New rules for businesses come into play on 1st October 2009

Most new legislation is implemented twice a year - changes taking place on 1st October 2009 include the final implementation of the Companies Act, and a rise in the minimum wage.

Dominated by the final implementation of the Companes Act 2006, you can read a summary of the main legislative changes here.

Main legislative changes from 1st October 2009

    * Companies will only need to make their records available for public inspection in one place, rather than multiple locations.
    * Companies will have to provide a 'service address' for each of its directors - meaning that directors will no longer be required to provide a personal address if they do not wish it to appear on the public record.
    * Most of the forms used to communicate changes to Companies House will change - see our dedicated article on the new Companies House forms.
    * All companies will have to include their name in all forms of business documentation, including electronic documents. There is no change to the requirements to provide other information in business letters, order forms and websites.
    * To reduce the possibility of misleading the public, there are increased restrictions on rules governing company and business names.
    * The national minimum wage (NMW) will increase; rising to £5.80 an hour for workers aged 22 and above and to £4.83 an hour to workers aged 18-21. The rate for those under 18 but above compulsory school age rises to £3.57 an hour. Tips paid to a worker through the employer's payroll will no longer count towards it.
    * Public companies will now need to file their corporate governance statement at Companies House (unless it is already included in the Directors' report).
    * It will become mandatory for cigarette retailers to sell cigarette packets with picture warnings.
    

Legal ruling means small companies can still retire their staff at 65 – for now

A leading North West law firm is urging small firms to pay close attention to retirement age law after the High Court ruled that the current default retirement age of 65 is lawful – for now.

Mace & Jones head of employment law Martin Edwards said the ruling meant that employers are now able to compulsorily retire employees aged 65 and over.

“Bosses can now retire someone on ground of age at 65 providing the statutory retirement procedures are complied with,” he said. “Critically this means employees will not be able to claim unfair dismissal or age discrimination. We understand that this is the end of the Heyday test case claim as it is not to be appealed. Those employers with current claims from employees who were retired which have been stayed by the Tribunals awaiting this decision, are likely to see the claims dismissed in the near future.”

But Mr Edwards warned that while this reinforces the current rules for now, the Government has brought forward its review of the default retirement age to next year.

“It is possible that we will see the ability to compulsorily retire abolished altogether in the near future,” he said. “Some of the comments in this judgment may make it difficult for the Government not to increase the retirement age to at least 68 or 70. Moreover the Equalities and Human Rights Commission has asked the Government to amend the Equality Bill, which is currently going through Parliament, to abolish the default retirement age altogether.”

Mr Edwards said the case again showed the vital need for bosses to take professional advice when dealing with employment law issues.

“As this case shows employment law is complex and changeable,” he said. “Furthermore given its nature employment law is unfortunately very easy to get wrong for employers. And if you do get it wrong the consequences can be disastrous with costly, time consuming and disruptive cases wreaking havoc with the operations of a business or organisation. For this reason it is essential to tread with care and seek specialist help.”