NDR Newsletter Jan 2017 - Issue 3

NEW DAWN RESOURCES LTD

Issue 3 | Jan 2017

2017

NEW DAWN RESOURCES LTD

HUMAN RESOURCES BY REAL HUMANS

ISSUE 3 – NEW YEAR EDITION

Featured in this newsletter

Half Year Update

Pg 3 – Pay Increases from Spring

by Vanessa Scrimshaw Chartered Fellow MCIPD

Pg 4 – Brexit Update

Another year comes around – our third newsletter…

Pg 5 – Training Dates for 2017 Pg 6 – Health & Safety Statistics Pg 8 – Flexible Working Requests

Well here we are again - when we begin to put these newsletters together, we’re made all too aware of how quickly time passes, and also how much can happen in the space of a year. We hope that all those who read this have had success and prosperity over the past year, and we’d like to help you maintain that with some more tid-bits, news and advice from the world of HR.

Pg 11 – Generational Differences Pg 13 – Avoiding Age Discrimination

Little has changed here at New Dawn Resources since our summer newsletter, we have been keeping a keen eye on the developments since the Brexit vote in the summer, but I think we can all acknowledge that this will be a slow process. On a positive note from talking to our customers, specifically those who export or import goods from the EU, there seems to have been little impact in their trade or sales - good news for everyone. We have however seen a big decline in the number of EU applicants to job vacancies in the UK. This is certainly something we will keep an eye on and we are hoping it will not lead to further skill shortages.

Employment Law Update 

Apprenticeship Levy

 The Trade Union Act  Gender Pay Gap Reporting

Vanessa Scrimshaw Chartered Fellow CIPD

 Parental Bereavement Leave Bill 1

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Issue 3 | Jan 2017

will be included in any reporting by the agency with which they have a contract of employment.

Important for 2017 Apprenticeship Levy

Gender Pay Gap Reporting

Consultation on this has recently concluded and it will take effect from 6 April 2017. Employers fall within the levy payment if their total payroll exceeded £2.8million in the previous tax year and/or is expected to reach £3million in the current tax year. The rate of the levy will be 0.5% of the total gross payroll which an annual allowance of £15,000 (£1,250 pcm) that may be offset against it.

Companies paying the levy will be able to access funding to pay for apprenticeship training from approved organisations.

Reporting was delayed last year until April 2017, which means that the first reports will be due in April, for the 12 months April 2017 – April 2018. The revised draft Regulations were published on the 7th December 2016 and are subject to parliamentary approval.

The Trade Union Act People and businesses will be protected from undemocratic industrial action by the Trade Union Bill which received Royal Assent on the 4 May 2016 and became the Trade Union Act.

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 apply to private- and voluntary-sector organisations with 250 or more employees. The Regulations for the private and voluntary sectors cover any employer with 250 or more “relevant” employees in England, Wales and Scotland (but not Northern Ireland) on 5 April 2017 – and on the same date each year after that.

In companies with a group structure, each legal entity will need to report its data. There is no legal requirement on smaller employers to report data, but they will be encouraged to do so.

The government announced a series of modernising reforms in 2015 to ensure strikes can only go ahead as a result of a clear and positive democratic mandate from union members: upholding the ability to strike while reducing disruption to millions of people.

The Trade Union Act will ensure industrial action only ever goes ahead when there has been a ballot turnout of at least 50%.

In important public services, including in the health, education, transport, border security and fire sectors, an additional threshold of 40% of support to take industrial action from all eligible members must be met for action to be legal.

How is an employee defined?

The Regulations apply the same definition of employee as the Equality Act 2010. This is a broad definition which includes zero hours’ workers, apprentices and partners in limited liability partnerships. Agency workers 2

Employees will be covered by the Regulations if they are employed on 5 April, work mainly in England, Wales or Scotland, and are on full pay.

Employees on reduced rates of pay while on maternity leave or sick leave are excluded.

How is pay defined?

‘Ordinary pay’ means basic pay; allowances; pay for piecework; pay for leave; and shift premium pay. It does not include overtime pay; redundancy pay; pay in lieu of leave, or nonmonetary remuneration.

‘Bonus pay’ means pay in the form of money, vouchers, securities, securities options, or interests in securities; and pay that relates to profit sharing, productivity, performance, incentive or commission.

The Parental Bereavement Leave (Statutory Entitlement) Bill 2016-2017 This is currently going through parliament and will give parents a statutory right to two weeks’ paid leave after suffering the loss of a child. It is unlikely that we will see this come into force if it is agreed until October 2017 at the earliest, but April 2018 is more likely.

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Be prepared for pay increases in the Spring The National Living Wage, for workers aged 25 and over, will increase to £7.50 or £14,625 pa with effect from 1 April 2017.

National minimum wage rates will also increase with effect from 1 April 2017. The new rates will be:

21-24 year olds = £7.05 per hour / £13,747.50 pa 18-20 year olds = £5.60 per hour / £10,920 pa 16-17 year olds = £4.05 per hour Apprentices* = £3.50 per hour. (*aged under 19 or in the first year of apprenticeship) (Salaried rates based on a 37½ hour working week) Salary sacrifice arrangements will be restricted from 1 April 2017 - the only benefits that will attract relief from tax and National Insurance contributions will be: 

Enhanced employer pension contributions (to registered pension schemes).

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Childcare benefits related to employer’ supported childcare or provision of workplace childcare.

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Cycles and safety equipment purchased under the cycle to work scheme.

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Ultra-low emission cars

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Brexit Update Brexit & Employment Law: House of Commons Briefing Following on from our last Newsletter, in the summer, the House of Commons Library produced a Paper in October 2016 providing further details on the implications for Brexit and Employment Law in the UK. The paper is a succinct, useful summary of the current position of the interface between UK & EU employment law and the Government's position on the matter.

In some cases EU law has entrenched at an international level existing domestic employment rights; for example, rights relating to race discrimination and maternity. In other cases, new rights have been transposed into UK law to comply with emerging EU obligations; for example, agency workers’ rights and limitations on working time. EU employment law provides a minimum standard below which domestic employment law must not fall.

Subject to the provisions of the EU withdrawal arrangements or subsequent trade agreement, withdrawal from the EU would mean that UK employment rights currently guaranteed by EU law would no longer be guaranteed. In consequence, a post-Brexit government could seek to amend or remove any of these.

The main point to note is that EU-derived employment rights featuring in primary legislation would be relatively insulated from the effects of leaving the EU, although would be newly susceptible to the possibility of change. Greater uncertainty surrounds the implications of Brexit for secondary legislation, in which much employment law is contained.

On that theme, the report also highlights the "somewhat thornier – and important - question" concerning the status of European Court of Justice (ECJ) case law, pointing out that

"Post-Brexit, UK courts would no longer be required to follow existing and future ECJ decisions, and may merely regard them as having persuasive force. A potential consequence of that approach may be the re-litigation of controversial judgments, such as those relating to the calculation of holiday pay. "

You can read the full briefing paper here.

Keep connected and up to date with New Dawn Resources On Twitter

@newdawnresource

and on LinkedIn 4

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New Dawn Training Courses for 2017 KNOWLEDGE vs RISK Now in its fifth year, we’re offering our well-received Knowledge vs Risk course again this year. The three-day programme will be delivered by Vanessa Scrimshaw and offers a broad guide to common HR practices and situations in the workplace, in a clear and logical way, with the aim of empowering participants to be able to take control and manage issues in their own organisations. Employees at a management or Director level will benefit most from Knowledge Vs Risk.

The course is a 3 day program and will be held on three non-consecutive dates. These are: 

Thursday May 4th

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Thursday June 8th

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Thursday July 6th

Price £399.00 per delegate + VAT, Venue Holmfirth

SUPERVISOR DEVELOPMENT PROGRAM Now in its second year, we’re offering our Supervisor Development Program. The three-day programme will be delivered by Cheryl Evans and offers lively, interactive sessions specifically designed to help new or in-experienced supervisors and team leaders understand their role and responsibilities, whilst helping develop and hone their skills.

The course specifically looks at: The role of an effective Team Leader, Communication styles & the need for assertiveness, Time Management & Prioritisation, Understanding Assertive Behaviour, Transactional Analysis, Avoiding & Managing Conflict and their role in protecting the employee and the Company The course is a 3 day program and will be held on three non-consecutive dates. These are: 

Wednesday 22nd March

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Wednesday 19th April

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Wednesday 17th May

Price £279.00 per delegate + VAT, Venue Holmfirth 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.

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

Certification: All courses delivered through New Dawn Resources are certified, assuming delegates attend the full sessions and take an active part in the course.

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Health and safety at work Summary statistics for Great Britain 2016 - Key facts

1.3 Million Workers suffering from a work-related illness (new or long standing) in 2015/16.

Rates of work-related ill health resulting in sick leave were lower than most other EU countries.

Source: Estimates based on self-reports from the Labour Force Survey

0.6 Million Non-fatal injuries to workers in 2015/16 Non-fatal injuries in the UK were at a similar level to other large economies in 2013.

Source: Estimates based on self-reports from the Labour Force Survey

2515 Mesothelioma deaths in 2014, with a similar number of lung cancer deaths linked to past exposures to asbestos.

Source: Death certificates

0.5 Million Workers suffering from work- related musculoskeletal disorders (new or longstanding) in 2015/16.

Source: Estimates based on self-reports from the Labour Force Survey

72,702 Non-fatal injuries to employees reported by employers in 2015/16.

Source: RIDDOR

30.4 Million Working days lost due to work-related illness and non-fatal workplace injuries in 2015/16.

Source: Estimates based on self-reports from the Labour Force Survey

0.5 Million Workers suffering from work-related stress, depression or anxiety (new or longstanding) in 2015/16.

Source: Estimates based on self-reports from the Labour Force Survey

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144 Fatal injuries to workers in 2015/16.

Source: RIDDOR

11,403 Notices issued by all enforcing bodies in 2015/16.

The number of cases prosecuted by HSE and, in Scotland, the Crown Office and Procurator Fiscal Service (COPFS) has shown an upward trend in recent years. Yet the number of notices issued by all enforcing bodies has shown a downward trend in recent years.

Source: HSE Enforcement data

In 2013, the standardised rate of fatal injuries to employees in the UK was amongst the lowest of those published by Eurostat. The UK performs consistently well compared to other large economies and the EU average.

9.3 billion Annual costs of new cases of work-related illness in 2014/15 excluding long latency illness such as cancer.

Source: Estimates based on HSE Cost Model

4.8 Billion Annual costs of workplace injury in 2014/15.

Source: Estimates based on HSE Cost Model

14.1 Billion Annual costs of work-related injury and new cases of illness in 2014/15 – excluding long latency illness such as cancer.

Source: Estimates based on HSE Cost Model

Total costs showed a downward trend between 2004/05 and 2009/10; since then the annual cost has been broadly level. This fall was driven by falls in injury costs.

Total costs include financial costs and human costs. Financial costs cover loss of output, healthcare costs and other payments made. Human costs are the monetary valuation given to pain, grief, suffering and loss of life.

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Flexible working requests: Things employers need to know Everyone who’s worked for you/your company for at least 26 weeks is eligible to apply formally for flexible working. Flexible working can mean a range of things, not just going part time but also changing working arrangements. Many employers believe that these requests only relate to those employees who have childcare or family responsibilities but this has not been the case for a number of years now. Employees can request flexible working for anything from pursuing a new qualification to looking after a new pet.

We hear about a variety of different flexible working arrangements. Some of these are permanent while others are for a fixed time. The flexible working needs we hear about most often are related to the availability of childcare, travel time, affordability, and work life balance. Some of the arrangements we have advised on are: homeworking, job shares, compressed hours, term-time working, annualised hours and early or late start or finish times.

In order to help employers and employee to manage flexible working request requirements we have put together a top ten things you should know and/or do:

1. Employees should not make a flexible working request when what they want is to maintain their current working pattern, even if the current working pattern is not written down in their contract of employment.

2. Employers can’t simply ignore a flexible working request and you must respond to it in a reasonable way, following a reasonable process and within a reasonable time frame.

3. Employers can reject a request but they must be able to justify the refusal and this refusal can’t simply be a policy that employees must all work full-time.

4. Employees should ensure that their flexible working request and the requested arrangement are clearly defined. It is common for negotiations to focus on hours, but it is important to also discuss the implications of the change on areas such as the employees working times and their salary.

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5. We recommend that every employer has a policy which sets out what they expect the employee to include in their application. In previous years employers have tended to cover flexible working within a maternity policy, but many now suggest a separate standalone policy.

6. Before rejecting an application it is important to consider agreeing to a trial period, this will give you and the employee a chance to see if the changes can work, without committing the company to a permanent change.

7. If an employee is hoping to return from maternity leave with a different working pattern, it is important that they make their flexible working request quite soon after the birth, especially if they are taking less leave than the 52 week entitlement. The employer has three months to respond to the request so this should be considered early on in the maternity leave.

8. If the employer refuses a request the employee might be able to bring a claim against the company on one or more of the following grounds: 

The employer failed to deal with your application in a reasonable manner.

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The employer failed to notify the employee of its decision within the decision period.

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The employer rejected the application for a reason other than the statutory grounds.

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The employer based their decision to reject the application on incorrect facts.

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The employer treated the application as withdrawn when it was not entitled to

9. The Employment Tribunal can order an employer to reconsider an initial decision to reject a request and can order the company to pay the employee compensation. From April 2016, the amount of compensation which an Employment Tribunal can award is limited to a maximum award of £3,832. Therefore, particularly in light of Tribunal fees, employees may feel that it is not financially worthwhile to go down this route, unless of course they have another claim to bring alongside this.

10. There are 7 statutory grounds on which an employer can reject a request, these are: 

extra costs that will damage the business

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the work can’t be reorganised among other staff

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people can’t be recruited to do the work

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flexible working will affect quality and performance

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the business won’t be able to meet customer demand

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there’s a lack of work to do during the proposed working times

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the business is planning changes to the workforce 9

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Flexible Working Requests Continued…

Frequently asked questions Q. The company has agreed to previous requests and given others part time work but feels it can’t agree this time.

A. Although the employee may feel that the decision/treatment is unfair, it is not necessarily illegal. Employers are allowed to treat people differently, as long as it is not unlawful discrimination, take care that: 

Your decision is not based on any form of discrimination. For example, that you have not rejected an application due to child care arrangements because the employee is a man. Discrimination is only unlawful if the treatment is because of one of the characteristics covered by law (age, sex, disability, race, sexual orientation, transgender status and religion or belief). Even if the decision could be seen as indirect discrimination, it may not necessarily be unlawful if the company can justify it – you may be able to show that giving the employee what they have requested would really be a problem to your business.

Q. Can an employee bring a friend or their partner to a meeting if they are not in a union and they don’t want to ask a colleague to attend with them.

A. The employee has the right to be accompanied but they do not have the right to take a friend or partner to the flexible working meeting.

Q. The employee is in a management position within the company which has to be a full-time job, am I required to offer them another role?

A. You do not have to offer the employee another role, however you may not be able to simply rely on the fact they have a management role as the grounds for rejecting the request. The employee’s right is to request flexible working applies to their original role. If you go through the flexible working procedure, you must give the employee a written decision and you can only turn down the request for certain business reasons.

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Generational difference: myth or reality?

“In a study of 2500 executives from across the world, almost a quarter rated ‘intergenerational cohesion’ as the most significant risk their company faced. Many more rated it as one of the top three risks.”

Lynda Gratton, Future Of Work Consortium.

A lot has been written in business and HR circles about the intergenerational conflict brewing in our workplaces. With five generations in the workplace (more than ever before), many researchers see an atmosphere characterised by tension and misunderstanding. So it’s not surprising that organisations are concerned about the impact of this tension on productivity, creativity and on a basic level workplace harmony.

There’s no denying that we’re all different and shaped by our experiences. The rise of technology has affected all of us, but younger generations have had their education and home life shaped by technology in a way that older generations haven’t. Each of us changes and develops in response to the ongoing change in the world around us.

The best leaders will continue to use empathy and insight into the unique attributes and expectations of each person to create an environment that gets the best from everyone, regardless of age.

But how much of this difference is real?

The HayGroup analysed data from over five million employees across the world. Using multiple sources from across different aspects of the work environment, the data enabled comparisons across different generations. There are so many different ways of cutting it, but typically the generations fall into five main categories. Based on Tolbize's 2008 study, they have been defined as: TRADITIONALISTS

1928 – 1944

BABY BOOMERS

1945 – 1964

GENERATION X

1965 – 1979

GENERATION Y

1980 – 1994

GENERATION Z

1995+

Value authority and a top-down management approach; hard working; ‘be heroic’; ‘make do or do without’.

Expect some degree of deference to their opinions; workaholics; ‘be anything you want to be’; ‘eternal youth – retirement as freedom’.

Comfortable with authority; want to be listened to; will work as hard as is needed; ‘don’t count on it’; ‘take care of yourself’; importance of work life balance.

Respect must be earned. ‘You are special’; ‘achieve now’; technologically savvy; goal and achievement oriented.

Many traits still to emerge. Digital natives, fast decision makers, highly connected.

(Tolbize, 2008)

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Common perceptions myth or reality?

1.

Younger generations look to their leaders to provide meaning and purpose to their work. They look for a ‘sense of fulfilment’.

Myth: “Engaging people in the purpose of the organization” only emerges as being strongly valued in leaders by people over the age of 55. Although Generation Y (compared to all other generations) are least impressed by leaders’ efforts to connect people with projects that are personally meaningful to them.

2.

Organizations need to use different approaches to retain the younger generations. Previous research has suggested that younger generations are less loyal and more willing to change (Smola and Sutton, 2002; Deal, 2007; Anatole, 2013); and that a work-life balance is more important than career progression (PWC, Next Gen study, 2013).

Myth: According to the HayGroup study all generations cite the same attribute as the

primary reason for staying at their company – exciting and challenging work. The second and third most important features that keep people in an organization are ‘opportunities to advance’ and ‘autonomy/freedom’. At 55+, ‘meaningful work’ replaces advancement opportunities. But autonomy and freedom remain important, regardless of age.

3.

Each generation needs to be managed differently in order to keep them engaged and motivated.

Because of the diverse needs of each generation, leaders should adopt different leadership skills for different generations.

Myth: A distinct pattern emerged when looking at the experiences and expectations of different generations in the workplace. However, when it comes to what people are looking for from their actual leaders, there are very few differences.

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Avoiding Age Discrimination Top tips for age-aware employers - which all employers should be - considering things you may know, things you may not and developing trends to be aware of.

Job ads - watch your words Checking that the wording of your job advertisements do not discriminate against people of a particular age or age bracket is important. Using phrases such as “young & dynamic” is a definite "no no". You should avoid using age, a specific qualification or period of experience as recruitment criteria, unless you can show that it is really necessary for the person to be able to do the job. You can state an academic level of attainment but be sure if you but the UK award, such as GCSE or A Level that you put ‘or equivalent at the end, otherwise you could be seen to be discounting applicants who went to school or who grew up outside of the UK.

Be careful what you ask Making sure that a candidate’s date of birth is removed from their application form, and be aware of questions which could easily mark an employee's age (e.g. questions on schooling with dates). Make sure interviewers are aware of the types of questions that they should not ask - this applies to age just as much as it applies to the other characteristics protected by the Equality Act 2010. Take care not to jump to assumptions and ask questions of individual candidates which you do not ask every candidate i.e. if a male and female candidate both talk about their children, don’t assume that staying away from home, overnight will only be a problem for the mother.

Employee benefits Be wary of offering benefits which, despite being offered to all employees, disadvantage people of a particular age.

There are certain exemptions when it comes to offering benefits linked to length of service. Where the person receiving the beneficial treatment has a length of service in excess of five years, the provision of the benefit, facility or service will only be lawful if it fulfils a business need, such as rewarding a higher level of experience, rewarding loyalty or increasing employee motivation.

Policies - put it in writing Ensure that your policies are compliant and do not discriminate, in particular your recruitment and employee benefits policies. Provide your staff with access to copies of your equal opportunities and harassment policies. These should include examples of the types of behaviour that can be age discriminatory and the consequences for employees of discriminating or harassing individuals on the basis of their age.

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Train to retain 

All staff, particularly managers, should be trained on avoiding age discrimination in the workplace, focussing in particular on key areas such as the recruitment process, fair promotion, and dismissals.



Training and refreshers on systems, processes and the 'tools of the trade' should be available for all, to avoid people not being up-to-speed on how new technologies and processes work.

Banning banter?

Banning banter would be an extreme measure, but all staff should be aware of the types of behaviour that constitute age discrimination. Be clear that age discriminatory comments against young or old employees are not tolerated and that disciplinary action could be taken if employees disregard this.

Flexible working for all?

There has been a large increase in the number of flexible working requests over the past few years, and the right to request has been expanded. Do you have a policy that provides for this? Remember that this policy must be generic and not aimed at specific groups - it should be open to old and young without any assumptions or judgements being made about why people want to take it.

Promote on talent, not age Age shouldn't be a factor when considering promoting individuals; it should be done on the basis of talent, merit and business need. There are certain exceptions where age may be taken into account i.e. if the age requirement is a genuine occupational requirement or is objectively justified, but the latter can be hard to show in practice.

Retirement Although the traditional concept of 'retirement' is dead in the water for many employers, now the statutory default retirement age has gone, employers of choice can still help employees ‘train for their retirement'.

Support provided might include access to guidance on financial planning, pension planning and generally thinking about life after work! Employers need to ensure that any such 'pre-retirement planning' is not in itself discriminatory though, and avoid targeting employees at a particular age on the assumption they are gearing up to leave the business.

Tied into this, employers should also think carefully about succession planning to avoid being caught off-guard when individuals with key skills or knowledge do depart the business. Mentoring and "skill-spreading" will all feed into this.

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 14 TEL: 01484 680098 EMAIL: INFO@NEWDAWNRESOURCES.CO.UK BRIDGE MILLS, HOLMFIRTH, HD9 3TW