Becoming a Father

Mothers and fathers could soon be arguing over which of them gets to stay at home with the new baby. From 1st April 2007, mothers and fathers can take maternity or paternity leave because of The Work and Families Act 2006. The act applies to children born or placed for adoption on or after 1 April 2007. The main paternity leave changes are:

• Employees with parental responsibility will be permitted to take up to 26 weeks' extra paternity leave in addition to the standard two-week entitlement which is already in place, by using some or all of any unused maternity leave entitlement (12 months) from the mother. So parents are going to have to decide between themselves which of them may take some of the leave for that six-month period. In some cases the mother might take the first 6 months and the father the second six months, for example


• If an employee ‘borrows’ a period of additional entitlement from the mother, then he must give eight weeks' (previously four weeks') notice before returning to work

Additional Statutory Paternity Pay from 1st April 2007 is £112.75 per week, or 90% of the employee's weekly earnings if 90% is less than that sum. So those on high pay, as with women with maternity pay entitlement of the same sum, may not in practice be able to afford to take the full period off. Like maternity pay which is also at that rate from that date, employers can claim the payments at that level back from the Government. Some employers choose to pay more but they do not have to. Paternity leave is granted to biological fathers and all those with parental responsibility only if he:

• Has at least 26 weeks' service by the end of the 15th week before the baby is due


• Is fully involved in the child's care and upbringing


• Will support the mother or care for the baby. So, no sabbatical or six months on the golf course! However, some families employ a nanny even during the mother’s maternity leave, particularly if the mother usually works and will return to work, so the employee cannot just be laid off during the period of maternity or paternity leave and it is thought this will remain acceptable whether the mother or father takes the leave
  

If you need advice on how this affects you personally or your business contact us for further information call Andrew Bryan on 02392 210 170

Business Law

Many local businesses feel caught up in red tape and new regulations in fields from employment law to health and safety. Stuart Nuttall says:

"We spend a lot of time with business clients and those starting a business advising on the various legal areas they need to consider. In December the Government announced major plans to cut red tape and we can advise on these changes too. The simplification plan aims to save businesses up to £700m a year."

Key measures in the DTI simplification plan include:

• New plans to simplify consumer protection legislation by replacing and improving provisions in twenty-two pieces of consumer legislation, through DTI-led implementation of the Unfair Commercial Practices Directive – in December the full proposals for this were set out


• The new International Trade Single Window to allow traders to lodge information with a single body to fulfil all import and export regulatory requirements. The one-stop-shop has just gone live through the Business Link website. Savings are expected to amount to about £60m a year


• A review announced to simplify and improve employment dispute resolution


• A Retail Enforcement Initiative establishing new ways of working between trading standards, environmental health, and health and safety and fire authorities to achieve a third fewer inspections for compliant businesses


• Companies will be allowed to communicate with shareholders electronically rather than in writing, saving larger firms £100,000-400,000 per mailing, with the implementation of the Companies Act 2006


• Form filling and access to Companies House registration and database services is being improved through automated systems. Over 50% of annual returns are being filed electronically. The £13m savings could be increased by a further £60m as a result of a joint filing initiative with Her Majesty's Revenue and Customs

If you need any advice on any of these areas call Stuart Nuttall on 023 9286 2424.

Age Discrimination and Pensions

Since 1st October, age discrimination has been prohibited. Employers are allowed to require employees to cease work on their 65th birthday but only if a special new procedure is followed first. Following on from this regulation (which will improve the pensions aspects of age discrimination) laws have been laid before Parliament. Andrew Bryan, partner, says:

Since 1st October, age discrimination has been prohibited. Employers are allowed to require employees to cease work on their 65th birthday but only if a special new procedure is followed first. Following on from this regulation (which will improve the pensions aspects of age discrimination) laws have been laid before Parliament.

Andrew Bryan, partner, says:

“Pensions clearly depend on age and often do contain age discriminatory aspects. The pensions aspects of the general age discrimination legislation was postponed by 2 months to enable employers and pension schemes to adjust to the new rules. The new rules contain exemptions from the discrimination legislation for pension schemes but will need to be closely scrutinized by those involved in this area.

If you need any advice on this area let us know. This month, the High Court begins hearing a claim regarding UK age discrimination legislation in a test case brought by Heyday which is backed by Age Concern. A similar case has just gone to the European Court of Justice relating to Spanish laws which could have an impact on the Heyday case. Heyday said "People want the choice to continue to work but they don't want to feel they are being given their P45 on the basis of their birth certificate". The government has said it will review the decision to allow a statutory retirement age in 2011.

Call Andrew Bryan on 023 9221 0170 for further information.