A number of major employment changes come into effect from today: including an increase to the national minimum wage; a ban on using tips to make up the minimum wage; an increase in redundancy pay and the introduction of a new vetting and barring system.

The NMW has been increased with effect from today and the minimum hourly rates are now:

•Standard (adult) rate: £5.80 (rising from £5.73).
•Development rate: £4.83 (rising from £4.77).
•Young workers rate: £3.57 (rising from £3.53).
•Accommodation offset rate: £4.51 (rising from £4.46).

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As from today it is illegal for employers to use service charges, tips and gratuities to make up the NMW. It has been reported that this could cost restaurants up to £130 million and as many as 5,000 jobs.

To make things clearer for employers under the new rules, the British Hospitality Association has published a voluntary Code of Practice. The code of practice encourages restaurants to tell customers exactly how they deal with discretionary service charges and non-cash tips.

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The maximum of a week’s pay for the purposes of calculating statutory redundancy pay and unfair dismissal compensation has now risen from £350 to £380. There will be no further increase until 2011.

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Contractors working in the construction industry may be taxed as employees, following recent proposals by the Government to crack down on “false self-employment". According to HM Revenue & Customs, more than 400,000 construction workers are registered as self-employed when they should be classed as employees. This costs the tax-payer in the region of £350 million a year in lost tax and National Insurance contributions. Under the reforms proposed by the Government, all construction workers will be deemed to be employees and will be subject to PAYE taxation, unless a number of criteria can be shown to apply.

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In a recent case the European Court of Justice decided that where a worker is sick during a period of pre-arranged annual leave, the worker must have the option to request a further period of annual leave. This is to reflect the fact that if someone is on annual leave and they fall ill then they are not enjoying the benefit of annual leave, which is to rest and enjoy a period of relaxation and leisure. This decision has raised concerns about abuse by employees. However, it only applies to public sector workers at the moment.

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The Independent Barring Board has introduced a centralised vetting and barring system for people working with children and vulnerable adults. On 12 October 2009 the three current barring lists (POCA, POVA and List 99) will be replaced by two new lists; the "childrens" and "vulnerable adults" barring lists.

The  CRB has compiled a list of frequently asked questions to help employers and workers understand the new system. Click here to read more.

The Government has announced plans to introduce "additional paternity leave" for parents of babies due on or after 3 April 2011.

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The Government has accepted recent recommendations on the recruitment of skilled foreign workers under the points-based system with the aim of ensuring that British workers are given the first chance to apply for jobs before foreign workers are recruited.

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