The new Employment Bill, introduced in the House of Commons on 7 November 2001, enables the Secretary of State to make regulations to prevent pay and pensions discrimination against fixed term employees and to comply fully with European Directive 99/70/EC on Fixed Term Contracts.

Originally this was due to be implemented by 10 July 2001, but the UK Government took advantage of the extra year available to Member States with 'special difficulties'; ie its widely-criticised attempt in the earlier draft Fixed-Term Employees (Prevention of Less-Favourable Treatment) Regulations 2001 to exclude occupational pension schemes.

The Bill will require the employer of any individual who has entered into or works under (or, where the employment has ceased, worked under) a fixed-term contract of service or apprenticeship - whether written , oral or implied - to offer him or her membership of an occupational pension scheme which is open to comparable permanent employees.

The Bill also amends current legislation, inter alia the Employment Rights Act 1996 and the Social Security Contributions and Benefits Act 1992, to provide

• 26 weeks paid and a further 26 weeks unpaid maternity leave for working mothers;
• 2 weeks paid paternity leave for working fathers;
• 26 weeks paid and a further 26 weeks unpaid leave for working adoptive parents;
• an increase in the rate of statutory maternity pay (SMP) from £62.20 to £100;
• reimbursement of maternity, paternity and adoption payments made by employers (by offsetting against any payment due to the Inland Revenue, not just NICs).

  These changes come into force from April 2003.