Welcome to your February Legal point. This month, we get right to the heart of the matter regarding... Marriage & Civil partnerships Cohabitees enjoying this year’s Valentines Day will welcome the proposed legislation that will give them added rights and protection. There is a popular misconception, often repeated by callers to our service, that living together for a period of more than six months, automatically grants either party the status of common law spouse. Unfortunately this status is not recognized in law. The Cohabitation Bill currently before Parliament will give increased protection to anyone who separates from a partner. These new rights will extend to same-sex partners and in some circumstances members of the same family, such as brothers and sisters, living together. But what does the law mean by ‘co-habitation’ and how does it differ from other forms of partnership? Co-habitation simply means two or more people living together who are not married to each other or who have not formed a civil partnership. Whilst married couples and civil partners have rights under existing legislation for matters such as the division of assets or inheritance rights, cohabitees do not. This proposed change in the law will, is passed, give cohabitees added legal recognition.

Co-habitation can currently be formalized by the parties drawing up a cohabitation contract – also known as a living together agreement - setting out the rights and obligations of one partner towards the other. However the enforceability of these has yet to be tested by the courts. This means you must take proper legal advice, particularly in relation to protecting your share in your home, making a will and so on.

It is by no means certain that the contents of this Bill will become law but we will keep you posted.

Pensions
2012 is a date, that is not only going to be important for an international sporting event in London, but also for employers to implement changes to pension arrangements introduced under the new Pensions Act 2008. From 2012 employers must make pension provisions for all workers.

In a move that may increase the financial burden on some businesses, this will remove the voluntary provision of workplace pensions with the emphasis on ensuring your workers have adequate pension provision. The new rules will oblige you to automatically enroll eligible jobholders (not just ‘employees’) into an existing pension’s scheme, so long as it meets minimum standards. Alternatively, you can also use the Personal Accounts Scheme – a new pension scheme which will be set up under the Act which may prove more attractive to smaller employers.

To start there will be an annual contribution limit of £3,600 and no transfers in or out of the scheme with the majority of employers being required to contribute at least 3% of a workers annual salary.

Maternity Rights
Employers are being urged to check their maternity policy in the light of the introduction of recent changes: a clarification of the rules entitles new working mums to receive their non cash contractual benefits during additional maternity leave as well as ordinary maternity leave. The contractual benefits to be included in additional maternity leave are such items as use of company cars, mobile phones, holiday entitlement and private medical insurance but NOT salary and cash allowances such as fuel expenses.

Now is a key time to review policies and procedures to ensure compliance with these rules and discuss
the trickier areas such as holiday entitlement with your worker before she goes on maternity leave.