Monday Motivation: getting ready for legislation changes

4 minute read time.

1 October sees the introduction of key changes in legislation. We’ll take a look at each one and what it means for your business.

In the news, a worker has won the first caste discrimination case, reports suggest that human error is still the biggest cause of data loss and a fifth of businesses still lack the resources to invest in the future.

Top news stories

Business rates appeal proposals are 'barrier to justice' for UK firms

New business rates legislation, proposed in the Government’s Enterprise Bill, will increase the administrative burden on small firms, according to business rates experts and the UK’s leading business groups.

A fifth of businesses are still operating in "survival mode"

The CIPD said that these businesses were unable to spare resources for investment. A further 29% said they had got the balance wrong between investment in people or technology.

Worker awarded £184k in UK’s first caste discrimination case

The employment tribunal ruled a woman had been discriminated against because of her caste is a “warning” to employers to ensure they are recruiting, paying and promoting on merit.

Human error is still biggest cause of data loss

24% of organisations admitted to a data loss caused by employee accidents in the last 12 months.

Key dates for your diary

1 October: legislation changes come into force

3 October: Buy British Day

What’s changing on 1 October?

There are five significant changes coming into force at the beginning of October. Here’s what you need to know to make sure your business is ready.

Minimum wage rates go up

The National Minimum Wage (Amendment) Regulations 2015 increase the hourly rates for minimum wage. From 1 October, the new rates are:

21 and over 18 to 20 Under 18 Apprentices Accommodation offset
£6.70 £5.30 £3.87 £3.30 £5.35

The maximum penalty is £20,000 for failing to pay the minimum wage, so do make sure you’re complying.

Changes to legislation for the supply of goods

The new Consumer Rights Act 2015 now provides a single set of rules for contracts where goods are supplied, regardless of whether this is through sale, hire, hire-purchase or part exchange. The legislation also includes specific rules for digital content.

The Act means that the person selling or transferring the goods must:

  • Have the right to do so
  • Ensure the goods:
    • match the description
    • are a satisfactory quality
    • are fit for purpose
    • are safe, durable and free from defects
    • are installed correctly (where this is included in the contract)

If the goods don’t meet these requirements, the buyer can reject them within 30 days (unless the shelf-life is shorter). If the product comes with a manufacturer’s guarantee, it is up to the customer whether they contact the trader or the manufacturer. The buyer does not need to provide a receipt, although the trader can ask for a proof of purchase, like a credit card slip.

There a number of options open to the buyer. They can ask for a repair or replacement, or ask for a refund which must be given within 14 days. The trader is responsible for the cost of returns.

The final alternative is for the buyer to accept a discount, which must be appropriate to severity of the issue with the goods. This can be up to the full price. The buyer can also claim additional compensation for any losses that may have been incurred.

This legislation also covers:

  • Digital content: This includes computer games, TV programmes, films, books, software and  apps. The trader must ensure that the content matches the description, is a satisfactory quality and is fit for purpose. If not, the buyer can ask for a repair, refund or reduction. However, if the content is free, the legislation does not apply.
  • Unfair contract terms:take a look at the government guidance for details

Sikh workers are exempt from wearing safety helmets in all workplaces

Sikh workers who wear a turban now no longer need to wear a safety helmet in a range of workplaces. The legislation previously only applied on construction sites but has now been extended to include warehouses, transportation and factories.

There are a few limited places where head protection is still required, mainly for members of the armed forces and emergency response crews.

The changes are part of the Deregulation Act 2015.

Tribunals lose the power to make wider recommendations

This is unlikely to have a significant impact, as it was rarely done, but from 1 October tribunals will no longer be able to make recommendations that go beyond an employee’s own circumstances in a discrimination claim.

This is also part of changes through the Deregulation Act 2015.

Company vehicles must be smoke-free if children travel in them

From 1 October, drivers of private cars in England will now be banned from smoking when travelling with children and young people under the age of 18. This applies to company cars and it is a criminal offence to smoke or to allow smoking in a private vehicle with a person under 18. The exception would be if the vehicle is mainly for an employee’s private use.

Legislation already exists in Wales and it is likely that Scotland will follow suit. The new rules are covered in the Smoke-free (Private Vehicles) Regulations 2015 (SI 286/2015). The government has issued some guidance.

What to do next

We recommend that you review all your policies to ensure that they are up to date and meet the new legislation. You’ll also need to communicate these changes to relevant employees and ensure you have the right systems in place to implement and monitor the changes.