Monthly Archives: December 2014

Helping employers identify a pension scheme for automatic enrolment

The Pensions Regulator (TPR) has opened consultation on a proposal to publish a list of pension schemes that are available to any employer, regardless of the number or workers the employer has or their levels of pay.

According to research carried out by the Department for Work and Pensions 48% of small and 79% of micro employers currently have no pension scheme and will have to choose a new one as they prepare for automatic enrolment.

TPR state they are ‘aware of 30-40 providers who offer a scheme for automatic enrolment. Of these, a much smaller number of schemes have indicated they will not reject employers on the basis of size or low value. Even fewer schemes have indicated they will accept all employers who approach them.’

To read more about this issue and the consultation visit the link below.

Internet link: thepensionsregulator.gov.uk

Holiday pay and overtime

In the judgment an Employment Appeal Tribunal (EAT) has decided that holiday pay should reflect non-guaranteed overtime.

Under the Working Time Regulations 1998 most workers are entitled to paid statutory annual leave. This is 5.6 weeks (28 days) if the employee works five days a week. A worker is entitled to be paid in respect of any period of annual leave for which they are entitled, at a rate of one week’s pay for each week’s leave.

The EAT considered three cases in which employees were required to work overtime if requested by their employees. The EAT referred to this type of overtime as non-guaranteed overtime. The Tribunal decided in the context of non-guaranteed overtime:

  • overtime payments must be taken into account in the calculation of holiday pay if there is a settled pattern of work
  • if the amount of overtime varies but is regularly paid, overtime payments must also be taken into account on an average basis.

Vince Cable has announced the setting up of a taskforce to assess the possible impact of the Employment Appeal Tribunal ruling on holiday pay.

Business Secretary Vince Cable said:

‘Government will review the judgment in detail as a matter of urgency. To properly understand the financial exposure employers face, we have set up a taskforce of representatives from government and business to discuss how we can limit the impact on business. The group will convene shortly to discuss the judgment.

Employers and employees can also contact the Acas helpline for free and confidential advice.

If you would like any help in this area please do get in touch.

Internet links: Acas guidance  Gov News EAT

Autumn Statement

The Chancellor George Osborne delivered his Autumn Statement on 3 December and said:

‘…to improve the productivity of our economy, we back business and we build infrastructure and we will support growth across the whole UK.’

‘But in the end, Britain’s future lies in the hands of its people and their aspirations.

The aspiration to save, to work, and to buy a home. Today we support each one.’

We have included details of some of the major announcements.

Internet link: gov.uk

Acas guidance on new shared parental leave rules

Acas have issued a new guide to help employers and employees to understand the practicalities of the Shared Parental Leave (SPL) Regulations.

The operation of the new rules, which apply to parents of babies due on or after 5 April 2015, and to parents of children placed for adoption from that date, have raised concerns among employers about administrative difficulties, such as managing employee requests to alternate leave multiple times between parents.

The Acas guidance which can be found using the following link includes step by step instructions on how eligible employees can make SPL requests, as well as advice for employers about how to handle requests fairly together with useful template documents.

Internet link: Acas guidance