Bevan Brittan

In this article...

Payment increases
Information and consultation requirements extended
Employment agency regulations in force
Amendments to the Sex Discrimination Act 1975
Corporate manslaughter
Minimum wage increases

April may be the cruellest month, but it is also, traditionally, one of two months of the year during which the government introduces legislative changes (the other being October). This month’s news round-up, reported by Alastair Currie, focuses on the changes which will be taking effect in the coming weeks.

Payment increases

The weekly rates of statutory maternity, paternity and adoption pay will increase from 6 April 2008 to £117.18. The standard rate of statutory sick pay will increase to £75.40. The earnings threshold for these payments will increase to £90.

Information and consultation requirements extended

The Information and Consultation Regulations, which require organisations to undertake collective consultation with employees on specific issues, are extended so that, from 6 April 2008, they will cover undertakings with 50 or more employees.

Employment agency regulations in force

The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2007 will come into force on 1 April 2008. The Regulations aim to increase protection for agency workers by strengthening the rules regulating employment agencies in relation to the fees they may charge, and the information that they must provide to workers.

The Regulations do not deal with the vexed question of the employment status of agency workers. A Bill designed to deal with this issue has passed its second reading in Parliament but does not have the backing of the government and has little chance of becoming law.

Amendments to the Sex Discrimination Act 1975

In order to implement the EC Gender Directive, changes to the Sex Discrimination Act are due to take effect on 6 April 2008 and confirm, in summary, that:

		sexual harassment in relation to the provision of services is outlawed;
		discrimination on the grounds of gender reassignment in relation to the provision of goods and services is outlawed; and
		less favourable treatment on the grounds of a woman’s pregnancy in relation to the provision of goods and services is unlawful.

The above changes will be implemented by the Sex Discrimination (Amendment of Legislation) Regulations 2008.

Further amendments to the Sex Discrimination Act made by the Sex Discrimination Act 1975 (Amendment) Regulations 2008 also take effect on 6 April 2008 and confirm, in summary, that:

		for complaints of discrimination on the grounds of pregnancy or maternity leave, there is no requirement for an element of comparison with a woman who is not pregnant or on maternity leave;
		the requirement to show that sexual harassment was on the “grounds” of the victim’s gender has been removed; and
		there is a new requirement for employers to take reasonably practicable steps to protect their employees from harassment from third parties, such as clients or customers.

For women whose expected week of childbirth is on or after 5 October 2008, there will be a new right to claim discrimination in relation to the non payment of any bonus payable during the two week period of compulsory maternity leave, and women will have the right to the same terms and conditions during “additional maternity leave” (the second 26 week period) as are applicable during “ordinary maternity leave” (the first 26 week period).

Back to top

Corporate manslaughter

The Corporate Manslaughter and Corporate Homicide Act 2007 (“the Act”) comes into force on 6 April 2008 and creates a new offence of corporate manslaughter. The offence does not apply to individuals, but will apply to organisations where management has breached a duty of care and this has resulted in a death.

In deciding whether or not there has been a breach, courts will take into account:

		whether the organisation was in breach of health and safety legislation;
		how serious the management failure was; and
		how much of a risk there was of death occurring.

The Act lists factors which a jury may take into account in making their decision regarding an alleged offence, such as attitudes, policies, systems or accepted practices in the organisation that were likely to have encouraged a management failure.

The Act will cover not only companies, but also most other types of organisation such as trusts, local authorities, partnerships, incorporated charities, some government departments, the police force and trade unions or employers’ associations.

Penalties imposed by the Act are:

		an unlimited fine;
		a Remedial Order (requiring an organisation to remedy the failures that caused the death);
		a Publicity Order (requiring an organisation to publicise the conviction).

A defence is available if an organisation has put in place reasonable safeguards and death occurs in any event. It is, therefore, now more important than ever to ensure that health and safety procedures are in place, and that they are followed up and enforced as part of the culture of an organisation. The Act makes it clear that there will be no defence where a paper policy is in place but is ignored.