Archive for the ‘HR’ Category
Huge numbers of workers may be missed out of auto-enrolment
The Pensions Regulator published guidance earlier in the year warning employers preparing for Auto-Enrolment (AE) that they could not rely solely on a person’s tax status or any other single factor to determine if they were a worker or self-employed.
There is now evidence from a number of actuarial consultants and legal firms that companies could be missing large numbers of eligible workers out of their auto-enrolment plans because they wrongly believe they are classed as self-employed or consultants.
Reports suggest that the audit of one client’s workforce had identified 1,000 extra eligible workers that the company did not realise would have to be auto-enrolled. Another audit at a firm uncovered an additional 500 people needing to be enrolled – increasing the total number by about 10%. This prompted comment that, “the best advice is that if it looks like a worker and smells like a worker, it is a worker.”
The designation of someone as self-employed doesn’t necessarily mean they are and other factors need to be considered including the number of hours and the location of work, the pay structure agreed and factors such as whether the person is provided with tools, a uniform or business cards.
The list of status indicators given by the Pensions Regulator is clearly not exhaustive and businesses are warned that in cases of doubt the watchdog would probably take the most cautious interpretation and class any group in question as workers.
Sources: www.professionalpensions.com
Sickness & Holidays–ECJ Clarity
We’ve written loads in the past about what holidays an employee is entitled to when they are off sick. Although there has been some cases – mainly in overseas courts or the Employment Tribunal – it’s all been a bit zig-zag in terms of making progress.
Worry no longer – we appear to have some clarity from our old friends the judges at the European Court of Justice (ECJ). They have ruled that if an employee is ill while on annual leave they have the right to reclaim additional paid leave of the same duration at a later date. This applies regardless of when their ill-health commenced.
As the ECJ put it : "The purpose of entitlement to paid annual leave is to enable the worker to rest and enjoy a period of relaxation and leisure.
The purpose of entitlement to sick leave is different, since it enables a worker to recover from an illness that has caused him or her to be unfit for work.
“The point at which the temporary incapacity arose is irrelevant. Consequently, a worker is entitled to take paid annual leave which coincides with a period of sick leave at a later point in time, irrespective of the point at which the incapacity for work arose."
The ECJ ruling is binding across all members of the EU. The UK government has said that the ruling will apply in the UK from October 2012.
So there you go – we got there in the end!
If you haven’t started your pension project – start here!
We don’t need to remind you that the biggest pension change in a generation is almost upon us. The biggest employers in the UK have to start enrolling all their employees in a pension from October.
The supermarkets are probably the biggest employers in this group. So from October there’s a good chance that the checkout lady that asks you if you want help with your packing will have automatically joined the pension scheme.
Smaller employers have a bit more time. On the fact it many will have a couple of years or so to comply. But in real terms it’s only two year ends and two pay reviews. Time soon passes.
If you haven’t worked out when you have to comply then you really need to start looking at it now. The first stage is to work out how many employees you have as that dictates when you need to comply.
There’s plenty of guidance on The Pensions Regulator’s web site. You can get to it by clicking here. 
The all round good eggs at the law firm DLA Piper have also published the first in a series of updates on the new pension rules. The first one is all about assessing exactly who your workforce are for the new rules. You can read the update by clicking here.
If you’re ready to start your project and you need some guidance and support 44 Financial would be delighted to help. You can contact us here to arrange an initial consultation – at our expense.
Steve Clark
Director
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A Gender for Change – why women must pay more!
We’ve written in the past about the fact that the EU has outlawed the sale of financial products where the cost for the same cover differs between men and women. If you want a quick catch up you can click through to our previous post here.
The biggest issue for women of all ages is that the price of Life Assurance, Critical Illness and Income Protection Cover is likely to go up. The crucial date when everything must change is 21 December 2012.
However, things are beginning to happen already. One of the biggest providers in the market, Scottish Provident, recently announced it has repriced some of its life insurance products for women.
Scottish Provident has calculated that women will face an increase of up to 15% for life insurance as prices equalise and women start to pay the same price as men. This is likely to be the same story when looking at Critical Illness and Income Protection Cover.
Any women out there who are looking to put in place new or increased cover – perhaps as a result of having a baby or moving home – should act sooner rather than later to save themselves some money. In a few months time the same cover is likely to cost you more – for the rest of the time you have the policy. A £5 a month hike in the cost of your cover will cost you an extra £1,500 over the life of a 25 year policy. Surely, a £1,500 saving is worth acting on?
Of course looking protecting your family needs to be viewed as part of your overall financial roadmap. At 44 Financial Ltd we offer the Good Parent Review. This looks at exactly the types of issues that parents with young children may need to wrestle with. It’ll not only look at family protection but also issues of parental responsibility and wealth preservation if a parent dies.
As a father of three young children I am acutely aware of the need for parents and carers to be adequately covered. If you’d like to book an initial consultation contact us by clicking here.
Steve Clark
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Surrogate parents & maternity leave
A tribunal is to refer to the European Court of Justice the question of whether a mother expecting a baby through surrogacy is entitled to maternity leave and various benefits including paid leave.
The argument is that she needs the time so that she can bond with her baby, establish breastfeeding and maintain and develop her family life.
There’s probably a long way to go on this case but it clearly represents a change in thinking about the scope of maternity leave and who qualifies.
Watch this space as always.
Steve Clark