Updates

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Increase in National Minimum Wage 

The following NMW rates will apply with effect from 01 Oct 2012:

Workers aged 21 and over: £6.19 per hour
Workers between the ages of 18 - 20: £4.98 per hour
Workers between the ages of 16 - 17 above school leaving age but under 18: £3.68 per hour
Apprentice rate for those under 19 or 19 or over and in the first year of their apprenticeship increases to £2.60 per hour

Increase in Statutory Maternity/Paternity/Adoption Pay

From 6th April 2012 the weekly rate for statutory maternity/paternity/adoption pay will increase from £128.73 per week to £135.45.

Increase in Statutory Sick Pay

From 6th April 2012, the weekly rate of statutory sick pay will increase from £81.60 to £85.85.

Fit Notes

The procedures surrounding sickness absence have been changed from what used to be a sick note process to a fit note process, more information can be found (here).  A PDF of a sample 'fit note' is available to download from (here)  

Retirement

Abolition of Default Retirement Age Confirmed

The Government has recently confirmed that the default retirement age (DRA) of 65 is to be removed from April 2011.

Proposals announced last summer suggested that the DRA would be phased out between April and October this year, after which employers would not be able to use the simple fact that the employee has reached the age of 65 to dismiss them.

The statutory retirement procedure, which includes informing the employee of their intended retirement date 6 - 12 months in advance, and giving the employee the right to continue working past that date, will also be abolished.  The following timetable will now be used:

• from 6th April 2011, employers will not be able to issue any new notifications for compulsory retirement using the DRA.
• between the 6th April - 1st October 2011, only people who were notified before 6th April 2011 and whose retirement date is before 1st October 2011 can be compulsory retired using the DRA.
• from 1st October 2011, employers will not be able to use the DRA to compulsory retire employees.

It is still possible for the time being for individuals to use the DRA to safely retire an employee who turns 65 prior to 1st October 2011, the last date to safely notify the employee is 30 March 2011, giving 6 months notice of the intended date of retirement of 30 September 2011.  Although the timetable states that notices may be given up until 6th April 2011, any notices given between 1st and 5th April 2011 inclusive would be under the short notice provisions under the Equality Act 2010; i.e.giving less than the requisite 6 months notice which may incur an award of up to 8 weeks pay at tribunal, although still potentailly enforcing a fair retirement of the employee.

Even from 1st October 2011, it is still possible to operate a normal retirement age but only when the retirement age is objectively justified, however, the test for objective justification is difficult to pass.

The abolition of the DRA and the statutory retirement procedure does not mean that employees cannot retire from their jobs.  It just means that it becomes much more their choice over when to end their working life because the employer's ability to enforce it on them has been severely restricted.

Additional Paternity Leave

When babies are due on or after 3rd April 2011, mothers will be able to forfeit up to 6 months of their maternity leave and transfer it to the father of the baby, or the mother's partner in same sex relationships.  Additional Paternity Leave (APL) allows fathers or mothers partners who meet cetain conditions to take a maximum of 6 months leave.  The leave must be taken in one continuos block, and is in addition to the current entitlement to 2 weeks paternity leave.  APL will be paid at the usual rate of Statutory Paternity Pay for the length of the leave that was outstanding from the mother's leave.

Form EE

Following recent case law, Morgan v Network Europe Group Ltd (UKET/0159/10/SM) it is imperative that you have your staff complete the Form EE that is issued with the Statement of Main Terms (SMT) and the Employee Handbook issued by SPAEN.  Whilst the signing of the SMT is clear, the only evidence you will have proving the request for the employee to have read the handbook and indicating their understanding of this document will be this form.  It is therefore important that you fully understand what is in the handbook especially surrounding issues that could potentially affect the employees income, such as the shortage of work clause on page 7, 4(C), the respite/hospitalisation clause etc.  It is a requirement to bring these issues to the attention of the employee at the interview.  These clauses are important in order to comply with your local authorities policies and procedures intentions regarding the effects on your package in the event of you being hospitalised.