News Matters

The awards that an Employment Tribunal can make against an employer fall into several categories:

• In respect of discrimination or health & safety dismissal compensation is unlimited
• In respect of unfair dismissals there is a basis award based on age, length of service and week’s pay of £380, additionally there is -
• A compensatory award related to anticipated loss of earnings, the current maximum from 1 February 2010 being £66,300
• A further award may be made if there is an order to re-employ and the employer unreasonably fails to do this
• Up to £25,000 can be awarded for wrongful dismissal or other breaches of contract

Claims may also be brought in other courts for more significant breaches of contract.

The minimum statutory holiday entitlement is now 5.6 weeks (28 days for someone working five days a week or pro rata for those working less days). Bank holidays may be included in this minimum, but an employer has the right to control holidays so bank holidays are not necessarily an automatic right.

The current rates for the National Minimum Wage since 1 October 2009 are:

• £5.80 – the main rate for workers aged 22 and over
• £4.83 – the rate for those who are 18-21
• £3.57 – the rate for workers over school leaving age but under 18

There is no minimum for those still below the school leaving age. Some people such as self-employed, volunteers, those doing work experience and some apprentices are not entitled to NMW.

The current weekly pay limit for Statutory Redundancy Pay calculations is £380.

The current standard rate for SSP is £79.15 a week.

Subject to eligibility (length of service and minimum pay), SMP is paid over 39 weeks and currently is:

• First six weeks at 90% of average gross weekly pay (no ceiling)
• Then 33 weeks at either £124.88, or 90% of your average gross weekly pay (whichever is lower)

Since April 2010 the previous system of “sick notes” has been replaced by a scheme of “fit notes” where family doctors (GPs) may either certify staff who are unwell or injured as either being “unfit for work” or “may be fit for work”. In the latter case, the doctor will suggest that an employee may be able to work on a part-time basis or under certain conditions, although the employer is not compelled to agree.

Whilst signed as “unfit”, or “may be fit” yet still not working, an employee is entitled to receive Statutory Sick Pay. Staff may have to fulfil other criteria to prove they are entitled to additional occupational sick pay.

Many people have recently had travel plans delayed by events beyond their control. When this happens for a legitimate reason, employers should come to a sensible agreement with their staff which will probably involve a flexible approach. This may involve additional days unpaid or paid leave, making up time lost, or repaying additional days paid holiday over time. However, any scheme should treat all staff equally and there may be legal or contractual limits that must be followed.

So long as absence is genuine and the staff are unable to get to work when expected due to force majeure it should not result in disciplinary action.

As of March 2010, the current rate of inflation often used to help benchmark or adjust salaries is:
Retail Price Index – 4.4%
Consumer Price Index – 3.4%

Source: Office for National Statistics, 20 April 2010.