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Is your business ready for employment law changes in 2012?


This year heralds a number of important changes in HR legislation that will affect employers across the UK. Sarah Coia of WK Business Solutions discusses the changes


The key updates for 2012 include:


Increased qualifying period for unfair dismissal protection


With effect from April 6, 2012, the qualifying period for an employee to bring an unfair dismissal claim has increased from one year to two years’ service.


Pensions auto-enrolment begins


All employers will have to make compulsory pension provision under the personal accounts regime in the four years following October 2012. The Government has had for some time a name for its personal accounts scheme – National Employment Savings Trust (NEST). Most of the key legislation is in place, although changes to the eligibility requirements and voluntary waiting periods are contained in the Pensions Bill 2011.


UK employers need to make arrangements for the auto-enrolment of all jobholders into a “qualifying scheme“ or NEST (which is drafted widely enough to include agency workers), for employees : • aged between 22 and state pension age and • who have earnings (broadly gross earnings including bonuses) in excess of the income tax personal allowance, which is due to increase to £7,475 for the 2011/12 tax year • new jobholders must be enrolled within three months of being hired • NEST will be a defined contribution scheme with a cap (£3,600) on contributions.


For this purpose, a ’qualifying scheme’ can either be an occupational pension scheme or


a workplace pension scheme, such as a group personal or stakeholder pension plan.


Large employers with more than 120,000 employees will be required to auto-enrol jobholders by October 2012. The smallest employers (those with fewer than 50 employees) will generally be required to auto-enrol by dates falling between August 1, 2014, and February 1, 2016. Early adoption of the auto-enrolment requirements is possible, with NEST also having discretion to allow early adoption.


Changes to employment tribunal procedure expected April 6, 2012


The Government has announced a “fundamental review“ of the Employment Tribunal Rules of Procedure, with substantial changes to employment tribunal procedure expected to be introduced on April 6, 2012.


Key changes include: • Employment judges will hear unfair dismissal cases alone in the tribunal, unless they direct otherwise. • The maximum amount of a deposit order, which a tribunal can order a party to pay as a condition to continuing with tribunal proceedings, will increase from £500 to £1,000. • The maximum amount of a costs order, which a tribunal may award in favour of a legally represented party, will increase from £10,000 to £20,000. • Witness statements are to be taken ’as read’ unless a tribunal directs otherwise.


Sarah Coia


Statutory redundancy payments and guarantee payments increase


The maximum amount of a week’s pay used to calculate a statutory redundancy payment and the basic and additional awards for unfair dismissal increases from £400 to £430 on February 1, 2012.


The maximum unfair dismissal compensatory award increases from £68,400 to £72,300.


The limit on the amount of a guarantee payment payable to an employee in respect of any day also increases from £22.20 to £23.50.


Maternity, paternity, adoption and sick pay increase


The Government has confirmed that the standard rate of statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week from April 1, 2012.


Statutory sick pay will increase from £81.60 to £85.85 per week from April 6, 2012.


Details: Sarah Coia 07778-755384 sarah.coia@wkbusinesssolutions.com www.wkbusinesssolutions.com


Henderson Green ensures a consistent stream of talent


A Southampton and Channel Island-based building services consultancy is growing its talent pool in a pioneering way following the launch of its new academy.


Henderson Green will create two junior positions every two years, providing not only exciting opportunities for the new recruits, but also promoting movement within the organisation, allowing progression for all.


The new academy will see one mechanical and one electrical junior engineer join the 27-strong team every two years and the consultancy, which specialises in complex sustainable


www.businessmag.co.uk


engineering solutions, has kick-started the scheme by recruiting Adam Kater and Alex Jackson.


Henderson Green will ensure each new academy member gains professional qualifications alongside hands on experience in the office. Each will begin their journey to becoming qualified engineers by commencing a structured training programme at college and university to HND/degree level. This will be supported by a partnership with a mentor who will oversee their development and provide additional learning through the sharing of


their own technical expertise and industry experience.


Russ Pitman, managing director, said: “Both of these young men have worked extremely hard and were determined to be selected for these roles and we look forward to helping them grow and develop their careers in the coming years.“


The practice works for an array of clients in the healthcare, education and commercial sectors, including Southampton University Hospitals NHS Trust, States of Jersey Health & Social Services, EDF Energy and ABP.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2012


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