EMPLOYMENT LAW BULLETIN JAN 10 | Oct 2009 | July 2009 | May 2009 | March 2009 | Dec 2008 | Oct 2008

EMPLOYMENT LAW BULLETIN MAY 2009
TRIBUNAL CLAIMS
In March, the Tribunals Service realised figures that show that the total number of employment tribunal claims for 2007/08 was up by more than 40 per cent on the previous year. The increase was from 132,600 claims in 2006/07 to 189,300 in 2007/2008.  Many of these included claims under more than one jurisdiction - for example, unfair dismissal and sex discrimination - so that the absolute total was an increase from 238,546 in 2006/07 to 296,963 in 2007/2008. For the first time (in recent years) unfair dismissal claims have not topped the list. Unfair dismissal was in third place of total number of claims in 2007/2008, preceded by Working Time related claims in second place and Equal Pay claims at the top of the list, with 62,706 claims in 2007/2008. The increase in the number of equal pay claims each year has continued to rise since 2003/2004.

THE BUDGET 2009
The changes that are to come about, according to Chancellor Alistair Darling's speech in the Budget 2009, include the following.
Income tax
As mentioned in the Pre-Budget Report (PBR) in November last year, rates of income tax for 2009/10 will remain at 20% for basic rate taxpayers. Instead, it's those who earn over £150,000 who will be affected the most, as they will have to pay 50% income tax from April 2010 according to the Budget 2009, and not 45% from April 2011 as the PBR announced earlier.
National insurance
There will be a rise of 0.5% in the standard rate of primary and secondary Class 1 NICs from 6 April 2011 and this will also affect Class 1A and 1B NICs.
Statutory redundancy pay
From 1 February 2009, statutory redundancy pay rose to £350. Instead of waiting until February 2010 to increase it once again, the Government has introduced a one-off increase to £380, which will take effect from 1 October 2009. This means that the maximum amount of statutory redundancy pay will be £11,400 (20 years x 1.5 weeks x £380).
Pension contributions
Once again the top earners are targeted in relation to tax relief available against the contributions they make to their pension schemes. From April 2011, those earning more than £150,000 will have the value of their pensions tax relief tapered down to 20% so that each pound of contribution to pension entitlement will be the same as that of a basic rate taxpayer. Until April 2011, the Government intends to introduce legislation that will prevent people from taking advantage of the pensions tax relief while it is still available to them at the higher rate.
Company car tax
From 6 April 2011, the rates for company car tax will change. The £80,000 price cap used when determining the car benefit charge will be abolished, as will the discounts currently available to various cars using alternative fuels.

STRESS AT WORK
Under the Health and Safety at Work etc. Act 1974 you have a statutory duty to ensure the health, safety and welfare of your staff. Part of this involves managing their stress levels, not least because you could find yourself on the wrong end of a personal injury claim. For example, if an employee suffers psychiatric injury as a direct result of extreme or prolonged work-related stress and you failed to take appropriate steps to prevent it. There is also a risk of a constructive dismissal claim if you fail to take work-related stress issues seriously. There are various causes of workplace stress, known as “stressors”. The most common of these are excessive workload, long working hours, lack of support, training or communication and bullying and harassment by work colleagues or managers. Health and safety legislation requires you to perform a risk assessment in the workplace. As well as the obvious physical risks of work practices and procedures, you should include a “stress audit”. This will help ensure that you don’t expose employees to unnecessarily high levels of stress in your working environment and therefore minimise the risk of any claim. It is worth pointing out that complaints of work related stress are on the rise, so don’t wait for a problem to occur – act now.

Time to Reflect
Why not take time now to consider your business's most valuable asset, your staff, and consider whether you are fulfilling your legal obligations to them. Remember, in recent years, the Law has become more supportive to employees rather than employers and staff are now encouraged to challenge, or sue, their employers when things go wrong. Why not take the first positive step in trying to protect yourself and your business, and also the future of your staff, by developing and agreeing contracts of employment. By Law, you have a contract with your staff, even if it is not written down. However, you are actually breaking the Law by not providing a written contract within 8 weeks of an employee commencing work. Rather than rely on hearsay and other people's interpretation of what they think is in the contract, why not produce a legally binding document that confirms all employment details. Give us a ring to see how we can help you now, before you have a problem.
More than 50% percent of UK companies now outsource their business needs, so that they can reduce cost and concentrate on developing their core business. Outsourcing accountancy and personnel issues is becoming more and more popular, as with all the new legislation changes, owners / directors / managers would need to spend a large proportion of senior management time investigating and learning of the new changes, as failure to do so can lead to costly fines or tribunal claims. If you think that Howarth Associates can assist your business in this way, or alternatively if you want any advice about any points in this bulletin, please do not hesitate to contact us on 01772 456554 or by using our contact page. Alternatively, e-mail Jane on jane@howarth-associates.com to arrange a free initial health check on your business.

Disclaimer. The purpose of this briefing is to give a brief introduction to current topical issues on employment law. Although every effort has gone into providing accurate, relevant and up to date information, it must not be relied upon as giving sufficient advice in any specific case. Professional advice should always be taken, before any decision is reached on matters relating to the employment of staff and their rights.