Legal Ease
THE GOVERNMENT HAS OPTED NOT TO EXTEND FLEXIBLE WORKING FOR PARENTS
In a bid to reduce regulation for businesses, the Government announced that the right to request to work flexibly will NOT be extended to parents of children under 18 as previously planned.
Currently, the right applies to certain carers of adults and children under 17 years of age, or under 18 if the child is disabled. Regulations extending the right to parents of children under 18 were due to come into force on 6th April.
The Government still has plans however to ultimately extend the right to request flexible working to all employees.
NEW RATES NATIONAL MINIMUM WAGE WILL COME INTO FORCE ON 1 OCTOBER 2011:
· Hourly rate for adult workers (21 years and older) increases from £5.93 to £6.08 per hour
· Hourly rate for 18 to 20 year olds (development rate) increases from £4.92 to £4.98 per hour
· Hourly rate for 16 and 17 year olds increases from £3.64 to £3.68 per hour
· Hourly rate for apprentices will increase from £2.50 to £2.60 an hour.
EQUALITY ACT 2010
The positive action provisions of the Equality Act 2010 in relation to recruitment and promotion came into force on 6th April, allowing employers (but not obliging employers) to treat individuals with a protected characteristic more favourably in recruitment or promotion where candidates are of equal merit.
Specific conditions must be satisfied for employers to make use of the provisions and given the complexities of the provisions, legal advice should be taken where positive action is considered.
BRIBERY ACT 2010 WILL COME NOW INTO FORCE ON 1 JULY 2011
Following the Government’s announcement last month to delay the implementation of the Bribery Act, it has now been announced that the Bribery Act 2010 will come into force on 1st July 2011.
Businesses that have not yet taken steps to comply with the Act will therefore need to act quickly to ensure that they have adequate procedures in place.
NEW TAXATION ON TERMINATION PAYMENTS
Prior to 6th April 2011, any tax due on a termination payment could be deducted at the Basic Rate (BR) if it was made after the employment had ended and the P45 issued. An employee liable to tax at the higher or additional rate would pay this through self-assessment at the end of the tax year.
However from 6th April, changes to the Income Tax (Pay As You Earn) Regulations 2003 mean that employers will need to deduct tax using code OT, ( normal rate of 20%, 40% or 50%) applicable to that individual when the employment ceased. It is up to the individual to recoup any overpayment of tax as a result of later tax allowances in their self-assessment form at the end of the tax year.
Compromise Agreements paid after 6th April 2011 need to follow the new rules and it may be prudent to inform affected individuals.
In a bid to reduce regulation for businesses, the Government announced that the right to request to work flexibly will NOT be extended to parents of children under 18 as previously planned.
Currently, the right applies to certain carers of adults and children under 17 years of age, or under 18 if the child is disabled. Regulations extending the right to parents of children under 18 were due to come into force on 6th April.
The Government still has plans however to ultimately extend the right to request flexible working to all employees.
NEW RATES NATIONAL MINIMUM WAGE WILL COME INTO FORCE ON 1 OCTOBER 2011:
· Hourly rate for adult workers (21 years and older) increases from £5.93 to £6.08 per hour
· Hourly rate for 18 to 20 year olds (development rate) increases from £4.92 to £4.98 per hour
· Hourly rate for 16 and 17 year olds increases from £3.64 to £3.68 per hour
· Hourly rate for apprentices will increase from £2.50 to £2.60 an hour.
EQUALITY ACT 2010
The positive action provisions of the Equality Act 2010 in relation to recruitment and promotion came into force on 6th April, allowing employers (but not obliging employers) to treat individuals with a protected characteristic more favourably in recruitment or promotion where candidates are of equal merit.
Specific conditions must be satisfied for employers to make use of the provisions and given the complexities of the provisions, legal advice should be taken where positive action is considered.
BRIBERY ACT 2010 WILL COME NOW INTO FORCE ON 1 JULY 2011
Following the Government’s announcement last month to delay the implementation of the Bribery Act, it has now been announced that the Bribery Act 2010 will come into force on 1st July 2011.
Businesses that have not yet taken steps to comply with the Act will therefore need to act quickly to ensure that they have adequate procedures in place.
NEW TAXATION ON TERMINATION PAYMENTS
Prior to 6th April 2011, any tax due on a termination payment could be deducted at the Basic Rate (BR) if it was made after the employment had ended and the P45 issued. An employee liable to tax at the higher or additional rate would pay this through self-assessment at the end of the tax year.
However from 6th April, changes to the Income Tax (Pay As You Earn) Regulations 2003 mean that employers will need to deduct tax using code OT, ( normal rate of 20%, 40% or 50%) applicable to that individual when the employment ceased. It is up to the individual to recoup any overpayment of tax as a result of later tax allowances in their self-assessment form at the end of the tax year.
Compromise Agreements paid after 6th April 2011 need to follow the new rules and it may be prudent to inform affected individuals.
Labels: Bribery Act 2010, Equality Act 2010, Flexible Working for Parents, National Minimum Wage, New Taxation on Termination Payments, NMW
You should seek specific advice before taking any action based on the information contained in this document.While every care has been taken in compiling these notes, FirstHR cannot be held responsible for any errors or omissions; the notes are not intended to be a substitute for specific legal advice.
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