News

21 January 2010

EMPLOYMENT LAW UPDATE FROM DOYLE CLAYTON EMPLOYMENT LAW SPECIALISTS

In addition to our employment law seminars held in conjunction with Doyle Clayton, we are pleased to pass on recent employment law news.

WEATHER WARNING
According to the Forum of Private Business, the recent snow falls could cost the economy at least £230m. However, employers should be careful about forcing employees to come into work if it is risky to do so. The CIPD suggest that this should be made clear to staff. It is important to act consistently when granting special leave or requiring staff to take annual leave instead. The TUC has advised against docking pay or insisting that annual leave is taken for snow days, as they consider that this will build up resentment in the workforce.

Practical measures, such as allowing staff to work flexi hours and to work from home, can be employed to good effect. However, employers should be careful to ensure that home working systems are installed properly and that health and safety obligations are complied with.

CHILDCARE VOUCHERS
In October 2009, the Government announced plans to cut tax relief on Childcare Vouchers. This caused a mild furore and consequently the Prime Minister has now confirmed that the Childcare Voucher scheme will continue for the time being. However, from 2011, all new entrants to the Childcare Voucher scheme will only get basic rate tax relief of 20%, even if the individual pays the higher rate tax. The Childcare Voucher scheme will be scrapped for all users by 2015.

INCREASE IN PATERNITY LEAVE AND PAY
For babies born on or after 3 April 2011, the Government intends to introduce additional paternity leave. Some of the leave will be transferred from the mother to the father. Whilst this legislation is not due to be enforced until 2011, businesses will need to ensure that they have updated their policies by mid-2010.

COMPENSATION LIMITS
The statutory compensation limits are set to change again. From 1 February 2010, the maximum award available for unfair dismissal has, for the first time, gone down from £66,600 to £65,300. The guaranteed maximum daily pay rate for those on short time or on a temporary lay off has been reduced from £21.50 to £21.20 per day.

Statutory Maternity, Paternity and Adoption pay will be increased from 4 April 2010 to £124.09 a week. Statutory sick pay will remain the same at £79.15 a week.

Statutory Redundancy pay remains at £380 per week and the National Minimum Wage remains at £5.80 per hour for those 22 years of age and older.

EARLY RETIREMENT
From 6 April 2010, the age limit to take early retirement will increase to 55 years. Generally speaking if a member takes their pension prior to reaching 55 years, then the payment will be classed as an unauthorised member payment until the member reaches 55 years and so will attract extra tax charges. There are a few exceptions to this general rule, such as where the member receives an ill health or incapacity pension or has a protected pension age (as specified by HMRC).

TIME OFF TO TRAIN
The Apprenticeships, Skills, Children & Learning Act 2009 will come into force on 6 April 2010 for employers who have 250 or more employees. Employees who have completed more than six months’ employment will have a right to request time off to train if the training will improve their effectiveness at work, and also the performance of the employer’s business.

SICK NOTES
In 2009 the Government proposed to replace the current sick note system with “fit notes”. The new regulations will be introduced in early 2010 and it is anticipated that the fit note system will be in force by Spring 2010. The notes will provide greater information for employers on an employee’s medical condition, whether the individual is fit for all or part of their duties and whether any adjustments are required.

Taken from “Recent Employment News” January, published by Doyle Clayton Solicitors, Thames Valley 0118 959 6839 www.doyleclayton.co.uk

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