1. EMPLOYMENT LAW UPDATE MARCH 2016 GAIL ESCOLME - SOLICITOR

2. TOPICS THE LIVING WAGE AUTO ENROLMENT PENSIONS CONTRACTS OF EMPLOYMENT ENTITLEMENT TO WORK IN UK BITS AND BOBS!

3. THE LIVING WAGE WHAT IS THE LIVING WAGE? THE “LIVING WAGE” BEING INTRODUCED IN APRIL 2016 IS THE “NATIONAL LIVING WAGE” (NLW) NOT TO BE CONFUSED WITH THE “LIVING WAGE” (LW) AS SET OUT BY THE LIVING WAGE FOUNDATION WHAT ARE THE DIFFERENCES BETWEEN THE TWO?

4. LIVING WAGE COMPARISON THE NATIONAL MINIMUM WAGE (INCLUDING THE NATIONAL LIVING WAGE) THE LIVING WAGE The legal minimum an employer can pay per hour. A voluntary rate that employers commit to pay in order to go above and beyond. The “national living wage” rate will be £7.20 per hour for staff aged 25 or older The current UK Living Wage is £8.25 per hour (£9.40 in London). Increase each year based on estimation of what the market can bear This will increase in line with the cost of living. Different rates apply depending on the age of the employee. The Living Wage is the same for all employees over the age of 18. Set by the Low Pay CommissionSet by the Living Wage Foundation

5. AUTO ENROLMENT PENSIONS YOU CAN ADMINISTER THEM YOURSELF BUT…… YOU NEED TO GET ORGANISED KNOW YOUR STAGING DATE BUDGET FOR THE CONTRIBUTIONS IDENTIFY A SCHEME IF YOU DON’T HAVE ONE IDENTIFY WHO AUTO ENROLS AND WRITE TO THEM KEEP RECORDS

6. STAGING DATE THE PENSIONS REGULATOR WILL WRITE TO YOU YOU CAN ALSO FIND YOUR STAGING DATE BY GOING TO THE PENSION REGULATOR WEBSITE, CLICKING ON THE EMPLOYER TAB AND TYPING IN YOUR PAYE REFERENCE. YOU CAN DEFER ENROLMENT FOR A SHORT PERIOD OF TIME BUT YOU ARE ONLY PUTTING OFF THE INEVITABLE!

7. POINT OF CONTACT THE PENSIONS REGULATOR WILL WRITE TO YOU AND ASK YOU TO NOMINATE A POINT OF CONTACT. YOU CAN NOMINATE YOUR ACCOUNTANT OR PAYROLL PROVIDER YOU CAN NOMINATE A MEMBER OF YOUR OWN STAFF – MAKE SURE THEY UNDERSTAND WHAT THEY NEED TO DO!

8. WHICH PENSION SCHEME? Choose a pension scheme that is right for your business. Look at the Pension Regulator’s website Not all pension schemes offer access for small businesses Make sure that any advice taken regarding the merits of a pension scheme are taken from a regulated business, i.e. they are regulated to give financial advice.

9. WHO TO ENROL? Which workers automatically enrol? Which workers do not automatically enrol but have the right to opt in? Which workers do you need to make contributions for?

10. Assessment of workers Monthly gross earnings Age Weekly gross earnings From 16-21 From 22 to SPA* From SPA to 74 £486 and below Has a right to join a pension scheme if asks No Employer contribution £112 and below £487 to £833 Has a right to opt in If they ask £113 to £192 Over £833 Has a right to opt in Automatically enrol Has a right to opt in Over £192

11. Opt out? When can a job holder opt out? Before a jobholder can choose to opt out of pension scheme membership, they must: have become an active member of the pension scheme under the automatic enrolment or opt-in provisions, and have been given the enrolment information from their employer

12. Opt out The job holder must use an opt-out notice to come out of the scheme – usually provided by the Pension Scheme. They must provide a valid opt out notice within 1 month of the enrolment. If they do so they are entitled to all contributions being refunded. If they do not do so within the opt out period then they are not entitled to the contributions being refunded – unless the scheme provides for this. As the employer you must administer this process and keep records.

13. Talk to your pay roll provider Your pay roll provider’s software should be able to identify who auto enrols and when their earnings change their position. They should also be able to make the monthly contributions payments to the pensions provider. Talk to them about how they can assist you

14. Tell your workers You must write to all workers telling them that either they auto enrol or they do not but can opt in if they want to. This must be done within 6 weeks of your Staging Date. Template letters can be found here http://www.thepensionsregulator.gov.uk/su pporting-resources

15. Summary of what you need to do Confirm the staging date Create a plan and working out costs Select your pension scheme Assess your workforce send enrolment and contribution data to the provider pay contributions manage opt-ins/opt-outs and refunds of contributions maintain records – records must be kept for 6 years complete the declaration of compliance

16. Contracts of Employment Employees are entitled to a Written Statement of Terms and Conditions of Employment within 2 calendar months of beginning work. The Statement should include:- Name of Employer and Employee Date employment began Any previous employment that counts towards continuous employment Job Title Place of Work Anywhere else the employee may be required to work

17. Contracts of Employment Cont. Address of employer Pay and pay intervals Hours of work Holiday entitlement and information on how it is calculated Sick pay terms – or where they can be found Particulars of pension scheme or where they can be found Notice period Whether the contract is fixed term, temporary or permanent Any collective agreements Disciplinary rules or where they can be found Who to apply to if unhappy with a disciplinary decision Who to raise a grievance with

18. Contracts of Employment cont. Many other terms can be included and should be if they are terms that you and the employee work to. If you need to change any terms of employment then you can only do so with the employee’s consent. If they don’t agree and it is serious enough, you could consult on the proposed changes. If they still don’t agree you can give them notice of termination and immediately offer them employment on the new terms. BUT – take advice before you do this!!!

19. Entitlement to Work in the UK You have a statutory obligation to ensure that all potential employees are entitled to work in the UK. The following checks should be carried out for ALL potential employees. There is a civil penalty for failure to carry out the right checks. You must keep copies of all documents to prove that you have abided by your obligations

20. Working in the UK If the Applicant has a UK Passport and are a UK citizen then they are entitled to work in the UK. Take a copy of the relevant part of the passport – the page with the applicant’s details and photo and the expiry date. Make a note of when the copy was made. No further checks are required.

21. Working in the UK If the Applicant is from the EU, EEA or Switzerland:- If they have an EU or EEA passport or a National Identity Card then they are entitled to work in the UK. Take a copy of the relevant parts of the passport or the entire National Identity Card and note the date when you took copies. Croation workers must show proof of permission to work, i.e. a Purple Registration Certificate, before they can work in the UK. No further checks are required

22. Working in the UK If the Applicant is non UK, non, EU, EEA or Swiss:- They must have a current passport with a current endorsement from the Home Office showing that they can do the work you are offering and have a legal right to stay in the UK. Take a copy of the relevant parts of the passport and date taken. You must make checks again when the endorsement expires – diary the date!!

23. 3 Step Process Obtain the person’s original documents Check them in the presence of the holder Make and retain a clear copy, and make a record of the date of the check.

24. Bits and Bobs! SSP, SMP, SPP will not be increasing in April this year. It is being frozen. Zero Hours Contracts – it is now automatically unfair to dismiss someone in breach of an exclusivity clause in a zero hours contract – i.e. for working for another employer. There is no minimum period of employment to enable to bring such a claim. Exclusivity clauses in zero hours contracts are now unenforceable!

25. Bits & Bobs Fit For Work – is now up and running across the country – meaning free occupational health assessments are available – though usually by phone! Social Media – are you taking it seriously??? Have a social media policy in place to protect your business. Ensure your staff understand what their obligations are regarding social media.

26. Bits & Bobs Performance Reviews – do you do them? Do you manage poor performance? Do you manage sickness absence? Do you appreciate your employees?

27. Contact Details Gail Escolme Employment Law gail@gailescolmelegal.co.uk www.gailescolmelegal.co.uk 01524 735525