EMPLOYERS NEWS - BROUGHT TO YOU BY BRIDJOBS
National Minimum Wage The adult rate for the National Minimum will increase from £5.52 per hour to £5.73 on 01/10/08. For workers aged 18-21, the new rate will be £4.77 up from £4.60 and for ages 16-17 it will become £3.53 a rise from the current £3.40
East Yorkshire Jobs recommends all links and business information shown below to the employers in this region. To advertise your job vacancies please click HERE
DTI Employment Guidance: www.dti.gov.uk/employment
Very Latest News: For women whose expected childbirth falls on or after 5th October, there will be a change to the benefits they are entitled to during their additional maternity leave.
At present women on maternity leave do not have a right to their contractual benefits during the additional maternity leave period. Hence they have no rights to company cars, mobile phones, contractual holidays etc. and employers can ask for these back or not provide them.
Due to the UK’s legislation being out of step with EU law, changes have to be made to the UK’s maternity benefits to bring them in line with EU law. Hence in future, women on their additional maternity leave WILL be eligible for all their normal contractual rights (with the exception of pay or remuneration).
Proposed Extension of the Flexible Working Rights
The Government has confirmed it plans to extend the current Flexible Working Rights to parents with children up to the age of 16 years. It hopes that the changes to legislation will be passed quickly to allow the changes to happen from April 2009. The Government’s original report (Walsh Report) proposed a staged introduction of the new right, but it is expected the Government will propose that this change happens in one immediate stage. The existing Flexible Working Rights that apply to parents with a disabled child up to the age of 18 years will not be affected.
TUC and CBI Reach Agreement on Agency Workers
The Government has agreed a deal between the TUC and the CBI over what rights Agency Workers will receive if a proposed Agency Workers Equal Treatment Directive is passed by the EU. Under the proposed deal Agency workers will be entitled to equal treatment after 12 weeks of working with an employer, this will apply to such things as annual leave, pay, sick pay etc.
This proposal still needs agreement with other EU countries, but the Government is hopeful that will soon be agreed and new legislation will be passed in the next session of Parliament.
www.wired-gov.net/wg/wg-news-1.nsf/lfi/161038
Illegal Working Fines!!
The Border and Immigration Agency have introduced a policy of “name and shame” on its website to publicise employers who have broken rules regarding the employment of persons who do not have the right to work. So far fines totally £2.3m have been handed out and the average “going” rate seems to be about £5,000 per illegal worker!! One employer was fined £75,000.
If nothing else, this should provide sufficient incentive to all employers that they need to make relevant checks that all their employees have a legal right to work in the UK before employing them.
See: www.bia.homeoffice.gov.uk/employers/preventingillegalworking/penaltiesemployers/
Case Law: Grievances Must State, Who? What? Where? When? Why?
In a case (Clyde House vs. McAulay) before the Scottish Employment Appeals Tribunal (EAT) an interesting point was clarified concerning the Statutory Dispute Resolution Procedures and what constitutes a grievance.
In this case Ms McAulay resigned claiming constructive unfair dismissal and disability discrimination. As required under the modified SDR procedures her solicitors wrote a “grievance letter” setting out a number of allegations. Her employer wrote back asking for clarification over what acts Ms McAulay was actually referring to. As they did not get any further clarification, her employer wrote back to indicate that they could not carry on with the grievance and hence this was an end to the matter.
An Employment Tribunal subsequently agreed that the grievance procedure had been followed by Ms McAulay and hence they allowed her case to go ahead and she won. The Employer appealed this to the EAT who in their judgement said, a grievance or a statement provided by an employee must contain the answers to the essential questions that one would expect to arise in a grievance, namely: 'Who? What? Where? When? Why?'" The fact these answers might arise in any future litigation did not reduce the primary need by a Tribunal to establish that the employee had complied with the required minimum requirements when making a grievance statement.
In this case, the letter only made assertions and it did not meet the basic requirements of a grievance, hence the Tribunal’s award was set aside and the case dismissed.
Editors note: This raises an important point with grievances that employers should always seek further clarification if they are unsure was is actually being complained about. If they do not get that further clarification it may mean subsequent Tribunal action cannot take place.
Case Law: Equal Pay Comparators
The EAT in an important case has overturned previous case law concerning how
Equal pay cases are determined. The EAT in (Walton Centre vs. Bewley) has held that a women’s successor in a job CANNOT be used as a proper comparator for the purposes of Equal Pay Act claims.
The EAT came to its decision on the basis that the intention of the 1970’s legislation was that the comparator should be contemporaneously employed and hence any successor in a job would be always be a hypothetical situation.
They also went on to determine if the equal Pay Act should be determined in accordance with EU law. They also formed the opinion that a successor could not be used as the comparator.
Proposed Right to Training
The Department for Innovation, Universities and Skills has issued a consultation paper on a proposed new right to request time off for training.
The right to request time to train would work by giving employees a legal right to ask their employer to give them time away from their job to undertake relevant training, which their employers would be required to seriously consider. The new right would closely follow the current legal model of the right to request flexible working. It is intended to apply only to employees who have been working for six months.
For more information, see the DIUS press release:
www.dius.gov.uk/consultations/con_180608_timetotrain.html
Consumer Protection - Unfair Trading
From 26th May 2008, The Consumer Protection from Unfair Trading Regulations will affect all UK businesses that trade with consumers. They are designed to protect honest businesses by targeting the underhand practices of ‘rogue traders’.
The regulations ban 31 types of unfair commercial practices outright. They also establish a general principle not to trade unfairly, use aggressive selling techniques or mislead consumers, helping to close loopholes that have previously been exploited.
The regulations aim to simplify consumer protection by streamlining existing UK regulations. They will make life a lot tougher for those who don’t comply, with severe penalties and possible prosecution. For the majority of businesses trading fairly and honestly, there should be no need to change operations, but guidance is available to check compliance. For more information on the new regulations see:
www.businesslink.gov.uk/unfairtrading(England)
www.bgateway.com/unfairtrading(Scotland)
www.hiebusiness.co.uk/unfairtrading(Scottish Highlands & Islands)
www.businesseye.org.uk(Wales)
www.nibusinessinfo.co.uk/unfairtrading(Northern Ireland)
New Employment Laws for 2008
From 29th February 2008 there will be new penalties (criminal and civil) for employers who take on illegal workers. Employers of migrant workers whose right to work in the UK is not permanent will also have a new responsibility to make periodic checks on existing workers' entitlement to work in the UK, rather than simply checking status once before employment begins. The Information and Consultation of Employees Regulations will apply to retailers employing 50 or more employees from 6th April 2008, introducing new rights for employees to be informed about developments in the workplace on an ongoing basis. Also on 6th April 2008, the Corporate Manslaughter and Corporate Homicide Act will come into force and it is important that retailers put health and safety measures at the top of their agendas in order to keep abreast of good practice.
The Employment Bill
Less than four years after its introduction, there are plans to abolish the legislation that was supposed to encourage employers and workers to settle their differences without resorting to litigation. The Employment Bill proposes new guidance from ACAS, which is expected to place a greater focus on mediation as a means of resolving workplace disputes. The Government will also be revealing details of its plans for a big change to UK discrimination legislation with a new Equality Bill and there may be plans to revive legislation to give greater rights to agency workers.
Smoking Ban
Smoking in all indoor public places was banned throughout the UK on 1st July 2007. Employers in charge of the premises could face a £2,500 fine if they fail to stop smokers. They could also be charged on the spot fines of £200 if they fail to display no-smoking signs, with the penalty increasing to £1,000 if the issue goes to court. The ban came into force in Wales on 2nd April 2007, in Northern Ireland on 30th April 2007. It was already in force in Scotland.
According to recent research, many businesses could fall foul of the law because they haven't followed the rules on 'No-Smoking' signs. Businesses need to check the finer detail of the regulations. The rules relating to smoke-free signs are very prescriptive and require businesses to have the correct size, wording, and logo, as well as to ensure that they are displayed in the right locations in smoke-free buildings and vehicles. Retailers that fail to have all of this in place could find themselves facing a fine from the enforcing authorities.
• Signs on entrances that can be accessed by members of the public must be A5 in size, or 70mm in diameter for a sign in smoke-free vehicles, and display the no-smoking logo of a burning cigarette in a red circle with a diagonal line through it.
• The sign must also include the wording, “No Smoking. It is against the law to smoke in these premises.”
• The words 'in these premises' can be substituted to make the sign more personal to the premises.
• A vehicle must display signage & be smoke free if it has a roof, is used by any member of the public or is used for work by more than one person.
Holiday Entitlement To Be Extended
Update:
The British Retail Consortium has welcomed a Government shift on new regulations on holiday entitlement which means employers will now have adequate time to prepare. The Government plans to raise the legal minimum annual leave entitlement from the current 20 days to 28 days. The original plan was to add four days to the annual entitlement October 2007 and the further four days in October 2008. The new proposal will still increase annual leave entitlement to 24 days from October 2007 but, crucially, will allow employees to continue opting to work on some of their leave days until April 2009 when the second four days of leave entitlement will be introduced. Because most retailers already offer more than 20 days annual leave, typically around 24 days with bank holidays on top, and only ‘buy-back' days for leave entitlement in excess of 20 days – a flexibility which can now continue until 2009.
Full press release at:
http://www.brc.org.uk/details04.asp?id=1183
DTI Consultation:
http://www.dti.gov.uk/consultations/page36462.html
Original Posting:
The DTI plans to extend holiday entitlements from the current 20 days by requiring employers to give employees 24 days holiday from October 2007 and 28 days from October 2008 (inclusive of bank holidays). Therefore, employers who currently offer less than 24 days holiday will have to provide further holiday entitlement from October 2007. Employers who offer less than 24 days leave (with bank holidays in addition), but do not allow employees who work on those bank holidays to take an alternative day of holiday instead, will have to make changes by October 2007. Those who provide over 24 days but fewer than 28 with bank holidays on top will need to make the same changes by October 2008.
Guidance on Free Draws and Prize
Competitions
The Gambling Commission has published
guidance on the distinction between prize competitions and free draws on the one
hand, and lotteries on the other. The Guidance covers the boundary between
lotteries and a wide range of prize competitions, free draws and product
promotions which accompany the purchase of goods or services.
The publication of
Prize competitions and free draws: the
requirements of the Gambling Act 2005 sets out the Commission’s
position so that those organising competitions and draws can ascertain what the
Commission considers is needed to avoid breaches of the Gambling Act 2005 when
it comes into effect on 1 September 2007.
For further information see:
www.gamblingcommission.gov.uk
Common VAT Problems
Once they understand the basics, many businesses find VAT reasonably straightforward.
But there are some tricky areas where it is easy to make mistakes. These can give rise to stringent penalties, and ignorance is no defence.
In this guide, we assume you know about the basics of VAT and concentrate on some of the more unexpected pitfalls.
The guide covers:
Timing and paperwork problems. Unreclaimable VAT. Exceptions for unusual supplies. Where to get help and advice.
To find out more read about Common VAT Problems
Employment Contracts
A contract of employment exists as soon as an applicant accepts your offer of employment.
A clear, reasonable contract helps you to ensure that the employee understands what is expected, and to minimise the risk of disputes.
At the same time, you need to understand what your contractual obligations are, and what terms you can (and cannot) enforce. This guide outlines:
The basics of employment contracts. The content of the written statement.
What else forms part of the contract. Key issues to consider.
Read about Employment Contracts
New Website Highlighting National Training Award Winners
Businesses in Yorkshire and the Humber now have access to case studies of successful training following the launch of a new website. THE TRAINING DATABANK is a free online resource containing case studies of a selection of National Training Award winners from the past 5 years. THE TRAINING DATABANK is searchable by training need, sector and region. Each case study takes an in depth look at the development, implementation and results of an organisation's training programme. The address of the website is: www.trainingdatabank.com
Sickness Issues & SSP: Businesses lose a lot of money through sickness absence, not all of it medically justified
While many of the issues can be handled on the basis of give and take, there are times when clear policies and decisive action are needed.
This guide covers:
Statutory sick pay. Keeping sickness absence under control. Coping with long-term sickness. Dismissing sick employees.
Read: Sickness Issues and SSP
Business Planning Guide: Fewer than 25% of small businesses have a business plan
It is a widely held view that companies with a Business Plan are more successful and are more profitable.
Why not take 10 minutes out of your day and review your company plan?
Check out this quick guide for busy MDs and management teams of small and medium size businesses.
It's designed as an on-going business tool, not a set of projections to take to the bank manager.
Read: The Business Planning Guide
Age Discrimination - The Employment Equality (Age) Regulations 2006
From 1 October 2006, new rules required the removal of bias on grounds of age in employment. This will include policies and practices relating to:
Recruitment, selection and promotion. Criteria for benefits. Providing training. Retirement and redundancy. Occupational pensions
Employers will not be allowed to:
Directly discriminate on grounds of age - e.g. where you do not employ or promote an individual because of their age. Indirectly discriminate on grounds of age - e.g. where you require a number of years' previous experience, which younger people are unlikely to have. Allow any harassment, bullying or victimisation on grounds of age either by the business or any employee.
How It Will Affect You:
As a Candidate - You will not be required to supply a date of birth or age on a CV, although you may be asked for this information in a Diversity Monitoring Form. You will not be turned down for a job because of your age. If you have the education, ability and skills required for the position you will have an equal opportunity as any other candidate. Job adverts will have to show a realistic number of years experience. It is not acceptable to ask for ten years experience when the job could be done by someone with less than five years experience.
As an Employer or Recruiter - You will need to remove all age related criteria from advertising. You will not be able to advertise with terms such as ‘young’, ‘mature’ or ‘older’. Even the term graduate should not be used as code for young and just out of university. Graduates are all ages and advertisements will need to attract candidates on their skills and ability. You should examine and remove any offending copy from all advertising especially if provided by clients or third parties. Clients will no longer specify that they are recruiting for a team within a specific age range or that the company profile is young. You will be responsible for any legal action that results from any applicant embarrassed or hurt by offending words. In the USA, where discrimination against workers on the grounds of age has been illegal for nearly 40 years, legal actions for age discrimination are one of the fastest growing areas of litigation.
As an Employee - You will receive the same benefits, training and promotion prospects as older or younger employees. You will not be victimised or harassed because of your age. You will not be subjected to teasing, tormenting and ridicule as a result of your age. All employees should be treated equally when setting work objectives or measuring levels of performance. It will be the responsibility of employers to ensure all employees are aware of the new law. No employee should make derogatory remarks about another employee’s age – terms such as ‘wet behind the ears’, ‘old codger’, ‘should have retired years ago’ and other such remarks are discriminatory and therefore after 1 October 2006 will be illegal.
Advertising on this site:
The use of age limits will be unlawful (e.g. 'over 25’). Indirect ageism (where people of a particular age group are disadvantaged) will also be unlawful (e.g. requiring 5 or 10 years experience). The law allows employers to refuse to recruit people within six months of their retirement age, or 65 if you don’t have one.
For full details on the new legislation CLICK HERE
Maternity & Parental Leave
The Work and Families Act 2006 introduces new measures for maternity and parental leave from April 2007. This includes:
Extending maternity and adoption pay from six (26 weeks) to nine months (39 weeks) from April 2007. Allowing all pregnant women, no matter how long they have been in employment, to take up to one year off. Extending the right to request flexible working to carers of adults from April 2007. Giving fathers a new right to up to 26 weeks additional paternity leave, some of which could be paid if the mother returns to work.
As individual rights will vary, please check the following for further information:
DTI Employment Guidance - www.dti.gov.uk/employment
Business Link - www.businesslink.gov.uk
Broadcasting Licences
A recent change in the legislation now allows Phonographic Performance Ltd to charge a fee for radio and TV broadcasts, so retailers playing music in store need to have licences from both The Performing Rights Society (which collects for musicians and composers) and PPL (which collects for record companies and performers). For more information please see:
Directors' Responsibilities
Company directors are responsible for the management of their companies. But they act on behalf of the owners, and must consider their interests in everything they do. They also have responsibilities to the company's employees, its trading partners, and the state.
As a director, you need wide powers to help the company become a strong and profitable business. You face serious penalties if you abuse those powers, or use them irresponsibly.
Find out more about appointing company directors, directors' powers, penalties for misuse of position and how to protect yourself.
Read Directors' Responsibilities
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