businesshr logo
0207 022 2952 e:info@businesshr
     06 Feb 2012
dotted line to divide menu
    
Best people practice for people in business
dotted line
  

Monthly update December 2009

Welcome to BusinessHR's December update - the last of 2009!

 

Helpline opening times over the Christmas period

Just to alert you that our helpline hours over the Christmas period will be as follows:

  • Thursday 24 December:      9-1
  • Friday 25 December:      Bank Holiday - closed
  • Monday 28 December:      Bank Holiday - closed
  • Tuesday 29 December:      9-6 (as normal)
  • Wednesday 30 December:      9-6 (as normal)
  • Thursday 31 December:      9-1
  • Friday 1 January:      Bank Holiday - closed
  • Monday 4 January:      normal service resumes

 

Employment law update

Change to advisory fuel rates

HMRC has revised its advisory fuel rates for those who drive company vehicles - the new rates took effect on 1 December 2009. Future changes will take effect in June and December each year.

  • Engine size 1400cc or less: Petrol 11p; Diesel 11p; LPG 7p

  • Engine size 1401cc to 2000cc: Petrol 14p; Diesel 11p; LPG 8p

  • Engine size over 2000cc: Petrol 20p; Diesel 14p; LPG 12p

For further details see www.hmrc.gov.uk/cars/advisory_fuel_current.htm

 

Time off (unpaid) for training

As from April 2010, employees of businesses with 250 employees or more will have the right to request time off for training under the Apprenticeships, Skills, Children and Learning Act 2009.

Unlike the right for young people to time off for study or training, there is no right to be paid for this time off, so the employee basically has the right to request unpaid time off to undertake accredited programmes leading to a qualification or unaccredited training (which may be in or out of the workplace) to help develop a specific skill relevant to his/her job. The right will not apply to school leavers, nor to agency workers.

It is expected that this will work in much the same way as flexible working requests and the Act sets out the basic process:

  1. The employee should set out his/her request in writing, explaining the subject matter of the proposed study or training, where and when it would take place, the training provider or supervisor and how it would improve his/her performance or that of the business. The application must also state that it is made in accordance with the statutory provisions.
  2. The employer is required to seriously consider a request but may turn it down for one of the following reasons (which as you will see are similar to those for flexible working requests):

    • the training/study would not help improve the employee's effectiveness or business performance/productivity
    • the burden of additional costs
    • detrimental effect on ability to meet customer demand
    • inability to re-organise work amongst existing staff
    • detrimental impact on quality
    • planned structural changes and
    • insufficiency of work during the employee's working period.

  3. The employer is only obliged to consider one request for training made within a 12 month period.

  4. If the employee's request is accepted, he/she should notify the employer if, for example, he/she fails to attend or to complete the agreed study or training.

The government will shortly introduce regulations which set out further details - these are expected to be issued in early 2010. These will clarify whether employees have the right to be accompanied at any meeting to discuss their request (this would seem likely) and to have a meeting postponed if the employee's companion is unavailable, together with any timetable for responding and dealing with the request. It is expected that the latter will be similar to the process for making flexible working requests, eg:

  1. meet with the employee within 28 days of receipt of his/her request to discuss this
  2. either agree to the request or reject it (and, if the latter, set out the appeal procedure) within 14 days of the meeting
  3. appeal to be lodged within 14 days
  4. appeal meeting to be held within 14 days of receipt of the appeal notification
  5. employee to be notified of decision within 14 days of the appeal meeting.

An employee whose request is rejected may bring an employment tribunal claim if the employer has not followed the correct procedure or has rejected an application on incorrect facts. Claims must be made within three months of the application being rejected. The tribunal may require the employer to re-consider an application or may make an award of compensation (likely to be a maximum of eight weeks' pay, capped).

Employees will also be protected from detrimental treatment or from dismissal as a result of making a request.

 

Rise in pension age?

It would seem likely that whichever party comes into power after the next election, our retirement age is due to rise!

Under Labour’s existing plans the state pension age will rise gradually from 65 to 68 between 2024 - 2046. However, the Conservatives have stated that this is not sufficient, and plan to increase this to 66 for men from 2016; for women the age will rise from 60 to 65 between 2010 and 2020. This new plan would affect everyone currently under the age of 58.

The government is also due to review the default retirement age (currently 65) during next year.

A survey by insurance company Prudential revealed a huge increase in the numbers of those expected to work beyond the current state retirement age - from 750,000 today to about 1.8M in 10 years' time. The trend is expected to be more marked in larger companies, but also varies between regions - employers in the north, north west and Yorkshire and Humberside expected more than 16% of staff to work beyond retirement age by 2019, compared with 2.4% in London and the south east.

The Chartered Institute of Personnel and Development (CIPD) has also recently reported in its "Employee Outlook" survey that the proportion of people aged 55 and above planning to work beyond the state pension age has jumped to 71%, compared to 40% in a CIPD survey two years ago. Unlike the public sector, where 90% of workers had a pension, 53% of workers in the non-profit sector and just 36% in the private sector did. Overall, 46% had a pension with their current employer.

See our new pages on pensions: /docs/TPpay.html

 

Checking the right to work in the UK

The Immigration (Restrictions on Employment) (Amendment) Order 2009 adds ID cards issued under the Identity Cards Act 2006 to the list of documents that an employer may check to verify an individual's right to work in the UK.

This took effect on 24 November 2009 and, as with other documents, the original must be produced to the employer, and the employer should take a copy of both sides of the ID card and retain this on file.

The full text of the Order, which applies to all of the UK, can be found at www.opsi.gov.uk/si/si2009/pdf/uksi_20092908_en.pdf

Employers who fail to make the required checks can be fined up to £10K per illegal employee. However, the guilty employers also seem to be reluctant to pay the fines! Apparently, of the 3,164 fines handed out (mainly to restaurants and takeaways) by the UK Border Agency over the past 18 months, 1,301 have yet to be paid. The average fine was £5,000 (half the maximum penalty), and about £6.5m in fines is believed to be outstanding. A Home Office spokesman said that the majority of unpaid penalties are still subject to objections and pending appeals.

For more guidance on checking the right to work in the UK, see: /docs/legal/righttowork.html

 

Foreign workers - more changes

A couple more changes for those who recruit foreign workers to note:

Requirement to advertise Tier 2 jobs extended: as from 14 December 2009, jobs in Tier 2 of the Points-Based System (PBS) must be advertised for at least four weeks for all jobs. The four weeks do not have to be continuous, and the new requirement will apply to advertising campaigns that start on or after 14 December. This replaces the current requirement that jobs must be advertised for two weeks (one week where the salary is £40,000 or more) before they can be offered to non-EEA workers.

Changes to the shortage occupation list: the government has accepted all of the revisions to the shortage occupation list suggested by the Migration Advisory Committee. This list itemises those occupations where there are sufficient shortages in the UK for vacancies to be filled by migrant workers from outside the European Economic Area. The new shortage occupation list can be viewed at www.ukba.homeoffice.gov.uk/ and will apply to all certificates of sponsorship assigned on or after 14 December 2009.

For more guidance on employing workers from overseas, see: /docs/legal/foreignnationals.html

 

Discrimination - sexual orientation and religion

Under the Employment Equality (Sexual Orientation) Regulations 2003, it is currently possible to justify discrimination on grounds of sexual orientation where this conflicts with a religious belief. Discrimination IS permitted where the employment is for the purposes of an organised religion AND the discrimination is to comply with the doctrines of the religion OR because of the nature of the work and the context in which it is carried out, to avoid conflicting with followers' religious convictions. This may particularly apply in Catholic, Free Church and Muslim environments where homosexuality is not tolerated: it has usually involved religious groups refusing a job to a homosexual applicant to avoid 'conflicting with the strongly-held religious convictions of a significant number of the religion's followers'.

It would seem that this exemption is likely to go, as the European Commission has expressed its concern that the UK has incorrectly implemented the EU directive. The government will now have to re-draft our anti-discrimination laws.

This has not been addressed in the forthcoming Equality Bill, so maybe there will be some late amendments to this!

For more guidance on discrimination on the grounds of sexual orientation, see: /docs/legal/sexorientdiscrim.html

 

Bribery Bill

Not really employment law, but we thought we'd mention this as it does impact on HR policies. The government is proposing to bring in a new bribery bill, which will shift responsibility for preventing financial crime to the employer. Full details are on: www.justice.gov.uk/publications/bribery-bill.htm

If this may affect you, and you don't have a policy in place, you may wish to start by reading our guidance on preventing theft and fraud, /docs/guides/fraud.html and then consider whether our template policies on fraud prevention, business ethics, and gifts and hospitality may help you. See: /docs/pol/fraud/index.html, /docs/pol/ethics/index.html and /docs/pol/gifts/index.html.

 

New regulations for European works councils

For large organisations (with at least 1000 employees within the European Economic Area and at least 150 employees in each of two or more member states), there is a requirement to consult if a formal request is made by at least 100 employees in two or more countries. These organisations must put in place a European Works Council (EWC) to provide 'transnational information and consultation' for their entire workforce. The purpose is to enable employees to understand and make representations about decisions that affect their interests.

The European Commission has agreed a revised European Works Council Directive which aims to encourage EWCs to play a more meaningful role in transnational restructuring. The changes also intend to clarify uncertainties, ensure the directive is consistent with other pieces of European information, encourage more EWCs and put European trade unions in a better position to support workers' efforts.

The Government has published a consultation paper on draft regulations to implement the Directive - these must be implemented by 5 June 2011.

As we have very few clients who may come under the scope of the directive, we do not cover this here - for further details see our page on consultation: /docs/legal/consult.html

The government's consultation paper may be downloaded from www.berr.gov.uk/consultations/page53066.html

 

Some interesting cases

Discrimination: belief - is climate change a 'philosophical belief'?

Yes, is the short answer!

The Employment Appeal Tribunal, in Grainger plc v Nicholson, agreed with the original tribunal who decided that a belief in environmental concerns is capable of being a 'philosophical belief' under the Employment Equality (Religion or Belief) Regulations 2003.

The EAT summarised the criteria for qualification as a philosophical belief as follows:

  • the belief must be genuinely held
  • it must be a belief, rather than merely an opinion or viewpoint, based on the present state of information available (this may cause a lot of debate!)
  • it must be a belief as to a weighty and substantial aspect of human life and behaviour
  • it must attain a certain level of cogency, seriousness, cohesion and importance
  • it must be worthy of respect in a democratic society, be not incompatible with human dignity and not conflict with the fundamental rights of others
  • it must have a similar status or cogency to a religious belief but does not need to constitute or 'allude to a fully fledged system of thought'
  • it need not be shared by others.

    Commentators have noted a few contradictions here between the EAT's view and the Equality Bill! The EAT accepted that support of a political party would not meet the description of a philosophical belief, but noted that that does not mean that a belief in a political philosophy or doctrine, such as Socialism, Marxism, Communism or free-market Capitalism, would not qualify; the notes to the Equality Bill state that political beliefs cannot fall within the definition of 'philosophical belief'. The EAT also accepted that a belief is not disqualified from being a philosophical belief simply because it is based entirely on scientific conclusions and quoted Darwinism as an example; the Equality Bill's explanatory notes take the opposite view!

    Mr Nicholson's case, above, was allowed to proceed. He is claiming that his dismissal was discriminatory under the Employment Equality (Religion and Belief) Regulations 2003; his former employer, Grainger plc, claims the dismissal was fair by reason of redundancy. Mr Nicholson now has to prove both that he held a genuine belief (rather than just an opinion or viewpoint) and that his dismissal was on the grounds of that belief.

    Discrimination: religious beliefs

    In McFarlane v Relate Avon Ltd, Mr McFarlane was a Christian counsellor who asked not to work with same-sex couples where sexual issues were involved. His request was turned down by Relate who required all counsellors to work across the full range of duties, and in accordance with their Equal Opportunities and Professional Ethics policies.

    The EAT considered the previous case of Ladele v London Borough of Islington and decided that a dismissal because of the way someone has manifested his/her beliefs is NOT the same as a dismissal "on grounds of" those beliefs. They also decided that Relate's actions were justified - irrespective of whether Relate could have reorganised the employee's workload, if doing so would have compromised its principles.

    Discrimination: sex and race awards

    The following two cases are mentioned really because of the size of the claims!

    Two female City bankers, Maureen Murphy and Anna Francis are suing Japanese investment bank, Nomura, for race and sex discrimination. They claim they were forced to resign by sexist bosses who withheld work and forced them to leave because they were female and non-Japanese. They are claiming compensation of £3m. Nomura maintains that the two were dismissed for redundancy as part of a wider re-organisation following the Lehman Brothers acquisition.

    And former employee, Jordan Wimmer, is claiming £4m compensation from Mark Lowe, owner of City investment firm Nomos Capital, for alleged sex discrimination, unfair dismissal and disability discrimination. Lowe denies all the accusations.

    If either of these claims are successful, they will be amongst the highest discrimination awards this year.

    Discrimination: disability - no protection for volunteers

    In X v Mid-Sussex CAB, X was a volunteer part-time advisor, who, when the CAB told her her services were no longer required, lodged an employment tribunal claim, alleging discrimination on grounds of her disability. The original employment tribunal found that X was a volunteer; there was no legally binding contract between her and the CAB; and there was no obligation on her to provide services. They therefore said they could not hear her claim.

    X then appealed to the Employment Appeal Tribunal (EAT), where she argued that the Equal Treatment Framework Directive had not been properly implemented by the UK government, and that her volunteering arrangement with the CAB fell within the protection afforded by that directive. As the Disability Discrimination Act (DDA) did not comply with European law, the relevant clause (section 4(2) should be changed to allow her to bring her disability discrimination claim.

    The EAT confirmed that X was not entitled to claim disability discrimination under the DDA, and also did not agree that the government had not complied with the directive, or that sections of the DDA needed to be rewritten to extend protection to voluntary workers without a contract. Mr Justice Burton could find no express reference anywhere in the directive extending the protection to unpaid voluntary workers. Therefore he declined to refer the matter to the European Court of Justice, because he felt that the answer was "entirely clear".

    However, note that volunteers engaged under contracts may be entitled to protection under discrimination legislation. We reported previously on the Church of Scotland minister, the Reverend Mahboob Masih, who was a volunteer presenter on a state-supported radio station, and who was dismissed following a debate on air about the uniqueness of Christianity. Reverend Masih was allowed to refer his case to the European Court of Justice for a ruling on whether volunteers are protected by anti-discrimination legislation.

    Discrimination: disability - reasonable adjustments

    Section 4A(3) of the Disability Discrimination Act 1995 states that employers do not need to make reasonable adjustments in certain circumstances.

    In DWP v Alam, the Employment Appeals Tribunal has confirmed that if the employer did NOT know both that the employee was disabled and that his disability was liable to affect him in the manner set out in section 4A(1) of the DDA, OR if the employer would not have been expected to have known both that the employee was disabled and that his disability was liable to affect him in the manner set out in section 4A(1), then the employer is exempt from any duty to make reasonable adjustments.

    Dismissal: stigma compensation

    In Chagger v Abbey National PLC and Anorl Mr Chagger, a trading risk controller, was dismissed on grounds of redundancy. Mr Chagger alleged that he was scored lower than a white female colleague to whom he was being compared for redundancy selection purposes and that this was due to race discrimination. He made extensive attempts to obtain other jobs in the Financial Services sector, even lower paid employment, but was unsuccessful. He believed his failure to obtain work was because prospective employers were discriminating against him for having brought a discrimination claim.

    The Employment Tribunal made him an award of £2,794,962.27 which represented 'career long loss' - assuming that Mr Chagger would not again obtain employment in the financial services industry. The decision to award this compensation was initially reversed by the Employment Appeal Tribunal, however, has now been confirmed by the Court of Appeal! Employees who suffer a stigma when searching for a new job, as a result of having successfully brought a discrimination claim against a previous employer, are entitled to be compensated for that loss by that employer. This will usually feature in the normal loss of earnings calculation of how long it will be before another job at an equivalent salary can be found. The tribunal should however also reduce compensation to reflect the chance that the claimant would have been dismissed lawfully in any event.

    National Minimum Wage: unpaid volunteers

    In Vetta v London Dreams Motion Pictures Ltd, the employment tribunal ruled that a worker who was engaged on an expenses-only basis was entitled to be paid at least the National Minimum Wage, in addition to paid holiday. The case was brought by union BECTU who were concerned that the film and TV production industry were getting a "bad name" due to its reliance on unpaid labour from willing volunteers who wanted to break into that sector.

     

    Health and safety news

    Musculoskeletal disorders responsible for almost half of all absences

    A recent report, "Fit for Work Europe", conducted by the Work Foundation, found 49% of all sickness absences in Europe were caused by musculoskeletal conditions such as back pain, arthritis and repetitive strain injuries. The report showed an estimated 1M people in the UK suffer from musculoskeletal disorders, resulting in the loss of 9.5 million working days each year, at a cost to the UK economy of £7bn each year.

    The Foundation predicted that these figures would rise due to our ageing workforce, the growth in obesity and the decline in physical activity. It therefore launched a Fit for Work Europe campaign calling for governments and healthcare professionals across Europe to do more to tackle musculoskeletal disorders. For further details see: www.fitforworkeurope.eu/

     

    New on the website

    We've expanded our pensions advice so that it is now four separate pages - a general overview, a page on stakeholder pensions, one on occupational and personal pensions and one on the new Personal Accounts pensions. See: /docs/TPpay.html

    We've also added an extra letter to the flexible working suite - an invitation to a flexible working request appeal meeting. See: /docs/lf/flex/index.html

     

    And finally.....

    More on the gender gap

    The 2009 World Economic Forum Global Gender Gap Index has confirmed that Nordic countries continue to have the smallest equality gaps between men and women: Iceland was in first place, Finland second, Norway third and Sweden fourth!

    The Index assesses countries on how well they are dividing their resources and opportunities among their male and female populations, regardless of the overall levels of these resources and opportunities. The UK was in 15th place (from 13th last year) - below South Africa (6th) and Lesotho (10th).

    Full details can be found at www.weforum.org/pdf/gendergap/report2009.pdf

     

    Tax breaks on cycles but not childcare

    Transport secretary Andrew Adonis is urging employers to encourage staff to cycle to work by offering better cycling amenities, such as bike parks, changing facilities and repair services as well as the tax relief on the cycle-to-work scheme. Just 3% of the working population bike to work, despite the government scheme which enables eligible employees to buy bikes and equipment tax-free.

    However, Gordon Brown has announced that the tax relief on childcare vouchers - the most popular benefit offered by employers - will go by April 2015. A survey by Mercer found the most common benefit offered by UK employers was childcare vouchers (84%), followed by private medical care (75%), dental services (69%), cycle-to-work schemes (55%), and health screening (53%).

     

    Penalty for those who fail to register under the DPA

    Two recruitment firms, Time Recruitment Ltd and Aston Baird Solutions Ltd, trading as Hilliards Associates, have ended up paying costs and fines totalling over £2500 following their failure (despite promptings) to register under the DPA - something which would have cost them each just £35.

    For more details on registration, see: /docs/legal/dataprotection.html

     

    Time off due to financial anxiety

    Research by AXA has revealed a further aspect of the current recession:

    • 70% of employees said they spent time at work worrying about their finances
    • 35% said it sometimes affected their performance
    • 1.4 million workers took time off work in the past year due to anxiety over their personal finances.

    AXA has launched a free on-line questionnaire for employers - so if you want to estimate the financial concerns of your workforce go to www.axa.co.uk/mybudgetday

     

    Are you having a Christmas party?

    A CIPD poll found that only a fifth of employers were cancelling this year's Christmas party altogether.

    If you are planning an event, do take a look at our guide to functions: /docs/guides/functions.html

    You might want to reconsider whether your staff appreciate a "Secret Santa" though! "Secret Santa" is where all staff buy a present of a nominal value to a randomly assigned colleague and the practice is still very widespread. A survey by Prezzybox.com revealed that 62% of those questioned said that they would rather not bother and have the money instead. Reasons were dislike of the presents, (21% admitted to giving something they had got free as a gift), and the hassle of finding something suitable.

     

  •  

     

     

     

     

       
    dotted line
    © BusinessHR 2000-2012. All documents provided subject to our Terms & Conditions.
    We welcome your feedback. Please report any site problems to our webmaster. Use Email us to ask a question for helpline advice and support.