News
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Employers need to plan for change
Businesses across the Island need to gear themselves up for the introduction of major new employment rights affecting workers.
The changes are being phased in throughout the year with the most significant coming into force in September this year.
The Employment Act 2006 will increase rights to maternity, paternity, adoption and parental leave and staff will be able to request flexible working arrangements.
The new legislation means all employees are entitled to 26 weeks maternity leave. If an employee has worked for a company for 26 weeks they will be entitled to a further 26 weeks – giving a total entitlement of 52 weeks.
Fathers who have clocked up 26 weeks of service will be rewarded with two weeks paternity leave, an entitlement also applying to fathers who adopt a child.
Families could also benefit from parental leave as there are new rights for parents of disabled children which allow them to take 18 weeks unpaid leave before their child reaches 18-years-old.
A significant change for businesses to take on board is that all employees who have 26 weeks of service and are parents of a child under six-years-old, or a child with a disability who is under 18-years of age or who is a carer can request flexible working arrangements. There is no automatic right for the request to be accepted but employers need to take the matter seriously and be able to explain and justify their reasons for refusal.
Irini Newby said: “Last year there were 905 births on the Isle of Man. The provisions in the Act are a reminder to all employees of their responsibilities to their pregnant employees and their partners.
“Firms must now consider requests for flexible working arrangements seriously and only refuse for sound business reasons.
“Employers are no longer able to ignore the family circumstances of their staff.”
The new legislation also covers the sensitive issue of whistle blowing. The purpose of the new rights is to protect employees who report an employer or a fellow employee to the authorities for behaviour believed to be criminal. Ideally employers should have an internal whistle blowing policy and a designated person to whom disclosures can be made.
Most workers will now have the right to four weeks paid leave a year and part-time workers will be given enhanced rights including continuity of employment.
Members of staff who are invited to attend a disciplinary or grievance hearing will also have the chance to be accompanied by a specified companion.
The Employment Tribunal will be given further powers to declare certain categories of dismissal automatically unfair. If an employee is dismissed because he or she is a whistle blower or has exercised the right to request flexible working, this will give rise to an automatic finding of unfair dismissal.
The Employment Tribunal is also for the first time given the power to order the reinstatement of an employee. The amount of compensation which it can award for unfair dismissal or sex discrimination claims will also be increased and for the first time the tribunal has jurisdiction to make an award of up to £5,000 to an employee for injured feelings. The current ceiling of £30,000 for the compensatory award is generally retained, and this is now significantly below the amount which can be awarded by tribunals in the United Kingdom.
One other key document which will come into force later this year is the revised Disciplinary and Grievance Code which replaces an outdated and far from comprehensive code dating from 1992.
Andrew Corlett said: “I would strongly advise all employers to read the new Disciplinary and Grievance Code. It sets out the basis of good practice in dealing with disciplinary and grievance matters and gives very helpful guidance.
“Employment Tribunals have stressed again and again the importance of fair procedure in dealing with potential dismissal situations and adherence to the new code should mean employers will avoid finding themselves on the receiving end of a successful claim by an aggrieved employee.”
The Employment Act's provisions dealing with terms and conditions for staff came into force on 1 May this year. There is no need for employers to issue new particulars to existing staff, however, new workers, employees changing job or staff who have asked for a new written statement have a right to have the new information in their written statement.
