June 2010

The Budget

This edition is a little late as everyone was waiting for the budget yesterday. The main employment related measures relate to the issue and sale of shares; and PAYE and NIC. 

• There is an immediate rise in the rate of Capital Gains Tax from 18% to 28% for certain tax payers. 
• This year a consultation will be launched on the tax treatment of employment related shares. 
• A commitment to exploring ways to improve the PAYE system has been given; employers and payroll providers will be able to take part in a government consultation and express their views. 
• Tax breaks for workplace canteens are expected to take effect from the end of April 2011. 
• Also from April 2011 the personal allowance for those under the age of 65 is expected to increase but not for the benefit of higher rate tax payers.
• It has been confirmed that the previously announced NIC threshold and contribution increases will take place on 6th April 2011.
• A new business scheme will be announced later this year to assist those businesses in areas reliant on public sector employment by giving them a "NIC holiday" for three years for £5,000 of class 1 NIC payable in an employee's first 12 months of employment. Businesses in the West Midlands should be covered by this scheme which it is hoped will be launched in September this year.

May 2010

New Government - What next for employment law?
It's official we now have a coalition government now the Conservatives and Liberal Democrats have joined forces.

Unemployment is now at 2.51 million. We hope that employment and employment law will be one of the government's priorities. Prior to the new coalition the Conservatives stated that the wanted to simplify employment law and make it easier to hire people and the Liberal Democrats wanted to do away with the red tape.

It may be difficult to predict with certainty what changes will follow. Below is a summary of the possible changes:

Family friendly policies - we will probably see changes to flexible working and more time off to care for children and dependents.  

The Equality Act 2010 - both parties support the Act but we may see changes to how it is brought into effect.

Retirement - with many legal battles over the last 12 months over whether or not the default retirement age is itself age discrimination we hope for some certainty when the default retirement age is phased out as has been suggested.

TUPE - the Transfer of Undertakings Regulations are for many, especially small businesses, a living nightmare. Thankfully the Conservatives want to make it more workable. 

National Minimum Wage - both parties have said they will retain the NMW but the Liberal Democrats wanted one rate for all employees so we may see some changes.

Employment Tribunals - There is a general feeling amongst employers that ETs and the tribunal system in general favour employees. It is especially annoying when we hear about employees bringing vexatious claims and being successful because it is very often more commercially sensible for an employer to settle the claim than fight for "justice" at a hearing. Good news for employers could be on the horizon however as the Conservatives stated whilst they want to keep the system fast, cheap and easily accessible they want to make changes so it is fairer to both sides.

Redundancy - with the economic future still uncertain and more redundancies a possibility the Conservatives stated that they would look at giving employers incentives to find alternatives to redundancy, including redeployment elsewhere in the business.

Who's Who in the Cabinet? (relevant to employers)

April 2010

Fit Not Sick
From 06 April G.P.s will be able to issue fit notes for employees who are signed off work. Recommendations can be made which will assist the employee in returning to work including fewer hours or different duties. The DWP has published further guidance on how employers can use these fit notes to encourage attendance at work. 

Increase in £
The standard rates for statutory maternity, paternity and adoption pay will, from 04 April, increase to 124.08 per week.
From 06 April the maximum fine for serious breaches of the Data Protection Act will be £500,000

Increased Paternity Leave
From April this year the additional paternity leave and pay scheme will come into force for babies born or matched to adoptive parents on or after 03 April 2011. Consider updating you staff handbook now.

Time Off To Train
If you have 250 or more employees, from 06 April 2010 they have the right to request time off to undertake training, subject to certain conditions. Consider updating your staff handbook now.
From 06 April 2011 these provisions will apply to all employees.

Blowing the Whistle Again
If whistle blowing claimants give their consent then the ET1 or extracts from it may be passed to the Regulators by the Tribunal, who will then be able to launch their own investigations.

March 2010

Public interest disclosure
The ET can now pass on information to the appropriate regulator if an employee lodges a claim stating they have suffered a detriment because of making a public interest disclosure under the whistle blowing legislation.

Age related notice periods – discriminatory
Check your contracts of employment because any age related notice periods i.e. employment before the age of x is disregarded when calculating service related notice periods – are likely to be found to be discriminatory.

Constructive dismissal – cannot put it right
The Court of Appeal ruled that the employer could not “cure” a repudiatory breach of the employment contract (a breach so fundamental the contract can be considered broken) before the employee had decided whether or not to accept that breach.

Carrying over holiday – Sickness absence
The ET has ruled that if an employee is on sick leave during a pre-arranged holiday then the employee should be allowed to carry over that holiday entitlement to the next holiday year (if not used in the current holiday year)

February 2010

New Rates for ETs
From 1st February new compensation limits in the Employment Tribunal (ET) are in force.
Maximum compensatory award for unfair dismissal = £65,300
Maximum guaranteed redundancy payment per day = £21.20

IT’s complicated...
You must have seen the sorry tale of an Australian bank employee caught looking at ‘inappropriate material’ on live TV and subsequently the world through You Tube.
The moral of the story is to ensure you have a comprehensive email and internet policy outlining what is, and is not acceptable use and periodically remind your employees.

Agency worker or employee?
Be cautious if you use agency workers.
The Court of Appeal recently stated that in certain circumstances an agency worker can be an employee and gain the same legal protections. The factors looked at were control, personal performance, and mutuality of obligation. This can also be the case for self employed contractors.

January 2010

The Year Ahead
2010 has many employment changes with serious consequences for employers

Right to time off for training
From 6th April employers with more than 250 employees will have to consider requests from them for time off to train.

Fit notes
From Spring, GPs should be able to state on “sick notes” if the employee is fit for work, what kind of work, and suggest any adjustments which would facilitate return to work.

Paternity leave and pay
Midyear you will need to update your paternity leave policy to include changes coming into force for babies born after 3rd April 2011

Equality Bill
Expected to come into force in October, the Equality Bill will harmonise discrimination law, make equality of pay more transparent, introduce new types of disability discrimination and widen the scope of “positive action”

Look out for more details in future updates

Snow Joke
With the extreme weather forecast to continue, staff absence is inevitable.
• Employees with children are entitled to reasonable unpaid leave to sort out emergencies such as school closures.
• Unless there is a contractual provision to the contrary, you will have to pay employees on days when it is clearly impossible for them to get to work because of the weather.

December 2009

Discrimination by association
The Employment Appeal Tribunal has ruled that associative discrimination is covered by the Disability Discrimination Act.
Discrimination against an employee because of a third party’s disability may be unlawful. In this case the employee’s son was disabled.      

Beyond belief
Everyone expects belief in the main religions to be covered by the religious discrimination legislation. However, the Employment Tribunal has just ruled that belief in global warming and an obligation to “save the planet” can also be covered.

Don’t make assumptions about what will be deemed to be a “belief”.

A Christmas Carol
To avoid the problem of regretting a Christmas Past with health and safety, unauthorised absences and harassment grievances hitting your desk, our Christmas Carol provides some timely advice to ensure a good time for all through Christmas and the New Year.

November 2009

Changes to Discrimination Awards
The possible award for injury to feelings, in a successful claim for discrimination, is potentially unlimited. However, through the Employment Tribunal, guidelines for maximum awards were put in place. Since then these maximum awards will be increased in order to stay in line with inflation.

> Lower Band: up to £5,000
> Middle Band: up to £15,000
> Upper Band: up to £30,000

Discrimination can be a very costly area so if you are unsure about anything you should take legal advice.

Up date on National Minimum Wage
As of 1st October 2009 the national minimum wage increased, but you may not have been aware that those employees who are aged 21 will now fall into the adult bracket.
It is important to keep a note of you employee’s date of birth in their personnel file.

Email and Fax during the Postal Strikes
The postal strikes at the end of October, and continuing into November, caused disruption for businesses and highlighted the usefulness of email and fax.
What is often forgotten is the necessity to have in place codes of practice. Recently one woman was dismissed for sending an email in CAPITALS and red letters as it was deemed to be aggressive and bullying.

Proper protocol for the use and content of electronic communication is essential. Therefore, it is advisable to include in your Staff Handbook a policy for the use of electronic communication systems.

October 2009

Annual reviews have just come into force for the National Minimum Wage and Redundancy Pay, plus new legislation for safeguarding children and vulnerable adults.

National Minimum Wage:
From 1st October 2009 the hourly minimum wage rates have increased to:

Standard Rate (22 yrs and above): £5.80
Development Rate (18-21 yrs inclusive): £4.83
Young Workers Rate: £3.57

Also tips, service charges and gratuities can no longer be used to “top up” a basic wage to the national minimum wage.

Redundancy Pay Increase:
For redundancies on or after 1st October 2009 the maximum weekly redundancy pay has increased to £380.

Safeguarding Children and Vulnerable Adults:
From 12th October 2009 the system for vetting and barring individuals from working with children or vulnerable adults will be streamlined. There will be two lists “children” and “vulnerable adults” which will contain the names of those who are barred from working with them. The information will only be accessible with an enhanced criminal records bureau check and the people who can request such a check has been extended to include those who carry out regulated activities.

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