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Employment Memo 2010 Newsletter Issue 1 (April 2010)

FOCUS ON — LEGISLATIVE CHANGES

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Here is a summary of the changes that occurred so far in 2010.  Further information can be found at the relevant paragraphs listed below. 


Pre-employment

Right to work – revised guidance for points-based system sponsors

See ¶771

The UK Border Agency has revised its guidance documents for employers and education providers who hold sponsor licences under the points-based system. Further information can be found at :

www.ukba.homeoffice.gov.uk/sitecontent/documents/employersandsponsors/pbsguidance/


Company information and confidentiality

Whistleblowing – possible action on the issue underlying allegation

See 2704 

From 6 April, the Tribunal Service can forward the issue underlying a whistleblowing claim to a designated regulator.


Remuneration

Taxation of benefits - private fuel provided for company cars

See 3229 

Where private fuel is provided for a company car, the cash equivalent of the benefit is calculated by multiplying a fixed sum by the appropriate percentage determined by the level of the car's carbon dioxide (CO2).  This fixed sum increased from £16,900 to £18,000 from 6 April.

 

Taxation of benefits - private fuel provided for company vans

See 3235 

Where private fuel is provided, the employee will be assessed on a benefit of £550 from 6 April (an increase of £50).

 

Pensions - state pension age

See ¶¶3401, 8202 

The state pension age is to be equalised at age 65, to be phased in over 10 years from 6 April.

 

Pensions - early retirement age

See 3413 

From 6 April, the retirement age that an employee can generally start receiving his occupational or personal pension increased from 50 to 55 years (unless due to ill health or in a specialised occupation, such as a sportsman). 

 

Pensions - additions to information and consultation requirements

See ¶3448

Employers with 50 or more employees are required to inform and consult with employees before making specified changes to occupational pension schemes. From 6 April, changing what elements of pay are included within pensionable earnings and changing the proportion or limiting the amount of any element of pay that forms part of pensionable earnings are added to this list.


Sickness, injury and absence

“Fit notes” to replace GP sick notes - new form

See ¶4211 

From 6 April, the new statement for fitness to work (“fit notes”) replace GP sick notes. The new forms allow the option to indicate either that the employee is unfit for work or that he is fit for work provided that adjustments are made to his working hours, workplace or duties, or subject to a phased return to work.

The Department of Work and Pensions has published a guide for employers, see www.dwp.gov.uk/docs/fitnote-employer-guide.pdf


Health and safety

Health and safety offences causing death and corporate manslaughter - definitive sentencing guideline published

See ¶¶5180, 5192 

The definitive sentencing guideline for corporate manslaughter and health and safety offences causing death has been published by the Sentencing Guidelines Council.  It applies to sentences passed on or after 15 February 2010.

The guideline stipulates that the appropriate fine for a health and safety offence which is shown to have caused death should seldom be less than £100,000 and could be hundreds of thousands of pounds, and that the appropriate fine for a corporate manslaughter offence should seldom be less than £500,000 and could be millions of pounds.  Figures will be adjusted to take into account factors which aggravate or increase the seriousness of the offence and any mitigating factors.  The guideline sets out factors likely to be regarded as aggravating or affecting the seriousness of the offence and those likely to afford mitigation. In addition, the court should consider the financial consequences of a fine, including the resources of the company and its ability to pay.  For this purpose companies will be expected to provide the court with their published audited accounts for a 3-year period, including the year of the offence.  Further, a publicity order should be imposed in virtually all cases of corporate manslaughter (see below).

 

Corporate manslaughter - commencement of power to make publicity orders

See ¶5192 

From 15 February, the court’s power to make publicity orders came into force.  The power applies to corporate manslaughter offences committed on or after 15 February 2010. It is not available for offences committed before that date, even if the court passes sentence after that date.


Training and performance

Right to request time off to train - new right where 250 or more employees

See ¶6334 

From 6 April, there is a new right for employees to request time off to train where organisations have 250 or more employees.  The training must be relevant to the employee’s work, and the process is similar to that for requests to work flexibly. Employees must be continuously employed for not less than 26 weeks before making a request.


Trade unions, collective bargaining and industrial action

Trade union rights - blacklisting trade unionists now unlawful

See ¶7140 

From 2 March, the compilation, dissemination and use of blacklists, which contain details of trade union members and activists and whose purpose is to discriminate against these workers on grounds of their trade union membership or trade union activities is unlawful.  Claims can be made to the employment tribunal where a worker has been refused employment or employment agency services, or has been unfairly dismissed or subjected to a detriment, for a reason relating to a blacklist.  Alternatively, where a worker has suffered or will suffer a loss due to the use or apprehended use of a blacklist, he can apply to the civil courts for damages, including damages for injury to feelings.  Those affected can also apply for orders restraining or preventing the compilation, use, sale or supply of the blacklist in question.


Tribunal claims

ET and EAT cost orders

See ¶¶9709, 9801 

From 6 April, the hourly rate used to calculate the amount of preparation time payable has increased to £30.


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