Share     Mon 26 January 2015

Redundancy

Legal Comment: Maternity leave and redundancy

Employers need to be careful when making a woman on maternity leave redundant, warns Tim Randles.

Arecent Employment Appeal Tribunal (EAT) decision in Sefton Borough Council v Wainwright deals with maternity leave and redundancy.   Maternity protections Regulation 10 of the Maternity and Parental Leave Regulations 1999 (MPLR) provides an obligation to positively discriminate. If...

Tax Update: Termination payment blues

Lorraine Owens discusses the tax status of compensation payments for discrimination claims.

The taxation of termination payments is a complex area and many employers and employees are confused by the rules, believing the urban myth that the first £30,000 of any “payoff” will always be tax-free. Employees are surprised and upset when they find that this is not the...

Employee benefits must reflect priorities and values

Joint research carried out by Pay & Benefits and Software Europe explored the storage of employee expense receipts. It revealed that nearly 50 per cent of businesses still keep these in paper format only. Of the 50 per cent that store electronic and paper copies or just electronic copies,...

Employment Law

Martha Arnold discusses the key legal developments of 2014, offering practical tips as well as pitfalls to avoid for employers.

Speed Read The year 2014 has been a busy one in the employment law arena. The Court of Appeal’s decision in the Woolworths case reinforced the erosion of the “one establishment” rule in the context of collective consultation for redundancies. The revisions to TUPE at the start...

Employment Case Law: Amending an existing claim

The latest decisions from employment tribunals on the cases that matter to you

Amending an existing claim Thomson v East Dunbartonshire Council and another [2014] All ER (D) 13 (Sep)   Overview The employment tribunal had dismissed the employee’s application to amend his existing claim to add a complaint of dismissal. The Employment Appeal Tribunal (EAT)...

Job security increases

Fears among employees of redundancy have fallen by 10 per cent since the last quarter, found jobs community Glassdoor. In its Employment Confidence Survey for quarter three, levels of confidence were shown to be increasing among those looking for work that matched their experience and...

Spotlight falls on accommodation and termination

Accommodation and termination payments are the latest areas to be scrutinised by the Office of Tax Simplification (OTS). Recommendations to simplify the provisions follow an examination of how well the tax rules reflect current working practices and a comparison with other countries....

Helpdesk: SMP and redundancy

Q We have an employee who is off sick with a pregnancy-related illness. At the same time, the company is being restructured and some redundancies will be inevitable. Unfortunately this involves the employee who is due to receive Statutory Maternity Pay (SMP).However, the pregnancy is in its early...

Redundancy bill beginning to fall

  Successive waves of redundancies and restructuring are beginning to subside, according to figures obtained by commercial law firm EMW.   The cost of payouts has fallen by more than 10 per cent from £4.8 billion in 2012/13 to £4.3 billion in 2013/14, data from HM...

OTS tackles accommodation and termination payments

The Office for Tax Simplification (OTS) has made recommendations to improve the rules surrounding accommodation benefits and termination payments.   The latest report proposed several ways of refining the current provisions. These were largely called for because the rules have not kept...

Helpdesk: Termination and salary sacrifice

Q We have just completed a series of consultations in line with our procedures for redundancies. Now that everything has been finalised the instructions have been passed to payroll detailing the breakdown of the termination payments. Although I am happy with the proposals for most of the payments...

Helpdesk: Late payment through RTI

Q Our company went through a restructuring process last month, which resulted in a few redundancies. At the time we believed that all termination payments had been finalised and the necessary instructions sent to payroll for processing. We have now received further instructions requesting payment...

Legal Comment: Asking for redundancy volunteers

Tim Randles highlights the importance of properly managing the consultation and selection process.

In Stephenson College v Jackson, the Employment Appeal Tribunal (EAT) was asked to look at redundancy. The resulting decision is a helpful reminder about the purpose of selection and consultation, and the requirements placed on employers to consider ways to avoid compulsory redundancy. The...

Helpdesk: Paying SMP to a redundant employee

Q We have just had to make redundant one of our female employees who is currently on maternity leave and is still due a further 10 weeks of Statutory Maternity Pay (SMP). Can we pay what we owe her in SMP as a lump sum?   A You could, but it may be dangerous to do so. She could lose...

Enhanced redundancy justified

The Court of Appeal has confirmed that enhanced redundancy payments for older workers can be objectively justified. In Romilly Lockwood v Department for Work and Pensions and Cabinet Office, staff aged over 35 were offered better redundancy terms to reflect the comparative difficulties they...
 

 

 

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