With the majority of new business legislation now being implemented on one of two annual Common Commencement dates, namely April 6 and October 1, here are the main regulations affecting businesses which came into force on October 1, 2011.
The Agency Workers Regulations (AWR)
From 1 October 2011, agency staff working for an employer in the same role for a continuous period of 12 weeks will be entitled to the same terms and conditions (relating to some aspects of pay, hours of work and holidays) that an employed individual would receive.
From the first day of a temporary assignment, the employer must give agency workers access to any on-site facilities – such as staff canteens, childcare, parking and access to information on relevant job vacancies within the business – that are made available to a comparable employee.
For more information on the Agency Worker Regulations 2011;
Default Retirement Age (DRA)
From October 1, the Default Retirement Age has been abolished, however organisations can retain a specific retirement age.
Under the new legislation, employers will either need to;
- Abolish retirement ages in their organisation altogether; or
- Maintain a retirement age for some or all roles which they can objectively justify.
Organisations will need to ensure their policies and procedures are fair and reasonable and do not discriminate against older employees. Failure to do so, could lead to claims for age discrimination or unfair dismissal.
Increases to National Minimum Wage (NMW) Rates
The Government has accepted, in full, the independent Low Pay Commission’s (LPC) recommendations for this year’s National Minimum Wage (NMW) rates. The national minimum wage rates changes from 1 October 2011 are as follows:
- Adult rate goes up by 15p to £6.08 an hour
- Rate for 18-20 year olds increases by 6p to £4.98 an hour
- Rate for 16-17 year olds rises by 4p to £3.68 an hour
- Rate for apprentices goes up by 10p to £2.60 an hour
In an effort to give employers longer-term visibility on National Minimum Wage rates, the Government has asked the LPC to consider giving two-year recommendations in future. This could help businesses to make long-term employment and investment decisions with more certainty.
Better Intellectual Property protection for small businesses
A new law that gives small and medium sized businesses easier access to justice to protect their copyright and trade marks comes into force on October 1.
The Patents County Court (Financial Limits) Order (No.2) 2011 gives a clearer definition of which disputes involving copyright and trade mark claims should be heard in the Patents County Court (PCC) and which ones should go to the High Court.
A new damages cap of £500,000 for all claims in the PCC means small companies claiming damages up to that amount are less likely to face a potentially more expensive trip to the High Court.
The changes will ensure that lower value cases, which would typically involve small businesses, will automatically be heard in the PCC. The PCC has a simpler and cheaper process which, it is hoped, will encourage more small businesses to protect their intellectual property rights.
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