Government introduces standard commencement dates for employment law changes

From 2004, domestic employment law changes in the UK will be implemented on two set dates each year - 6 April and 1 October. The move is in response to recommendations by the Better Regulation Taskforce and is intended to be of particular benefit to small businesses.

The Department of Trade and Industry (DTI) is to 'harmonise' the commencement dates of employment law regulations. The move to two common commencement dates each year - 6 April (the beginning of the tax year) and 1 October (when the national minimum wage is revised) was announced in March 2003 and will take effect from 2004. As part of this process, on 14 January 2004 the DTI published its first annual statement of forthcoming employment regulations.

This change in practice stems from a recommendation in the Better Regulation Taskforce’s 2002 report Employment regulation: striking a balance (UK0206102N). The Taskforce reported that a common complaint by employers was that changes in employment law took place in a piecemeal, uncoordinated fashion. It therefore proposed common commencement dates for new employment regulations. The harmonisation of commencement dates is intended to provide greater clarity and better awareness on the part of businesses, employee representatives and employees about when new legislation takes effect, and promote effective implementation. DTI employment relations minister Gerry Sutcliffe stressed that the new policy is 'particularly good news for small businesses that don’t have the resources to monitor employment law changes'.

The DTI’s Statement of forthcoming employment regulations in 2004 lists the changes to employment law due to take effect on the two common commencement dates. New regulations taking effect on 6 April 2004 include:

• the Conduct of Employment Agencies and Employment Businesses Regulations;

• minor amendments to the maternity, paternity and adoption leave legislation (UK0304104F); and

• changes to the national minimum wage (NMW) legislation in respect of workers paid by output.

Changes due to take effect on 1 October 2004 include:

• the revision of NMW rates (UK0304101N);

• the dispute resolution Regulations (UK0210103F);

• a revised Advisory, Conciliation and Arbitration Service (Acas) code of practice on handling disciplinary issues and grievances; and

• revised employment tribunal procedures.

The two common commencement dates apply to domestic employment law changes for which the DTI is responsible. The DTI points out that the commencement dates of regulations arising from the EU are not fully within its control but, where appropriate, the DTI will seek to align the implementation of EU-driven regulations with the two common commencement dates for domestic employment legislation. During 2004, two EU-driven employment law changes will take effect outside the common commencement dates. These are:

• provisions in the existing Working Time (Amendment) Regulations 2003 which cover doctors in training (1 August 2004); and

• regulations to implement the Directive (2001/86/EC) on employee involvement (EU0206202F) linked to the European Company Statute (8 October 2004).

Government proposals for common commencement dates for a wider range of regulations affecting business were included in an Action plan for small business published in January 2004.