In this round up of recent news, we report on an EU proposal to extend the minimum period of paid maternity leave; a change to the AIM rule concerning disclosure of directors' remuneration, the imminent deadline for banks and other financial institutions to change employees' contracts in order to comply with the FSA remuneration code of practice and a Government consultation on changes to travel and subsistence arrangements for workers paid the National Minimum Wage.

EU proposes extension of paid maternity leave

The Women's Rights Committee of the European Parliament has voted in favour of extending the minimum entitlement to maternity leave across Europe to 20 weeks on full pay. The European Parliament will vote on the proposal on 25 March. Currently, UK legislation provides all employees with a year's maternity leave, with eligible employees entitled to 6 weeks' at 90% of pay, a further 33 weeks at the statutory rate (currently £123.06 a week) and the remainder unpaid. The potential cost implications of an increase to twenty weeks at full pay are causing concern, with the Institute of Directors estimating that the UK Government or businesses would have to meet additional costs in the region of £1.5 to £2 billion a year.

AIM rule change on disclosure of directors' remuneration

The London Stock Exchange has confirmed a change to the AIM rules that will require companies listed on AIM to disclose directors' remuneration in their annual accounts in respect of financial years ending on or after 31 March 2010. For further information see our Corporate Finance e-bulletin

Reminder – 31 March deadline to amend contracts that do not comply with FSA's remuneration code

Employers are reminded that, under the FSA remuneration code of practice, the transitional arrangements for amending contracts that can be changed unilaterally end on 31 March 2010. The Code applies to UK banks, building societies and broker dealers. By that date the FSA expects all affected employers to have amended all contracts that can be changed to comply with the Code. In all other cases, employers have until 6 November 2010 to amend or terminate non-compliant contracts.

Consultation on travel and subsistence expense schemes

The Government has published a consultation concerning travel and subsistence schemes for temporary workers paid at or near the National Minimum Wage. It proposes changes to the NMW Regulations so that travel expenses paid for travel to a temporary workplace would no longer count as pay for NMW purposes. The Government is seeking a solution to what it describes as potentially exploitative arrangements and feedback on its proposals. The consultation closes on 6 May.

11 March 2010

« Back to Article index