Pay Settlements – 12 month Review
The economy is growing again, but there is little sign of it in headline trends on pay deals in the private sector. Meanwhile, Chancellor Osborne continues to hit public sector workers hard. Analysis of the 2013 pay round shows in the private sector the average rise was lower than in 2012, while the overall rise within the whole economy was unchanged.
Median pay settlements in the UK for the year 2013 remain at 2.5% (upper quartile: 3%; lower quartile: 2.0%),
The median pay award in manufacturing remains steady at 2.7%, the only broad sector, along with energy, to exceed the overall private sector median rise of 2.5%
A group of 25 employers across the UK, including a school, a retail outlet, hotel and a construction firm, have been “named and shamed” for failing to pay employees the minimum wage.
In total, the employers owed workers more than £43,000 in outstanding pay and they will also have to pay fines worth more than £21,000.
HMRC investigated wage underpayments after workers complained to its confidential helpline. The introduction of tougher rules last October means that as well as being publicly named for failing to pay the legally required amount, employers could be fined up to £20,000 for each employee they have underpaid. This is four times the amount of financial penalties previously
faced by employers. Continue reading
Changes to the Rehabilitation of Offenders Act came into effect on 10 March 2014, significantly reducing the period of rehabilitation.
There is nothing to stop employers asking job applicants or employees about their criminal record. Most convictions become “spent” if a person does not re-offend during a set period of time, the length of which depends on the penalty imposed. Subject to exceptions, once spent, an ex-offender can legitimately hold themselves out as having a clean criminal record. Generally an employee will not have to tell an employer that they had a 6 month sentence for burglary if the question is asked 2 years after their prison sentence ends, and they have not re-offended during that time.
Firstly, happy new year and may it be a prosperous one!
As the year kicks off with amendments to TUPE in January, other challenges for business include changes to employment tribunal procedures, the right to request flexible working and on a positive note, the introduction of the Health and Work Service.
Here is our guide to the 10 key updates for the year ahead. The changes are in date order of implementation . As the year goes on we will continue to update you on legislative and case law changes.
Financial penalties imposed on employers that breach employment rights [April 2014]
The Enterprise and Regulatory Reform Act 2013 gives tribunals the power to impose a financial penalty against employers that are in breach of employment rights. If the tribunal makes an award of compensation, the amount of the penalty will be 50% of the award. The penalty is subject to a minimum threshold of £100 and an upper ceiling of £5,000. However, employers will qualify for a reduction of 50% if they pay the penalty within 21 days after the day on which notice of the decision to impose the penalty is sent to the employer.