2015 - What’s in Store for UK Employers?
2015 looks set to be a busy year for employment changes. Some of the most significant changes that employers need to be aware of include:
1. Family Friendly Changes
a. Shared Parental Leave & Pay
This is brand new legislation which will apply to parents with babies due to be born/placed for adoption on or after 5th April 2015. These parents will have the flexibility to share leave in the child’s first year, something which historically only a mother/primary adopter could take. The mechanics of the new regime are complicated and employers are well advised to familiarise themselves with the regulations early. Further details are available here.
b. Changes to Statutory Adoption Leave & Pay
From 5 April 2015 there will be no service requirement in order to be eligible for adoptive leave. Adoptive pay rates will also be increased in-line with maternity pay levels. Finally, primary adopters will now be entitled to paid time off to attend up to five adoption appointments.
c. Rise of child’s age limit for parental leave
The current right to take 18 weeks’ unpaid parental leave before a child’s 5th birthday is to be extended from 5 April 2015, so that leave can be taken up to the child’s eighteenth birthday.
2. New Fit for Work Service
The new service aims to assist employees on long-term sick leave back to work, with the ultimate aim of reducing sick leave levels across the UK. Due to be rolled out during the year, the Fit for Work Service will offer employers access to free occupational assistance for employees who have been off sick for four weeks or more. Employers will also be able to claim up to £500 tax relief on payments for medical treatment for their employees where the treatment has been recommended under the new scheme.
3. Statutory Pay Rates
The usual shifts in statutory rates of pay are scheduled for 2015. Rates for statutory maternity, paternity, and adoption pay will increase from 5 April 2015, as too will statutory sick pay rates. Any changes to the national minimum wage rates will be effective from 1 October 2015.
With the general elections fast approaching in May there are a number of other topics which will either gain momentum, or possibly lose momentum over the coming months. Topics to watch out for:
1. Zero Hours Contracts
Employers should expect to hear more about Zero Hours Contracts in the press during 2015. Labour have promised that should they be voted into power in the May elections they will put in place further restrictions around the use of Zero Hours Contracts. Employers should definitely watch this space!
2. Apprenticeships
The current Government has plans to simplify the regulations surrounding apprenticeships. Further details are due; however whether this initiative will survive the May elections remains to be seen.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
What Small Employers Need to Know about Hiring New Employees
Congratulations, you’ve found the perfect candidate to join your company. Growing your company is an exciting time for any business owner, however many employers get bogged down and worried about employment legislation.
To help you get on top of employment legislation right from the start we’ve put together some key points that you need to be aware of.
• Eligibility to Work in the UK
Always request to see the individual’s passport or proof of eligibility to work in the UK. Employers found to be employing illegal workers could face fines of up to £20,000
• Contract of Employment
Employees must receive a written statement of their terms of conditions of employment within 2 months of commencing employment. Under legislation specific information must be set out in the written terms. This is most commonly issued through the contract of employment.
• Pay
New employers need to familiarise themselves with minimum wage legislation. HMRC have recently started naming and shaming employers paying less than minimum wage. Appearing on this list is likely to seriously damage any employer’s reputation.
• Payroll
Request a P45 from your new employee to assist you in setting them up on your payroll. Using payroll software is a cost efficient way of processing your payroll and will ensure that you are fully compliant with legislative requirements such as Real Time Information (RTI).
• Holidays
Under legislation all workers start to accrue annual leave as soon as they start employment. The statutory minimum holiday entitlement is 5.6 weeks (28 days), for full-time employees, pro-rata for part-time employees. Unless an employee is leaving employment, it is unlawful to pay employees in lieu of statutory holidays.
• Hours of Work & Rest Breaks
Under the Working Time Regulations any individual who works more than 6 hours a day is entitled to a 20 minute rest break. Rest breaks are generally unpaid.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Shared Parental Leave - UK
Shared Parental Leave became law in the UK on Monday 1 December 2014 and will apply to all parents of babies due to be born or placed for adoption on or after 5 April 2015. The new legislation will allow parents to share leave and childcare arrangements in the first year a child is born/placed for adoption.
With an expected 285,000 couples due to be eligible for Shared Parental Leave, it is expected that the new rules will kick start a culture of change in workplaces where fathers feel more confident in taking time off for childcare.
The Main Rules
Parents will be allowed to share a total of 50 weeks off work after having a baby. Leave may be taken at the same time or separately. Parents may take continuous or discontinuous blocks of leave.
Employers must approve requests for continuous periods of leave. Consideration and alternative arrangements can be given to requests for discontinuous blocks of leave.
Maternity/Adoption leave must be curtailed before Shared Parental Leave can commence.
Employees may submit a maximum three leave request notices, this may be increased at the discretion of the employer.
The only slightly negative aspect to the new rules is the onerous statutory notification and implementation process, which employers and employees will initially have to sift through.
What Employers Need to Do?
Whilst uptake for Additional Parental Leave (APL) was very low, it is expected that with Shared Parental Leave replacing APL the uptake will increase considerably as a result of the enhanced flexibility Shared Parental Leave offers. Whilst it is unlikely that there will be an immediate rush of requests, it is anticipated that they will gradually increase in the coming years.
In preparation, employers are recommended to revise their existing Maternity, Paternity and Adoption Policies as well as introduce a new Shared Parental Leave Policy.
In addition to a Shared Parental Leave Policy, Bright Contracts will also be providing template notification forms and producing guidance notes for managers on handling requests. Follow us on Twitter @BContractsUK for updates.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
