The following changes in employment legislation are effective from 1 October 2008:

National Minimum Wage

  • The minimum wage rate for adults aged 22 years and over will rise to £5.73 per hour (from £5.52);
  • The rate for 18 – 21 year olds will rise to £4.77 (from £4.60); and
  • The rate for 17 – 18 year olds will rise to £3.53 (from £3.40).

The law has not changed in respect of apprentices (anyone working under a contract of apprenticeship or taking part in certain training programmes). Apprentices under 19 years of age do not qualify for the national minimum wage in respect of work done under their contract of apprenticeship; and those between aged 19 - 25 years are not entitled to the national minimum wage for the first 12 months of their apprenticeship. Only apprentices over the age of 25 years are entitled to the national minimum wage from commencement of their apprenticeship.

Incidentally, from August 2009, employers will be required to pay apprentices at least £95 per week (rising from the current rate of £80 per week). However, if the government's Draft Apprenticeships Bill, currently under consultation, receives Royal Assent, we may see the introduction of prescribed apprenticeship agreements that will have the status of contracts of service, not of apprenticeship. Accordingly, "apprentices" under these agreements would be entitled to receive the national minimum wage the same as any other employee (unless the definition of apprentice in existing legislation were widened to encompass such prescribed agreements).

Employers' Liability Insurance

Employers will no longer be required to retain their employers' liability insurance certificate for 40 years. Also, rather than displaying physical copies of the current certificate on notice boards, employers can now make the certificate available electronically, provided it is reasonably accessible to relevant employees.

The following amendments to the Maternity and Parental Leave etc. Regulations 1999 and the Paternity and Adoption Leave Regulations 2002 have effect in relation to employees with an expected week of childbirth/ due to adopt children on or after 5 October 2008:

Maternity Leave

Women whose babies are/ were due on or after 5 October 2008 are now entitled to the same terms and conditions during additional maternity leave (AML), as they enjoy during ordinary maternity leave (OML) (i.e. the same terms and conditions that would have applied to them had they been at work (except for terms relating to remuneration)). OML comprises 26 weeks' leave, available to all pregnant employees, regardless of length of service, who comply with certain notification/ evidential conditions. AML follows directly after OML and lasts for a further 26 weeks.

Adoption Leave

As above, employees who are due to adopt children on or after 5 October 2008 are now entitled to the same terms and conditions during additional adoption leave (AAL), as they enjoy during ordinary adoption leave (OAL). OAL comprises 26 weeks' leave, available to employees who have completed 26 weeks' continuous service, and are newly matched with a child for adoption by an adoption agency. AAL follows immediately on from OAL and comprises a further 26 weeks' leave.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 17/09/2008.