Employment law changes ahead

A new Employment Bill will, if enacted, impose tougher penalties on employers. The overall effect of the Employment Bill will be to strengthen and clarify key aspects of employment law. The Bill had its first reading last December and should receive Royal Assent by summer 2008. The legislation will probably not be implemented until October 2008 at the earliest.

The proposed legislation would:

• increase the fines paid by businesses not paying workers the National Minimum Wage and for certain offences, make employers potentially subject to trial in the crown courts
• make changes to the employment tribunal system.

The Bill also contains provisions on dispute resolution. The Bill aims to repeal the current complex statutory procedures which are a regulatory burden on employers. These are to be replaced with a package of measures to encourage early and informal resolution. It is proposed that these measures will not take effect until April 2009.

We will keep you informed of developments.