businesses, such as recruitment agencies.
By way of example, regulation 5 will provide an exemption for businesses sending workers on short term assignments in that they will no longer need to provide detailed information to the hiring company and the worker. This should ease administrative issues for businesses.
It is hoped that this legislation along with the 2003 regulations will provide further guidance and structure for the employment agency and business sector, however we will not know whether this is the case until the new regulations are put into practice.
The Social Security Benefits Up-rating Order 2008
From 6th April statutory sick pay will increase from £72.55 to £75.40 and the prescribed rates for statutory maternity pay, statutory paternity pay and statutory adoption pay will increase from £112.75 to £117.18.
The Information and Consultation of Employees Regulations 2004
These regulations stipulate that UK employers may, and in some cases must, put in place Information and Consultation agreements governing how they will consult their UK work forces about economic and employment-related matters.
The regulations will cover employers with 50 or more employees and will not cover workers.
The Occupational Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 & The Occupational Pension Schemes (Consultation by Employers) (Modification for Multi-employer Schemes) Regulations 2006
These regulations introduced a requirement for employers to consult before making changes to occupational and personal pension schemes and will now extend to cover businesses with 50 or more employees.
It is clear from the above that companies will need to review their policies and procedures and ensure that they comply with all the relevant sections in each Order or set of Regulations.
For further information on any of the legislations please contact Dean Parnell (d.parnell@sydneymitchell.co.uk) at Sydney Mitchell Solicitors on 0121 698 2200.
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