Articles
Work & Familes Act 2006
The Work & Families Act 2006 received Royal Assent on 21st June 2006 and will come into force in April 2007.
The Act contains important provisions about statutory rights to leave and pay in connection with the birth and adoption of children; it also extends the concept of flexible working for employees with caring responsibilities. In addition, The Act deals with certain other significant issues such as workers’ entitlements to annual leave.
The Government has sought to address the issue of work-life balance via legislation designed to be more “holistic” in its approach and execution. Employers will immediately be required to review their maternity, adoption and flexible working policies. Employers will also have to consider and plan for significant changes to paternity leave expected to be applicable by 2009/10.
The Government has also published the Flexible Working Regulations 2006. The Maternity and Paternal Leave etc. and the Paternity and Adoption Leave (Amendment) Regulations 2006 have also been approved by Parliament. Further implementing regulations are expected to follow.
Key Changes
Increased Flexible Working- amendments to Section 80F of the Employment Rights Act 1996 (ERA):
From April 2007, current flexibility rights (available under the ERA to employees with children younger than six or with disabled children younger than 18) will be extended significantly. Employers will now be required to consider requests for flexible working hours from employees who care for elderly parents, a spouse or partner, a near relative or someone who lives at the same address as the employee. Near relatives will include in-laws, uncles, aunts and step-relatives.
Significant Changes to Maternity /Adoption leave and pay entitlement:
Working mothers with Expected Week of Childbirth (EWC) on or after April 1 2007 are now entitled to 39 weeks (9 months) statutory maternity/adoption leave. This is expected to further increase to 12 months by 2009/10. Further, all women who currently qualify for ordinary maternity leave will now also qualify for additional maternity leave (AML). The basic statutory maternity pay has increased to £112.75
New Keeping-in-Touch (KIT) days:
KIT days will also be introduced where, to facilitate employers and employees maintaining contact, an individual on maternity leave will be allowed to work for up to ten days without jeopardising their entitlement to statutory maternity pay or inadvertently bringing their leave to an end.
Paternity Rights to be amplified:
Paternity entitlement remains at two weeks’ leave for fathers who have 26 weeks’ service at the 15th week before the mother’s EWC. However, there is a proposal to allow fathers (or partners, or civil partners with parental responsibility) to take additional paid paternity leave of up to 26 weeks where the child’s mother returns to work early without using up her entitlement. The enabling regulations are still under consultation and the changes are expected to take effect by end of this Parliament (2009/10).
Annual Leave:
Important changes to working/holiday rules proposed by the Government and expected to be in place by October 2007 are as follows:
- The statutory entitlement to paid holidays will increase from 4 weeks to 4.08 weeks from 1 October 2007.
- Statutory entitlement to paid holidays to further increase to 5.6 weeks with effect from 1 October 2008.
- There is no minimum period of employment required before an employee can qualify for the additional holiday entitlement.
- There will be no right to take the additional leave on Bank Holidays (this will affect hospitality and retail sectors especially).
- Payment in lieu of increased statutory holiday entitlement will only be permitted on termination.
- Carry forward of increased statutory entitlement will be allowed with agreement.
- There will be a maximum statutory entitlement of 28 days.
- Employers will need to review their contractual holiday provisions and monitoring systems and notify staff in writing of any changes.
Increased maximum amounts for certain employment claims arising after February 1 2007:
The basic award maximum has been set at £9,300. The compensatory award maximum has been set at £60,600 and the maximum amount of a week’s pay for calculating statutory redundancy payment/unfair dismissal basic award has been increased to £310.
In addition to the above changes, new Statutory Disciplinary and Dismissal and Grievance Procedures will be provided shortly; Statutory Sick Pay rate is to increase to £72.55; there will be a Smoking Ban in all enclosed public places and workplaces (subject to certain limited exceptions) in place by July 2007 and Discrimination against employees on the grounds of a lack of belief or religion will be prohibited as from April 2007.
The details set out in this article are for general guidance only.
Please contact Graham Young or Julian Goulding for further information and/or detailed legal advice on any aspects of the new law.