coming down the tracks in 2011
DESCRIPTION
Mogers for HR CIPD slides 18/03/2011TRANSCRIPT
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MOGERS FOR HR
COMING DOWN THE TRACKS IN 2011
Sean McDonough & Tim Gofton
18th March 2011
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Today’s Session
• The economic outlook and the impact on HR;
• Silver Surfers – abolition of the DRA; and
• General Update, Q&A & lunch.
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Mogers for HR• Engaging with HR community; not just
quarterly power point presentations;
• Mogers for HR Linkedin page – open forum for members;
• Mogers Emplaw iPhone app – free iPhone app! See iTunes or our website.
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Economic Outlook
• “Global economy has emerged from a great depression…” (IMF);
• “’Recovery’ to date has been based on soaring spending…and borrowing, by government…” (Moneyweek);
• Government Spending Cuts;
• Real uncertainty for business.
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Hresource Survey Results
• 41% reported increased grievance activity particularly against managers (stress and bullying and harassment);
• 56% rise in ET claims;
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Hresource Survey Results
• 80% of HR professionals reported an increased workload (50% saying that increase was significant);
• 68% reported that the economy had had a negative impact on business.
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Impact on HR Teams
• Increasing pressure to add value and to do far more with less;
• Increase productivity;
• Incentivise staff;
• Retain talent.
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Projects for 2011
• Redundancies (again)? – Unlikely to solve the problem;– Many businesses cannot cut back operations
any further.
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Projects for 2011
• Restructuring (of what and why)? – Right bums on rights seats? – Job descriptions;– Training and development;– T&Cs – flexible enough in terms of hours,
location, duties?
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Projects for 2011
• Creative terms and conditions– Zero hours;– Annualised hours – operational peaks and
troughs;– Casual workers;– Homeworking.
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Projects for 2011
• Creative low cost incentive schemes– Reward very important coming out of a
recession;– Flexible benefits;– Holiday purchase schemes;– Training and development;– Bonuses – contractual terms very important.
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Silver Surfers
• Current default retirement age will be abolished with effect from 1st October 2011;
• Transitional provisions are in place (just!)
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• Notification of retirement must be issued prior to 6 April 2011;
• Can still be 6 – 12 months before IRD (but only employees who reach age of 65 before 1st October 2011); and
• All other stages of retirement procedure must be met.
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• The last effective date of termination for retirements where no extension agreed is 5th April 2012;
• If a 6 month (or less) extension is agreed, the retirement date could be as late as 5th October 2012;
• The short notice provisions will be abolished from 5th April 2011.
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Potential Hot Spots• “Without prejudice" retirement
discussions;
• Poor succession planning and younger employees;
• Not dealing with capability issues directly because undignified.
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Good Practice Tips
• Build retirement discussions into appraisal systems;
• Avoid "why don't you retire to avoid an undignified sacking?"
• Ask open questions…
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Retirement Age Options
Remove fixed retirement ages altogether or retain a fixed retirement age;
B&Q, Sainsbury's, M&S, HBoS, BT have already abolished fixed retirement ages.
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Retaining Fixed AgeNeed to demonstrate:-
•Legitimate aim, is being met and that the particular retirement age meets that aim, and;
•It is proportionate to use that retirement age as a means of meeting that aim.
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Legitimate Aims• Workforce planning;
• Facilitating the recruitment and retention of younger employees;
• Protecting the dignity of older workforce by not requiring them to undergo performance management procedures;
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Legitimate Aims• Avoiding adverse impact on pension and
benefits, i.e. the increased cost of extending such benefits to older workers;
• Ensuring continued competence;
• Having an age-balanced workforce and sharing job opportunities amongst the generations.
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Legitimate Aims
• UK tribunals and European courts seem to agree - establishing a legitimate aim is relatively straightforward;
• Tricky bit is demonstrating that the retirement age is proportionate means.
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Legitimate Aims
• Martin v Professional Game Match Officials [2010];
• Hampton v Lord Chancellor [2008];
• Baker v National Air Traffic Services [2009].
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Insurance Backed Benefits
• There will be an exemption which enables employers to withdraw insurance backed benefits for employees at or over 65 (or state retirement age);
• This will only apply to group benefits provided
to employees or classes of employees.
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Insurance Backed BenefitsNB
•Does the contract allow for the benefit to be withdrawn? Potential for breach of contract claims;
•‘Good Leaver/Bad Leaver’ provisions in benefit schemes. Not dealt with but many will refer to ‘retirement age’
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Action Points - General
• Imminent retirements are they covered?
• 30 March 2011 last date on which full six months notice may be given;
• Review those already started.
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Action Points - Contracts & Policies
• Amend (as required) age specified in the contract of employment or operated as a matter of practice & policies;
• Fixed retirement age – can it be objectively justified;
• Review share scheme and any associated documents.
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Cultural
• If necessary, change the culture with regard to appraisals and performance management;
• Include discussions about future plans into the appraisal process across the board.
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Keep an eye out for…
3 April 2011
•Additional paternity leave regulations come into force;
•Extension of Flexible Working requests;
•Increase in rates for statutory
mat/pat & adoption pay.
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6 April 2011
•Public sector equality duty implemented;
•Positive action introduced;
•Right to request time off for training extended;
•DRA abolished.
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6 April 2011
•Income Tax (Pay As You Earn) (Amendment) Regulations 2011.
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Hresource Areas of training
• Managing Redundancy Dismissals;
• Managing the Disciplinary Process;
• Equality Act 2010.
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How we can help
• Reviewing and advising on existing structures, proposed restructures, contracts & policies;
• Provide in house training for management teams;
• Hresource – LEI product.
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Disclaimer
• These slides represent a summary of the legal issues referred to in them and are not intended to provide or be relied upon as giving specific legal advice, nor are they intended to be a comprehensive statement of the law.
• If you require advice on a specific issue, please contact one of our specialist solicitors.