Major legislative developments are taking place in 2009 and HR and employment law practitioners need to take note.

The problematic statutory dispute resolution regulations are due to be repealed, annual leave entitlement is due to increase, the flexible working regulations are to be amended to extend to parents and the Employment Tribunal Rules are set to change. And that’s just the start.

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More than 300,000 people graduate in the UK every year.

This year will be the worst time to graduate in two decades, a survey of employers suggests.

The research is sure to spread gloom among students gearing up for their final exams.

We look at the key issues:

Is this the worst time ever for UK graduates?

The long term trend has been for growth in graduate-level employment, but there have been other bad spells.

Employment rates among graduates have generally grown over the past 30 years, but there were difficult times in the early 1980’s, 90’s and in 2002/3, according to Graduate Prospects, the commercial arm of the UK’s Higher Education Careers Services Unit (Hecsu).

The latest study, from High Fliers Research, found recruitment targets among 100 top UK firms had been cut by 17 per cent for this year.

Chief Executive of Graduate Prospects and Hecsu Mike Hill says times are hard – but graduates have come through difficult times before – the most recent being the collapse of the dot.com boom in 2002/3.

“Graduates should not panic. There are lots of jobs out there, but they will be harder to get because more people will be going for them.

“There are more jobs for graduates now than there were 10 years ago. The overall trend is up but there have always been ups and downs, “ he said.

“A great many of those who graduated in the difficult times of 2002/3 have prospered. The proportion of graduates who go to the ‘blue chip’ companies is only about 10 per cent. The rest go out into other areas of the economy.”

Will all areas be hard hit?

The High Fliers research showed that the crisis in the financial sector had immediately impacted on recruitment in that area – with graduate recruitment expected to halve this year.

This has been a key growth area for graduates in recent years. The last published annual report on where graduates find work showed that business and financial sectors, plus personnel and recruitment saw the biggest increases. But overall, only 9 per cent of graduates in 2007 went into the business and financial sectors in the last year for which there are figures.

The proportion going into the public sector, seen as a safer haven in recessionary times, is greater. A total of 13.5 per cent of graduates from that year went into health and nearly 7 per cent into education. 9.2 per cent went to work as managers in commerce, industry and the public sectors.

What can students do if they are worried about their job prospects?

The best advice, it seems, is to take advice and widen horizons.

Mike Hill, the Chief Executive of the Higher Education Careers Services (Hecsu) says: “There are hundreds of different professions. People need to cast their nets wider, look at professions related to their field and take careers advice”.

All universities have their own careers advisors.

Hecsu is the umbrella body for the service and publishes advice under its commercial website Prospects, with links to the various university careers services.

Top tips from these bodies include:

• Take advice.
• Broaden your horizons to related professions.
• Consider paid or unpaid work experience.
• Do not be too proud to use contacts to get a first break.
• Do not be too proud to take a job you think may be beneath you.
• Be imaginative.
• Consider setting up your own business.

Nick Parfitt, of human resources consultancy Cubiks adds that graduates could consider opportunities overseas.

And they might also need to lower expectations and seek to gain experience in an area related to their chosen field. This would also show they were serious about a particular sector.

For example, a graduate could get a job in a finance department rather than on a graduate accountancy scheme – and then keep applying for graduate schemes.

Is the Government doing anything to help graduates find work?

Ministers have been talking to four top firms – including Barclays and Microsoft – about offering paid internships to students who have failed to find jobs.

Universities Secretary John Denham is drawing up the plans. The aim is that internships will at least improve graduates’ skills and experience and may in some cases lead to full-time work.

Are all employers cutting back?

Many individual recruiters are continuing with their graduate recruitment programmes. Lloyds TSB is one of those saying it will recruit just as many graduates this year as it did last year.

Jonathan Mayes, the company’s Head Graduate Recruitment Manager, said: “We are taking the long-term view and believe in graduate recruitment because we are building our future leaders. It is a long-term investment.”

Is it worth educating more graduates if the job market is already so bad?

Every year, more than 300,000 people graduate from UK universities. Ministers say it is crucial to increase the proportion of graduates and skilled workers, so that the UK is in the best position to move out of recession.

It is committed to having half of people educated to graduate level and to increasing skills generally to enable the UK to maintain competitiveness with the rest of the world. It has recently announced it is funding more apprenticeships.

How many graduates are left unemployed at the end of their studies now?

Of those who graduated in 2007, the latest year for which figures are available, 5.5 per cent were believed to be unemployed six months later, according to the Higher Education Statistics Agency (Hesa).

What do students say?

The National Union of Students is warning students it will be hard to find a job.

The union’s president Wes Streeting said: “We’re all very acutely aware that the picture facing this year’s graduates is very bleak.

“Our advice to students has been to start looking for jobs much earlier, to do their research and to recognise that it’s going to be quite hard.

“We’re also working with the Government and talking to businesses – we welcome the Government’s announcement of a potential graduate internship scheme which, by no means perfect, is at least doing something to tackle the picture facing graduates, and equipping them for what will be a very rough ride.”

www.bbc.co.uk, 14 January, 2009

White Paper: New Opportunities – Fair Chances for the Future sets out the Government’s agenda for capturing the jobs of the future and investing in families, communities and citizens throughout their lives to help them get on and ahead. The Government claim the ‘New Opportunities White Paper’ details plans that cover the full range of Government departments and offers focused support for people at key stages of their lives to make the most of their potential.

Key measures include:

EARLY YEARS – SUPPORTING CHILD DEVELOPMENT:

• an injection of £57 million to extend free childcare for disadvantaged two year olds – a further step towards the Government’s long term ambition to make a free early learning and childcare place available to all two year olds; and
• all vulnerable pregnant mums to have access to a dedicated family nurse to help through pregnancy and first two years.

WORLD CLASS SCHOOLS:

• new £10,000 bonuses to get and keep the most effective teachers in the schools that need them the most, which could reach more than 500 schools and 6,000 teachers a year.

TRANSITION TO WORK:

• creating 35,000 new apprenticeship places so that all qualified young people will have a right to an apprenticeship by 2013;
• a new guarantee for high potential young people from low income backgrounds to get the help they need to get to university;
• full time community volunteering programme for people not in education, employment or training in 33 local authorities.

GETTING ON IN WORK:

• establishing a panel that will identify and remove the barriers that prevent fair access to professional jobs; and
• enable professionals to retrain and gain new skills by trebling the number of Professional and Career Development Loans from 15,000 to 45,000 in the next two years.

SUPPORTING FAMILIES:

• £500 back to work training entitlement for parents and carers;
• employment support programme for young people leaving care; and
• £15 million communities fund to tackle deprivation on the worst estates and build thriving and sustainable communities.

www.lexisnexis.coml, 13 January, 2009

Welcome to your first Employment Law Update for the year. In this article we look at: leading age discrimination cases of the moment; the increased compensation limits for unfair dismissal and redundancy claims and; the new code for Disciplinary and Grievance Procedures.

AGE DISCRIMINATION, COMPULSORY RETIREMENT AND LEGITIMATE AIMS.

According to the Age Regulations, the retirement age exclusion does not apply to partnerships and office holders. In a recent case, an Employment Tribunal held that a law firm directly discriminated against one of it’s partners by requiring him to retire at the age of 65. However, the tribunal accepted that the compulsory retirement had legitimate aims, some of which were:

• to ensure that junior solicitors have the opportunity of partnership when appropriate;
• to help the planning of the partnership and workforce across individual departments by having a pragmatic long term expectation as to when vacancies will arise.

The EAT dismissed all grounds apart from one, where the firm presented reasoning that performance tailed off at 65. This statement was not supported by any evidence and also involved stereotyping.

In a similar case, an Employment Tribunal held that the compulsory retirement of an office holder was not justified and therefore resulted to unlawful age discrimination. In comparison to the case above, the tribunal refused the justification that compulsory retirement at 65 was required to allow for the creation of new vacancies for younger employees to gain experience.

Both cases show how each decision is based on facts around the particular circumstances of each case, and that neither decision is binding on other Employment Tribunals.

COMPENSATION LIMITS FOR UNFAIR DISMISSAL AND REDUNDANCY TO INCREASE.

The maximum level of compensation for unfair dismissal and redundancy cases is set to increase from 1 February, 2009. The new rate increase will only be applicable for dismissals falling on or after this date. The key changes are as follows:

• A week’s pay will be capped at £350 (previously £330) when working out statutory redundancy payments, or basic awards in cases of unfair dismissal;
• The maximum compensatory award at the Employment Tribunal will be £66,200 (previously £63,000);
• The maximum statutory redundancy payment will be £10,500 (previously £9,900). Please note: employers may enhance this payment if required.

AND FINALLY, ACAS PUBLISHES NEW CODE ON DISCIPLINARY AND GRIEVANCE PROCEDURES.

ACAS has published its revised Code of Practice on Disciplinary and Grievance Procedures to help employers deal with arising issues in a fair and consistent manner. The code should come into effect on 6th April, 2009 and will replace the previous current 2004 code.

The code encourages the use of alternative dispute resolution methods, and recognises that for many cases, turning to the tribunal system may not the most appropriate way to resolve workplaces disputes.

We advise that all employees should assess their disciplinary and grievance policies between now and March 2009, and then train the relevant managers using the new ACAS code.

www.ceridian.co.uk, January 2009

CIPD Chief Economist, John Philpott has called for further restrictions on migration into the UK during the economic downturn.

Philpott told MPs on the Work and Pensions Select Committee this week that the points-based system should be tightened to slow the arrival of non-EU workers.

Under the Australian-style system introduced last year, foreign workers wishing to work in the UK accrue points according to their qualifications, previous earnings, age and UK experience. The number of points required for entry to the UK can be adjusted by the Government.

Philpott said: “When we have a slack labour market, we should not need as many migrant workers. It might be that the new points-based system needs to be tightened up to reflect current labour market needs.”

He added: “You should have a policy that makes migration work for you, making it easier for people to come in when you need them, and possibly restricting entry when you don’t.”

www.personneltoday.com, 16 January, 2009

The Government has announced plans to pay employers up to £2,500 for every unemployed person they recruit and train, as part of measures to safeguard jobs during the recession.

The incentives were announced following the Government’s job summit, which the CIPD, among others, attended to give advice on how to deal with increasing unemployment, which now stands at 1.8 million. Last week computer manufacturer Dell announced the loss of 1,900 jobs in Ireland, and Marks and Spencer said 1,200 jobs were being cut in the UK.

The Department of Work and Pensions and the Department for Innovation, Universities and Skills will invest £500 million over two years to help those who have been unemployed for over six months.

Work and Pensions Minister James Purnell said: “There are still over half a million jobs available, and employers are still recruiting – we will do everything we can get people into those jobs. Our message is simple, the longer a person is out of work the harder we will work for them.”

Meanwhile, the Federation of Small Businesses has launched a blueprint for tackling rising unemployment with a plan to create 400,000 new jobs by promoting part-time working, investing in apprenticeships and giving small business more opportunities to bid for public contracts. John Wright, National Chairman, said: “We are calling for the Government to help small businesses to continue to invest in recruitment and training so they can grow stronger and more competitive, creating quality jobs and doing their bit to pull the UK out of the recession as quickly as possible.”

www.peoplemanagement.co.uk, 12 January, 2009

More than half of employers in the UK report new employees expect them to provide social networking facilities at work.

Research carried out by software company Open Text’s Web Solutions Group found a further 32 per cent expected to see an increase in demand for social networking technologies in the near future.

More than six out of 10 employers (61 per cent) think tools such as Facebook could be used to benefit their enterprise. However, less than half (46 per cent) of employees reported they could use Facebook and 31 per cent said they could only use it at certain times of the day.

Andy Bellinger, Country Manager for Open Text’s Web Solutions Group, said: “This growing demand for the likes of Facebook, Twitter, YouTube and other web 2.0 technologies is a direct reflection of how people have changed the way they communicate.

“As the web generation grows up and moves into the workforce, businesses need to be ready to offer the communication tools they expect. The days of the company newsletter are gone, the company Facebook is in.”

Human Resources Magazine, www.hrmagazine.co.uk, 15 January, 2009

At least 90,000 jobs could be lost among small and medium-sized construction firms over the next six months, the Federation of Master Builders (FMB) has warned.

More than half of its members have already made redundancies in the last three months of 2008, while 52 per cent intend to make further job cuts during the first half of this year. If repeated across the entire SME Construction Sector, the FMB predicts that at least 90,000 jobs will go.

The federation’s latest State of Trade survey found that 60 per cent of building firms reported a fall in workload during the last quarter, a fourth consecutive decrease. Private house builders were the worst hit, with 71 per cent reporting a reduction in work.

Richard Diment, the FMB’s Director General, described the figures as “truly devastating” and asked the Government for urgent help.

“We know that when the recession last hit our industry 500,000 people were made redundant and we cannot allow that to happen again. The construction sector is weakening at a shocking rate, which is why the Government must act now to prevent any further suffering,” he said.

He called for a targeted cut in VAT to 5 per cent on home maintenance and repairs to kick-start consumer spending.

The federation’s figures come at the end of a week in which thousands of jobs were lost across a range of sectors. Major casualties included Barclays, Jaguar Land Rover, South West Trains and Pfizer.

www.peoplemanagement.co.uk, 16 January, 2009

Teachers could be awarded £10,000 if they start working in challenging schools for three years or more under new Government plans, but the National Union of Teachers (NUT) thinks this will have only a ‘minor effect’ on recruitment.

The ‘golden handcuffs’ come as part of a Government White Paper to attract the best teachers to help children reach their full potential.

The programme will be available from September this year to National Challenge schools and secondary schools where 30 per cent or more of pupils are eligible for free school meals, as long as the school’s leadership is good.

New teachers will also have access to a new Masters Degree in Teaching and Learning and schools will be able to offer advanced skills posts in order to develop existing staff.

Half the cost of these initiatives will come from the Government, the other half must be funded by schools.

Secretary of State for Children, Schools and Families Ed Balls said: “Schools have a central role to play. That is why we are determined every school will be excellent, raising standards and helping all children overcome any barriers they may face.

“This new package will help attract the best teachers to the schools where they will make the most difference.”

But the scheme has had a lukewarm reception from the National Union of Teachers (NUT). General Secretary Christine Blower said: “To attract teachers into schools in tough areas, teachers need to be convinced working in such schools enhances, not undermines their careers. The extra money being offered to take up posts in challenging schools will not do the job if the Government continues with its arbitrary targets that could well see the school closed or put into special measures.

“Golden handcuffs may have a minor effect. The real need is to support both those who have committed to a career with children and young people from the toughest backgrounds. The motivation of those teachers comes from knowing they are making a massive difference to the individuals and they are appreciated by their community and local authority. They need to be valued by the Government too.”

Human Resources Magazine, www.hrmagazine.co.uk, 14 January, 2009