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  UK Government to introduce new rights for part-time workers including homeworkers

The European Union has drawn up new rules about Part Time Work in order to protect the rights of part time staff and to encourage more flexible ways of working. On 3 May 2000 the UK government announced they would implement these regulations subject to parliamentary approval. Businesses have 8 weeks to prepare for the regulations before they come into force on 1 July 2000.

What does this mean to the worker?
In a nutshell these new regulations will ensure that part-timers will no longer be treated less favourably than full-timers with:

  • comparable rates of pay
  • overtime pay if they should work more than normal full-time hours
  • pro rata sick and maternity pay
  • access to occupational pensions
  • access to training

What sort of workers will have these rights?
Anyone who is employed by an employer on a part time basis including agency staff, freelancers and those who are employed to work at home and who can compare their work to a full time worker in the same company. The emphasis on this legislation is to make sure part time workers are not treated less fairly than full time workers.

The main thrust of this legislation is to encourage people to look at more flexible ways of working so that if you wanted to reduce your hours of work, and your employer agrees, then you would continue to be entitled to the benefits and rates of pay you would expect as a full-timer but on a pro-rata basis.

What does this mean to the small-business employer? Small businesses will not be exempt from implementing these regulations, so there may be the cost implications for providing the above. Businesses have 8 weeks in which to prepare for the regulations. If an employee should want to make a complaint about unfair treatment then the employer now has 21 days (formerly 14 days) in which to submit an answer.

The regulations are available at www.dti.gov.uk/er/ptime.htm

Comment ~ Caroline Tresman, Editor
These regulations are to be applauded because they acknowledge the equal rights of part time workers including those that work at home. They also encourage people to consider more flexible ways of working because they know they will have the security of certain rights. Women returning to work may be the main beneficiaries. However, there are plenty of loopholes for employers to avoid extra costs, and workers will find they may have extra hurdles to jump through for these regulations to be enforced.

As with most government proposals I would say that there is more hot air to these regulations than actual financial benefits. But the warm glow from that hot air will provide a welcome psychological cushion and may help to positively change attitudes to flexible ways of working.

  Small Business Service

  • In 1999 the UK Government announced proposals for a new Small Business Service from April 2001. It is modelled partly on the Small Business Administration in the USA. The following is taken from Working Brief which is published by the Unemployment Unit & Youthaid Research, Information, Campaigning at 322 St John Street London EC1V 4NU
Small Business Service
A new Small Business Service was also announced. This will have a strong remit to deliver the advice and support that firms need to grow and bring together different parts of the DTI, Better Regulation Unit and the DfEE from April 2001. Modelled partly on the Small Business Administration in the USA, the new service will provide small business with:
  • options to cut compliance burden;
  • automated payroll service for small employers;
  • expansion of quarterly employers PAYE scheme from a limit of £600 a month to £1,000 a month;
  • new Inland Revenue business support teams to discuss problems with any business within 48 hours;
  • new business advice service from Customs and Excise for exporters and importers;
  • new Enterprise Support Initiative, including a dedicated helpline for new employers;
  • discounts for internet-filed electronic tax returns.

There will also be measures to encourage investment. The Government will extend 40% first year capital allowances for another year; together with proposals for R&D tax credits for small and medium-sized companies.

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