Relevant dates for the purposes of redundancy

RELEVANT DATE FOR THE PURPOSES OF REDUNDANCY

An employee does not have the right to a statutory redundancy payment unless he or she has been employed for at least two years ending with the "relevant date". This is dependent on the way in which the contract was terminated and is defined in the Employment Rights Act 1996, section 145 as:

Nature of termination of contract

Relevant date

Contract terminated by notice given by employer or employee

The date on which the notice expires

Contract terminated without notice

The date on which the termination takes effect

Limited-term contract terminates by virtue of the limiting event without being renewed under the same contract

The date on which the termination takes effect

Employer gives notice to terminate contract and during notice period employee gives notice to terminate it at an earlier date

The date on which the employee's notice to terminate the contract expires

Employee has undergone a trial period after accepting offer of suitable alternative employment

The date that would have been applicable if there had been no trial period¹

Dismissal in circumstances where employee not given full statutory minimum notice entitlement

The date on which the statutory minimum notice period would have expired

CALCULATION OF A WEEK'S PAY

For the purposes of statutory redundancy payments, a week's pay² is calculated as follows:

Employee's hours

Amount of a week's pay

Normal working hours and employee's remuneration does not vary with amount of work done

The amount payable for the week by the employer assuming the employee works for all the normal working hours

Normal working hours but employee's remuneration varies with the amount of work done, eg the employee is a piece worker or his or her remuneration varies by reason of commission

The amount of remuneration for the number of normal working hours in a week calculated at the average hourly rate of remuneration in respect of the previous 12 weeks

Normal working hours on days or times that differ so that the remuneration varies according to the incidence of those days or times, eg where certain shifts attract premiums

The amount of remuneration for the average number of weekly working hours at the average hourly rate of remuneration - where the average number of weekly working hours is the total number of normal hours worked in the preceding 12 weeks divided by 12, and the average hourly rate of remuneration is remuneration for the hours worked in the 12-week period divided by the number of hours in that period

No normal working hours

The average weekly remuneration for the previous 12 weeks

LEGAL TIMETABLE

Forthcoming law

Coming into force

Pension provisions in age Regulations come into force

1 December 2006

The introduction of the provisions of the Employment Equality (Age) Regulations 2006 that prohibit age discrimination in relation to pension schemes when terms of employment are offered has been delayed until 1 December 2006. This includes the provisions concerning whether or not age alters a new employee's chance of being invited to join a pension scheme.

Public sector duty to promote equality for disabled people is introduced

4 December 2006

The Disability Discrimination Act 2005 will place a duty on public bodies to promote equal opportunities for disabled people. Public authorities will be required to have due regard to the need to eliminate unlawful discrimination against disabled people and promote equality of opportunity for them.

Bulgaria and Romania join the European Union

1 January 2007

There will be limits on the number of workers from Bulgaria and Romania that are permitted to work in the UK. Low-skilled entrants will be limited to the agricultural and food processing sectors, with a cap of 19,750 places. Skilled Bulgarian and Romanian workers will be able to work in the UK if they obtain a work permit or qualify under the Highly Skilled Migrant Programme.

Right to request flexible working is extended

6 April 2007

The right to request flexible working will be extended to carers of adults. An employee will be able to make a request to work flexibly in order to care for someone who is the spouse, civil partner or partner of the employee, a "relative", or someone who lives at the same address as the employee.

Information and Consultation of Employees Regulations 2004 are extended

6 April 2007

The Regulations, which give employees the right to be informed about their employer's economic situation and to be informed and consulted about employment prospects, will be extended to cover undertakings with 100 or more employees.

Open consultations

Closing date

Employment Equality (Sexual Orientation) (Religion or Belief) (Amendment) Regulations 2006

2 January 2007

The government is consulting on regulations to amend the Employment Equality (Sexual Orientation) Regulations 2003 and Employment Equality (Religion or Belief) Regulations 2003 to ensure that they are in line with EU Directives for employment and vocational training. The changes mean that protection against discrimination on the grounds of sexual orientation and religion or belief is extended to individuals who receive training at a school but are not employed by the school.
Available at: www.dfes.gov.uk/consultations/conDetails.cfm?consultationId=1376.

Education (Prohibition from Teaching or Working with Children) Amendment Regulations

2 January 2007

The government is consulting on proposals to amend the Education (Prohibition from Teaching or Working with Children) Regulations 2003 and Day Care and Child Minding (Disqualification) (England) Regulations 2005. The changes include extending the rules automatically barring an individual from working with children to those who are cautioned for a sexual offence against a child or for a range of serious sexual offences against adults.
Available at: www.dfes.gov.uk/consultations/conDetails.cfm?consultationId=1423.