Pensions to be provided for all Employees

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What is the NEST pension scheme?  

Under the government's workplace pension reforms, employers must auto-enrol certain employees into a qualifying pension scheme within a strict timescale.  The National Employment Savings Trust (known as NEST), is a centralised registered occupational pension scheme established by statute specifically for this purpose and is open to any employer. It is intended to be a simple, low cost pension scheme primarily aimed at low to moderate earners.  As such, it has some special rules and restrictions that mean it is not as flexible as most other pension schemes.

NEST, however, is just one of the qualifying pension schemes that employers can use to fulfil their new pension obligations. They can choose the scheme and structure they think are most appropriate to meet the needs of their workforce. This could be NEST, their own good quality pension scheme or a combination of both.  

What are 'qualifying earnings' for the purposes of workplace pension reform?

A qualifying pension scheme must provide eligible jobholders with a minimum level of contributions or defined benefits based broadly on their qualifying earnings.An individual’s qualifying earnings from an employment are their gross earnings in a 12 month pay reference period between the National Insurance primary earnings threshold and the 2006/07 upper earnings limit increased in line with average earnings (known as the qualifying earnings band).In 2010/11 terms, this means earnings between £5,715 and £38,185.Note that:If a pay reference period is less (or more) than 12 months (for example, if an employee is paid weekly or monthly), these amounts are adjusted proportionately.Where an individual has more than one employment in a pay reference period, their qualifying earnings are calculated separately for each employment. 

Your pension scheme must "qualify" under workplace pension reform.

A UK pension scheme is a qualifying pension scheme if it is a registered pension scheme that meets certain quality standards, allowing it to be used by an employer to auto-enrol employees for the purposes of the government’s workplace pension reforms.

For a money purchase pension scheme to be a qualifying pension scheme, it must receive a minimum level of contribution.

Once fully implemented by October 2017, a total minimum contribution of 8% of qualifying earnings (including an employer contribution of at least 3%) will normally be needed in each relevant pay period. 

The minimum required contribution is being stepped-up to the 8% level in three phases over a period of up to five years. 

Some issues for you to consider:

• Will your existing pension arrangements qualify?
• What is the age and salary profile of my employees?
• Will the new pension arrangements conflict with my employee’s contract of employment?
• What is the additional cost burden of any new pension arrangement?

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New Responsibilities for Employers from the Equality Act

Most employers are now aware of the introduction of the Equality Act last month, but many are still not aware of many of the requirements. 

The Equality Act covers the same groups that were protected by existing equality legislation – age, disability, gender reassignment, race, religion or belief, sex, sexual orientation, marriage and civil partnership, pregnancy and maternity.The Act extends some of the provisions already in existence and introduces additional protections to characteristics that were not previously covered. 

Three of the main parts of the Act that employers need to act upon are:

1. Pre-Employment Questionnaires
   These have been banned from the recruitment process and employers are also prohibited from asking job applicants questions about their health and disability unless certain specific exceptions apply. Let us provide a suitable procedure for you.
2. The widening of the definition of discrimination
   It now includes “perceptive” and “associative” discrimination, which now applies to race, religion or belief, sexual orientation, age, disability, gender reassignment and sex.
   Associated discrimination and harassment is carried out against people who have an association with a person who possesses a protected characteristic or are part of a protected group.
   Perceptive discrimination is carried out against a person because they think they possess a particular protected characteristic.  It is still applicable even the person does not possess the protected characteristic.
   Contact us to update your Equal Opportunities Policies, Employee Handbooks and other policies or for more information.
3. The banning of “gagging clauses”
   Employees are now able to break any “gagging clauses” contained within their contracts of employment, which forbid them from discussing details of their salaries with other members of staff as a “relevant pay disclosure”.
   An employer can however require an employee to keep pay rates confidential from people outside of the workplace, such as a competitor.
4. A widening of Disability Discrimination
   The Act makes it easier for a disabled person to show that they are disabled.  A person is considered disabled if they have a physical or mental impairment which has a substantial and long term and will adversely affect the way they carry out their job.
   The Act places extra emphasis on the employer to make reasonable adjustments to the workplace.
   Contact us for assistance or advice in this area – This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
5. Gender ReAssignment
   The Act provides protection for transsexual people – a person who proposes to start or who is in the process of changing his or her gender.

We can provide a suitable recruitment procedure or update an existing one to ensure that the requirements of the Equality Act are met and allow you to feel confident in the knowledge that you will not be liable.We are also happy to update all Employment Policies and Procedures to ensure that you are complaint and offer advice on the implication of the Act upon you.  Contact us today:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Stress has become the most common cause of sickness absence

Employers have reported stress as the most common cause of long-term sickness absence,  according to a joint survey carried out by the CIPD and healthcare provider Simplyhealth. 

The survey revealed that 73% of manual and 79% of non-manual public sector employers rated stress as a top-five common cause of absence.  

The levels of sickness absence in the public sector are higher than in the private sector, which is partly believed to be due to the challenging, public-facing roles that employees carry out.  These roles include jobs such as social work, policing, teaching and nursing where the members of staff often have to deal with people in difficult and emotionally charged situations.  

One of the factors that can assist the development of stress is "presenteeism", when employees arrive for work when they are ill. Employees may feel pressure to come to work for the sake for the business or to protect themselves from job cuts by avoiding sickness absence. 

It is important for Line Managers and HR to be aware of “presenteeism” and monitor stress and anxiety, and for managers themselves to be offered help with their own health and wellbeing. 

However employers and line managers should not lose focus on cases where employees might be claiming they are sick when they are fit for work.  It is important to have a balance between wellbeing and promoting good health, and a focus on employees who might be taking advantage of the sick pay system. 

Contact us to arrange a health audit in your workplace: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
or to assist you with the development of a sickness and absence policy. 

A surge in employers seeking employment law advice

A fifth of all legal enquiries in the third quarter of this year have been from people seeking legal advice on employment-related issues.
Many enquiries have related to pension auto enrolment for all employees. 

Nearly half of employers (48%) are also worried about an increase in age-related claims following the removal of the national default retirement age (DRA) of 65 in April 2010, according to research by the CBI.
 
The number of employment tribunals rose by 56% to 236,100 claims in the last year, many have been due to employers not following compliant redundancy consultation procedures. 

We can offer access to professional employment support and advice on a cost effective basis. Why not arrange an appointment for a no obligation free consultation today: Tel. 01280 817341

Revised rules for employment businesses and agencies (England, Scotland & Wales) 

From 1 October 2010, the rules in relation to fees paid in advance, cooling-off periods and information provision for work-seekers has changed. 

Employment businesses and agencies won't be able to take up-front fees from photographic and fashion models for providing them with work-finding services. 

Historically an agency has had to allow a “cooling off” period of 7 days after negotiating a contract with a client, the new legislation has increased the “cooling off” to 30 days.  This applies to actors, background artists, dancers, extras, musicians, singers or other performers, photographic and audio-visual services, entertainers and models. 

The client must be informed of their right to cancel or withdraw before entering into the contract and any contract which is cancelled by a client will not incur any fees. 

Publications of work seekers information
If an employment agency intends to include information about a work-seeker in a publication, they should show the work seeker the information - and they must approve it - before it's actually published.

The work-seeker will have seven days from the information being provided to object and cannot be charged for the service until this period has elapsed or until any objections have been dealt with..

A refund should be paid for fees charged if the publication containing their information is not produced and made available to potential hirers within 60 days of paying the fees. 

Reduced requirements for employment agencies. They no longer have to:

• carry out employment checks on individuals seeking permanent employment with employers - unless they are supplying them to work with vulnerable people agree terms and conditions of employment with such individuals or the client employer - unless they are charging a fee for this service or placing them in the modelling or entertainment sectors.

Job advertisements
In job advertisements they will no longer have to state whether they are an employment agency or employment business.  They will instead just have to state whether a position is temporary or permanent.

Safety professionals deem stress as the most common work problem

Safety consultants’ register to launch

Health & Safety

Special Points of Interest

Queen cancels staff Christmas party

The Queen has cancelled a Christmas party normally held for her staff because of the "difficult financial circumstances" the country is facing.

The Queen normally pays for a Christmas party at Buckingham Palace every two years for the 600 members of staff.

Workers are backing the phasing out of Default Retirement Age

A new CIPD survey has found that four in ten (41%) employees plan to work beyond the state retirement age, whilst 29% of the 2,000 respondents don’t know yet. The survey also shows that many people are still uncertain, with 25% saying they don’t know either way yet.

37% of employers have not considered the impact of retirement auto enrolment

A survey of major private sector employers carried out by Deloitte, has found that 37% of employers have still not started to consider the impact of auto enrolment on their future pension strategy.  It also found that 42% have not yet factored in the expected cost of auto enrolment pension reforms into their financial plans.  

Recruitment agency boss banned for seven years for withholding wages

he Director of two recruitment companies supplying rail workers has been banned from running an employment agency for seven years after she unlawfully withheld more than £11,000 in wages.
She was ordered to pay back the withheld wages as well as to pay the costs of the case.

Barmaid sacked by text wins Employment Tribunal case

A barmaid who was sacked by text message has been successful at an Employment Tribunal, despite her short length of service.

Bus company fined over inadequate rest breaks

Government road safety agency VOSA (Vehicle and Operator Services Agency) investigated a bus company for a six-week period last year.  They found that the company had failed to ensure that its drivers were taking adequate rest breaks in between carrying school children and students.They have been fined £97,000 for allowing its drivers behind the wheel without taking enough rest, and failing to keep records of work.

An increase in theft from staff

New research has suggested that 36.8% of loss in the UK retail industry is down to employee theft. The research carried out by Checkpoint Systems shows that this internal theft is higher in the UK than anywhere else in Europe, where the European average is 29.8%.