New Dawn Resources HR Newsletter January 2016

NEW DAWN RESOURCES

Issue 1

2016 NEW DAWN RESOURCES

HUMAN RESOURCES BY REAL HUMANS

IN THIS ISSUE

Half Year Update

by Vanessa Scrimshaw

Jan 2016

Chartered Fellow MCIPD

Welcome to our first newsletter

New to the New Dawn Team

We always try to keep our clients, associates and contacts up to date with changes in the employment world, but it can be difficult to find the right balance, and a platform which suits everyone, without bombarding you with emails and information.

Joanne Spencer

So after some thought, we have committed to producing two newsletters a year around January and July, which we will send out as an email containing links to other online topics and signposting you to further resources. Each edition will also go on our website so you can choose to download and print a copy.

We hope that you will find our biannual newsletter useful and we would appreciate your feedback following this and future editions.

What’s coming up in 2016 Compared with previous years 2015 and 2016 could be described as quiet in terms of employment law changes.

That’s not to say there isn’t anything going on…!

HR & Recruitment Administrator

Hello everyone, I am the latest addition to the NDR team, when I joined in August 2015.

I have a 15 year background as a HR and Recruitment Administrator within the Residential and Educational Childcare sector, so the transition to NDR has been a natural one. Every day is different, busy and challenging; I’ve learnt it helps to be both serious and slightly crazy to work here – I fit in well!

I can say that I am proud to be part of a Company that provides such bespoke, professional, trusted and friendly service to all their clients. I look forward to getting to know you more and assisting you in the coming months!

Employment Law Update ü

National Living Wage

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Ban on Exclusivity Clauses

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Apprenticeships Levy

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Mobile Workers – WTD

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Accruing leave whilst off sick

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Fit for Work Service

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Auto Enrolment

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Modern Slavery Act 2015

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Enforcing English at Work

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Coming up in 2016 Many of us who run a business come back to the office in January energised and rested, hoping to continue to drive the business forward and build on the success of the previous year.

Whether you are looking at your targets for the end of the last quarter of this year, or starting to put your strategy together for the next financial year, there are a few important points to note when it comes to your payroll costs.

Changes to the National Minimum Wage rates are normally introduced in October each year. This year a compulsory National Living Wage is due to be introduced and will see the largest single increase for one group (50 pence per hour) since NMW was introduced in the UK. In April, the minimum hourly rate for all working people aged 25 and over will be set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 will continue to apply.

The Low Pay Commission, which currently recommends the level of the minimum wage, will recommend any future rises to the National Living Wage rate.

The new National Living Wage is different from the Living Wage, which is an hourly rate of pay set independently by the Living Wage Foundation and is calculated according to the basic cost of living in the UK. The National Living Wage differs from the new Living Wage in several important ways. In fact, it might be more accurate to describe the new measure as an increased minimum wage, rather than a living wage.

The National Living Wage and the Living Wage - What's the difference?

• It’s compulsory – the existing Living

•

•

•

•

Wage is a voluntary initiative promoted by a coalition of charities and businesses It’s lower – £7.20 an hour initially, against the current Living Wage of £7.85 an hour It’s nationwide and does not allow for regional differences– the Living Wage is set at £9.15 an hour in London It’s only for people 25 or over – the National Minimum Wage will continue to apply to workers aged 18-24 It’s based (informally) on earnings – the Living Wage is calculated according to the cost of living

In April 2015, statutory sick pay (SSP) was increased from £87.55 to £88.45 per week. The Government has confirmed that SSP rates will not now increase in 2016, and the same will apply to:

• • • •

Statutory maternity pay Paternity pay Adoption pay Shared parental pay

Therefore, statutory rates will continue at the following current rates until at least April 2017:

• •

SSP – £88.45 per week SMP etc – £139.58 per week

The lower earnings limit (the minimum amount a worker must earn per week to qualify for SSP, SMP etc.) will remain at £112 per week

Because these rates are calculated in relation to the Consumer Price Index (CPI), we generally see an increase year-on-year, but with the CPI falling by 0.1% in the year to September 2015, rates will remain static in 2016.

Whilst it is unlikely that holding the 2015 rates for SSP, SMP and similar schemes will offset the increased payroll costs of the National Living Wage increase it will certainly help employers to manage the increase.

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Ban on Exclusivity Clauses in zero hours contracts from Jan 2016.

Under a zero hours contract employers do not guarantee to provide a minimum number of hours work per week to the employee. In the past some employers have used exclusivity clauses to prevent those engaged under such an agreement from working for another organisation, even when they have had no hours to offer the employee themselves. This has generally been done in order to ensure that the employee remains available to them should some unexpected work come in or their needs change for example another employee phones in sick.

Other companies have stopped short of banning other work entirely but instead have sought to prohibit employees from doing so without their consent. These kinds of exclusivity clauses in zero hours contracts have been prohibited since May 2015, but employees have not, until now, had the power to enforce the ban.

From 11 January 2016, legislation gives employees/workers working under a zero hours contract the right to complain to an employment tribunal where they are dismissed or suffer a detriment for working for another employer or asking their employer for permission to do so.

From now on all employers who engage employees under these contracts must: • • •

Allow the employee to take work elsewhere in order to earn an income if they themselves do not offer sufficient hours.

Acknowledge that although they may still have a clause in their contract covering exclusivity, the employee cannot be bound by it and are entitled to ignore it.

Not attempt to avoid the exclusivity ban by, for example, stipulating that the individual must seek their permission to look for or accept work elsewhere.

Apprenticeships levy In the Autumn Statement George Osbourne announced a new apprenticeship levy of 0.5%. The chancellor announced that it is estimated that the levy could raise £3bn a year which will be used to fund three million apprenticeships.

The new levy will only effect businesses with a wage bill of more than £3m, which the government said would exempt 98% of employers. The new charge will be imposed from April 2017 and some business groups have described the levy as a new "payroll tax". A pdf detailing how the scheme will work can be downloaded from www.gov.uk or the full link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/482049/apprenticeship_levy_response _25112015.pdf

Turbans instead of Safety Helmets Since 1 October 2015, Sikhs have been granted the right to wear a turban instead of a safety helmet in almost all workplaces in Great Britain save for specific roles in the military and emergency services. If you’re unsure of your obligations in connection with this, let me know and we can look at your work place and the rules that may apply

Look out for our 2nd edition in July 2016 when we will be launching our: Fixed Rate Recruitment Payroll Bureau

NEW DAWN RESOURCES | Issue

KPI UPDATE

97.5% Pass rate on C.I.E.H Training Courses

100% Success rate defending Employment Tribunal cases for retained HR clients since 2008.

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Modern Slavery Act 2015 You may have heard about this act in the media or through various sources, we don’t intend to go into this in detail here but if you need to know more please contact us for further information. In summary from 29 October 2015, all organisations that operate in the UK must make a slavery and human trafficking statement for each financial year (this will apply to each financial year ending on or after 31 March 2016 so if this applies to you, you will need to make a start now) in which their total turnover for the year is £36million or more.

The annual statement for those organisations which fall under the act must set out the steps they have taken during the year to ensure that slavery and human trafficking has not taken place either within their own business/organisation or within its supply chains. For the companies and organisations affected this may be a complex document, not necessarily in terms of their own organisation or company but in term of the assurances needed where the company source goods or ingredients from outside of the UK and Europe. The annual statement will need to include information about the organisation’s structure, business and supply chains, identification of any areas of risk, and any due diligence processes carried out in relation to slavery and human trafficking within its business and supply chains. There should also be a process for review of the steps taken on a regular basis and appropriate training for staff.

Can you force your employees to speak only in English in the workplace?

Yes, in certain circumstances, according to the EAT in Kelly v Covance Laboratories Limited.

Many employers across all sectors & Industries in the UK have employees in the work place for whom English is not their first language, or who may be fluent in and prefer to use a second language in certain situations. From time to time, the use of another language in the workplace may become a problem for employers and other employees who do not speak the language that their colleagues may prefer. This has been a difficult area to advise on in the past with many employers and HR advisors being concerned about a possible race discrimination claim for stating a preferred language or even banning the use of languages other than English whilst at work.

Employers must take care not to see this case as a green light to ban the use of non-English languages, this case must be considered in its context. Previous cases have found that instructions to employees not to speak their own language could constitute direct race discrimination and that language is an intrinsic part of nationality (Dziedziak v Future Electronics Limited 2011 and Jurga v Lavendale Montessori Ltd 2013).

Employers need very good reasons for controlling the use of other languages in the workplace, especially any attempt to prohibit non-English outside business operations, such as during breaks or at works social events. Where employers are facing a problem in this area it is advised that they seek advice before taking any action or introducing a change in policy.

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2016 – Training Schedule

Course Booking: To book your place please contact Jo on 01484 680098, email Joanne@newdawnresources.co.uk or speak to your HR Advisor for more information. A 5% discount will be applied to bookings of two delegates or more for one session.

Delegates are required to complete pre-registration forms and documentation for all C.I.E.H courses and payment in full is required prior to confirmation of your booking.

Certification: All courses delivered through New Dawn Resources are certified, assuming the delegate attends the full session and takes an active part in the course. CIEH courses include a multiple choice exam which is sent immediately following the course to CIEH head office for marking, all delegates who pass the exam will receive an official C.I.E.H certificate.

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Accruing Annual Leave whilst on Sickness leave This is a HR matter which is effecting most employers right now, most SME’s in fact all employers have at least one employee on long term sick at any one time. Until recently employees have ceased to accrue annual leave once they have exhausted their entitlement to either company or statutory sick pay. The new standards require that employees who are on long term sick leave continue to accrue holiday entitlement indefinitely whilst they remain employed and after they have exhausted any sick pay schemes. Furthermore where an employee is absent and unable to take their holiday entitlement during the holiday year because of their sickness absence they are entitled to roll their accrued leave forward into the next leave year.

This has however been capped on two fronts: Firstly the Employment Appeal Tribunal has now confirmed that an employee can carry previously accrued leave forward for a period of up to 18 months only, during which they may use the leave; secondly that this will only apply to the EU entitlement to annual leave which is 4.0 weeks per year (20 days holiday per year for a full time employee).

Is it time to review your Absence Management Policy?

We all know that sickness can be costly to a company, the government has introduced a new voluntary service for employers to have access to occupational health support.

FIT FOR WORK SERVICE The ‘Fit for Work Service’ has now been made available throughout England, Wales and Scotland. Employers and GP’s can now refer employees to the service. The service provides access to health and work advice for employers, employees and their GP’s through a website and Free phone helpline and when referred will have a 45 minute telephone assessment with an appropriately qualified healthcare professional.

So who can you refer and when?

• • • • •

The individual must be an employee (self-employed and contractors are not eligible) They need to be absent for a 4 week period There is a reasonable likelihood that they will return within 3 months They must not have undergone a Fit For Work Assessment in the previous 12 months and have not received a Fit For Work Return to Work Plan The employee must have consented to the referral

An employee will be referred either by the employer or the GP, will be allocated a case manager who will, following the telephone assessment, devise a Return to Work Plan.

Employers can apply for funded medical treatment up to the value of £500 per employee.

Although it isn’t mandatory to follow the Return to Work Plan, BE CAREFUL - failure to do so or refusal, particularly if the medical condition is classed as a disability may lead to an employment tribunal!

Many employers having already used the service don’t speak favourably about it and therefore prefer to have their own Occupational Health Company.

For more information on how to make a referral go to www.fitforwork.org.

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Working Time Directive - Mobile Workers th

On 10 September 2015 The Court of Justice of the European Union (CJEU) released its judgement concerning whether or not travel time may be deemed working time. This decision may have significant implications for employers and employees in terms of how they calculate their hours and pay.

The European Court of Justice ruled that mobile workers who have no fixed place of work, and who spend time travelling from home to their first appointment/customer and home again after their last appointment, should have their travelling/driving time considered as working time by their employer. The Court add that because the workers’ are at the employer's disposal for the time of the journeys, they act under their employer's instructions and cannot use that time freely to pursue their own interest.

Acas is assessing the impact of this judgement on workers and employers in Great Britain, including whether it has any effect on the payment of the National Minimum Wage, and will provide more detailed guidance when it becomes available. The decision of the CJEU relates to “working time” under the Working Time Regulations 1998 and therefore focusses on the calculation of breaks and rest periods. As such, the CJEU decision did not address the question of pay and employers do not need to change their payment practices as a result of this ruling. However previous case law has ruled that the time spent travelling from one customer/appointment to another during the working day should be factored into the calculation of minimum wage.

How Does this Impact On Rest Breaks?

The key factor for employers to take away from this is that this decision will greatly impact rest breaks. Generally, employees must get a minimum rest break each day in addition to getting daily rest periods of at least 11 consecutive hours and weekly rest periods of at least 24 consecutive hours. In the future, employers will need to factor this travel time into the day when identifying when an employee must take their rest breaks.

Additional Considerations

Because this is an ECJ ruling, it is applicable to all UK private sector employers. Employers should now consider how many field based employees in their organisation may be affected by this judgment and should update their practices accordingly. A failure to ensure appropriate rest periods may result in the employer falling foul of the Working Time Regulations.

An employer is also required to specify an employee’s hours of work in the employee’s terms and conditions of employment and this could include breaks. Therefore, employers are advised to review their contractual policies and ensure that they are suitable and in line with the above. This may involve specifying in an employee’s contract that this travel time is deemed working time.

This judgement will only affect employees who are mobile, in so far as they do not need to come to the ‘office’ to pick up their instructions. Instead, their appointments are made by themselves from home or whilst on the road or are conveyed to them from a central office via email or mobile. This could be those involved in community care work, regional salespersons, area security officers or gas fitters, for example.

Travel time for a worker who is based day in and day out in an office, factory or workshop or any other fixed location, or those who attend the office or workplace before going out to see clients or customers will not be affected by this ruling. For further information, to learn how this might affect your business or to read the full bulletin please contact our office on 01484 680098.

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AUTO ENROLMENT - DON’T IGNORE IT, BE PREPARED! In the autumn statement 2013 the Chancellor of the Exchequer indicated that the state pension age for men and women is likely to rise to 69 from the late-2040s. Employees who are now 40 or below should not expect to receive a state pension th contribution much before their 70 Birthday.

For many of NDR’s payroll clients 2016 is the year that auto-enrolment kicks in and they need to provide a pension scheme for their eligible staff. You will have seen the adverts and no doubt have been inundated by Pension Companies contacting you to assist.

There is a lot of help and advice, if you need to find out when your Staging Date is then visit the Pensions regulator website, www.thepensionsregulator.gov.uk.

Six months before your Company Staging Date you need to be setting up your pension scheme, there are many out there and those with Company Pension Schemes already in place must check that they are suitable as many are not.

On your Staging Date the Company needs to establish who is eligible to put into the scheme, within 6 WEEKS you must write to staff and then within 5 MONTHS the Company has to declare compliance.

EVERY pay period your Company needs to assess if any employee falls into the eligible category and what communication is due. You have an obligation to ensure employees have received the correct information. You must keep records of correspondence.

Who’s Eligible?

Annual Earnings above £10,000

Eligible jobholders

Annual Earnings over

Non- eligible jobholders

£5,824 up to £10,000 Annual Earnings up to £5,824

Entitled Workers

Age 16 to 21

Age 22 to State Pension Age

Keep up to date with New Dawn Resources On Twitter

@newdawnresources

On Linkedin

State Pension Age to 74

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What is it going to cost?

The employer must contribute to the pension scheme as well as the employee. There is a total minimum % of qualifying earnings and the employee will need to contribute the difference.

Contribution Rates

October 2012 to 5 April 2018

6 April 2018 to 5 April 2019 6 April 2019 onwards

Employer must contribute

Total must be at least

(% of qualifying earnings)

(% of qualifying earnings)

1%

2%

2%

5%

3%

8%

The minimum contribution level required for an automatic enrolment scheme is based on annual earnings from salary, wages, overtime, bonuses, commissions and statutory pay. Qualifying earnings are the band of these annual earnings over £5,824 up to £42,385.

In addition to the contribution there will be costs related to the Pension Scheme, this is usually either a fixed annual fee, determined by the amount of members or a % fee based on the employee’s contributions. Don’t forget the cost of the administration required to manage compliance. This could be reduced providing the payroll software you have in place has the facility to generate the documentation.

Our payroll clients can breathe a sigh of relief as NDR’s Payroll Software has everything it needs to manage compliance, in relation to the Company’s pay period assessment, communication to staff, postponement letters, enrolment letters, right to opt in or join a scheme letters.

A PERSONAL SERVICE

THE SERVICE OFFERED BY NEW DAWN RESOURCES IS PERSONAL, TO BOTH YOU AND YOUR BUSINESS. OFFERING SUPPORT, ADVICE AND PROTECTION WHEN YOU NEED IT MOST. TAKING ADVICE FROM US WILL HELP YOUR BUSINESS REDUCE COSTS AND KEEP YOUR STANDARDS HIGH.

CONTACT NEW DAWN RESOURCES TEL: 01484 680098 EMAIL: INFO@NEWDAWNRESOURCES.CO.UK BRIDGE MILLS, HOLMFIRTH, HD9 3TW