Part-Time Workers Regulations

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In preparation for the introduction of the Fixed-term Work Regulations into UK law in July, the Government has proposed making two amendments to the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000, with effect from 30 June 2002.

The first would allow part-time workers to compare their contractual terms with those that apply to comparable full-time employees, whether or not they are engaged on fixed-term contracts.

Accordingly, all references to "fixed-term" contracts will be removed from the Regulations and, from 30 June, the types of contracts that may be used for comparison purposes will be

• "employees employed under a contract that is not a contract of apprenticeship;
• employees employed under a contract of apprenticeship;
• workers who are not employees;
• any other description of worker that it is reasonable for the employer to treat differently from other workers on the ground that workers of that description have a different type of contract."

To take advantage of the rights provided by the Part-time Workers Regulations, a part-time worker must be able to identify a full-time worker who, among other factors, works under the same type of contract. From 30 June, contracts may not be distinguished on the basis that they are, or are not, fixed-term. Hence, it will no longer be possible to preclude a comparison on the basis that the comparable full-time worker is, or is not, engaged under a fixed-term contract.

However, that a comparison may now be drawn between, say, a part-time permanent worker and a full time fixed-term worker, does not automatically mean that they must be treated the same. Differences in terms and conditions and treatment are permitted if they can be justified on objective grounds. It may be possible, therefore, for an employer to demonstrate that working under a fixed-term contract may be a relevant factor in justifying less favourable treatment of a part-timer.

The second proposal relates to the two-year time limit to the period that an employment tribunal may take into consideration when making an award against an employer for having treated a part-time worker less favourably in terms of access to an occupational pension scheme. The House of Lords ruled, on 6 February 2002, that the two-year time limit is in breach of European law on equal treatment for men and women. The Government is proposing, therefore, that this provision be deleted. This change will not affect employers' obligations under the Regulations, but it could allow a tribunal to make a higher award if an employer is found to have discriminated against part-timers in respect of the provision of pension entitlements.

There is a consultation period for these proposals and comments are invited by 15 April 2002. Full details of the proposals and a copy of the draft Regulations may be downloaded from the DTI's website, at www.dti.gov.uk .
Payroll Briefing 220 - 28 March 2002