News Archive
2 August 2010
Default Retirement Age set to go
The Government has just announced that the much debated Default Retirement Age (DRA) is likely to be
scrapped by 1 October 2011, with a 6 month phasing out period beginning on 6 April 2011. This proposal is
currently subject to consultation.
Presently, under the Employment Equality (Age) Regulations, employers can retire their employees once
they reach the default age of 65 years. From 6 April 2011, it is intended that the following will be
introduced:
• no new notifications of retirement under the existing DRA ‘duty to consider’ procedure can be
issued by employers;
• short notice (i.e. notice of retirement 2 weeks before the DRA) will no longer be allowed;
• employees who have been notified prior to 6 April 2011 of a retirement which will fall before
1 October 2011 can still be compulsorily retired, providing that the requirements of the statutory
retirement procedures are complied with. Those who are notified post-6 April 2011, or whose
retirement date falls on or after 1 October 2011, cannot be retired compulsorily under the duty to
consider procedure as it will no longer apply;
• employers will be able to operate their own compulsory retirement schemes, however, their use
must be objectively justified as being a proportionate means of achieving a legitimate aim.
The Government believes that removing the DRA and the associated statutory retirement procedures will
help the economy, whereas some business groups are concerned that this measure is being introduced too
quickly. Further, there are concerns about how the removal of the DRA will affect insured benefits and
employee share plans. As ever, the Government has published a consultation document and will be looking
at these concerns as part of this, although it seems likely that the changes will be introduced regardless.
The consultation will be open until 21 October 2010 and it is anticipated that further guidance will be
provided thereafter.
So what will employers need to do?
Before April 2011, employers will need to consider:
• whether there are:
a) any employees who will turn 65 before 1 October 2011, or
b) any employees whose contract was extended under the duty to consider procedure but will
come to an end before 1 October 2011,
and then consider whether they wish to give notice of compulsory retirement to any of those
employees under the existing provisions. This notice will need to be served before 6 April 2011.
• whether to scrap any internal retirement age and duty to consider procedures (rather than
implementing a compulsory retirement scheme). This would mean that there is no compulsory or
normal retirement age and employees will continue to work beyond 65 years of age. Any future retirements/dismissals would be dealt with on a case by case basis. The Government intends to
issue guidance on managing retirement dismissals without a compulsory retirement age.
• whether to implement a compulsory retirement scheme. The employer will need to consider the
aim of this scheme and ensure that the aim is legitimate and that there is clear evidence to support
its use. The Government has warned that it will be hard to justify the use of any such scheme.
Information supplied by Doyle Clayton Solicitors of Reading
www.doyleclayton.co.uk
25 June 2010
RECENT EMPLOYMENT NEWS
FAKING A FIT NOTE
It seems that you can buy anything on the internet, including fake fit notes, which have been circulating on the internet for only £1. Employers are being warned that some employees may try to use them to claim contractual or statutory sick pay.
If you are concerned that an employee has provided a fake sick note then, depending on the circumstances, it may be wise to refer the individual to an independent Occupational Health Advisor or Doctor. Alternatively, employers could check with the issuing GP in order to verify its legitimacy. Further, it would be prudent to warn all employees now that if anyone is found using a fraudulent fit note, this may result in disciplinary action.
REVIEW OF THE VETTING AND BARRING SCHEME
Changes could be afoot for the new Vetting and Baring Scheme after the Coalition Government ordered a review. From July 2010 all new employees and volunteers will be able to start registering under the Scheme. From November 2010, it will be illegal for peopled to begin work with children or vulnerable adults if they have not been registered. The Coalition Government is concerned that the CRB Check and Vetting and Barring Schemes are beyond the level of common sense and have therefore pledged to redress this balance.
THE PROBLEM WITH BAD WORKING HABITS
The Chartered Society of Physiotherapy recently polled 2,600 employees. It found that one in four works all day without taking breaks. More than a third will often work through lunch, this being blamed on either there being too much work or there not being enough staff to cover the workload. The Society has warned that it is likely that there will be an increase in the number of cases of chronic musculoskeletal disorders which could give rise to claims for personal injury.
Employers are being warned to make sure that they manage their employees well, and that managers are trained in order to notice the early warning signs of those who are struggling to cope, so that steps can be taken early.
ONE IN TWENTY DO NOT READ THEIR EMPLOYMENT CONTRACTS
Which? Legal Services recently undertook a survey of 4,000 people. It found that 26% of workers did not read their employment contract properly and 7% admit that they have not read the contract at all. Despite it being a legal requirement to provide an employee with a written statement of particulars of employment within two months of starting work, the survey found that around 12% of workers do not have a written contract at all and 9% of those polled did not get their contract until they had been working at the company for six months or more.
A wise employer will make sure that the employee reads and signs their contract and that this is issued prior to the start of employment, to limit any arguments later on.
WHAT THE COALITION GOVERNMENT HAS IN STORE
The new Coalition Govt has announced its intention to review employment laws. This is to ensure that workers and employers are given flexibility, while “protecting fairness and providing the competitive environment require for enterprise to thrive”.
Family friendly policies: In the Coalition Agreement the Government has stated that they want to consult with both business and families in order to identify the best way to extend family friendly practise. It is unlikely that there will be any new legislation in the foreseeable future as the Government does not want to rush into anything. However, both parties are committed to introducing flexible parental leave and it is likely that the concept of shared parental leave will be introduced in the future. There is also a possibility that maternity leave will be extend to 18 months. However, this will only be implemented if there are sufficient resources which seems unlikely in the current market. In the recent emergency Budget, the Government announced that benefits such as maternity pay and sick pay will be up-rated in line with the Consumer Price Index, rather than the Retail Price Index. This will save around £6 billion per year.
Retirement: Currently the State pension age is due to rise to 66 between 2024 and 2026. However, it is likely that this will be reviewed and brought forward; while the default retirement age, currently 65, will be phased out altogether by April 2011.
Taken from “Monthly Employment Update” June 2010
Doyle Clayton Employment Law Solicitors, Reading
27 May 2010
JUMPING SHIP
Employers shouldn’t rely on the recession as a way of retaining staff. And employees who work for organisations that rely on the “you should be grateful to have a job” approach are in fact biding their time and will leave when opportunities arise.
A recent survey by SimplyHealth has found that 50% of workers believe that their physical and mental wellbeing has been ignored by their employer during the economic downturn. More than half of the employers surveyed accepted that they had been more focused on ensuring that they could ride out the recession as the cost of their employees’ wellbeing. 75% of employers did not believe that their employees would leave as a result. However, 45% of employees polled stated that they will be looking for a new job now that the economy seems to be improving.
If your workforce is getting restless please give us a call to find out how we can help.
Source: Doyle Clayton
11 May 2010
From Sick Note to Fit Note
From 6 April 2010 the sick note is changing to become a fit note.
Sick notes (or Medical Statements) are the forms issued by doctors to people when they are ill or injured. They provide advice about whether or not an individual with a health condition is fit for work. They are commonly used by employers as evidence that an employee cannot work for sick pay purposes.
Many people with health conditions can, with some basic support from their employer, work as they recover from their condition. This helps the individual because for many people work can help recovery and also benefits the employer by reducing sickness absence.
Under the sick note system, doctors could only advise their patient on whether their health condition meant that they should or should not work. As a result many people who could benefit from support whilst in work, would be advised that they could not work. Their employers would not have had the opportunity to consider how they could help them achieve an earlier return to work.
To help more people get the support they need to get back to work the new fit note system will mean that doctors can advise that your employee is either:
- unfit for work; or
- may be fit for work.
A doctor will give a ‘may be fit for work’ Statement if they think that their patient’s health condition may allow them to work if they get suitable support from their employer.
If an employee is too ill to work the doctor will advise this just like with the sick note.
The changes are not about trying to get people back to work before they are ready, but about removing the challenges to them returning. This is about you and your employee working together and being open and honest. In general, work is good for health and the vast majority of employees place a far greater value on it than just their pay. By working together to find an arrangement that suits both of you, you can provide real benefits to both your employee and your business.
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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