|
The practice of using tips collected by employees to top up staff wages to minimum wage levels will become unlawful with effect from 1 October 2009. Employers will need to ensure that their employees are receiving the National Minimum Wage excluding the tips. For current rates please check here. A new industry code of best practice will be produced. Click here to read more.
Increase in statutory redundancy pay |
In last month’s budget it was announced that there would be an increase in the maximum weekly pay for statutory redundancy payments to £380 from £350. This makes the maximum statutory redundancy payment £11,400. The Chancellor remained silent on when this change is to come into effect but we will let you know as soon as the decision is made.
Click here to read more.
Be careful with discretionary bonuses |
The Employment Appeal Tribunal has confirmed that merely labelling a bonus as discretionary is unlikely to be sufficient to avoid paying it. This will be the case particularly if that “discretionary bonus” has been paid over a number of years as it will have become a contractual entitlement. Even where a bonus is truly “discretionary” the EAT confirmed that when employers exercise their discretion they should do so rationally and in good faith.
Controlling shareholders were employees |
In a recent case it was decided that two controlling shareholders of a company could also be employees. This meant that the controlling shareholders were therefore entitled to make claims on the National Insurance Fund, as the company was insolvent. Employers should seek legal advice before making redundancies or taking action against shareholders.
Click here to read more.
Equality Bill 2008-2009 published |
The Equality Bill has been published and is expected to come into force in Autumn 2010. The Bill will create a single Act covering all forms of discrimination. It aims to harmonise and strengthen discrimination law to support progress on equality. The Bill proposes some significant changes, including wider claims for direct discrimination and harassment. It will widen the scope of "positive action" to allow employers to choose between two equally-qualified candidates by selecting one from an under-represented minority. It will also require private sector companies with more than 250 employees to publish gender pay statistics.
Click here to read more.
|
