Your monthly guide to all the recent changes in the world of Employment Law

LEGISLATION

Working Time Directive – Opt-Out Retained

EU ministers have failed to agree changes to the Working Time Directive despite talks this month aimed at removing or curtailing the ability of employees to opt out of the maximum 48-hour working week.

Under the Directive employees must not work more than 48 hours a week on average, although employees in the UK have always been able to opt out voluntarily. Other EU states, most notably France and Sweden, have lobbied for the UK opt-out to be removed and compromise talks were held at a meeting of the Council of Ministers on 1 June 2006.

Despite attempts to find an agreed position, such as retaining the opt-out only where its use was well founded and negotiated with a relevant trade union, talks broke down. The opt-out has thus been retained for the time being. The issue will no doubt receive further attention in the near future.

http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/lsa/89830.pdf

Government White Paper Plans Further Pensions Reforms

The government has issued a White Paper on Pensions that shows their intention to implement radical pensions reforms.

Key proposals in the White Paper are as follows:

• state pension age for men and women to be increased to 66 in 2024, 67 in 2034 and 68 in 2044
• state pension to be made more generous and linked to future increases to earnings
• automatic enrolment in a new national savings scheme from 2012 (with optional opt-out)
• number of years for qualification to full basic state pension reduced to 30.

The CBI has broadly welcomed the White Paper, but has expressed concern about the potential cost to employers resulting from the decision to continue with compulsory employer contributions.

http://www.dwp.gov.uk/pensionsreform/whitepaper.asp