Publications
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Temporary Workers Rights
The CIPD’s latest survey, published in their Labour Market Outlook, looked at the implications of the EU Agency Workers Directive. This would grant agency workers equal rights to permanent staff after six weeks.
Asked about the effects of the directive, 37 per cent of employers said they felt it would have a negative impact with another 42 per cent feeling uncertain.
39 per cent said it would change their recruitment strategy, with the majority saying that they would take on fewer agency workers as a result.
Speaking at the report’s launch in Westminster, Alan Duncan, shadow business secretary, said he did not think the directive was good for work or for the economy. “The point is that most people are already protected by a great many pieces of legislation and so, fundamentally, I think there is no need for this”, he said. The TUC general secretary Brendan Barber disagreed, however, and said he wanted the equal treatment to apply from day one of employment. “It’s simple justice that if you are doing the same job then you ought to be entitled to the same rights. If you set a qualifying period of any length then unscrupulous employers will abuse that”, he said.
The full survey is available at www.cipd.co.uk/surveys.
Implementation of this Directive has been opposed by the UK Government and no EU agreement has yet been reached.
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TUC calls for substantial increase in statutory redundancy pay
The TUC has called on the Chancellor to increase the weekly limit on statutory redundancy pay from £330 to £500 in the forthcoming Budget as a major step towards restoring the real value of the limit when it was first introduced at £40 in 1965.
Anyone who has worked for the same employer for more than two years is entitled to redundancy pay, but there is a statutory maximum limit to what counts as a week’s pay – anything earned in excess of this limit is not counted when working out statutory redundancy pay. This is set annually and is currently £330 per week. Official figures show that more than half the working population earn more than this a week (53 per cent). Mean pay is £452 a week, so the current limit is just 73 per cent of average pay.
When redundancy pay was introduced for the first time in 1965 the limit was set at £40, more than twice the average wage (£19.60). If the limit had been uprated in line with prices it would now be a little over £500, and if increased in line with earnings it would now be in excess of £1,000.
The TUC General Secretary has asked that the Government’s manifesto pledge at the last election to boost redundancy should now be implemented, with a one off rise to £500 and a link to earnings rather than prices in the future.
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Employment status of agency workers
The Court of Appeal has upheld the decision of an Employment Tribunal with regard to James v London Borough of Greenwich.
Ms James was an agency “temp” supplied to Greenwich Council but, following a period of absence, was replaced and subsequently brought a claim for unfair dismissal. As she was not an employee of Greenwich Council she did not have a right to bring a claim. Although she did not have an express employment contract with them, she contended that there was an implied contract as she had worked there for several years and had been treated as though she were a permanent employee.
An employment tribunal found that there was no basis for implying that a contract existed, and the Employment Appeal Tribunal agreed. It said that there could be times when a contract of employment can be implied between an agency worker and the user of that temporary worker (Dacas v Brook street Bureau (UK) 2004 and Cable and Wireless plc v Muscat 2006), but these would be the exception rather than the rule. It will not be down to the length of time the agency worker has been has been placed with the end user but whether it is necessary for that to give business reality to the arrangement. The Court of Appeal agreed with the EAT, in that issues must be decided in accordance with common law principles of implied contract, and that “mutuality” would be necessary.
The Court of Appeal did make reference to the current discussions concerning the lack of job protection for agency workers but said that it would be for Parliament, government bodies, employers’ organisations and European institutions to debate rather than for courts and tribunals.
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Employee Retention
A recent survey (2008) by consultants Talentdrain provides interesting information about the difficulties 75% of participating organisations reported – retaining their employees.
Data suggests that 1 in 4 employees leave their jobs within 6 months while over 50% stay for less than 2 years. Low levels of unemployment, increasing job vacancies and widespread skills shortages give staff plenty of opportunity to change jobs if they are dissatisfied in their current role. The average annual rate of staff turnover quoted in a CIPD survey in 2007 is 18.1%, and average replacement costs are estimated at £7,750, so reducing turnover leads to significant savings.
Why do employees leave? HR generally assume it is “lack of promotion prospects” or “level of pay” whilst the survey of leaving employees shows that “personal growth” (defined as challenging work and opportunities for training and development) regularly tops Talentdrain’s surveys when employees are asked to identify the most important factor to maintain their commitment.
What are organisations doing to improve retention? Improving employee communication and involvement; improving the induction process; and improving learning and development opportunities, are cited as the most popular ways to increase employee buy-in and commitment.
Although the CIPD believe that 2008 will be a much tougher year for job-seekers, and the softer labour market may ease overall retention pressures, organisations faced with difficult trading conditions will need to retain their best talent to enhance their performance and competitiveness.
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Trainee Opportunities in Tax and Audit – Closing date for Applications 8 February 2008
We have exciting trainee opportunities in our St Albans, London (Tax only), Milton Keynes and Northampton offices for bright, focussed individuals wishing to obtain a professional qualification and pursue a rewarding career with countless prospects/opportunities.
See our trainee recruitment page for more details.
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Employment legislation timetable
Changes to legislation affecting HR scheduled for the early part of this calendar year include:
February
From 1 February 2008 a number of limits applying to tribunal awards and other amounts payable under employment legislation will increase (Employment Rights (Increase of Limits) Order 2007). Amongst these, the minimum amount of basic award of compensation where dismissal is unfair by virtue of the Employment Rights Act 1996 increases from £4,200 to £4,400; the limit on the amount of a compensatory award for unfair dismissal rises from £60,600 to £63,000; and the amount of a week’s pay for the purposes of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal goes up from £310 to £330.
A new criminal offence of knowingly employing illegal workers is effective from 29 February 2008. Prosecution and fines of up to £10,000 can be actioned against employers who employ illegal workers.
April
Legislation to strengthen the rights of vulnerable agency workers (the right to cancel accommodation or transport which has been provided to them, with adequate notice, for example) comes in to force on 1 April.
Various amendments to UK sex discrimination legislation are expected to come into force on 6 April. These better reflect the broad protection offered by the Equal Treatment Directive.
The Corporate Manslaughter and Corporate Homicide Act 2007 create an offence of corporate manslaughter that allows, from 6 April, organisations to be prosecuted for management failures that lead to deaths of employees and others.
Standard rates of statutory maternity, paternity and adoption pay increase from £112.75 to £117.18 per week, and statutory sickness pay increases from £72.55 to £75.40, from 6 April 2008.
Requirements giving employees the right to be informed and consulted about their employer’s business, and the right to be consulted on major changes to pension schemes, are extended to cover undertakings with 50 or more employees, from 6 April 2008.
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Thinking about your next chance for some relaxation? Here is a list of 2008 Bank Holidays
Contrary to the belief of many, there is no statutory obligation on employers to observe Bank Holidays. However, across the UK, they are widely enjoyed as a contractual right and for reference, these are the 2008 dates for your diaries:
New Year’s Day 1 January
Good Friday 21 March
Easter Monday 24 March
May Bank Holiday 5 May
Spring Bank Holiday 26 May
Summer Bank Holiday 25 August
Christmas Day 25 December
Boxing Day 26 DecemberRegardless of the fact employers are not even obliged to observe the ones we have, there is still a petition circulating via email and social networking websites, asking the Prime Minister for another one! Well, as they say… “If you don’t ask…”!
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Agency Workers Directive
EU ministers have recently failed to reach agreement on the Agency Workers Directive which aims to give temporary workers full employment rights. It was proposed that temporary workers would gain equal rights to permanent employees after a six-week qualifying period, and the UK government were one of the few to oppose this. The aim of this Directive has been supported by the Unions but employers’ groups have campaigned for a one year temporary placement with the same company before such a ruling applied.
There are cases within the UK legal system whose outcome could mean that our domestic laws will determine this matter – James v Greenwich Borough Council – for example which is at the UK Court of Appeal, so the likelihood of legislation change within this arena has not receded.
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Annual leave
We’re probably all familiar with The Working Time Regulations 1998 (SI 1998/1833) with regard to staff working more than an average of 48 hours per week and the controversial matter of whether opt out provisions should be allowed. We may not be so aware that these Regulations and the various associated legislation also concerns young people, night workers, expectant mothers, road transport drivers as well as statutory annual leave.
The right to paid holiday has been four weeks per year but, as public holidays could be included in the figure by employers, employees who worked a five day week had only 12 days of annual leave left.
The Government have taken steps to ensure that workers will be able to havea minimum of four weeks plus public holidays via the Work and Families Act 2006 and the Working Time (Amendment) Regulations 2007 (SI2007/2079). The Amendment Regulations increase the total general holiday entitlement rather than specifically referring to public holidays. They bring in an additional 1.6 weeks annual leave which, for a person working a five-day week, is eight days. This is being implemented in two stages – 0.8 (4) days from 1st October 2007, giving 24 days, and 0.8 (4) days from 1st April 2009 giving the full 28 days.
As organisations’ holiday years start at different times of the year, a holiday entitlement ready reckoner is available on the Department for Business, Enterprise & Regulatory Reform website which shows entitlement against leave year start date.
The average number of public holidays within EU countries is 11.35 – Slovakia wins with 18 and the UK comes bottom of the list with 8. The TUC launched a search for a new Bank Holiday back in 2004 with a vote to find the most popular day and the T&G Union presented a 10,000 strong petition for an “International Women’s Day” in 2005, but we haven’t seen any addition yet. Let’s continue to hope!
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Career opportunities in London, St Albans and Milton Keynes
We are currently looking to fill 3 exciting opportunities within Mercer & Hole’s London, St Albans and Milton Keynes offices.
For more information on these roles please refer to our vacancies page available here
