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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:
- 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.
- 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.
- The employer is only obliged to consider one request for
training made within a 12 month period.
- 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:
- meet with the employee within 28 days of receipt of his/her
request to discuss this
- either agree to the request or reject it (and, if the
latter, set out the appeal procedure) within 14 days of the
meeting
- appeal to be lodged within 14 days
- appeal meeting to be held within 14 days of receipt of the
appeal notification
- 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.
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