The High Court has ruled that it is (still) legal for UK employers to force workers to retire at the age of 65
Back in August we told you that the decision as to whether a default retirement age constituted age discrimination was about to be made. Well, the results are in and the High Court has ruled to uphold the retirement age of 65.
The rules currently allow UK employers to dismiss a member of staff on their 65th birthday, without redundancy pay, as long as they follow the correct procedure. Whilst employees have the right to request to continue working beyond their 65th birthday the employer can refuse the request.
However….. the government is already bringing forward a review of the compulsory retirement age, by a year to 2010 which it is believed will lead to a change in the rules. The judge ruling the recent case has stated that he anticipates that the default retirement age will increase following the review.
Tax relief on childcare vouchers under threat
At the Labour Party conference prime minister Gordon Brown announced that Labour plans to remove tax relief on childcare vouchers by April 2015. The intention is to direct the extra tax collected by removing this ‘badly targeted tax relief’ towards free childcare for 250,000 two year olds.
More immediately – from April 2011 to be precise – the intention is that employees who want to join an employer supported voucher scheme will not get exemptions.
Will this announcement change family planning in the next six months – who knows? But currently 340,000 families are around £1,000 better off because of tax relief on childcare vouchers and this change, if implemented, will be another headache for the 35,000 employers who operate the voucher scheme. Watch this space. At the very least tax relief on childcare vouchers is up for grabs and if Labour plan to scrap it then which other party won’t?
Retirement and Pension Age Changes
From April 2010, with a few exceptions, you will have to be 55 to receive a pension from a registered pension arrangement (unless you want to experience penalty tax charges). Currently you only have to be 50. So if you are aged between 50 and 55 and could take a pension and you don’t take it before next April, you will have to wait.
Like most pension matters, this is a complicated topic and you should take professional advice. Meanwhile all employers are advised to check their pension scheme rules and communication documents to make sure they are up to date.
Meanwhile the phased increase in the state pension age for women also starts from next April. This affects women born after the 5th April 1950 and, in brief, the state pension age will increase by 1 month each 2 months. By 6th April 2019 all women will have a state pension age of 65. And by 2047 we will all have a state pension age of 68.
If the attorney general can't get it right….
We have all seen the news about Baroness Scotland's £5,000 fine for not keeping proof of eligibility to work in the UK records for her cleaner. She put the rule through Parliament and slipped up. So what about the rest of us? Employers have to be able to show that all their employees are eligible to work in the UK by checking and keeping copies of relevant documents. Check now.
If you have any queries or doubts about whether you are doing what you need to do, call Anne now on 01494 451681 or e-mail
anne@hradvantage.co.uk
Government Grants to improve YOUR Organisation's Leadership
Interested in a £1000 contribution towards developing your leadership skills? Read on …
As the economy starts to stabilise it is more important than ever to ensure your business has clear and inspiring leadership to help it gain momentum and approach 2010 with energy and enthusiasm. So here are some tips for leaders to follow over the coming months:
1. Stand and deliver
Always say what you stand for and then deliver on those promises. If you don’t your credibility will be destroyed and you will lose trust.
2. Lead by example
Be an excellent role model. If you are seen to be honest, trustworthy, respectful and hardworking then your workers will strive to be the same.
3. Communicate clearly
Make sure your staff know what their targets are and what they need to do to deliver them. This communication needs to be both upwards and downwards, to ensure full employee engagement.
4. Act promptly
Any important issues should be dealt with quickly and efficiently.
5. Be approachable
Always be available to listen to any of your employees' problems.
You may feel you do all of the above, but, to be sure, why not consider gathering feedback from the people around you?
By reviewing your working style you can see if it needs improving. If you want to really ensure that your organisation’s leadership is all it strives to be we can help. We call it 360 degree feedback and you can do this with your team very efficiently online.
Even better we’ve currently got access to £1000 government funding for such leadership and management training. The first £500 is a straight forward grant (and should be used to train and develop your MD or senior management) but you can apply for up to £500 more in matched funding, so for every pound you spend over the £500 grant, Train to Gain will match it with another pound. You can therefore receive up to £1500 training at a cost to you of only £500! This is plenty to cover the 360 degree feedback.
Call Claire Cooper on 01404 42359 or your HR Advantage consultant to find out more.
