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November 2011 issue

November 2011
Pastures new: Garden leave

Features

PMR Annual Conference

Dawn Lewis summarises the key information and highlights of this year’s annual event.

Unsurprisingly, this year’s Payroll Managers’ Review (PMR) conference was brimming with delegates anxious to find out about the recent changes affecting the industry, and more importantly, those that lie ahead. The next couple of...

Social Engagement

John Sylvester discusses the issues associated with motivating Generation Y and how companies can strive to ensure these workers are commercially beneficial.

Generation Y, the iPod generation, echo boomers – whatever you call them, this new wave of employees is steadily filtering into the workplace and replacing the baby boomers. This group is widely defined as being aged around 18–30 years...

Employee Share Scheme: Time to Break Up?

With the imminent arrival of pensions auto-enrolment, Phil Ainsley considers how the new post A-Day bond between share plans and pensions will be affected and if it will mark the end of their fledgling relationship.

With the spectre of pensions auto-enrolment looming large on the 2012 horizon, both the employee share plans industry and – perhaps more importantly – the pensions industry are once again having to assess how they can best co-exist....

Garden Leave: Pastures New

Simon North examines the benefits and risks associated with garden leave.

Many of us will have heard the term “garden leave” and might have nodded in a way that indicated we knew what it was. Actually not many people really understand it and, even when you do; it is a slightly unusual process to get to grips...

Healthcare: A Healthy State

Edmund Tirbutt assesses the potential impact of the Government’s sickness absence review on the demand for voluntary health benefits.

The Government’s sickness absence review, which was due to report this October, is widely expected to accelerate the shift in responsibility for workplace health away from the State towards employers. Many of those who are hard up are...

Payroll and HR Compliance: Leaps and Bounds

Dan Edwards looks at how recent advances in technology have impacted on payroll and HR departments to put them at the heart of business progression.

Believe it or not, a surprising number of companies still use old-fashioned, labour-intensive systems to look after their HR and payroll. In truth, these commonly act as nothing more than an electronic filing cabinet. Many fear the leap from these...

Payroll and Tax in Nigeria

Abi Fasosin considers how Nigeria is tackling the need to create a “good tax culture”.

There is a push by the Nigerian Government to sensitise its citizens and business investors on the importance of tax payment and compliance. It is seeking to make the personal Income Tax more responsive to its policies and is exploring ways to...

Supplement: African Compliance

Brett Hopkins examines the increasing vigilance and enforcement by various African revenue authorities which highlight the need for multinational companies to manage and mitigate any threat to their reputational risk on the continent.
 

There can be little doubt that African tax rules are often opaque, difficult to understand and that the lack of tax case law sometimes renders interpretation impossible – and this is reserved for those countries where some information can be...

Supplement: International Visability

Taking on responsibility for international payroll can be a challenging move and is not always the best option, says Piers Lambert.
 

Although taking control of payroll internationally is fun and exciting, there is normally a better reason for embarking on such a project. It is imperative to understand the status quo and to identify the real issues before seeking a solution....

Supplement: Shared Service Centres

Piers Lambert looks at the emergence of multi-country payroll management.

While there are many companies and payroll service providers who have been operating internationally for a long time, it is only in the past 10 years that serious attempts have been made to weld these disparate payrolls together. By comparison,...

Supplement: Human Resources Management

Just how global is your global software solution, ask Ryan Tweedie and David Hain.

Historically, the word “global” was synonymous with big, and global companies were among the largest and best-known in the world. Nowadays, however, it has a different meaning. Today’s global player is often a mid-size...

Regulars

New Products: Umbrella service

Umbrella service FPS has unveiled its Personal Service Umbrella, which uses a “honeycomb” principle to allow compliance with the Agency Worker Regulations. By creating a company for each contractor, the companies become ring-...

New Contracts: Safety glasses covered

Safety glasses covered Specsavers Corporate Eyecare is to supply West Midlands Police Authority with prescription safety glasses and VDU glasses as required. The eye care vouchers will allow police officers to obtain European Standard safety...

Legal Comment: Holiday pay and long-term sickness absence

Louise Donaldson discusses a recent EAT decision which considers what employers should do with regards to the accrued holiday of those who are on long-term sick leave.
 

The Employment Appeal Tribunal (EAT) has held that an employee absent on sick leave for the whole of a holiday year is entitled to statutory holiday under the Working Time Regulations (WTR). The fact that she did not request to take the holiday...

Tax Update: Tackling HMRC's tricky penalty regime

Lorraine Owens examines a court ruling which should provide employers with the hope that they can fight penalties if they have a reasonable excuse.
 

There are some situations in which, however hard one tries, it is impossible to see the fairness, appropriateness or reasonableness of HM Revenue & Customs’ (HMRC) approach to the imposition of penalties. I am sure that HMRC, over the...

Payroll Alliance Focus

An in-depth look at the latest issues affecting payroll professionals today

Payroll Foundation week The Payroll Foundation five-day course provides delegates with the opportunity to benefit from classroom tuition on key payroll subjects and achieve a BTEC level 4 qualification.   Delegates who pass the exam...

Employment Case Law: TUPE regulations

TUPE regulations Hamshaw and others v Nottinghamshire Healthcare NHS Trust [2011] All ER (D) 24 (Sep) The employer, an NHS Trust (the Trust), ran a residential facility (the care home). In 2008, it entered into negotiations for a scheme...

Helpdesk: Part payments

Payroll Alliance technical team answers payroll related questions, including termination payments, work call-outs, flu jabs and Form P46(Car).

Part payments Q We have a few employees for whom we need to provide termination payments. Given that the date of leaving is 3 November 2011 we tend to process these few days’ pay with any salary due in the previous month. Last month we...

Moves in brief: Reward expert at Aon Hewitt

Reward expert at Aon Hewitt Mike Curtis has been appointed Senior Consultant in Aon Hewitt’s Reward and Engagement team. Curtis has 15 years’ experience in the sector and has advised a number of organisations about their reward...

How to ... get consistent discipline

Consistency when dealing with disciplinary sanctions goes a long way in convincing a tribunal that a dismissal that has been carried out is fair. The Employment Rights Act 1996 provides that employers should have a set of disciplinary rules as...

CV Profile: Pat Hodges

Payroll should no longer be seen as a back-office service and should be recognised as being one of the most forward-thinking, high-impact departments that adapts quickly and efficiently.     How did you begin your payroll career?...

Back to Basics: Agency workers

Following on from Christian Berenger’s article in October’s issue regarding the introduction of the Agency Workers Regulations (AWR), this month we take a closer look at the implications of the legislation. The AWR were laid before...

News

Public sector workers to get one per cent pay rise

  Public sector pay increases will only rise by an average of one per cent once the current freeze period has ended, the Chancellor has revealed.   The Autumn Review, announced earlier today, set out the need for continued...

Small employers get extension to auto-enrolment

  Small businesses will not have to auto-enrol their staff until May 2015, more than a year after the original schedule.   The Minister for Pensions, Steve Webb, has confirmed that firms employing fewer than 50 members of staff...

High-calibre shortlist revealed

  The shortlist for the inaugural Pay & Benefits Awards has been announced.   The extensive list was chosen by our panel of industry experts who spent several weeks deliberating over the high-calibre entries. The final line-up...

More RTI volunteers required

  An extra 1,300 employers are being called to join the pilot for Real-Time Information (RTI) in July 2012.   HM Revenue & Customs (HMRC) already has 300 organisations in place who will be submitting RTI data from April 2012....

Wage incentives announced to get businesses hiring

  The Government is to provide wage subsidies, worth half of the youth national minimum wage, to employers that take on an unemployed 18–24-year-old.   Nick Clegg is to set out the plans as part of a £1 billion youth...

Experts sceptical over protected conversations

  The introduction of protected conversations could have the reverse effect of reducing employment law red tape, according to Helga Breen, Partner at Lawrence Graham.   Following the announcement of a range of suggested reforms for...

Cap on holiday carry-over is approved

  Carry-over limits on untaken annual leave due to sickness have been approved by the European Court of Justice (ECJ).   Employers can take comfort from the latest ruling which suggests that caps can be placed on the amount of time...

Executive pay has risen 4,000% in 30 years

  Total executive earnings have increased by more than 4,000 per cent in the past 30 years, damaging trust between employees and business leaders, according to findings from the High Pay Commission.   The report has found that...

Sickness absence must be addressed

  The UK needs to develop a more effective approach to helping employees recover from a bout of long-term sickness absence, according to the UK Rehabilitation Council (UKRC).   The call comes ahead of the Sickness Absence Review,...

Teachers join strikes

  Teachers have joined the growing number of public sector workers who have voted to strike on 30 November.   The NASUWT, which is one of the largest teaching unions in the country, has announced that 82 per cent of those balloted...

Immigration cap pushes up business costs

  The immigration cap on skilled workers has increased workloads and costs for organisations, and undermines the belief that Britain is open for business.   The findings from the Access to Global Talent report suggest that...

Reward risks are a major concern

  Managing reward risks is a major concern for nearly 80 per cent of professionals in this field, with appreciation of total remuneration top of the agenda.   The annual Reward Risks Survey carried out by the Chartered Institute...

Employers apprehensive over migration cap

  The Government’s work permit migration cap is having a damaging effect on businesses.   Figures from the quarterly Chartered Institute of Personnel and Development’s Labour Market Outlook report showed a six per cent...

Protected conversations may be introduced

  The Government is to consult over the introduction of protected conversations, which will allow employers and employees to have open discussions about retirement.   David Cameron told the Financial Times that the Government wants...

Negative outlook for temporary work

  The Agency Workers Regulations (AWR) are already having a negative impact on the temporary jobs market, according to the CBI and Harvey Nash Employment Trends Survey.   The findings of Staying the Course show that, despite...

Payroll giving popularity drops

Payroll giving figures have slumped for the third year running, leading to calls from business chiefs for more companies to back the scheme.   Only three per cent of the UK workforce currently donates to charity through the payroll. The...

Controversy grows around unfair dismissal

Controversial plans to scrap unfair dismissal rights in favour of a compensation payment failed to gain the backing of the Chancellor, amid rumours of a split over the proposal.   The Prime Minister is reportedly angry at suggestions that...

Bonuses explode for IT hedge fund staff

  Hedge fund IT employees are experiencing bonuses of up to 60 per cent more than they received last year.   ReThink Recruitment reports that the base salary for senior IT staff now stands at around £100,000, while those with...

Sickness benefits claims rise ahead of absence review

  Ahead of the Government’s Sickness Absence Review it has emerged that the number of women claiming sickness benefits is rising faster than men.   According to analysis of the Department for Work and Pensions statistics by...

Pension concessions are not enough

  Public sector workers are still set to strike, despite the Government’s concessions to the planned changes to pensions.   The Coalition has put together a revised offer which will mean that employees will still have to...

Flexible working is no burden

  Flexible working regulations are not hindering businesses according to tribunal figures, which revealed that only 277 claims out of 218,100 alleged a breach of the rules.   The Chartered Institute of Personnel and Development (...

Government could encourage court action over strikes

  Public sector employers may be encouraged to make a legal challenge against strikes over pensions, as walkouts may be unlawful.   Lawyers have reportedly advised the Government that the industrial action could be illegitimate as...

Employees crave benefits flexibility

  Employees want more flexibility and variety when it comes to their benefits, according to research from Mercer.   The findings showed that traditional elements of a package scored poorly when it came to motivation and...

Communication is key

Calls for clear guidelines on how to best communicate auto-enrolment have been made by Standard Life. The company found that if information is clearly and effectively presented, 82 per cent of those who would be automatically enrolled would...

Calls to cut employer NI

High-street retailers are calling for a National Insurance (NI) holiday to help encourage growth and raise employment. Ian Cheshire, Chief Executive of Kingfisher, which runs B&Q and Screwfix, and Jill McDonald, Chief Executive of the UK...

State Pension Age is delayed by six months to give more flexibility

The rise in State Pension Age (SPA) to 66 is to be delayed by six months. Thanks to an amendment in the Pensions Bill, the move will now not be implemented until October 2020. The change means that the maximum time a woman who is affected by...

Pay gap is to widen

The Hay Group predicts that the public−private pay gap will continue to widen across all employee levels during the next two years. The consulting firm anticipates that wage rises will be approximately six per cent, while the public...

Parents unaware of vouchers

Nearly half of working parents are unaware of the financial benefits of childcare vouchers. Of the 2,000 parents polled, 45 per cent did not know about the salary sacrifice scheme, while 33 per cent were not offered childcare vouchers by their...

More part-time cases

The number of employment tribunals involving part-time workers has notably increased. Under the Part-Time Workers Regulations 2000, this group of employees are entitled to the same treatment as full-time staff. The rise in the amount of...

Employers are not supporting returning staff

Employers are not doing enough to help staff return to work after a period of sickness. Last year employee absence cost the economy £17 billion. A survey by Canada Life assessed the reasons behind absenteeism. It found that nearly one-...

RTI timescales are too tight

Around 75 per cent of respondents to the HM Revenue & Customs (HMRC) consultation, Collecting Real-Time Information (RTI), believe the timescales are unachievable. In reply to these concerns HMRC emphasised that there is no flexibility on...

Half do not take holiday

Only 53 per cent of UK workers utilised their entire holiday entitlement last year. A little under a quarter of employees took 75 per cent of their leave, while more than a tenth did not take any. Despite this, UK staff enjoyed more time off...

Renewed focus on remuneration for execs

New guidelines for executive pay focus on the appropriateness of rewards. The Association of British Insurers (ABI) has published its Principles of Remuneration. These are aimed at companies listed on the stock exchange, although smaller firms...

Police officer signed off sick over broken heart

A female detective has been signed off sick for four months for having a “broken heart”. The officer has been diagnosed with stress after she split up with her married boyfriend, who returned to his estranged wife. The woman in her...

Pension pots go up and down on global scale

PricewaterhouseCoopers (PwC) has urged employers and trustees to put in place processes to help pension scheme members purchase annuities when they retire. Findings from the firm suggest that the value of pension pots has fallen by 30 per cent...

Taxman waives interest at Goldman Sachs

Calls for the resignation of Dave Hartnett have been made following claims that he lied about a deal involving a tax settlement at Goldman Sachs. Hartnett, Permanent Secretary for Tax at HM Revenue & Customs (HMRC), agreed an arrangement...

A pension NEST egg

The National Employment Savings Trust (NEST) has formally launched its pension provision. The scheme has been designed to fill the gap in retirement savings for low-to-medium earners and is aimed at small and medium-sized enterprises. It...

Salaries are to rise for senior staff

Senior executive salaries are to rise by up to five per cent over the year to 18 months, according to findings from InterExec. In a survey of headhunters, more than 40 per cent said that they thought wages would rise for this group of...

Cost is a legitimate excuse, says EAT

Clarification over how far cost can contribute to a legitimate reason not to make reasonable adjustments with regards to disability has been given. In an Employment Appeal Tribunal (EAT) case between Cordell and her employer, the Foreign and...

Government confirms extension to unfair dismissal claims

The qualifying period for the right to claim unfair dismissal is to be extended from one to two years. However, some are questioning its effectiveness. The move could save businesses nearly £6 million a year and the Government hopes that...

Poor effort over gender

Only a third of FTSE 100 companies have made progress in improving gender equality in the boardroom. Lord Davies’ progress report revealed that organisations have been slow to alter the ratio of men to women at the top. In a Downing...

Interim pay increases

Businesses are starting to hire individuals at senior management level, helping to push up rates for temporary employees. According to Interim Partners, nearly 80 per cent of interim executives are paid more than £500 per day. This...

Shake-up of executive pay reports

Companies may have to disclose the link between performance and pay under new proposals. Vince Cable has launched a consultation paper which suggests changes to the way in which businesses produce their annual reports. It asks whether total...

Health on the agenda

Organisations are recognising the impact of employee health and wellbeing on productivity. As a result of the recession a third of employers intend to improve staff morale. The research from Aviva also found that one in three employees are now...

Pension reform struggle

Employers will struggle with the costs and compliance levels of auto-enrolment according to PricewaterhouseCoopers (PwC). The Government had estimated initial implementation costs of around £6,000. However, the consulting firm believes...

Employers are neglecting their eye care responsibilities

A staggering 20 per cent of employers do not have an eye care policy in place. Research carried out by Specsavers and Pay & Benefits magazine shows that businesses are potentially leaving themselves vulnerable to penalties by not providing...
 

 

 

Poll

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