4 more days holiday per year - new annual statute

It’s a busy time for new regulations! And April has seen a rise in new regulations affecting employment law, employers and employees. View our summary bites here, or go to www.hmrc.gov.uk for the full story.

Increase in annual statutory holiday entitlement from 1 April

On 1 April, the annual statutory holiday entitlement is due to increase from 4.8 weeks, or 24 days, to a minimum of 5.6 weeks or, for a full-time worker, 28 days – public holidays may be included.

Employers who currently offer fewer than 28 days holiday per year, including public holidays, need to increase employee holiday entitlement or risk employment tribunal claims. For employers whose holiday year does not run 31 March-1 April, an online calculator is available from Business Link to assist calculating pro-rata entitlement.

Rises in statutory sick pay (SSP) from 6 April

SSP rises to £79.15 per week.

Employers who operate a non-contractual sick pay scheme will need to amend their records and any commercial payroll software to reflect this change. In addition, written policies that detail the level of SSP payable will also need to be updated.

The new Acas code applies from 6 April

The revised Acas Code of Practice replaces the statutory dispute resolution procedures and will become the keystone of discipline and grievance matters. The emphasis is on resolving issues in the workplace. It is not legally binding and a failure to follow it will not make any dismissal arising out of a disciplinary matter automatically unfair.

Employers should review their existing discipline and grievance policies and train staff on the impact of the new regime.

Increased penalties for failure to pay the national minimum wage (NMW) apply from 6 April

Where employers have failed to pay the NMW, they will face a penalty of 50% of the amount of the underpayment, which may be enforced by HMRC, which also gains powers to remove wage records for inspection, and to use search and seize powers when investigating criminal offences relating to the NMW.

Employers should ensure the NMW is paid to all qualifying employees, and that no deductions are made that could take the worker's average pay below the NMW. Employers should also ensure that accurate records are kept.

Increases to statutory maternity, paternity and adoption pay from 5 April

The prescribed weekly rates of statutory maternity pay, (SMP), statutory paternity pay (SPP), and statutory adoption pay (SAP) will be increased with effect from 5 April. The prescribed weekly rate of SMP, SPP and SAP will be £123.06 (up from £117.18).

Ensure the new rates are paid as appropriate.

Withdrawal of the VAT Staff Hire Concession from 1 April

From 1 April, the VAT Staff Hire Concession will be withdrawn and businesses supplying temporary staff will no longer be entitled to this concession. Consequently, suppliers of temporary staff will charge VAT (15%) on the full value of the staff supplied. Previously, VAT was charged only on the amount of their fee for supplying the individual and not on the full value of their supplies, including salaries. There are a few exemptions related to the supply of disabled workers and medical and care services.
More at the HMRC website

above: Annual statutory leave has increased to 28 days for a full time worker - an extra 4 days

Check your photocard driving licence

Did you know that your photocard driving licence is valid for only ten years from the date of issue? Many people don't, and are risking a fine of up to £1,000

The old green paper driving licences are valid until drivers reach the age of 70, so many people are unaware of the fact that the photocard licences (introduced in 1998) have an expiry date. The Driver and Vehicle Licensing Agency states that this is because faces change over time.

The expiry date of the licence is shown under section '4b' on the front; if the card is turned over, the explanation of these categories is given in small print and reads '4b licence valid to'. The DVLA issues reminder notices when the expiry date draws near, instructing drivers to fill in form D1, supplying a new photograph and payment of £17.50.

Remember: read the small print on your photocard driving licence and ensure that you are ready to renew when it expires! For more information on how to do this, visit the Direct.gov website.
More at the DVLA website

Common Commencement Dates

The 5th April 2009 was the Common Commencement Date for regulations, and businesses from every sector to check for any legislative changes that may affect the way they do business.

To save businesses time and money, many government departments issue their changes to business legislation twice a year - on 6 April and 1 October – dates that are known as Common Commencement Dates (CCDs).

Business Link has created a summary overview of the changes that come into force to help businesses identify those that are relevant to them (available at www.businesslink.gov.uk/ccd). All businesses are encouraged to go online and check whether the incoming regulations affect their business in any way.
More at Business Link

Removing premises registration and record keeping requirements - What this change means

From 6 April 2009, employers no longer had to register the factories, offices and shops in which their employees work with the relevant health and safety authority.

This is because new rules have removed the requirements to register under the Factories Act 1961 and the Offices, Shops and Railway Premises Act 1963.

factory employers will no longer have to complete the F9 form and register with the Health & Safety Executive (HSE);
office and shop employers will no longer have to complete the OSR1 form and register with their local authority; and
railway operators no longer have to complete the OSR7 form to register certain track-side buildings.

However, these changes do not affect the registration or form filling requirements of other legislation. Some businesses will still have to register and submit forms under other regulations. This will depend on the type of business and the regulations that govern it.
More at HMRC