Labour Research November 2010

Law Matters

Employment law changes

A number of legal changes came into force last month along with the Equality Act .

The National Minimum Wage adult rate rises by 2.2% to £5.93 an hour and also becomes payable at 21 years of age rather than 22. The development rate for workers aged between 18 and 20 is now £4.92, while workers aged 16 to 18 (who are not apprentices) are entitled to £3.64 an hour.

In a new move, first–year apprentices (and apprentices under 19 years old) are now covered by the minimum wage legislation, but are only entitled to £2.50 an hour.

Finally, where accommodation is provided, the maximum amount that an employer can deduct from an employee’s minimum wage is raised to £4.61 a day (£32.27 a week).

The rules governing employment agencies have been amended in the Conduct of Employment Agencies and Employment Businesses Amendment) Regulations 2010. For instance, employment agencies and businesses must obtain a work-seeker’s agreement to more extensive terms before attempting to provide services to the individual.

In addition, adverts that employment agencies and businesses place must state whether the work being offered is temporary or permanent.

The government has announced that some future changes on paternity leave and the right to flexible working will go ahead in 2011.