E-NEWS: 23 February 2001

IN THE NEWS THIS WEEK:

* Age discrimination - the way forward
* Increase in SSP & SMP
* Increase in maximum tribunal deposit
* Retirement age: plans to abolish the national age of retirement
* £350,000 award in race discrimination case
* Paid paternity leave vs. returning to work part-time

AGE DISCRIMINATION - THE WAY FORWARD

* Preparations are being put in place to introduce legislation outlawing age discrimination in the workplace by the year 2006. Minister for Employment, Margaret Hodge, has set up an advisory group with representatives from such organisations as the CBI, the Chartered Institute of Personnel and Development and the Small Business Service to, "advise on the issues to be addressed through the consultations ahead."

* Ms Hodge has confirmed that, "Unfair discrimination will be made illegal. There may be instances where employers can show that a difference of treatment is objectively justified. The Government will clarify where such differences may be justified through extensive consultation over the coming years."

INCREASE IN SSP & SMP

* From the 6th April 2001, the rate of Statutory Sick Pay will increase from £60.20 to £62.20. The lower rate of statutory maternity pay will also increases from £60.20 to £62.20 with effect from 1st April 2001. For the purpose of determining the rate of maternity allowance in accordance with s. 35A(2) of the Contributions and Benefits Act 1992, this change will come into force on 9 April 2001.

INCREASE IN MAXIMUM TRIBUNAL DEPOSIT

* The maximum amount to be paid as a tribunal deposit following a pre-hearing review is set to increase from £150 to £500 from today. If the tribunal considers that either party has no reasonable prospect of success, it can order that party to pay a deposit. Failure to comply may result in the application or notice of appearance being struck out. Either party may apply for a pre-hearing review, or the tribunal may order one of its own volition.

RETIREMENT AGE : PLANS TO ABOLISH THE NATIONAL AGE OF RETIREMENT

* The Government is currently drawing up new anti-discrimination laws designed to allow employees to continue working as long as they like and to abolish the fixed retirement age. This move, to comply with the Equal Treatment Directive 2000/78/EC, gives the UK until 2006 to introduce legislation outlawing discrimination on the grounds of religion, age, disability and sexual orientation. The legislation is likely to lead to a big increase in the number of pensioners deferring their state pensions. At present, under current legislation, this is allowed up to the age of 75. It is also likely to lead to more flexible pension schemes and changes in the Inland Revenue Rules about drawing pensions.

* It is reported that Employers have reacted positively to this move as they realise how valuable the experience of older workers is. It has also been confirmed that the compulsory retirement age of 65 is to be made illegal under the new age discrimination laws.

£350,000 AWARD IN RACE DISCRIMINATION CASE

* This award, to a Metropolitan Police Sergeant who was falsely accused of sending racist hate mail to fellow officers, is one of the largest ever seen and is a culmination of two awards from a Tribunal. The award of £200,000 in addition to £150,000 awarded previously was to compensate him for loss of earnings and injury to feelings. This award is at the top end of the scale and reflects the 'high-handed' manner in which the Sergeant was dealt with by his employers.

PAID PATERNITY LEAVE vs. RETURNING TO WORK PART-TIME

* It has been confirmed that the government is to introduce paid paternity leave, at the same rate as statutory maternity pay, (£60.20 per week), which will be paid to fathers by the state, for the two weeks immediately after the birth of a child.

* The reaction from business is not favourable, but may be relieved by the government's rejection of the proposals to enable mothers to return to their former employment with a statutory right to work part-time. Despite this, employers should be aware of potential indirect sex discrimination in denying women to return to part-time working.

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