MOGERS FOR HR COMING DOWN THE TRACKS IN 2011 Sean McDonough & Tim Gofton 18 th  March 2011
Today’s Session <ul><li>The economic outlook and the impact on HR;  </li></ul><ul><li>Silver Surfers – abolition of the DR...
Mogers for HR <ul><li>Engaging with HR community; not just quarterly power point presentations; </li></ul><ul><li>Mogers f...
 
Economic Outlook <ul><li>“ Global economy has emerged from a great depression…”  (IMF); </li></ul><ul><li>“’ Recovery’ to ...
Hresource Survey Results <ul><li>41% reported increased grievance activity  particularly against managers (stress and bull...
Hresource Survey Results <ul><li>80% of HR professionals reported an increased workload (50% saying that increase was sign...
Impact on HR Teams <ul><li>Increasing pressure to add value and to do far more with less; </li></ul><ul><li>Increase produ...
Projects for 2011 <ul><li>Redundancies (again)?  </li></ul><ul><ul><li>Unlikely to solve the problem; </li></ul></ul><ul><...
Projects for 2011 <ul><li>Restructuring (of what and why)?  </li></ul><ul><ul><li>Right bums on rights seats?  </li></ul><...
Projects for 2011 <ul><li>Creative terms and conditions </li></ul><ul><ul><li>Zero hours; </li></ul></ul><ul><ul><li>Annua...
Projects for 2011 <ul><li>Creative low cost incentive schemes </li></ul><ul><ul><li>Reward very important coming out of a ...
 
Silver Surfers <ul><li>Current default retirement age will be abolished with effect from 1 st  October 2011; </li></ul><ul...
<ul><li>Notification of retirement must be issued prior to  6 April 2011; </li></ul><ul><li>Can still be 6 – 12 months bef...
<ul><li>The last effective date of termination for retirements where no extension agreed is  5 th  April 2012 ;   </li></u...
Potential Hot Spots <ul><li>“ Without prejudice&quot; retirement discussions; </li></ul><ul><li>Poor succession planning a...
Good Practice Tips <ul><li>Build retirement discussions into appraisal systems;  </li></ul><ul><li>  </li></ul><ul><li>Avo...
Retirement Age Options <ul><li>Remove fixed retirement ages altogether or retain a fixed retirement age;   </li></ul><ul><...
Retaining Fixed Age <ul><li>Need to demonstrate:-  </li></ul><ul><li>  </li></ul><ul><li>Legitimate aim, is being met and ...
Legitimate Aims <ul><li>Workforce planning;  </li></ul><ul><li>Facilitating the recruitment and retention of younger emplo...
Legitimate Aims <ul><li>Avoiding adverse impact on pension and benefits, i.e. the increased cost of extending such benefit...
Legitimate Aims <ul><li>UK tribunals and European courts seem to agree - establishing a legitimate aim is relatively strai...
Legitimate Aims <ul><li>Martin v Professional Game Match Officials [2010]; </li></ul><ul><li>Hampton v Lord Chancellor [20...
Insurance Backed Benefits <ul><li>There will be an exemption which enables employers to withdraw insurance backed benefits...
Insurance Backed Benefits <ul><li>NB </li></ul><ul><li>Does the contract allow for the benefit to be withdrawn?  Potential...
Action Points - General <ul><li>Imminent retirements are they covered?   </li></ul><ul><li>30 March 2011 last date on whic...
Action Points - Contracts & Policies <ul><li>Amend (as required) age specified in the contract of employment or operated a...
Cultural <ul><li>If necessary, change the culture with regard to appraisals and performance management;  </li></ul><ul><li...
 
Keep an eye out for… <ul><li>3 April 2011 </li></ul><ul><li>Additional paternity leave regulations come into force;  </li>...
<ul><li>6 April 2011 </li></ul><ul><li>Public sector equality duty implemented; </li></ul><ul><li>Positive action introduc...
<ul><li>6 April 2011 </li></ul><ul><li>Income Tax (Pay As You Earn) (Amendment) Regulations 2011.  </li></ul>
Hresource Areas of training <ul><li>Managing Redundancy Dismissals; </li></ul><ul><li>Managing the Disciplinary Process; <...
How we can help <ul><li>Reviewing and advising on existing structures, proposed restructures, contracts & policies; </li><...
 
Disclaimer <ul><li>These slides represent a summary of the legal issues referred to in them and are not intended to provid...
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Coming Down The Tracks In 2011

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Coming Down The Tracks In 2011

  1. 1. MOGERS FOR HR COMING DOWN THE TRACKS IN 2011 Sean McDonough & Tim Gofton 18 th March 2011
  2. 2. Today’s Session <ul><li>The economic outlook and the impact on HR; </li></ul><ul><li>Silver Surfers – abolition of the DRA; and </li></ul><ul><li>  </li></ul><ul><li>General Update, Q&A & lunch. </li></ul>
  3. 3. Mogers for HR <ul><li>Engaging with HR community; not just quarterly power point presentations; </li></ul><ul><li>Mogers for HR Linkedin page – open forum for members; </li></ul><ul><li>Mogers Emplaw iPhone app – free iPhone app! See iTunes or our website. </li></ul>
  4. 5. Economic Outlook <ul><li>“ Global economy has emerged from a great depression…” (IMF); </li></ul><ul><li>“’ Recovery’ to date has been based on soaring spending…and borrowing, by government…” (Moneyweek); </li></ul><ul><li>Government Spending Cuts; </li></ul><ul><li>Real uncertainty for business. </li></ul>
  5. 6. Hresource Survey Results <ul><li>41% reported increased grievance activity particularly against managers (stress and bullying and harassment); </li></ul><ul><li>56% rise in ET claims; </li></ul>
  6. 7. Hresource Survey Results <ul><li>80% of HR professionals reported an increased workload (50% saying that increase was significant); </li></ul><ul><li>68% reported that the economy had had a negative impact on business. </li></ul>
  7. 8. Impact on HR Teams <ul><li>Increasing pressure to add value and to do far more with less; </li></ul><ul><li>Increase productivity; </li></ul><ul><li>Incentivise staff; </li></ul><ul><li>Retain talent. </li></ul>
  8. 9. Projects for 2011 <ul><li>Redundancies (again)? </li></ul><ul><ul><li>Unlikely to solve the problem; </li></ul></ul><ul><ul><li>Many businesses cannot cut back operations any further. </li></ul></ul>
  9. 10. Projects for 2011 <ul><li>Restructuring (of what and why)? </li></ul><ul><ul><li>Right bums on rights seats? </li></ul></ul><ul><ul><li>Job descriptions; </li></ul></ul><ul><ul><li>Training and development; </li></ul></ul><ul><ul><li>T&Cs – flexible enough in terms of hours, location, duties? </li></ul></ul>
  10. 11. Projects for 2011 <ul><li>Creative terms and conditions </li></ul><ul><ul><li>Zero hours; </li></ul></ul><ul><ul><li>Annualised hours – operational peaks and troughs; </li></ul></ul><ul><ul><li>Casual workers; </li></ul></ul><ul><ul><li>Homeworking. </li></ul></ul>
  11. 12. Projects for 2011 <ul><li>Creative low cost incentive schemes </li></ul><ul><ul><li>Reward very important coming out of a recession; </li></ul></ul><ul><ul><li>Flexible benefits; </li></ul></ul><ul><ul><li>Holiday purchase schemes; </li></ul></ul><ul><ul><li>Training and development; </li></ul></ul><ul><ul><li>Bonuses – contractual terms very important. </li></ul></ul>
  12. 14. Silver Surfers <ul><li>Current default retirement age will be abolished with effect from 1 st October 2011; </li></ul><ul><li>Transitional provisions are in place (just!) </li></ul>
  13. 15. <ul><li>Notification of retirement must be issued prior to 6 April 2011; </li></ul><ul><li>Can still be 6 – 12 months before IRD (but only employees who reach age of 65 before 1 st October 2011 ); and </li></ul><ul><li>All other stages of retirement procedure must be met. </li></ul>
  14. 16. <ul><li>The last effective date of termination for retirements where no extension agreed is 5 th April 2012 ;  </li></ul><ul><li>If a 6 month (or less) extension is agreed, the retirement date could be as late as 5 th October 2012 ; </li></ul><ul><li>The short notice provisions will be abolished from 5 th April 2011 . </li></ul>
  15. 17. Potential Hot Spots <ul><li>“ Without prejudice&quot; retirement discussions; </li></ul><ul><li>Poor succession planning and younger employees;  </li></ul><ul><li>Not dealing with capability issues directly because undignified. </li></ul>
  16. 18. Good Practice Tips <ul><li>Build retirement discussions into appraisal systems; </li></ul><ul><li>  </li></ul><ul><li>Avoid &quot;why don't you retire to avoid an undignified sacking?&quot; </li></ul><ul><li>Ask open questions… </li></ul>
  17. 19. Retirement Age Options <ul><li>Remove fixed retirement ages altogether or retain a fixed retirement age;  </li></ul><ul><li>B&Q, Sainsbury's, M&S, HBoS, BT have already abolished fixed retirement ages.    </li></ul>
  18. 20. Retaining Fixed Age <ul><li>Need to demonstrate:- </li></ul><ul><li>  </li></ul><ul><li>Legitimate aim, is being met and that the particular retirement age meets that aim, and; </li></ul><ul><li>  </li></ul><ul><li>It is proportionate to use that retirement age as a means of meeting that aim. </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  19. 21. Legitimate Aims <ul><li>Workforce planning; </li></ul><ul><li>Facilitating the recruitment and retention of younger employees;   </li></ul><ul><li>Protecting the dignity of older workforce by not requiring them to undergo performance management procedures; </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  20. 22. Legitimate Aims <ul><li>Avoiding adverse impact on pension and benefits, i.e. the increased cost of extending such benefits to older workers; </li></ul><ul><li>Ensuring continued competence; </li></ul><ul><li>Having an age-balanced workforce and sharing job opportunities amongst the generations. </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  21. 23. Legitimate Aims <ul><li>UK tribunals and European courts seem to agree - establishing a legitimate aim is relatively straightforward; </li></ul><ul><li>Tricky bit is demonstrating that the retirement age is proportionate means. </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  22. 24. Legitimate Aims <ul><li>Martin v Professional Game Match Officials [2010]; </li></ul><ul><li>Hampton v Lord Chancellor [2008]; </li></ul><ul><li>Baker v National Air Traffic Services [2009]. </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  23. 25. Insurance Backed Benefits <ul><li>There will be an exemption which enables employers to withdraw insurance backed benefits for employees at or over 65 (or state retirement age); </li></ul><ul><li>  </li></ul><ul><li>This will only apply to group benefits provided to employees or classes of employees. </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  24. 26. Insurance Backed Benefits <ul><li>NB </li></ul><ul><li>Does the contract allow for the benefit to be withdrawn? Potential for breach of contract claims; </li></ul><ul><li>  </li></ul><ul><li>‘ Good Leaver/Bad Leaver’ provisions in benefit schemes. Not dealt with but many will refer to ‘retirement age’ </li></ul><ul><li>  </li></ul><ul><li>    </li></ul>
  25. 27. Action Points - General <ul><li>Imminent retirements are they covered?  </li></ul><ul><li>30 March 2011 last date on which full six months notice may be given; </li></ul><ul><li>Review those already started.   </li></ul><ul><li>    </li></ul>
  26. 28. Action Points - Contracts & Policies <ul><li>Amend (as required) age specified in the contract of employment or operated as a matter of practice & policies;   </li></ul><ul><li>Fixed retirement age – can it be objectively justified;   </li></ul><ul><li>Review share scheme and any associated documents. </li></ul><ul><li>    </li></ul>
  27. 29. Cultural <ul><li>If necessary, change the culture with regard to appraisals and performance management; </li></ul><ul><li>Include discussions about future plans into the appraisal process across the board. </li></ul><ul><li>    </li></ul>
  28. 31. Keep an eye out for… <ul><li>3 April 2011 </li></ul><ul><li>Additional paternity leave regulations come into force; </li></ul><ul><li>Extension of Flexible Working requests; </li></ul><ul><li>Increase in rates for statutory </li></ul><ul><li>mat/pat & adoption pay. </li></ul>
  29. 32. <ul><li>6 April 2011 </li></ul><ul><li>Public sector equality duty implemented; </li></ul><ul><li>Positive action introduced; </li></ul><ul><li>Right to request time off for training extended; </li></ul><ul><li>DRA abolished. </li></ul>
  30. 33. <ul><li>6 April 2011 </li></ul><ul><li>Income Tax (Pay As You Earn) (Amendment) Regulations 2011. </li></ul>
  31. 34. Hresource Areas of training <ul><li>Managing Redundancy Dismissals; </li></ul><ul><li>Managing the Disciplinary Process; </li></ul><ul><li>Equality Act 2010. </li></ul>
  32. 35. How we can help <ul><li>Reviewing and advising on existing structures, proposed restructures, contracts & policies; </li></ul><ul><li>Provide in house training for management teams; </li></ul><ul><li>Hresource – LEI product. </li></ul>
  33. 37. Disclaimer <ul><li>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. </li></ul><ul><li>If you require advice on a specific issue, please contact one of our specialist solicitors. </li></ul>
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