March, 2020

Increase in women working into their 60s

The number of women aged between 60 and 64 in work has increased by 51% in the 10 years since the state pension age was increased, official data has shown. Figures from the Office for National Statistics showed the number of women in that age bracket in work had increased by 331,702 since 2010.

The pension age has been gradually increasing further since 2018, with those under the age of 40 seeing the largest jump in their pension age to 68 years old. Male and female pension ages have increased at the same rate since they came into line with each other in 2018.

The qualifying state pension age for both men and women will be increased to 66 by October this year and 67 by 2028. It is then set to increase to 68 between 2044 and 2046. The analysis also revealed that the number of women aged 60 to 64 in work has increased by 167% in the 20-year period since 1999.

  • Posted on March 31st, 2020

Businesses failing to pay the National Minimum Wage

According to Government figures, in 2017-18, HMRC recorded 1,016 instances of companies failing to comply with the NLW and NMW, issuing financial penalties of more than £14m in the process and identifying £15.6m in pay owed to more than 200,000 workers. This is a significant increase from the total £3.9m financial penalty for underpaying more than 98,000 workers in 2016-17, and the £1.8m penalty for underpaying more than 58,000 workers in 2015-16.

Despite increases in HMRC resource in this area, leading to an increase in wages recovered and financial penalties levied, the likelihood of HMRC identifying companies for breaching the NLW/NMW is still as low as 13%. While HMRC identified 1,456 companies as failing to pay the NLW/NMW in 2018-19, the actual estimated number of employers that failed to pay in this period is estimated to be closer to 11,000.

Errors in calculating pay often arise from employers including sums that cannot be counted towards the NLW/NMW, such as shift premiums or overtime premiums. Equally, issues frequently arise from deductions from wages, even where these are seen as voluntary or beneficial for workers.

  • Posted on March 31st, 2020

Statutory parental bereavement leave and pay

Parents who suffer the devastating loss of a child will be entitled to 2 weeks’ statutory leave and 2 weeks’ statutory pay.

The Parental Bereavement Leave and Pay Regulations, which will be known as Jack’s Law in memory of Jack Herd whose mother Lucy campaigned tirelessly on the issue, will implement a statutory right to a minimum of 2 weeks’ leave for all employed parents if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy, irrespective of how long they have worked for their employer.

Parents will be able to take the leave as either a single block of 2 weeks, or as 2 separate blocks of one week each taken at different times across the first year after their child’s death. This means they can match their leave to the times they need it most, which could be in the early days or over the first anniversary.

The right to Parental Bereavement Leave (PBL) will apply to all employed parents who lose a child under the age of 18, or suffer a stillbirth (from 24 weeks of pregnancy), irrespective of how long they have been with their employer (the leave is a ‘day-one’ employment right). Parents with at least 26 weeks’ continuous service with their employer and weekly average earnings over the lower earning limit (£118 per week for 2019 to 2020) will also be entitled to Statutory Parental Bereavement Pay (SPBP), paid at the statutory rate of £148.68 per week (for 2019 to 2020), or 90% of average weekly earnings where this is lower.

  • Posted on March 31st, 2020

Calculating holiday pay

Currently the holiday pay of an employee with irregular working hours is calculated by averaging the number of hours worked over the previous twelve weeks (known as the “pay reference period”. Under the new regulations which take effect from 6 April, the pay reference period will be the previous 52 weeks. For those employees who have not worked for a full 52 weeks then the pay reference period is the full number of weeks worked.

Where the employee has been sick or has had a period of nil hours, the employer is expected to count back up to 104 weeks to find a 52 week period on which to base the calculation.

There is no further clarity on the mechanics of this calculation and we expect that the online calculator will be updated in due course to assist employers.

  • Posted on March 31st, 2020

Written statement of contractual terms

All employees and workers who commence work after 6th April 2020 will now be legally entitled to a written statement of key contractual terms on or before their start date.
At present, employers have to provide a written statement setting out the basic terms of employment to all employees, within two months of the start of the employment.
Under the new legislation, this statement must be given by day 1 of their employment. In another significant change, the right to a written statement of particulars has been extended to include casual workers as well as employees. In addition to who the statements need to be given to and when, the legislation also requires additional information to be given, including:

• The days of the week the employee is expected to work
• Whether days or hours are variable and if so, the basis on which they will be determined
• All benefits provided by the employer including pension
• Probationary period details if you apply one, including the length of any probationary period
• Details of training entitlement, mandatory training etc. (including mandatory training which is not funded by the employer)

These measures will come into force on 6 April 2020. All 121 HR Solutions’ partnership clients have a template contract of employment and these are under constant review. It is important that you are aware of the need to issue the details required before or on day 1 of employment going forward. One of the ways to do this is to have all of the necessary information contained in a well written offer letter which is sent out in advance of the employment start date.

  • Posted on March 31st, 2020

Postponement of gender pay gap reporting

The UK Government has introduced a year-long suspension of gender pay gap reporting to ease the already increased burden of duties for organisations during the Coronavirus pandemic. As well as not asking businesses to report data, the Government has also suspended the fine that companies would otherwise have to pay for failing to report their gender pay gap.

The deadline for public sector bodies to report on their gender pay gaps would have been 30 March, with private companies’ reports due on 4 April.

In a joint statement, Minister for Women and Equalities Liz Truss and EHRC chair David Isaac said: “We recognise that employers across the country are facing unprecedented uncertainty and pressure at this time. Because of this we feel it is only right to suspend enforcement of gender pay gap reporting this year.”

The Government Equalities Office said more than 3,000 employers (26% of expected reporters) have already reported their data this year, and it will continue to provide support to other employers that wish to do so.
Gender pay gap reporting rules were brought in under the Equality Act in April 2017 for companies with 250 or more employees to display the gap in salaries between men and women.

Businesses are required to report their average hourly wage and bonus gaps and the proportion of men and women who receive bonuses.

  • Posted on March 31st, 2020

Imminent changes to termination payments

From 6 April a new employers’ class 1A National Insurance contribution (NIC) of 13.8% will be chargeable on any termination payments in excess of £30,000

This brings the treatment of termination payments for NIC purposes in line with the rules on the income tax treatment of termination payments, where income tax is already payable on termination payments above this threshold.

According to HM Treasury the change will ‘deliver an important simplification of the UK tax system’. It is of the view that because termination awards are subject to different tax and NI treatments this causes confusion for employers.
This change was initially due to take place in April 2018. The revised implementation date may have slipped under the radar for some employers, but it is a significant development. It will mean additional costs and increased administration for employers where the termination payment is more than £30,000.

  • Posted on March 31st, 2020

Increase in awards for the purposes of redundancy and Employment Tribunal awards

A week’s pay, used to calculate the basic award at employment tribunal and for statutory redundancy pay purposes, increases from £525 to £538 per week for all dismissals on or after 6 April 2020.

The maximum compensatory award at employment tribunal increases from £86,444 to £88,519, or a year’s salary, whichever is lower.

  • Posted on March 25th, 2020

Statutory Parental Bereavement Leave and Pay

Parents who suffer the devastating loss of a child will be entitled to 2 weeks’ statutory leave and 2 weeks’ statutory pay.

The Parental Bereavement Leave and Pay Regulations, which will be known as Jack’s Law in memory of Jack Herd whose mother Lucy campaigned tirelessly on the issue, will implement a statutory right to a minimum of 2 weeks’ leave for all employed parents if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy, irrespective of how long they have worked for their employer.

Parents will be able to take the leave as either a single block of 2 weeks, or as 2 separate blocks of one week each taken at different times across the first year after their child’s death. This means they can match their leave to the times they need it most, which could be in the early days or over the first anniversary.

The right to Parental Bereavement Leave (PBL) will apply to all employed parents who lose a child under the age of 18, or suffer a stillbirth (from 24 weeks of pregnancy), irrespective of how long they have been with their employer (the leave is a ‘day-one’ employment right). Parents with at least 26 weeks’ continuous service with their employer and weekly average earnings over the lower earning limit (£118 per week for 2019 to 2020) will also be entitled to Statutory Parental Bereavement Pay (SPBP), paid at the statutory rate of £148.68 per week (for 2019 to 2020), or 90% of average weekly earnings where this is lower.

  • Posted on March 25th, 2020

A third of people leave a business in their first six months of employment

Statistics from a recent survey show shocking figures demonstrating that a third of people are choosing to leave businesses within their first six months of employment.

This is particularly pertinent when we consider that the cost of bringing someone on board in the first place is equivalent to 6-9 months’ worth of the previous incumbent’s salary. Good onboarding practices can help to avoid early leavers:

The different methods of onboarding are:

Operational Onboarding: This is about providing the tools and equipment that the employee will need to carry out their job such as a laptop, email address and assigned desk, locker and so on. To prepare for a new arrival, a checklist of requirements is a useful tool so that nothing is forgotten.
Knowledge Onboarding: This is about the knowledge to do the job. Information for new starts should be delivered in easy to understand elements. It is also at this point that the new start forms his or her first workplace relationship with the person who is giving them their knowledge.
Performance Onboarding: New starters should be set short-term objectives that are achievable from day one so that they understand how you measure their success and what to aim for.
Social Onboarding: Social Onboarding is about people feeling included. A buddy scheme is a useful tool to help with this.

  • Posted on March 25th, 2020

Privacy Policy

 

 

Powered by The Logic of Eight - Creative Media