In the United Kingdom, the year 2007 will be remembered for the more proposed swingeing employment legislative changes, which will have a major impact on both businesses and individuals alike.

As part of the Governments ‘family friendly’ policy, in April 2007 rates were increased for Statutory Maternity and Paternity pay. This means that for the first six weeks of maternity leave, pregnant women will receive 90% of their salary. Following this period, they are then entitled to up to a further 33 weeks paid leave at £112.75 per week, or 90% of salary if this is less than £112.75.

All pregnant women are entitled to a minimum of 26 weeks paid leave, irrespective of length of service. However, this new legislation mean that if the womaen can meet the length of service qualifying conditions, she is now entitled to receive paid maternity leave up to a maximum of 39 weeks. On top of this, many pregnant women are entitled to up to a year off work, albeit that the final 13 weeks are unpaid.

There are also major changes planned for paternity leave currently subject to consultation. Currently, unless fathers use their holiday entitlement, they are only entitled to 2 weeks paid leave, which is paid at £112.75 per week, the same statutory rate as for maternity leave. Under the new proposals, fathers will be entitled to 26 weeks or more paternity leave, which will probably be paid at the same rate as maternity leave.

This doesn’t mean that both parents will necessarily be entitled to time of together. The idea is that fathers may be given the right to take the time off work to act as the main carer for the new baby, allowing the mother to return to work.

On the 1st October 2007, there will also be an increase in the National Minimum Wage. The development rate for 16 to 17 year olds will be £3.40 per hour; for 18 – 21 year olds, £4.60 per hour and for adults aged 22 and over, the minimum hourly rates will rise to £5.52 per hour.

Helping the UK workforce achieve a satisfactory work-life balance is also high on the agenda for the Government, and there are plans in the pipeline in relation to paid holiday entitlement. Currently employees are entitled to a statutory minimum of 4 weeks paid holiday, which for most people equates to 20 days. However, current legislation allows employers to include Bank Holidays as part of those 4 weeks. The Government are now planning to introduce legislation that will ensure that in future, employees receive paid Bank Holidays in addition to the four weeks entitlement. According to the DTI, the proposed changes are likely to affect up to six million people, which is a large percentage of the UK workforce.

If you would like advice about any of the issues raised in this article or any other employment law matters, contact Robin Francis of Motley & Hope Solicitors, The Manor House, Shortmead Street, Biggleswade. Telephone Robin on 01767 600600 or e-mail: robinfrancis@motleyandhope.co.uk