Following the publication of the Budget on 23 March 2011, alongside the "Plan for Growth", the Government announced a range of measures, which will have a particular impact on employers. For example:

• The Government will introduce a moratorium exempting businesses with fewer than 10 employees and start up businesses from new domestic regulation for three years from 1 April 2011.
• The regulations which were due to extend the right to request flexible working to parents of children under 18 will be withdrawn. These were due to come into force on 6 April 2011.
• The dual discrimination provisions of the Equality Act 2010 will not be brought into force.
• The Government will consult "to remove the unworkable requirement" that employers take reasonable steps to prevent third party harassment.

by Louise Fernandes-Owen of Field Fisher Waterhouse LLP  - 30th March 2011

Every April sees a number of changes to employment law. Here are the key changes, and dates, to remember for April 2011:

• Additional paternity leave and pay - the right to additional paternity leave will be available to parents of babies due on or after 3 April 2011 (as well as parents who are notified that they have been matched with a child for adoption on or after that date).
• Default retirement age - the default retirement age of 65 will be abolished from 6 April 2011.
• Equality Act 2010 - the provisions relating to positive action in recruitment and promotion are due to come into force on 6 April 2011.
• Codes of Practice - The Equality and Human Rights Commission's Codes of Practice on the Equality Act 2010 are due to be brought into force on 6 April 2011.
• Statutory payment rates - the standard weekly rates will increase for the following payments: statutory maternity pay, statutory paternity pay and statutory adoption pay: these will increase on 3 April 2011 from £124.88 to £128.73; statutory sick pay: this will increase on 6 April 2011 from £79.15 to £81.60.

Small employers – statutory maternity pay

There will be a reduction to the amount of relief for small employers relating to statutory maternity pay from April 2011.

Employers generally recover 92% of the statutory maternity pay they pay. Small employers (i.e. currently those who have paid £45,000 or less in gross National Insurance contributions in the previous tax year), may recover 100% of the statutory maternity pay paid out plus an additional compensatory amount, relating to the National Insurance contributions they pay on statutory maternity pay.

The additional compensatory amount, which is expressed as a percentage of statutory maternity pay, has been set at 4.5% since 6 April 2002. This year, the additional amount will change from 4.5% to 3% from 6 April 2011, to reflect the increase in employers' National Insurance contributions thresholds for 2011/2012.

The same reimbursement arrangements also apply to statutory adoption pay and statutory paternity pay. The Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 and the Additional Statutory Paternity Pay (Administration) Regulations 2010 provide for employers who make these payments to recover them at the same rate as statutory maternity pay.

Reform of EHRC

The Government Equalities Office has published plans for major changes to the way the Equality and Human Rights (EHRC) operates. The proposals are contained in a consultation that closes on 15 June 2011.

Legislative and non-legislative reforms are proposed in three key areas:

• Clarifying the EHRC’s remit. The Government will amend the legislation that established the EHRC, the Equality Act 2006, to clarify the EHRC’s core functions.
• Stopping non-core activities.   The Government has considered what activities presently being carried out by the EHRC are not required to deliver its core functions, as an independent equality regulator and national Human Rights Institution, and/or may duplicate activity elsewhere.
• Improving transparency and value for money. The proposals include a legal requirement for the EHRC to publish an annual business plan in Parliament, and comply with the same rules as all other public bodies when spending money.

More women at board level by 2015

UK listed companies in the FTSE 100 should be aiming for a minimum of 25% female board member representation by 2015, according to a recent report published by Lord Davies.

The report states that FTSE 350 companies should set targets for 2013 and 2015 to ensure that more talented and gifted women can get into the top jobs in companies across the UK. Lord Davies also calls on chairmen to announce these goals in the next six months and Chief Executives to review the percentage of women they aim to have on their Executive Committees in 2013 and 2015.

As part of the report Lord Davies and his panel also state that companies should fully disclose the number of women sitting on their boards and working in their organisations as a whole, to drive up the numbers of women with top jobs in business.

by Louise Fernandes-Owen of Field Fisher Waterhouse LLP  - 30th March 2011