New fixed term workers rules postponed until October

Employers’ organisations have welcomed the news that the
Fixed–Term Employee Regulations,
due to be implemented on 10 July, have been delayed
until 1 October.

The Government announced the delay because of concerns that
the Employment Bill, in which the legislation will be included, has not yet
received Royal Assent.

The CIPD and the CBI believe the delay will give employers
much–needed extra time to prepare for the legislation, which
will mean that organisations will have to provide workers on fixed-term
contracts comparable pay and pensions to permanent staff.

Diane Sinclair, CIPD employee
relations adviser, is relieved the Department for Trade and Industry has put
back the implementation date: "It seems a
sensible move to delay the date the regulations come into force. This will help
practitioners grappling with the issues involved," she said.

Anthony Thompson, senior policy adviser for the CBI, said the employers’
body had lobbied for the delay. He said: "We think the Government
has done the right thing in delaying implementation if it is serious about
making sure regulations work and making sure firms have enough time to get to
new complex legislation.

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"The DTI changed its policy during the consultation
process to include pay and pensions in the regulations. This will prove very
complex for a lot of employers, both for those with a lot of fixed–term workers and for small businesses."

By Ben Willmott