Queen’s Speech 2009: How will it affect employers?

The Queen’s Speech was given on 18 November 2009. While it outlined the Government’s legislative programme for 2010, Parliament will have to be dissolved before 3 June 2010 – the last date that the next general election can be held on. Consequently, there may be a change of Government. 

Equality Bill

The Equality Bill has been carried over from the 2008-2009 parliamentary session. The Government intends to pursue the Bill in order to “harmonise discrimination law” and to “strengthen the law to support progress on equality”. The Bill addresses the differences in pay between the genders by requiring businesses with more than 250 employees to report on any disparities in the salaries of male and female employees.

UPDATE: It has been reported in the press that the Government will ‘water down’ the Equality Bill to prevent medium-sized businesses with 250-500 employees from having to produce data that shows they do not discriminate on pay in the workplace. The Equality and Human Rights Commission (EHRC) has said that these companies cannot be expected to produce as much data on pay as firms that employ more than 500 workers. The Government will wait until the EHRC’s full report in January 2010 before deciding whether to alter the Bill.

Financial Services and Business Bill

The Financial Services and Business Bill is intended to reform and strengthen regulation of the financial services industry. The FSA will be given powers to cancel employment contracts that contravene specified rules, and to make provision for the recovery of payments made under those contracts that are contrary to the rules. It will also end multi-year guaranteed bonuses, or large bonuses paid out as a cash lump sum at year-end.

Bribery Bill

The Bribery Bill will create a new offence relating to companies that negligently allow their employees or agents to pay bribes, subject to a defence that the company had adequate procedures to prevent bribery.

Agency Workers Regulations 2010

During the Queen’s Speech, the Government made clear its intention to legislate to provide agency workers with the right to be treated equally with permanent staff on pay, holidays and other basic conditions.

The consultation on the draft Regulations closed on 11 December 2009, with the final Regulations expected to be introduced in October 2011.