New employment law for the UK

Measures in the Employment Bill will give mothers up to a year off work, recognise the rights of fathers and adoptive parents to paid time off for the first time and help business by simplifying rules governing maternity, paternity and adoption leave and pay.

The package includes:

• six months paid and a further six months unpaid maternity leave for working mothers;
• two weeks paid paternity leave for working fathers;
• six months paid and a further six months unpaid leave for working adoptive parents;
• a total increase of over 60% in the rate of statutory maternity pay from £62 to £100 and;
• reimbursement of maternity, paternity and adoption payments made by employers, with a full 100% recoverable by small employers and a further compensation payment on top.

The Bill also includes steps to help employers and employees resolve their disputes internally, and proposals to modernise the employment tribunal system.

These will include:

• new ways of handling disputes in the workplace and requirements for employees to raise grievances with their employer before applying to a tribunal;
• changes to the way tribunals calculate awards to support discussion in the workplace;
• a fixed period of conciliation to promote timely settlement of disputes and;
• a fast track system and other measures to modernise employment tribunals.

The Government also announced that, having listened to concerns expressed during consultation, it would not be taking forward proposals to charge applicants for bringing a claim before an employment tribunal.

Announcing the changes, Trade and Industry Secretary Patricia Hewitt said:

"Creating simple maternity, paternity and adoption leave and pay rules will cut red tape, especially for small firms, and help employers plan ahead with more certainty. Firms will now be able to claim back these payments before leave is taken - a particular bonus for small firms."

On the Government's proposals to encourage dispute resolution and reform the Employment Tribunal System, Patricia Hewitt added:

"Our changes on dispute resolution will encourage better dialogue between employees and employers and create better awareness of rights and responsibilities in the workplace. These changes will be implemented once a full programme of advice and guidance to business, notably small businesses, and to individuals, is in place."

The new law is due to come into force in April 2003.