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July, 2008
Right to request time off to train….
More government meddling or a brilliant idea?
2012: The year or the British Olympics
Why is that important for pensions
Dont let the worry of security spoil your holiday
Is it just further meddling by Government or exactly what we need to achieve a competitive workforce in a global market? Currently, one third of employers do not train their staff, and 8 million employees go with training each year. The Government has proposed that those employees who have worked for the employer for at least 26 weeks should have a legal right to request time off for training. It is expected that this will work on similar principals as right to request flexible working. The training has to be relevant to the business and the employer will be entitled to refuse for ‘business reasons’. Refusal may be based on the fact that the training isn’t relevant, burden of additional costs (although as far as we know the employer is not necessarily required to pay for the training or the time off) or detrimental effect on quality, performance or ability to meet customer demand. Like flexible working legislation, the employee will have the right to internal appeal if they are refused and if after that they remain dissatisfied, he or she may complain to an Employment Tribunal. It is currently in the consultation phase, due to close on 10 September 2008 and could be in place by 2010, subject to approval by Parliament. So watch this space.
What does the year 2012 mean to you? For most it mean the Olympics, but this will also be the year major pension reforms will come in. Do you currently contribute at least 3% into your employee’s pension? People are living for longer. In 1950, a man aged 65 could expect on average to live to the age of 76. Today, he can expect to live to 85, and by 2050 to 89. Women will live for even longer – on average, perhaps, into their early nineties. The Government also set out plans to encourage everyone in work to save for a pension on top of what the state provides. At present, many employers do not offer a pension scheme, and even when they do many employees do not join it.
From 2012 both those matters will be tackled. First, every employer who does not provide a company pension already will have to do so.
Normally this will be through a new national private pension scheme called a ‘personal account’. Costs are likely to be kept low and choices will be limited.
Second, everyone in work aged between 22 and pension age who earns more than around £5,000 a year will be automatically enrolled in the company scheme or the personal account when they begin working.
They will have the right to opt out of the scheme, but evidence shows that if joining is automatic, far more people become members of a scheme. People over pension age will not be automatically enrolled but will be able to join the scheme up to the age of 74.
Under the new personal account, 8% of pay between around £5,000 and £33,000 would go into the scheme. This would be made up of 3% from the employer, 4% from the employee and 1% from basic rate tax relief. Either party would be free to contribute more – up to certain limits which have not been announced yet.
The employer contributions will be phased in from 2012 to 2014 and small employers will get help with the costs in the early years. Self-employed people will also be able to save into the personal account – and so will non-employed people up to a limit of £3,600 a year.
The sun is finally shining and your two weeks in the sun approaches. You finally found your passport at the back of the kitchen draw under that pile of old Christmas cards from last year, your foreign currency is ordered and the plane tickets are on the shelf. Ready for the off then ? but are you R E A L L Y ready ? Are you sure you thought about the information in your business ? Maybe you shutdown for the holiday period – go on – save the planet and turn off those servers & desktop PCs – they were running a bit hot anyway with the warm weather – they’re bound to restart at a flick of the switch when you return. Perhaps you have temporary staff cover, or place your telephones and email with an answering agency for a while. Do make sure they have all your passwords so they can log on without having to hassle you at the poolside. No ? OK – so you’ve set your voicemail & email out-of-office reply to give thieves your whereabouts. Do it for your home email while you are about it - put a notice in your lounge window too. Are those “holiday” staff from the water cooler company really working for your usual supplier ? The office windows are wide open - onto the street; the fire door at the back of the building is propped ajar (with the fire extinguisher, naturally) to get a cool breeze flowing. Post-it notes, with user-id’s & passwords written on them, flutter out into the car park like confetti at a summer wedding never to be seen again – but they will be sorely missed. When you, or your staff, return how many will have forgotten their passwords, lost mobile phones, had wallets stolen with business cards and company credit cards in them ? Did you use that oddly named WiFi hotspot at the airport or hotel just to quickly check your emails (you remember – the one that took three attempts to log into even though you were sure you typed the correct password each time) ? You did close that fire door before you left didn’t you ? Oh – and do remember to turn off the iron before you go too !! Have a great summer break – wherever it is. Picasso HR now has a security arm to help you have those happy holidays. Visit www.picassohr.com/security
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