The Latest Legal Changes to Employment

Every year around April and October, changes are made to Employment Law that will affect some, if not all of your employees. In April we ran one of our popular Employment Law update workshops, to tell our clients and contacts what they need to know. If you missed it, here’s a summary of what we covered.

More changes will be happening later this year, so we’re running our autumn event on 18 October 2016 and we’ll send you a reminder nearer the time. In the meantime, if you have any questions about the latest changes and what you need to do about them, do get in touch.

Here are some of the issues we discussed at the recent workshop:

Statutory Rates – these usually change, but this year, statutory family-related pay and sick pay rates were frozen.

Postponing a Tribunal – under rule 30A of the Employment Tribunals Regulations 2013 for proceedings presented on or after 6 April 2016, changes have been made, in order to limit the number of postponements and adjournments that can be granted in a single case in the employment tribunal and introduce a deadline after which applications for a postponement will not be allowed. Employment tribunals must also consider making an award for costs where postponements are granted at late notice.

National Living Wage – this applies to all employees over 25 years of age. The new rate from 1 April 2016 is £7.20 per hour, and is expected to increase to £9 per hour from April 2020. Also from 1 April 2016, the penalty was set at 200% for the total underpayment, for each employee who has been underpaid. 300,000 employees will benefit from this increase, with employers needing to find an estimated £3 billion by 2020. The Government intends to align when the national minimum wage and national living wage rates are amended, to be April for both with effect from April 2017. It has asked the Low Pay Commission to recommend the rate of the national living wage and the national minimum wage for April 2017 and to provide an indicative rate of the national living wage for April 2018. The Commission is due to report back on its findings in October 2016.

Zero Hours Contracts – legislation came into force on 11 January 2016, which states that individuals on a zero hours’ contract must not be unfairly dismissed or subjected to a detriment for breaching an exclusivity clause.

National Insurance for under 25s – employer NICs have been abolished for apprentices under the age of 25. As part of the Government’s drive to encourage employers to create more apprenticeships for young people, from 6 April 2016, employers will not pay employer national insurance contributions for apprentices aged under 25.

New State Pension – a single-tier state pension was introduced on 6 April 2016, replacing the previous basic state pension and additional state pension. Employer-provided pension schemes will no longer be able to contract out of the state pension and receive a national insurance rebate. This means that, where an employer provides a previously contracted-out scheme, its employer and employee national insurance contribution liability will increase. Employers should ensure that employees are aware that there may be an impact on their pay.

The Gender Pay Gap – these new regulations will apply from 1 October 2016, for all private-sector and voluntary-sector employers with 250+ employees. Companies will be required to publish the gender pay gap as it is in the pay period in which 30 April 2017 falls.

If you think that your company and your employees will be affected by any of these changes, please do get in touch for a confidential chat. Call 0118 940 3032 or email sueferguson@optionshr.co.uk.

Our Guide to Employment Law Changes – 1 October 2014

On 23 October we’ll running our next Employment Law Update workshop. This half day session is aimed at business owners and managers who need to keep up to speed with the changes, to make sure they stay legal. We’ll go through all the new changes and give you the opportunity to find out how they might affect your business.

There are still some places available, so to join us at Hennerton Golf Club in Wargrave, Berkshire for just £15 +VAT, click here.

Here are a few of the changes we’ll be looking at.

Antenatal rights for fathers and partners

Working fathers will have the choice to take unpaid time off to attend up to two antenatal appointments with a pregnant partner. These rights will be available for employees who are in “qualifying relationships”, which means they:

  • are the expected child’s father
  • are the pregnant woman’s husband or civil partner
  • live with the woman in an enduring family relationship and are not a relative
  • are one of a same-sex couple who is to be treated as the child’s parent under the assisted reproduction provisions
  • are the potential applicant for a parental order in relation to a child who is expected to be born to a surrogate mother.

From 1 October both employees are permitted to take time off to attend the same appointment. However you may refuse to grant an employee time off where it is “reasonable” to do so. But you must tread carefully as employees can bring a tribunal claim against you for unreasonably refusing time off. You should adopt a clear policy of how such requests will be dealt with and the parameters for refusal.

Employment tribunals must order equal pay audits

Greater sanctions are to come into force to ensure that employers are carrying out equal pay audits. As part of a new tougher regime, employers who are found in breach of equal pay legislation can be ordered by the Employment Tribunals to carry out an equal pay audit and make the results of that audit public. If the Tribunal determines that you have unreasonably failed to comply with its obligations, it can impose a fine of up to £5,000 at each hearing, in order to address your non-compliance.

Reservists better protected against unfair dismissal

To encourage more new recruits to sign up as a reservist of the armed forces, the Government is making signing up more attractive to people who worry that enlisting might cause problems with their job and career. From 1 October 2014, the statutory qualifying period for unfair dismissal will be removed in the case of a dismissal connected with an employee’s membership of the Reserve Forces. However, reservists will still have to prove that it was unfair to dismiss them because of their absences from work – they will not be treated as automatically unfairly dismissed.

The changes will apply to employees whose effective date of termination falls after 1 October 2014. Prior to these changes, reservists were at a considerable disadvantage when pursuing a claim for unfair dismissal as a period of call-up could not count towards the two year qualifying period needed to bring a claim.

The government is also reducing the financial burden on reservists’ employers.Small and medium-sized employers will now be able to claim £500 per month (pro-rated for part-months and part-time employees working fewer than 35 hours per week) from the Ministry of Defence during periods when a reservist employee is absent on military service.  Employers will also be able to claim up to £110 a day for additional salary costs incurred in providing cover for the absent reservist.

Increase in national minimum wage

Following the recommendations of the Low Pay Commission the Government has implemented the following increases to the national minimum wage which take effect from 1 October 2014: the standard rate for those aged 21 and above will increase from £6.31 to £6.50 an hour; the rate for those aged 18-20 will increase from £5.03 to £5.13 an hour; and the rate for those above the compulsory school but aged under 18 will increase from £3.72 to £3.79 an hour.

There’s a lot more happening, so to keep ahead of the changes and to find out more about these ones, join us on our workshop on 23 October 2014.

 

The Next Round of Employment Law Updates

The Next Round of Employment Law Updates

Just when you thought you knew everything you needed to know about employing staff, they changed the law! Here is a summary of some of the recent changes that you need to know about.

  • Tribunal penalties for employers – from 6 April penalties can be imposed on employers who lose tribunals. This could be 50% of the award between £100 and £5000 where the employer breaches the employee’s rights and where there are aggravating factors; or where the employer has not made a genuine mistake but has made a deliberate breach of the ACAS code. If you run a small business there is some leniency, but larger employers are expected to follow the new rules.
  • ACAS Early Conciliation – from 6 May, early conciliation is compulsory before a claim can be submitted. The claimant must contact ACAS, who will issue an early conciliation certificate when the process is complete. As an employer, this now gives you opportunity to get early warning of a case or to settle.
  • Statutory pay rates – from 6 April, maternity, paternity and adoption is raised to £138.18. Sick pay rises to £87.55 and gross pay for redundancy is £464.
  • Abolition of the percentage threshold – before 6 April employers could claim back sick pay if it exceeded 13% of the employees Class 1 National Insurance in the month. That threshold has now been abolished.
  • Abolition of SSP record keeping obligations – from 6 April there will be no requirement to keep specified records of dates of sickness and SSP payments. Before this there was a requirement to keep records for three years.

There are more changes proposed for later in the year, which I’ll tell about in future blogs. If you need to know how any of the changes specifically affect your business and your employees, do get in touch and I’ll talk you through what you need to know.

Changes to Employment Law – Can You Keep Up?

Changes to Employment Law – Can You Keep Up?

Twice a year, in April and October, changes are made to UK employment law. There’s a lot that you need to know, so to help you keep abreast of the changes, I’m running one of my very popular workshops to discuss and simplify the changes. It will be held on 1 May 2014 and Hennerton Golf Club, Wargrave, Berkshire. Click here to book your place.

Here’s a summary of some of the proposed changes to due to take place this spring:

  • Power of Employment Tribunal to impose Financial Penalties on employers. The Employment Tribunal will have the power to order an employer who has lost a case to pay a financial penalty, to the Secretary of State, of between £100 and £5,000. The penalty will be imposed where the employer has breached any of the worker’s rights. Tribunal Financial Penalties apply from 6 April 2014.
  • Early conciliation to come into force. Before lodging a claim to the Tribunal, all claimants will need to notify Acas first, where conciliation will be offered. If conciliation is unsuccessful within the set period the claimant can proceed to lodge a tribunal claim. This comes into force on 6 May 2014.
  • Statutory maternity, paternity and adoption pay increase. The rate of statutory maternity, paternity and adoption rate will increase to £138.18.

In addition, there is this change, to be brought in by the end of 2014:

Managing sickness absence. A health and work assessment and advisory service is to be introduced, offering fee occupational health assistance for employees, employers and GPs. The service can provide an occupational health assessment after four weeks of sickness absence.

To keep your business fully updated, why not book your place on our workshop? The cost is just £10 +VAT, so to reserve your seat, just click here to book online.