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Article: Employment and the Law - Recent Developments by Louise Fernandes-Owen

Louise Fernandes-Owen of Field Fisher Waterhouse LLP examines the latest key employment law developments. 

Equality Act 2010 - implementation date?

The Government Equalities Office (GEO) recently removed the implementation timetable for the Equality Act 2010 from its website, leading to speculation that the Act will not come into force, as originally planned, from October 2010.

After the Equality Act received Royal Assent in April, it was intended that the majority of its provisions would come into force in October 2010. However, the position appeared uncertain after the GEO recently removed this date from its website. It also recently published a consultation document relating to the forms for obtaining information about potential discrimination. This simply refers to the Equality Act coming into force "later this year".

The GEO has now published the following statement on its website, providing some clarity:

"The provisions in the Equality Act will come into force at different times to allow time for the people and organisations affected by the new laws to prepare for them. The Government is currently considering how the different provisions will be commenced so that the Act is implemented in an effective and proportionate way. In the meantime, the Government Equalities Office continues to work on the basis of the previously announced timetable, which envisaged commencement of the Act's core provisions in October 2010."

Vetting and barring scheme

The Government has announced that registration with the Vetting and Barring Scheme (VBS) will be halted to allow the scheme to be remodelled.

Voluntary registration with the VBS for new employees and job-movers working or volunteering with children and vulnerable adults was due to start on 26 July. This registration has now been stopped.

The Government states that it recognises that many businesses, community groups and individuals see the current scheme as disproportionate and overly burdensome, and that it unduly infringes on civil liberties. Some requirements remain in place (for example, employers are still legally obliged to refer information to the Independent Safeguarding Authority if they have moved or removed an individual because they have harmed, or there is a risk of harm to, a member of a vulnerable group). The scope of the remodelling process – to be co-ordinated by the Home Office in partnership with Department of Health and Department for Education – is currently being finalised and will be announced shortly.

Government sets remit for Low Pay Commission

The Government has written to the Low Pay Commission (LPC) setting out the remit for their 2011 Report. As with previous years, the LPC will monitor, evaluate and review the National Minimum Wage (NMW) and its impact, and review the levels of each of the different minimum wage rates.

This year the LPC is also asked to pay particular attention to:

• the competitiveness of small firms; and 
• the employment prospects of young people, including those in apprenticeships and internships. 

The LPC will report to the Prime Minister and the Secretary of State for Business, Innovation and Skills by the end of February 2011, with their recommendations for October 2011. 

The Government has also announced its response to the recommendations in the LPC’s 2010 report and laid regulations to bring these into force. The new NMW rates, which will come into effect on 1 October 2010, will be:

• £5.93 per hour for workers aged 21 and over, increasing from £5.80; 
• £4.92 per hour for 18-20 year olds, increasing from £4.83; and 
• £3.64 per hour for 16-17 year olds, increasing from £3.57. 

For the first time, there will also be an apprentice minimum wage of £2.50 per hour. The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.

Employees fail to read their contracts

At least 5.1 million people fail to read their employment contracts properly, according to new research from Which? Legal Service.

In a survey of over 4,000 members of the British public, it was found that 26% of workers only skim read their employment contracts, while 6% admitted to not having read them at all. Only three in ten employees received their contract before starting their job, and nine per cent didn't get a contract until they'd been in the post for six months or more. According to Which?, overall, at least two million workers in Britain do not have an employment contract.

Louise Fernandes-Owen is the Professional Support Lawyer in the Employment and Pensions Group at Field Fisher Waterhouse LLP and can be contacted at louise.fernandes-owen@ffw.com 

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