End of Default Retirement Age (DRA) confirmed

It has been confirmed by the government that the removal of the Default Retirement Age (DRA) is still going ahead.  They believe that it will boost the UK economy and tackle issues around the ageing population and the shortfall in pension savings.

As we detailed in our August 2010 Newsletter and follow up Latest News Article, the Default Retirement Age, can no longer be implemented after 1st October 2011.
Since the current procedures require an employer to give a minimum of 6 months notice of retirement, the latest date that an employer can now issue a notification of retirement to a member of staff is 5th April 2011.

As with any rules, there are always exceptions - Legally employers will still be able to operate a compulsory retirement age “provided they can objectively justify it”.  This will apply in a small number of cases and the Department for Business gives two examples of where this might be the case – air traffic controllers and police officers.

ACAS have produced a guide to help businesses adapt to the removal of the regulation, which can be found at: http://www.acas.org.uk/index.aspx?articleid=3203
Alternatively please call one of our team for advice:  Tel: 01280 817341

Question: I have an older employee who is not performing well, I was hoping to use the Default Retirement Age to dismiss him when he reaches 65 yrs - what can I do now?

Answer:  Apply Performance Management across the workforce and implement Capability procedures if necessary.
You are still able, under the Employment Rights Act 1996, to fairly dismiss someone if you follow the proper processes – one of the reasons you can dismiss someone fairly includes capability.

We are advising employers to review their Performance Management and Capability procedures to ensure that they are robust enough to deal with cases of poor performance (regardless of age) and avoid potential claims of discrimination.

Please contact to discuss the implementation of Performance Management procedures and the supply of a Capability Policy and the subsequent training of your Managers:

Tel:  01280 817341  Email:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The Bribery Act

The Bribery Act 2010 aims to promote anti-bribery practices among business, by modernizing the law on bribery.  The Royal Assent was given in April 2010 and was expected to come into force in April 2011, but has now been delayed for a few months.

The Act introduces a corporate offence - failure to prevent bribery by persons working on behalf of a business.  If bribes are paid by, or on behalf of an organization, (either by employees or agents acting on behalf of the company), the company can be prosecuted for failing to prevent bribery.  Companies can face unlimited fines and individuals involved could face up to ten years in prison.

The Act describes bribery as “the giving or taking of a reward in return for acting dishonestly and/or in breach of the law”.  It will be a criminal offence to “give, promise or offer a bribe and to request, agree to receive or accept a bribe”.

Under the Bribery Act 2010, there are 4 possible offences:

Employers are being advised to introduce controls and monitoring update relevant documents including Contracts of Employment, employee training …….
Black Dog HR Consultancy Ltd can help - Call today 01280 817341

Bribing Another Person
Offering, promising or giving a reward to induce a person to perform a relevant function or activity improperly

Being Bribed
Accepting, agreeing to accept or requesting of a reward in return for performing a relevant function or activity improperly

Bribing a Foreign Public Official
Aimed at foreign public officials, in an attempt to prevent business being obtained or retained in a situation where the public official was not permitted or required by law to be influenced

Failure to Prevent Bribery
This is the “Corporate Offence” - Employers need to put adequate procedures in place to prevent bribery from occurring from people who are operating on their behalf.

Employer Charter

The Government are currently in discussion regarding the implementation of an “Employers Charter”, which aims to give businesses more confidence to employ new workers in support of business growth.

The Charter aim to make the process of taking on staff as simple and straightforward as possible and will remind employers of their rights to make employees redundant if the business takes a downturn, the rights of a business to plan some of their employees holidays around the needs of the business and the right to dismiss employees for poor performance.

Consultations will continue until 20th April 2011 and we will keep you informed of news as it is announced.

Child Care Vouchers

Changes to level of tax relief on childcare vouchers for Higher Rate Tax Payers will be implemented in April 2011, which will result in a reduction in the savings available for employees who pay a Higher Rate Tax.
To benefit from the savings it will be necessary for Higher Tax Earners to register before 6th April 2011.
The change in rules will apply to the following types of employer-supported childcare:

- Employer-contracted Care – where the employer arranges directly with a registered provider to offer childcare to employees
- Childcare Vouchers provided to the employee by the employer

Both of these methods are currently tax and NI free on the first £55 per week

How much would a Higher Rate Tax Payer lose if they wait until after April to register?

Health and Safety

 
FAULT FEES
The Chair of the HSE has revealed that the HSE is considering introducing a policy whereby any organisation that creates risks then is found to not be legally compliant can be charged for the work the HSE then does.
Whilst this is just currently an idea the fact that the Government has slashed the HSE’s budget by 35% adds some weight to the possibility.
For the moment there is no need to panic as it would take some time to introduce, but if you are a company which does not routinely consider the risks to your staff, clients or others then now may be the time to change that.  

If you require any assistance with any Health and Safety issues please contact either Rialto Health & Safety or Black Dog HR and we will be only too pleased to help. 

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01933 666990         01280 817341

Special Points of Interest

Former BBC presenter wins age discrimination claim
Miriam O’Reilly, the former presenter of Countryfile, won an Employment Tribunal on the grounds of age discrimination, after being dropped by the BBC from the programme and replaced with a younger presenter aged 38 yrs.
Ms O’Reilly, 53, was one of the four female presenters over the age of 40 who was axed from Countryfile in 2008 and took the BBC to a Tribunal, claiming both sex and age discrimination, as well as victimization.

NHS Worker in Yorkshire overpaid by £21K over 22 months
A former NHS worker has been sentenced to 4 months imprisonment suspended for 12 months and a 12 month supervision order for theft, after receiving payments totally over £21k over a 22 month period.  She knew that she was not entitled to the payments after handing in her notice and leaving work, however an error on the payroll system reactivated her details and began paying her again.
During the 22 month period, the former NHS worker even sent in a change of address and bank account detail
The error was discovered as part of an absence audit.

Beware of fraudulent claims from HMRC
Emails appearing to come from the HMRC are being sent to taxpayers mentioning a rebate owed.
The Emails are aiming to trick taxpayers into supplying confidential and bank information.
HMRC have confirmed that they have never advised taxpayers of refunds by Email and would not ask for bank or Paypal information.

ACAS predict changes to employment terms due to aging population
As people live longer, ACAS predict that thousands of workers will experience difficulties trying to juggle caring duties for elderly relatives with work responsibilities.  They believe that increases in requests for flexible working and part time hours will increase in years to come.

Mangers drink more than Manual Workers
As a report from the Annual Lifestyle Survey has shown that Managers and professionals have a higher weekly alcohol consumption level than routine and manual workers.
The average weekly alcohol consumption was 13.5 units for adults in professional and managerial positions and 10.7 units for adults in routine and manual households.