News
New legislation will impact MI
Andy Barrett Apr 11 2008, 10:30am
MIA alerts industry to important changes affecting your business
The MIA has alerted its members to new legislation that came into force this year, which will affect any and all employers. From simple laws governing the national minimum wage to complex corporate liability, all businesses are advised to review their procedures in order to come into line with the new Acts.
National Minimum Wage
The new National Minimum Wage will increase in October 2008, raising the new adult rate (22 years and over) from £5.52 to £5.73per hour.
The so-called ‘development rate’ (18 to 21 years) will climb from £4.60 to £4.77 per hour, and the youth rate (16 to 17years) will rise from £3.40 to £3.53 per hour.
Statutory Payments
The new statutary payments will come into force from 6th April 2008 and will see sick pay increase to £75.40 per week for employees earning £90 or more.
Statutory maternity pay will now see the first six weeks at 90 per cent of average weekly earnings, with the remaining weeks at £117.18 a week (or 90 per cent of average weekly earnings, whichever is lower).
Statutory adoption pay will be the lower of £117.18 or 90 per cent of the employee’s average weekly earnings, as will statutory paternity pay.
Immigration legislation
The changes to the law on working illegal immigrants were introduced on February 29th 2008. If employers knowingly employ illegal workers, they face a penalty of £10,000.
Employers who knowingly employ illegal workers could also be prosecuted with an unlimited fine or even face a prison sentence of up to two years.
New consultation rules
From April 2008 the Information and Consultation (ICE) regulations will apply to organisations with 50 or more employees. There is no automatic requirement to have the ICE but if ten per cent or more of your employees make a request then you must take action.
New corporate manslaughter regulations
The Corporate Manslaughter and Corporate Homicide Act 2007 came into force on April 6th 2008. An organisation can be found guilty from the negligent management of health and safety practices, which have caused the death of an employee or another person. The penalty for this is an unlimited fine, plus under this act each organisation would be obliged to publicise its own offence.
This new legislation also covers road accidents when an employee has an accident while driving for work. One in three car crashes involve company drivers, therefore driving is seen as one of the riskiest activities at work.
The MIA suggests that businesses review their health and safety procedures, raise the health and safety standards and awareness among managers, and check the standards for employees who drive their own cars for business purposes.
The information was supplied to the MIA by HR Point, for further information please contact Nicky Gleadow on 01903 620080.
