Coming Down The Tracks In 2011
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Mogers for HR CIPD slides 18/03/2011

Mogers for HR CIPD slides 18/03/2011

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Coming Down The Tracks In 2011 Presentation Transcript

  • 1. MOGERS FOR HR COMING DOWN THE TRACKS IN 2011 Sean McDonough & Tim Gofton 18 th March 2011
  • 2. Today’s Session
    • The economic outlook and the impact on HR;
    • Silver Surfers – abolition of the DRA; and
    •  
    • General Update, Q&A & lunch.
  • 3. 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.
  • 4.  
  • 5. 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.
  • 6. Hresource Survey Results
    • 41% reported increased grievance activity particularly against managers (stress and bullying and harassment);
    • 56% rise in ET claims;
  • 7. 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.
  • 8. Impact on HR Teams
    • Increasing pressure to add value and to do far more with less;
    • Increase productivity;
    • Incentivise staff;
    • Retain talent.
  • 9. Projects for 2011
    • Redundancies (again)?
      • Unlikely to solve the problem;
      • Many businesses cannot cut back operations any further.
  • 10. 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?
  • 11. Projects for 2011
    • Creative terms and conditions
      • Zero hours;
      • Annualised hours – operational peaks and troughs;
      • Casual workers;
      • Homeworking.
  • 12. 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.
  • 13.  
  • 14. Silver Surfers
    • Current default retirement age will be abolished with effect from 1 st October 2011;
    • Transitional provisions are in place (just!)
  • 15.
    • 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 1 st October 2011 ); and
    • All other stages of retirement procedure must be met.
  • 16.
    • The last effective date of termination for retirements where no extension agreed is 5 th April 2012 ; 
    • If a 6 month (or less) extension is agreed, the retirement date could be as late as 5 th October 2012 ;
    • The short notice provisions will be abolished from 5 th April 2011 .
  • 17. Potential Hot Spots
    • “ Without prejudice" retirement discussions;
    • Poor succession planning and younger employees; 
    • Not dealing with capability issues directly because undignified.
  • 18. Good Practice Tips
    • Build retirement discussions into appraisal systems;
    •  
    • Avoid "why don't you retire to avoid an undignified sacking?"
    • Ask open questions…
  • 19. 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.   
  • 20. Retaining Fixed Age
    • Need 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.
    •  
    •    
  • 21. 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;
    •  
    •    
  • 22. 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.
    •  
    •    
  • 23. 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.
    •  
    •    
  • 24. Legitimate Aims
    • Martin v Professional Game Match Officials [2010];
    • Hampton v Lord Chancellor [2008];
    • Baker v National Air Traffic Services [2009].
    •  
    •    
  • 25. 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.
    •  
    •    
  • 26. Insurance Backed Benefits
    • NB
    • 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’
    •  
    •    
  • 27. 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.  
    •    
  • 28. 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.
    •    
  • 29. 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.
    •    
  • 30.  
  • 31. 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.
  • 32.
    • 6 April 2011
    • Public sector equality duty implemented;
    • Positive action introduced;
    • Right to request time off for training extended;
    • DRA abolished.
  • 33.
    • 6 April 2011
    • Income Tax (Pay As You Earn) (Amendment) Regulations 2011.
  • 34. Hresource Areas of training
    • Managing Redundancy Dismissals;
    • Managing the Disciplinary Process;
    • Equality Act 2010.
  • 35. How we can help
    • Reviewing and advising on existing structures, proposed restructures, contracts & policies;
    • Provide in house training for management teams;
    • Hresource – LEI product.
  • 36.  
  • 37. 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.