Explanatory Notes

Employment Act 2002

2002 CHAPTER 22

8 July 2002

Summary of Regulatory Impact Assessment

Preventing pay and pensions discrimination against fixed term employees

213.The Act includes a power to prevent pay and pensions discrimination against fixed-term employees that will be implemented alongside the European directive on fixed term work.

214.There are 1.1-1.3 million FTC employees who are potentially affected by these provisions. A relatively small proportion (28-41,000) will benefit from higher pay with total benefits of £21-30 million per year. Similarly, 55-82,000 FTC employees will benefit from greater occupational provision with total benefits of £33-98 million per year.

215.Costs to employers mirror benefits to employees. The costs of the pay provisions are estimated to be £28-39 million (the difference between costs and benefits is accounted for by employer National Insurance Contributions). The costs of the pension provisions are £33-97 million.