Goodbye Stakeholder Pensions

I have previously mentioned the implications of the new autoenroll pension provisions. Well now with effect from 1^st October 2013 the obligation to give access to a stakeholder pension has been repealed. 

The old rules said that a UK employer with five or more employees had to give access to a stakeholder pension scheme - but no more. There are some transitional provisions which allow an employer to continue deducting contributions from the salary of an employee who is an existing member of a stakeholder scheme after 1 October 2012, but if an existing member asks his employer to stop the deductions, the employer must tell the employee that it is no longer required by law to deduct contributions and pay these to the scheme on his behalf, but that the employee can still make payments directly to the scheme, provided this is permitted by the scheme rules. 

I was expecting this change to be linked directly with the staggered introduction of auto enroll but I suppose that would have involved some really joined up thinking!

Sickness absence – a challenge for employers

There can be few things which are as problematic and frustrating for an employer than dealing with an employee with extended health problems. It is perhaps easier when a clear medical prognosis has been given resulting in a single but extended period of absence. Far harder are the ongoing and repeated short term absences, many conveniently happening on a Friday or Monday. 

As with so many employment issues the answer is to have clear policies in place and then to enforce them.  Always avoid “the straw that broke the camels back syndrome” where for months an employer takes no action but becomes increasingly annoyed and then eventually loses patience and without warning takes a decision to dismiss which is likely to be unreasonable. 

Difficult questions can include the amount of  consultation with the employee, the need to obtain medical input, the possibility of alternative employment and whether there are other alternatives to dismissal. 

At Tolhurst Fisher LLP we can help put the right package of policies in place and can also help guide you through the maze with an individual employee. For more details contact the Employment team on 01702 352511 or email info@tolhurstfisher.com.

Oktoberfest 2012

Monday and Tuesday saw the 5^th Annual Tolhurst Fisher Oktoberfest which as a usual provided an excellent chance to sample a range of real ale, German lager and cider with clients and professional contacts. The event took place at The Orange Tree in Chelmsford and was a great success. 

Once again a great selection of beers and we even remembered to bring all Southenders back on the coach!

Employee restrictive covenants

An issue which is always contentious is an employer’s ability to impose and enforce restrictions on former employees working in competition after they have moved on. It tends to be a fight between whether the restrictions amount to reasonable measures to protect the employer’s business or unreasonable restrictions preventing the employee from working elsewhere. With the prospect of expensive court action hanging over the parties it can sometimes turn into a game of bluff and counter bluff! I have noticed an interesting recent decision of the High Court in a case called Patsystems Holding Ltd v Neilly.  The Court confirmed that the reasonableness of a restrictive covenant must be judged at the time it was entered into, not at the time when the employer sought to enforce it. A subsequent change of circumstances, such as a promotion, will not turn an invalid covenant into a valid one. This gives a strong warning to employers to review restrictive covenants, particularly when an employee is promoted. Ideally, the employer should seek fresh acceptance of a covenant if circumstances have changed, either by fresh agreement to the covenant or by asking the employee to sign a new contract containing the covenant. The employment team at Tolhurst Fisher is happy to assist with drafting restrictive covenants or advising employees whether they can be avoided. Contact us on www.tolhurstfisher.com.

 

Employers beware – new compulsory pension rules will effect you!

It is strange that at a time when the country’s priority should be to create and retain jobs the burden placed on employers shows no sign of reducing. The latest challenge relates to pension auto-enrolment. The new rules provide that all employers in Great Britain will be obliged to automatically enrol eligible jobholders into a pension scheme. The new duties will be formally implemented over four years, starting on 1 October, with larger employers being affected before smaller employers and new businesses. Whilst the implementation dates have continued to change I would advise all employers to find out more now so that they know in plenty of time what they will required to do and by when. As the old saying goes – forewarned is forearmed and nowhere does this apply more than in employment law. For advice contact me on nholdcroft@tolhurstfisher.com or our employment team on www.tolhurstfisher.com.

 

National Minimum Wage increases

1^st October 2012 sees increases in the national minimum wage rates for workers aged over 21 (which rises from £6.08 to £6.19 per hour) and apprentices (from £2.60 to £2.65) but with no change for young workers where the rate remains at £3.68 per hour. For more details on Minimum Wage rates and how to enforce your right to them contact our employment team. For more details see www.tolhurstfisher.com

 

Employment Law Changes

The Government seems determined to continue to reduce the remedies available to employees on unfair dismissal. Following on from the increase in the period that an employee has to have been employed before they can pursue a claim (increased from 1 year to 2 years) Business Secretary Vince Cable has now announced consultation papers covering proposed new employment tribunal rules, a reduction to the cap on unfair dismissal awards, and measures to encourage the use of compromise agreements (to be called "settlement agreements") to assist the smooth termination of employment. In times of change it is essential that if you have a problem you seek help from an employment specialist. For help for employees or employers feel free to e mail me on nholdcroft@tolhurstfisher.com or to take a look at our website www.tolhurstfisher.com for details of the range of employment support we provide.