October 2004

The revised draft Employment Act 2002 (Dispute Resolution) Regulations 2004 were issued in January 2004 and are due to come into force on October 1, 2004. The Regulations will potentially have a huge impact on employers by introducing minimum standards for resolving disputes in the workplace in the form of statutory dismissal, disciplinary and grievance procedures.

To encourage employers to use the procedures, tribunals will have powers to extend time limits for bringing claims to allow such procedures to be completed and to increase or reduce compensation awards where those procedures are not followed. Where employees have a complaint they will be required to raise grievances with their employer before applying to the tribunal.

Where proceedings have been issued, there will be a fixed period of conciliation (during which hearing dates will not be set) to promote settlement of disputes. Straightforward claims will be assigned to a fast track system.

Further information: The DTI on 0207 215 5000 or http://www.dti.gov.uk/er/individual/DRcondoc.pdf ACAS has revised its Code of Practice on Disciplinary and Grievance Procedures and issued a draft Code for consultation until 14 April 2004 which can be found at www.acas.org.uk The final version will take effect at the same time as the Regulations on 1 October 2004.

The Employment Tribunals (Constitution and Rules of Procedure) Regulations 2004 are due to come into force in October 2004 and include provisions replacing the IT1 (Application to an Employment Tribunal) and IT3 (Notice of Appearance) with Claim and Response forms.

The circumstances in which an employer may gain an extension of time for submitting a Response will be restricted and it will become more important for employers to ensure that they comply with the time limit for lodging a response. If a case is uncontested, judgment in favour of the employee without a hearing will be automatic. ACAS will have a duty to conciliate within a fixed period to encourage settlement in good time.

Employers will however be in a better position with regard to the recovery of costs as changes to the costs rules will provide power to award costs to cover preparation time and costs against professional representatives.

Further information: The DTI on 0207 215 5000 or www.dti.gov.uk/er/individual/etregs_consult.htm Also in October 2004, the Disability Discrimination Act 1995 (Amendment) Regulations 2003 are due to come into force.

The current exemption in the Act for employers with less than 15 employees will be removed and the scope of the Act will be widened to cover additional categories of workers. The Regulations will also introduce a new statutory offence of harassment and will remove the justification defence where employers have failed to consider reasonable adjustments.

The time limit on responding to questionnaires will also be tightened to a requirement to reply within eight weeks rather than the current requirement to reply within a "reasonable period".

Further information: HMSO on 01603 723011 or www.hmso.

gov.uk/si/si2003/draft/20035776.htm The following developments are expected at some point during the forthcoming year:

Pensions Bill

The Department of Work and Pensions is pushing ahead with plans to set up a Pension Protection Fund which will step in to take control of pension funds in the event that a pension scheme has insufficient assets and other criteria are met. The PPF will be paid for by an industry levy and also a risk levy. The PPF will also pay certain benefits to scheme members.

TUPE Reform The long awaited draft regulations amending the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) are expected to be published for consultation early in 2004 for planned introduction on October 1, 2004.

Expected reforms include:

TUPE to apply more comprehensively to labour intensive contracting-out situations, new employers to be better informed of the ongoing employment rights of transferring employees and clarification of the operation of TUPE in insolvency situations The issue of occupational pension rights will be considered separately to a longer timescale as part of the Pensions Bill.

Further information: The DTI on 0207 215 5000 or http://www.dti.gov.uk/er/individual/tupe-pl699.htm Working Time Opt-Out The European Commission's report was published in December 2003. Following the consultation exercise, which will close on 31 March 2004, further proposals for amendments to the Working Time Directive are expected. Proposals include:

. The use of individual agreements to opt out of the 48 hour week . The reference period over which working time is averaged . The definition of working time Further information: The EU on 00800 67891011 or http://www.europa.eu.int/comm/employment_social/labour_law/documentation_en.htm#22 Single Equality Commission The government is planning to replace the three current equality commissions (the Equal Opportunities Commission, the Commission for Racial Equality and the Disability Rights Commission) with a single umbrella organisation.

The Commission for Equality and Human Rights will also take on responsibility for the new sexual orientation and religious discrimination laws and eventually for age discrimination. A White Paper is expected in Spring 2004.

Information and Consultation

In July 2003 the government published draft regulations to implement the EU Information and Consultation Directive.

Broadly, the Regulations will require employers to set up employee forums and to inform and consult the employee forum on a number of key issues.

An employee forum is to be set up if a written request from at least 10% of employees is received. Once the government has considered the responses it has received to the draft regulations, regulations in final form will be laid before Parliament during 2004 to come into force on the following dates:

. March 2005 for businesses with more than 150 workers . March 2007 for businesses with more than 100 workers . March 2008 for businesses with over 50 staff.

Further information: The DTI on 0207 215 5000 or www.dti.gov.uk/er/consultation/perf_work.htm