UK: New legislation in force 1st October 2013

The third party harassment provisions in the Equality Act 2010 have been repealed. Under those provisions an employer could be vicariously liable for harassment by a third party (such as a customer or a contractor) if (a) a third party had harassed the employee on at least two previous occasions; and (b) the employer had failed to take reasonably practicable steps to stop the harassment. Their removal returns the law to a state of uncertainty as to whether the general harassment provisions can cover an employer’s failure to take reasonable steps in relation to third parties. However, employers would be well advised to continue to take such steps to address harassment of staff by third parties, not least given the potential for constructive dismissal and personal injury claims. Employers may also need to update their equal opportunities/harassment policies.

The national minimum wage hourly rate for workers aged 21 and over increased to £6.31, the hourly rate for workers aged 18-20 and workers aged 16 and 17 increased to £5.03 and £3.72 respectively, and the rate for apprentices increased to £2.68. The accommodation offset rose to £4.91 a day.

Directors' remuneration regulations came into force for companies with a financial year ending on or after 30 September 2013. The Regulations make changes to the regime for directors' remuneration, giving shareholders of quoted companies a binding vote on the pay policies of the companies in which they invest and requiring directors' remuneration reports to be restructured and split into two parts. Our detailed briefing on the new directors' remuneration regime (published in early July, after the final draft regulations were laid in Parliament for approval) is available here.