Acumen News & Events

25 May 2010

Employment Law under the NEW Coalition Government

How will employment legislation be decided over the next 12 months?

Areas of possible conflict	Liberal Democrats	Conservative
Shared leave	The Liberal Democrats stated that they would allow parents to share maternity and paternity leave between them (although mothers would have to take the two weeks following the birth) and seek to extend the period of shared parental leave for up to 18 months "when resources and economic circumstances allow".	The Conservatives did not go as far as this, stating that they would introduce a new system of flexible parental leave but that only mothers could take the first 14 weeks after the birth
Flexible working	The Liberal Democrats stated that they would extend the right to request flexible working to all employees	The Conservatives planned to extend the right to request flexible working to all employees to only those with children under 18 initially, and then those in the public sector (possibly in stages) and, in the longer term and after full consultation with business, to all employees.
Ante Natal Appointments	The Liberal Democrats stated in their manifesto that they would give fathers the right to time off for ante-natal appointments
Public sector - Pay	The Liberal Democrats stated that they would cap pay rises in the public sector at £400, initially for two years, scrap civil service bonuses and limit the pay and bonuses of top NHS managers so that none are paid more than the Prime Minister.	The Conservatives stated that they would freeze pay for public sector workers for one year in 2011, publish the salaries and expenses of senior public sector officials, require anyone paid more than the Prime Minister in the public sector to have their salary signed off by the Treasury and cut ministers' pay by 5%, followed by a five year pay freeze.
Remuneration in the financial sector	The Liberal Democrats stated that they would ensure "that the bonus system can never again encourage banks to behave in a way that puts the financial system at risk or offers rewards for failure". Previously they have suggested that they would limit cash bonuses to £2,500 annually, prohibit board directors from receiving any bonuses, prevent loss-making banks from paying bonuses, require publication of the names of those bank employees earning more than the Prime Minister.	The Conservatives stated that they would give the Bank of England the power to crack down on "risky bonus arrangements". They plan to transfer responsibility for bank regulation from the FSA to the Bank of England. It is not clear if the Bank's powers would exceed those of the FSA.
Human rights	The Liberal Democrats state that they intend to "protect" the Human Rights Act	The Conservatives have stated that they would replace the Human Rights Act 1998 with a UK Bill of Rights.
Equality Act	At the time the Act was implemented the Liberal Democrats broadly welcomed the Act, they would have liked the Government to have done more.	The Conservatives, have previously indicated that they would review the way that the Equality Act 2010 is brought into effect and possibly make some changes to the Act itself. In the Commons' debate on the Lords' amendments to the Bill, which took place on 6 April 2010, Mark Harper MP reiterated the Conservative party's support for the Bill. He stated, however, that if the Conservatives form the next government they will not bring into force the public sector socio-economic duty, the "mistaken" provisions designed to tackle equal pay (presumably the provisions on gender pay reports) and new rules on positive action
Equality issues	Introduce "name-blind" application forms, initially for those employers with over 100 employees. End "unfair discrimination on grounds of faith" when faith-based schools recruit staff, except for those principally responsible for optional religious instruction.	Require the long list for all executive and non-executive directorship appointments to include 50% female candidates and all non-executive director positions to be advertised. Prohibit clauses in employment contracts that prevent employees speaking to colleagues about their salary.
TUPE	The Liberal Democrats have said nothing on this issue.	The Conservatives stated prior to the election that they would rein in the effect of the provisions in TUPE relating to service provision changes where they go beyond what is required by the Acquired Rights Directive.
Employment Tribunals	The Liberal Democrats have said nothing on this issue.	The Conservatives have stated that they will consult on proposed changes to the employment tribunal system to ensure the system offers "fast, cheap and accessible justice" that it is fair to both sides They have suggested that this could include raising the limit for deposits and/or cost awards to discourage weak or vexatious claims, reviewing the tribunal rules to ensure a more balanced and consistent approach across tribunals, requiring the president of the employment tribunals to make practice directions on the management of cases to promote greater consistency, harmonising the deadlines and grounds for extending time to bring a claim and requiring mediation in some types of claim
Agency workers	The Liberal Democrats have said nothing on this issue.	The Conservatives stated prior to the election that they would review the Agency Workers Regulations, in particular the proposed 12-week qualifying period On 15 March 2010, David Cameron put forward an Early Day Motion proposing that the Regulations be revoked.