News & Views

Hello and welcome to the first of our regular updates on what’s new in the world of employment law and human resource management.

We hope you find it useful and informative and remember if you have any issues relating to the management of your employees EHR Ltd are here to help with cost effective expert HR advice and support.

Legal Updates

Employment law is constantly changing and it can be difficult for employers to keep up to date so here is our guide to some of the recent changes and some that are planned in the not too distant future.

The Growth and Infrastructure Bill came into effect in April 2013, it introduces the new employment status of 'employee shareholders', who will receive a minimum of £2,000 worth of shares in return for sacrificing their unfair dismissal, redundancy, flexible working and time off for training employment rights. The new measure should be in force by autumn 2013.

Enterprise and Regulatory Reform Bill came into effect in April 2013,

Some of the provisions which will come into force this summer include

 - settlement agreements - these replace 'compromise agreements'. Employers will be able to offer agreements to terminate employment irrespective of whether a dispute has arisen. Acas has produced a draft code of practice; consultation on the code closes on 9 April 2013.

 - unfair dismissal cap - introduction of a new 12 months' pay cap to run alongside the existing maxiumum award of £74,200.

 - tribunal procedure changes - including a provision allowing EAT cases generally to be heard by an employment judge sitting alone and 'legal officers' to decide less complex claims.

 - tribunal fees - introduction of a two-tier structure, with lower fees for straightforward claims and higher fees for more complex cases.

 - whistleblowing restrictions - so only disclosures made in the public interest are protected.

To ensure your employment and people management policies are compliant consult EHR

What's happening in HR

Business leaders say flexible working cuts costs

Business Leaders from the Agile Future Forum including Ford, Tesco and John Lewis, recently highlighted the financial benefits they gain by using workforce agility as they urged more UK employers to do the same.

Workforce agility initiatives have enabled the AFF’s founding companies to save between 3 and 13 per cent in workforce costs, according to research set out in the forum’s report Understanding the economic benefits of workforce agility. This research has also identified opportunities to build on those cost-savings by a further 3 to 7 per cent and, in some cases, gain an extra sales boost of up to 11 per cent.

For advice and help introducing flexible working into your organisation contact EHR Ltd.

Most organisations set to grow their pay budgets

Most employers plan to increase their pay budgets this year and they would also like to see a greater link between pay and performance, according to research by the CIPD.

The Reward Management Survey 2013 of senior reward and benefits professionals revealed that more than half of employers (53 per cent) expected their pay budgets to increase by the end of 2013.

The top two factors driving this growth were pay rises (84 per cent) and an increase in staff numbers (51 per cent) – suggesting that businesses were confident about increasing wages and taking on more staff, said the CIPD.

Young people and employers – a mismatch

New research, from the CIPD, reveals a gulf in expectations between young people and employers that's contributing to high levels of youth unemployment. It's also fuelling a ticking time bomb of skills shortages for UK businesses, who may be unwittingly limiting their access to this important and diverse pool of talent.

Need help with recruitment? Contact us for expert advice.

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