Legal Ease

Managing Redundancies Effectively
Due to the economic downturn, many employers are having to make redundancies at this present time and this is likely to continue throughout 2009. This is a painful process, but it is important to get it right from both a legal perspective and ensuring those who survive remain positively engaged .

FirstHR are running a morning workshop on the 25th March 2009 dealing with Restructuring & Redundancy. The workshop will not only provide you with information and practical advice on the process you must follow, but also offers alternative solutions to redundancies, such as consulting with employees with regards to varying their current terms and conditions of employment. There is a Q&A session where any other queries regarding employment matters can be raised. If you are interested in attending please contact us on the number below or email us at enquiries@firsthruk.com.

Right to Request Flexible Working is Extended
From 6th April 2009, the right to request flexible working is extended to parents of children up to the age of 16 – it was 6 years old. Therefore, your Flexible Working Policy should be amended to reflect this change.

If you need assistance with changing your policy or dealing with a request then please contact us on the number or email detailed below.

Pension Changes
The current Stakeholder legislation is being replaced in 2012 with the new National Pensions Savings Scheme (NPSS). All employers in the UK, whether they have one member of staff or 10,000, will need to take action to comply with their new responsibilities under this new pension reform.

The main points of the new legislation are:
· All jobholders between the age of 22 and state pension age must be automatically enrolled unless they are members of a “qualifying scheme”.
· A jobholder is defined as anyone between 16 and 75 in receipt of earnings between £5,035 and £33,450 per year. This includes wages, salary, bonus, commission, overtime, shift allowances, and all maternity, paternity and adoption pay.
· Contributions will be 3% from the employer, 4% from jobholders and 1% in tax relief (a total of 8%) and contributions can be phased in over 3 years.
· Individuals may opt out within a prescribed period but must be re enrolled at regular intervals of no more than 3 years.
· Contributions will be limited up to £5,000 (£10,000 1st year).
· Qualifying schemes can be either occupational or personal pensions and contributions must be at least 8% of qualifying earnings of which the employer must pay 3%.
· It is proposed that there is a 5 year ban on moving money out of Personal Accounts.
· There is no allowance for independent financial advice.
· The schemes will be heavily regulated by the Department of Work and Pensions.

It is highly advisable for employers to discuss the impact these changes will have upon their business and employees with their financial advisers as soon as possible. Employers need to ascertain whether their existing arrangements are likely to make their business exempt from the NPSS and if not, potentially start budgeting to cover future employer pension contributions.