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New Wage and Disciplinary Procedures
The Employment Act 2008 was passed back in November 2008, and a number of changes it introduced will come into force on 6th April 2009. How much do you know about what your company needs to do to be compliant?
April 6th will see changes to the enforcement of the National Minimum Wage. There will be a new penalty for employers who underpay their workers, and a method of calculation of arrears that takes into account the length of time they have been outstanding. Workers will be entitled to have arrears of wages repaid at current rates.
There will also be a repeal of the statutory dismissal and disciplinary procedures contained in the Employment Act 2002 and the dismissal rules in the Employment Rights Act 1996 that have now been ruled unfair. The move will also allow employment tribunals to increase or reduce awards by up to 25% where an employer or employee unreasonably fails to comply with the new ACAS revised code of practice, at their own discretion.
The new revised code provides broad principles on discipline and grievance handling in the workplace and was one of a number of recommendations which came out of the Government review of workplace dispute resolution carried out in 2007.
Connie Cliff at Wragge & Co LLP isn't convinced the transition will be very smooth however.
"How will the employment tribunal exercise its discretion in applying this increase or decrease? No doubt there will be difficulties arising during the transitional phase for dismissal procedures commencing/grievances arising before April 6th but not yet concluded."

(Courtesy The People Bulletin)



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