![Page 1: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/1.jpg)
Employment Law UpdateGreg Guilford, HR Solutions
![Page 2: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/2.jpg)
Topics to Cover
• Abolishment of Default Retirement Age (DRA)
• Maternity/ Paternity Provisions• The Equality Act• The Bribery Act• Agency Workers Regulations
![Page 3: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/3.jpg)
Abolishment of the Default Retirement Age (DRA)
![Page 4: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/4.jpg)
Default Retirement Age
• The background…
• Previously allowed to dismiss employees simply because of their age
• Age Discrimination introduced ‘retirement’ as a fair reason for dismissal
![Page 5: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/5.jpg)
Default Retirement Age
• From 1st October 2011• The DRA and statutory retirement
procedures will be abolished.
• Quite simply, employer enforced retirement is no longer an option based on age*• *Unless it can be objectively
justified…
![Page 6: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/6.jpg)
Default Retirement Age
• Objectively justifying retirement
• In order for retirement to be considered ‘justified’, its aim must be both ‘legitimate’ and ‘proportionate’
![Page 7: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/7.jpg)
Default Retirement Age
Proportionate
• What the employer is doing is actually achieving its aim
• The discriminatory effect significantly outweighs the importance and benefit of the aim
• The employer should have no reasonable alternative to the action
Legitimate
• The health, safety and welfare of the individual concerned
• Economic factors, such as the needs and the efficiency of running the business
• The particular training requirements of the job
![Page 8: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/8.jpg)
Default Retirement Age
• So where does this leave employers?
• Performance / Capability Management
• Introduce performance management initiatives• Performance Appraisal System• Absence Management • Capability Policy / Procedure
![Page 9: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/9.jpg)
Default Retirement Age
Capability is still a ‘fair’ reason for
dismissal.
![Page 10: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/10.jpg)
Default Retirement Age
• Succession Planning• Developing talent for the future• Management of expectations• Discussions with employees about their
future, i.e. are they planning on ‘retiring’,
• Offer financial discussions with pension provider, etc.
![Page 11: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/11.jpg)
Default Retirement Age
• Company Benefits• Health Schemes• Death in Service• Employer Liability Insurance• Company Car Insurance
These may either increase substantially, or no longer cover employees over 65…
![Page 12: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/12.jpg)
Default Retirement Age
• How we are helping our clients?• Revised current policies, issue of new
policies• Capability• Retirement Policy
• Preparation of draft letters to employees with regards to the impact on their benefits
![Page 13: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/13.jpg)
Maternity / Paternity Provisions
![Page 14: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/14.jpg)
Maternity / Paternity
• The background…
• Previous position• Father entitled to 10 days paternity
leave (only)• Quite often the father took holiday
instead of paternity leave
![Page 15: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/15.jpg)
Maternity / Paternity
• Additional Paternity Leave• This came into effect from 3rd April 2011
• This now allows fathers* to take up to 26 weeks paternity leave in the first year of the child’s life.
• This effectively allows parents to share the full 52 weeks maternity leave.
• *see wider definition in factsheet
![Page 16: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/16.jpg)
Maternity / Paternity
• Overview of rules:• Fathers will only be able to start their
APP:• 20 or more weeks after the child’s birth
or placement for adoption • Once their partner has returned to work
from statutory maternity leave or statutory adoption leave and/or ended their entitlement to statutory maternity or adoption pay, or maternity allowance
![Page 17: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/17.jpg)
Maternity / Paternity
• In addition 8 weeks before the father wishes APL to start, they must provide:
• Notice of when they wish their leave to start
• A declaration stating that they are taking the leave to care for the child
• A declaration from the mother or other adoptive parent stating certain information
![Page 18: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/18.jpg)
Maternity / Paternity
• How we are helping our clients?• Revised current policies, issue of new
policies• Maternity Policy• Paternity Policy• Family Friendly Policy (incl. Adoption Leave)
• Preparation of draft letters and forms to help manage the process
![Page 19: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/19.jpg)
The Equality Act (2010)
![Page 20: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/20.jpg)
The Equality Act (2010)
• The background…
• Previous position• Previously 9 different acts relating to
discrimination• And now…
• Only one act, covering all aspects of discrimination
![Page 21: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/21.jpg)
The Equality Act (2010)
![Page 22: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/22.jpg)
The Equality Act (2010)
![Page 23: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/23.jpg)
The Bribery Act (2010)
![Page 24: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/24.jpg)
The Bribery Act (2010)
• The background…• Prior to the introduction of The Bribery
Act, the topic of bribery was contained over various pieces of legislation.
• These pieces of law, some of which were over 100 years old have now been bought together and make up The Bribery Act 2011.
![Page 25: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/25.jpg)
The Bribery Act 2010 came into force in the UK on 1st July 2011.
• The Bribery Act will:• strengthen the UK’s reputation as one of
the least corrupt countries in the world, • pave the way for fairer practice,
encouraging companies to adopt and put into place anti-bribery safeguards.
![Page 26: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/26.jpg)
• The Four Key Principles:• Paying (or offering) a Bribe• Accepting a Bribe• Failing to prevent bribery• Bribing a Foreign or public official
![Page 27: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/27.jpg)
• Failing to Prevent Bribery• Failure to prevent bribery is also known
as the ‘corporate offence’. • This occurs when a company fails to
prevent or tackle people who are operating on its behalf from being involved in bribery.
![Page 28: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/28.jpg)
• Companies need to pay the upmost attention to this ‘corporate offence’ as it involves everyone associated with them.
• This offence could occur from a range of associated people who operate on behalf of the company whether it is an employee, agent or a consultant.
![Page 29: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/29.jpg)
• Possible Defences• The possible defence against bribery
would be the company’s ability to demonstrate that it had adequate policies and procedures in place to stop any bribery from occurring.
![Page 30: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/30.jpg)
• Adequate Policies and Procedures• anti-corruption culture in the
organisation• named senior individual who is
responsible for anti-corruption polices and procedures.
• Risk assessments should be in place to determine the potential risk of bribery occurring.
• Companies should have a clear code of conduct that addresses anti-corruptions issues.
![Page 31: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/31.jpg)
• Penalties for participating in corrupt activities should be clearly spelt out in employees’ contracts of employment.
• Companies should have a gifts and hospitality procedure that sets out what is and what is not acceptable
• Employees should be given training in anti-corruption matters.
![Page 32: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/32.jpg)
• Such financial controls should be set in place so that the possibility of bribery occurring is made unlikely.
• Whistle blowing procedures should be in place where employees can report any matters relating to corruption without, fear of retaliation.
![Page 33: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/33.jpg)
• How we are helping our clients?• Revised current policies, issue of new
policies• Code of Conduct• Disciplinary Policy• Business Gifts and Hospitality• Expenses Policy• Business Ethics Policy• Whistleblowing Policy
• Updated Written Statements
![Page 34: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/34.jpg)
• SpeakUP Integrity Programme• Whistleblowing Hotline• Confidential Reporting
![Page 35: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/35.jpg)
Agency Workers Regulations
![Page 36: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/36.jpg)
• The Agency Worker Regulations 2010 will come into force from 1 October 2011.
• These Regulations have come in on the principle of equal treatment between agency workers and staff recruited directly via a company
• They do not change the employment status of agency workers.
![Page 37: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/37.jpg)
• The rule of thumb on what these Regulations mean as ‘equal treatment’ is that they must simply be treated as if they have been recruited directly for the position.
![Page 38: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/38.jpg)
• Who is covered by these Regulations?• These new Regulations cover agency
workers, temporary work agencies and employers.
• An Agency Worker is an individual who is “supplied by a temporary work agency to work temporarily for and under the supervision and direction of a company”.
• They do not cover self-employed people who work for a company under a contract for services.
![Page 39: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/39.jpg)
• Qualifying Periods• The Regulations will give agency workers
2 rights:• The right from day 1 of their
assignment to equal access to employment opportunities and collective facilities, and
• The right after undertaking the same role, for the same company for 12 continuous weeks to the same basic working and employment conditions.
![Page 40: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/40.jpg)
• Avoidance by a structure of assignments
• Offering 11 week assignments is going to be seen as anti-avoidance if you then break and re-start their assignment.
• A break to discount the qualifying period will need to be at least 6 calendar weeks or more.
![Page 41: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/41.jpg)
• From day 1 the agency worker will: • have the right to be informed of relevant
vacancies• have the same access to facilities
• It does not cover off-site facilities such as an off site gym that is provided as part of a benefit package.
![Page 42: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/42.jpg)
• After 12 weeks • The agency worker has the same basic
working and employment conditions as those employees recruited directly.
• This includes:• Contractual holiday pay• Overtime pay• Shift Allowances / Unsocial hours premiums• Bonuses linked to individual performance• Luncheon or transport vouchers
![Page 43: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/43.jpg)
• Preparation• Assess the number of agency workers
you use• Assess the number of assignments
which last 12 weeks or more • Review if there are differences between
the employment terms and conditions and access to collective facilities
![Page 44: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/44.jpg)
• Things to Consider• Restricting assignments to less than 12
weeks• Increasing your direct recruitment of
temporary employees• Engaging casual workers through an ‘in
house’ bank• Increase the use of self-employed
workers• Increase the use of managed/outsourced
services• Negotiate with agency suppliers, to
reduce risks and costs
![Page 45: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/45.jpg)
• The risks• Agency workers will have the right to
bring a claim to an Employment Tribunal to enforce their right to equal treatment.
• The Employment Tribunal can award compensation to take account of any financial loss suffered by the agency worker and can make an additional award of up to £5,000 for any breach of the anti-avoidance provisions.
![Page 46: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/46.jpg)
Pension Reforms
![Page 47: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/47.jpg)
• The background:• In 2012, the Government will be
implementing pension reforms in order to increase workplace pension provision.
• The key driver is that there will be more pensioners in the future and those pensioners will live longer.
• This will put a massive strain on the State pension system.
![Page 48: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/48.jpg)
• To alleviate this burden, the Pensions Acts 2007 & 2008 make changes to the Basic State Pension, the State Second Pension and introduce new employer duties for pensions.
• The Pensions Act (2008) will auto-enrol some 12 million employees who are not already making the required level of pension contributions into a Qualifying Workplace Pension Scheme (QWPS).
![Page 49: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/49.jpg)
• The employer duties• From October 2012, employers will be
required by law to:• Automatically enrol all their eligible
employees not already in a good quality pension scheme into a QWPS on the day the employee becomes eligible, and
• Pay contributions for every employee who does not opt-out of the QWPS.
![Page 50: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/50.jpg)
Timetable
![Page 51: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/51.jpg)
The Contributions
![Page 52: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/52.jpg)
• Quality Qualifying Workplace Pension Scheme (QQWPS)• Employers can avoid much of the
administration burden associated with automatic enrolment by setting up a QQWPS where:
• The total minimum contribution is 11% of qualifying earnings, of which
• At least 6% must come from the employer,• Automatic enrolment dates can be
postponed up to 90 days
![Page 53: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/53.jpg)
• Eligible Employees• All employees will have to be auto-
enrolled unless:• They are already in a qualifying workplace
pension scheme, • They are under the age of 22,• They are over the State Pension Age, or• They earn less than £5,035 a year (in
2006/2007 terms).
![Page 54: Work in Progress - 10th Year Anniversary - Employment Law Update](https://reader033.vdocuments.mx/reader033/viewer/2022051818/54c34f5d4a7959e4358b45d9/html5/thumbnails/54.jpg)
What happens next?It’s up to you..
• You can wait until 2012 and let someone else, who knows nothing about your business, set up and run a pension scheme for your employees
Or• You can set up your own scheme and
retain complete control over your benefits package.