Lancashire Textile Manufacturers' Association (LTMA).

Employment Matters

The number of employment legislation changes clearly in the pipeline for 2008 is relatively small, but the groundwork is being laid for some important future developments

Employment Bill
 
The most significant employment law measure in the November 2007 Queen's Speech was the Employment Bill. The bill is expected to bring about wholesale changes to, if not the total abolition of, the statutory dismissal and grievance procedures. The procedures were introduced in October 2004, and prescribe three-step disciplinary and grievance procedures.
However, the procedures have been widely criticized for over-formalising workplace disputes and creating large amounts of case law on technical issues. It is unclear what, if anything, will replace the dispute resolution regulations. However, the government has indicated that it wishes to promote the greater use of mediation.
The bill will also clarify the enforcement framework for the national minimum wage and strengthen the enforcement regime for employment agency standards.
 

Flexible Working
 
After the Queen's Speech on 6 November, cabinet office minister Ed Miliband announced its intention to extend the right to request flexible working to parents of older children.
The government went on to say that it had asked Imelda Walsh, Director of HR at Sainsbury's, to lead an independent review into how the current right to request flexible working can be extended. She will report back in the spring of 2008 and the review will be followed by a formal consultation.
 

Single Equality Bill
 
The government consulted during 2007 on its proposals for a Single Equality Bill to simplify and improve existing legislation and modernise discrimination law. The government has already consulted on one set of proposals but these have been critically received, particularly by the outgoing equality bodies.
 
A revised Bill is expected in the Queen's Speech in 2008.
 

Immigration Changes
 
Low-skilled migrants from outside the EU will be prevented from working in the UK under government plans to be rolled out next year. A new points-based system will score non -EU migrants according to their qualifications, age, previous salary and potential value to the UK economy. But low-skilled workers will be barred "for the foreseeable future" under the 5 Tier System (see below).
 
About 12,000 unskilled migrants from non-EU countries in Africa, America and Asia came to work in the UK last year.
 
Paula Higson, strategic director for managed migration at the Home Office, said the "simplified and transparent" system would be "a huge benefit to employers". The new EU countries already provided a good source of labour for key sectors such as agriculture and hospitality.
 
"At the moment there is no need for lower skills in any sector, but if at some point there was a need for skills in a particular area we would review the situation".
 
John Philpott, chief economist at the CIPD, said the new policy was "both fair and economically sound" but warned it may frustrate some employers.
 
"Firms that traditionally hire people with lower skills from outside the EU will be hard done by, but we can't have complete and free access - we need some kind of management. Some employers will have to accept that they can't have the employees they want and should look at ways of getting these people from within the EU or recruiting people who are living in the UK".

• Tier one: The highest-skilled migrants with good English can enter without a job offer
• Tier two: Medium-skilled migrants with good English will need to have a job offer
• Tier Three: Low-skilled migrants cannot enter unless there are specific skills shortages
• Tier Four & Five: New regulations for students and temporary workers will follow in 2009