Government of Jersey

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 1 October 2010 regarding: Employment (Amendment No. 5) (Jersey) Law 2010 - Request draft Appointed Day Act.

Decision Reference: MD-S-2010-0059
Decision Summary Title :	DS - Redundancy draft App Day		Date of Decision Summary:	28 September 2010
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Redundancy draft App Day		Date of Written Report:	28 September 2010
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Employment (Amendment No. 5) (Jersey) Law 2010 – Request draft Appointed Day Act
Decision(s): The Minister decided to instruct the Law Draftsman’s Office to prepare an Appointed Day Act which would enact specified articles of the Employment (Amendment No. 5) (Jersey) Law 2010 on 1 January 2011.
Reason(s) for Decision: Following Privy Council sanction on 21 July 2010, the Employment (Amendment No. 5) (Jersey) Law 2010 was registered by the Royal Court on 6 August 2010. The principal purpose of the Law is to amend the Employment (Jersey) Law 2003 to give qualifying employees the right to a redundancy payment. The amendment was subject to extensive consultation via the Employment Forum prior to drafting and the Social Security Minister has stated his commitment to bring the legislation forward as quickly as possible, particularly in view of the economic climate. Guidelines and training sessions have been available from the Jersey Advisory and Conciliation Service for the past year to support and advise employers and employees prior to enactment. The Minister considers that there has been an adequate period of notice for employers to allow the law to be enacted on 1 January 2011.
Resource Implications: There are no financial implications.
Action required: Policy Principal to request that the Draftsman prepares an Appointed Day Act.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Employment (Amendment No. 5) (Jersey) Law 2010 - Request draft Appointed Day Act

Law Drafting instructions for the Employment (Amendment No. 5) (Jersey) Law 2010 (Appointed Day) Act 201-

The Minister requests the drafting of an Appointed Day Act to bring into force specified articles of the Employment (Amendment No. 5) (Jersey) Law 2010, which was adopted by the States on 1 April 2009, sanctioned by Order of Her Majesty in Council on 21 July 2010 and registered by the Royal Court on 6 August 2010.

The Act, if adopted, will bring into force, from 1 January 2011, Articles 1, 2, 3, 4, 7 and the following new articles inserted by Article 5;

60A The right to redundancy payment

60B Qualifying period of employment

60C Amount of redundancy payment

60D Time limits applicable to redundancy payments

60E Renewal of contract or re-engagement

60K Right to time off to look for work or arrange for training

60L Right to remuneration for time off under Article 60K

60M Complaints to the Tribunal

The effect is that employees who have at least two years’ continuous employment with an employer would have the right to receive a redundancy payment from that employer equivalent to one week’s pay in respect of each full year of employment with that employer. In addition, the statutory minimum periods of notice on termination of employment would be reduced from the current maximum of 16 weeks, to a maximum of 12 weeks notice after 12 or more years’ service.

Two minor amendments would be required to the new articles 60B and 60E. The Minister is satisfied that the articles would come into force as drafted, on the basis that the implications of the articles as drafted would be well publicised. Law drafting will be requested to prepare the amendments and the Minister intends that the amendments would come into force as soon as possible.

Article 6 and the remaining new articles provided by Article 5 relate to collective redundancy, election of employee representatives for consultation, protective awards and the removal of the upper age limit, which would be enacted at a later date, following further consultation.

Article 5; 60F and 60H - The Employment Forum has presented a recommendation to the Social Security Minister on the matter of consultation with employees in collective redundancy situations and the Minister has reviewed the provisions as drafted. More details of the recommendation and the Minister’s response are included in the written report that accompanies the Ministerial decision MD-S-2010-0051.

To summarise, the Minister has decided to propose that the collective consultation requirements would be triggered when an employer proposes 12 or more employees for redundancy in a 30 day capture period, irrespective of whether the employees are represented by a trade union or not. The protective award where an employer fails to consult with union representatives and elected staff representatives would be up to 9 weeks pay.

The Minister also approved the recommendation that a claim for a protective award would only be taken to the Tribunal by union representatives and elected staff representatives, rather than individuals, other than where representatives have not been appointed, but should have been.

Article 6 - The Minister wishes to temporarily withhold the removal of the upper age limit on the right to claim unfair dismissal. Currently, the right to claim unfair dismissal is not available to an employee who, on or before the effective date of termination of employment, has reached ‘retirement age’; either the normal retirement age for the position within the undertaking, or when pensionable age has been reached under the 1974 Social Security Law.

Before removing the upper age limit on unfair dismissal, the Minister wishes to review all issues again in the light of the probability that age discrimination legislation will not be in force in the near future. In the UK, the upper age limit on unfair dismissal was removed when age discrimination legislation was introduced.

The new UK coalition Government is consulting on a proposal to remove the ‘default retirement age’ from October 2011, including consideration of the management of dismissals and any unintended consequences. The Minister wishes to await the outcome of that consultation, which closes 21 Oct 2010, without further delaying the introduction of the right to redundancy payments.

When the draft Appointed Day Act is lodged on 5 October 2010, a Proposition addressing the amendments outlined above will also be lodged. The Minster is satisfied that, subject to States approval, an appointed day of 1 January 2011 will give sufficient notice for the introduction of the Employment (Amendment No. 5) (Jersey) Law 2010.

Financial and manpower implications

There are no additional financial or manpower implications arising from this proposition. The existing budget for employment relations, which includes the cost of providing the Employment Tribunal and the Jersey Advisory and Conciliation Service, is sufficient for the implementation of this legislation.