Welcome changes to Working Time Regulations

In spite of voluble opposition by the TUC, the Working Time Regulations will be amended. Simon Jeffreys summarises.

In July, the DTI announced proposals to relax the Working Time Regulations following a review of experience with the new law. New amending regulations have now been made.

The changes are substantial and, in our view, are likely to resolve most employers’ problems with the Regulations. In particular, it seems that employers will not be so reliant on employees opting out of the working time limit as at present. As a further, welcome result, this should avoid problems arising from the end of the UK’s dispensation to allow individual opt-outs in November 2003.

The changes will be effective as soon as the Regulations receive Parliamentary approval, which should be by 16th November at the latest. In the meantime, it is extremely unlikely anyone will be prosecuted for not complying with an obligation which is about to be changed.

Changes to Unmeasured Working Time
The Government has created a new unmeasured working time exemption which will cover many more workers than are covered by the existing exemption. However, the new exemption will not exempt those workers from entitlements to rest breaks and daily and weekly rest periods, unlike the existing exemption (which will be continued).

The new exemption will cover workers whose working time is partly fixed and partly voluntary. One example is where the contract requires business hours (say 9.00am to 5.30pm) to be worked but, in practice, workers work longer hours without compulsion. This “extra time” worked would not be covered by the working time limit in the Regulations unless it was paid as overtime. The Government expects that this will cover most managers and white collar workers.

So, by way of example, a contractual requirement to work 50 hours a week would still be contrary to the Regulations (unless the worker had opted out) but contracted hours of 37 1/2 hours a week and voluntary unpaid extra time of 121/2 hours a week would be perfectly acceptable.

These workers would not therefore need to sign an “opt-out” and no record at all would need to be kept of the extra time worked.

Changes to Opted Out Workers
It will no longer be necessary to keep a record of the hours worked by opted-out workers. The only record needed will be an up-to-date list of who is opted out. The requirements that the opt-out be in writing and be terminable on notice have been retained.