CIPD Employment Law Update slideshow May 16
Transcript of CIPD Employment Law Update slideshow May 16
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EMPLOYMENT LAW UPDATE17 May, 2016
Presented by
Yeing-Lang Chong, Partner
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Agenda
• NEW LEGISLATION – In brief
• NEW LEGISLATION – In the pipeline
• CASE LAW UPDATE
• EU REFERENDUM: The Brexit Effect
• Q&As
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NEW LEGISLATION – In brief
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National Living Wage
The National Minimum Wage (Amendment) Regulations 2016
• In force from 1 April 2016
• New mandatory ‘National Living Wage’ for workers 25 or older
• Tougher penalties on employers for non-payment: maximum £20,000 per worker
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National Living Wage
The new minimum wages from 1 April 2016 are:
• Age 25+ - £7.20ph (the National Living Wage)
• 21-24 - £6.70ph [£6.95 from 1 Oct 2016]
• 18-20 - £5.30ph [£5.55 from 1 Oct 2016]
• 16-17 - £3.87ph [£4.00 from 1 Oct 2016]
• Apprentices <19 (or in 1st year & 19+)
- £3.30ph [£3.40 from 1 Oct 2016]
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Gender Pay Reporting
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2016
• In force: 1 October 2016
• Compulsory for private sector & voluntary organisations employing 250+ staff (public sector – date TBC)
• Requirement to publish prescribed info about difference in pay between men and women
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Gender Pay Reporting
• Employees who work in GB; contracts governed by UK law
• Calculate gender pay gap by looking at:
▫ mean and median figures
▫ pay amongst men and women
• Pay = basic pay, holiday pay, maternity pay, sick pay, shift premiums, bonuses, car or clothing allowances
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Gender Pay Reporting
• Now: collect data incl. figures on bonus payments paid from 1 May 2016
• 1 May 2017: carry out calculations to determine gender pay gap results
• By 30 April 2018: publish results of gender pay gap analysis on website (as at 30 April 2017) (for min. 3 years) & on Government reporting website
• Annual reporting required by 30 April each year.
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NEW LEGISLATION – Coming up
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Termination & Exit Payments
• Announced in March 2016 budget
• From 2018, termination payments >£30,000 subject to employers’ national insurance contributions
• (<£30,000 is free of tax and will remain free of NI contributions)
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Termination & Exit Payments
• From 1 April 2016
• Public sector employees with £100,000+ annual earnings
• Requirement to repay termination payments
• If returning to same part of sector within 12 months
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Termination & Exit Payments
• Cap on public sector exit payments at £95,000
•Applicable to lump sums (including redundancy payments)
•No confirmed implementation date
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Trade union law and strike ballots
Trade Union Act 2016
• Royal Assent received 4 May 2016
• Commencement date TBC
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Trade Union Act 2016
Key provisions:
• requirement for at least 50% turnout in votes for industrial action
• in certain ‘important’ public services - health, education (<17 years), transport, border security and fire sectors - additional threshold of 40% support from all eligible members, to take industrial action, must be met for action to be legal
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Trade Union Act 2016
Key provisions (continued):
• clearer description of the trade dispute and the planned industrial action on the ballot paper required, so that all union members are clear on what they are voting for
• 6 month time limit (or 9 months if the union and employer agree) for industrial action so that mandates are always recent
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Trade Union Act 2016
Key provisions (continued):
• transparent process for trade union subscriptions that allows new members to make an active choice of paying into political funds
• payroll deductions for trade union subscriptions are only administered where the cost is not funded by the public
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Grandparents’ rights to Shared Parental Leave and Pay
Proposal to extend shared parental leave and pay to working grandparents. Aim:
- Increase flexibility and choice for working parents
- Help support the costs of childcare during the 1st year of child’s life
Implementation 2018?
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Immigration Bill
Immigration Bill 2015-16
Enforcement not expected until October 2016 at the earliest
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Immigration Bill 2015-16
Key provisions:
• Existing criminal offence of an employer employing an illegal migrant extended from ‘knowingly’ to having ‘reasonable cause to believe’ an employee is illegal worker
• Sentence for knowingly employing an illegal worker raised from 2 to 5 years’ imprisonment
• New offence of illegal working: illegal workers assets can be seized
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Immigration Bill 2015-16
Key provisions (continued):
• Introduction of an ‘immigration skills charge’ on employers sponsoring workers from outside Europe
• New requirement for public sector workers in customer-facing roles to speak fluent English
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CASE LAW UPDATE
Holiday Pay
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Holiday Pay
1. Boris had 3 days’ outstanding holiday to take at the end of 2015. How much pay in lieu of holiday can you make to Boris?
2. Boris decides to take 5 days holiday. In calculating his holiday pay, do you take into consideration his:
a) Overtime pay?
b) commission payments?
3. Boris makes a claim for his incorrectly calculated holiday pay – how is his claim for holiday pay calculated?
4. Would your answer above be any different if Boris had made his claim on 1st April 2015?
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Holiday pay
Case Study:
1. Boris had 3 days’ outstanding holiday to take at the end of 2015. How much pay in lieu of holiday can you make to Boris?
2. Boris decides to take 5 days holiday. In calculating his holiday pay, do you take into consideration his:a) Overtime pay?
b) commission payments?
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Holiday pay
• Minimum UK statutory requirement of a full time employee: 28 days / 5.6 weeks incl. public holidays
• Bear Scotland v Fulton (2014): ▫ non-guaranteed overtime should be included in
holiday pay
• British Gas Trading v Lock & another (2015):▫ Commission must be included in holiday pay
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Holiday pay
1. Boris makes a claim for his incorrectly calculated holiday pay – how is his claim for holiday pay calculated?
2. Would your answer above be any different if Boris had made his claim on 1st April 2015?
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Holiday pay
• British Gas Trading v Lock & another▫ Holiday pay is based on actual average earnings
• Deduction from Wages (Limitation) Regulations 2014
• In force: 8 January 2015
• Claims for back pay of incorrectly calculated holiday pay limited to 2 years (Bear Scotland)
• Applicable to claims presented >1 July 2015
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EU REFERENDUM:
The Brexit Effect
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• EU referendum: 23rd June 2016
• Rights on which EU law has had significant effect:▫ Discrimination
▫ Maternity and parental rights
▫ Protection of part-time, fixed-term and agency workers
▫ Working time, incl. daily / weekly rest & time, holiday pay
▫ TUPE
▫ Collective consultation
Principles
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Remain or Leave?
1. Some areas – pay, dismissal, strike action -largely within domain of UK law
2. UK required to give effect to EU derived employment rights and ensure effective remedy for infringement
3. EU derived employment rights operate as a floor, not a ceiling to give protection to workers
4. Future Government to have complete legal reign on social rights?
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REVISION
1. LEGISLATION:a) National Living Wage
b) Gender Pay Reporting
c) Termination & exit payments
d) Trade Union Act 2016
e) Grandparents rights to SPL & pay
f) Immigration Bill 2015-16
2. CASE LAW UPDATE: Holiday Pay
3. EU REFERENDUM: The Brexit Effect
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Any questions?
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