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Employment Law News - January 2008 Newsletter |
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| ARE YOU READY FOR THE CHANGES TO THE HOME OFFICE'S POINTS-BASED IMMIGRATION SYSTEM? |
Potential sponsoring employers will be subject to increased obligations and hefty penalties with this new points based system.
Under new legislation, employers that hire overseas nationals will play a far greater role as sponsors.
Many employers acknowledge they benefit from the ability to employ migrants and seem willing to take on some additional responsibilities, but not the role of immigration officials. However, the Home Office may well have taken this goodwill a step too far.
For example, they will have to state they are satisfied that the person will comply with their conditions of leave and have sufficient funds. They will also have to provide up-to-date information about the migrant and the business, and report suspicions of criminal activity to the police.
The employer could be struck off the sponsorship register if they fail to comply. This will punish both the employer and the worker (who would have to leave the UK).
To add to employers' workloads, increased penalties for employing illegal staff are due to come in from February 2008, with fines likely to be up tp £10,000 per worker. The current system is in need of an overhaul and has yielded few convictions. More training on how to detect forged documents is also needed to reduce the number of illegal staff.
Employers must check documents at the start of employment and then every 12 months if the person has limited leave to remain in the UK. Employers will need to diarise these checks for every worker with limited leave and ensure they are carried out, requiring significant resources.
Although the cost to businesses is potentially substantial, it is far from clear as to whether these changes will have any effect on the number of people working illegally in the UK. Perversely, it could have an effect on the number of overseas nationals legally working in the UK.
Employers may think twice before taking on an overseas national due to these increased obligations, and the extra time required complying with them. This could affect the economy, which sees a net benefit from migrant workers, but employers should be wary, as this attitude could lead to more race discrimination claims.
Indications are that staff who will earn at least £40,000 will have sufficient points to come to the UK based on earnings alone. This is a surprising move, as it opens up highly paid positions, including fairly junior graduate posts, to international competition, and is contrary to recent government views of British jobs for British people. The arbitrary figure of £40,000 may also result in a North/South divide, as this change will particularly benefit employers in the City and the South, where salaries tend to be higher. They will gain a wider pool of talent to recruit from. And more people may settle in these already overpopulated areas.
In contrast, lower-paid staff will find it harder to accumulate enough points, making it more difficult for employers such as charities to recruit overseas nationals, even though they may have a wealth of valuable experience. It is a shame that the government has not taken this opportunity to construct a system where experience, and not just salary and qualifications, are taken into account.
As further changes are likely to be announced this year, all businesses need to be alert, particularly as the changes have not been widely publicised yet.
Immigration looks set to move from being just a political issue to being a day-to-day concern for employers. |
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| MAJOR REVIEW OF HEALTH AND SAFETY LAWS LAUNCHED BY ALISTAIR DARLING |
Chancellor of the Exchequer Alistair Darling has launched a major review of business health and safety laws.
At the CBI annual conference in December 2007, a health and safety review was announced. Employers, workers and experts will be asked for their views on how the health and safety system can be revamped, focusing on small and low-risk businesses.
Many small employers find it difficult to work out what broad health and safety duties mean for their workplace and are unsure of when to take advice and from whom. They also have limited resources to implement necessary changes.
Pat McFadden, the Better Regulation minister said: "I am fully aware of some of the considerable challenges that small firms face in protecting their workers from injuries and ill-health…The government must work smarter to make it easier for employers to follow the rules, as this will benefit everyone and contribute to making our society safer."
The Health and Safety Executive has also published its simplification plan and claims to have already reduced the number of forms businesses have to fill in by 50%. |
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| ANNUAL INCREASE IN COMPENSATION LIMITS |
The Employment Rights (Increase of Limits) Order 2007 has been laid before parliament.
This year's core compensation limit increases are:-
a week's pay (basic award / redundancy payment) - from £310 to £330
maximum compensatory award - from £60,600 to £63,000
The new limits apply to dismissals occurring on or after 1st February 2008. |
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| THE BIG BIG CHARITY BASH, 2008. |
 The first Big Big Charity Bash in 2005 was an enormous success raising over £7000 for local charities. This year's bash promises to be even better - if that's possible!
An evening of fun and frivolity is planned for Friday 28th March, 2008 at the new MK Football Stadium. The evening kicks off at 7.30pm with a Champagne Cocktail reception, followed by a magnificent three course meal. During the meal, music is provided by ChristAL, followed by a night of dancing with King Pleasure and the Biscuit Boys as well as a disco. Fund raising activities will also make the night go with a bang - an auction, table raffle and a role-a-dice to win a car competition!
Tickets are available at £60 a head, or £600 for a table of ten. To book your place at this exciting event, then please email without delay!
Donations or auction and raffle prizes will also be gratefully received! |
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| DID YOU KNOW? |
| Q:Do I have to increase the number of days holiday I give my staff, now that the law has increased leave to 24 days? |
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A: This all depends on the number of days they are already entitled to. The 24 days that employees are now due includes the 8 bank holidays, so the basic number of days holiday due is 16 days plus the 8 statutory bank holidays. If you already give 16 days or more (plus the statutory bank holidays), then there is no need to increase your employees allowance. The next increase is expected in April 2009, when the allowance will increase to 28 days, ie 20 days plus the statutory 8 bank holidays. Rest assured that if you are a retainer client, we will automatically alert you if your contract needs updating. |
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Crispin Rhodes, a UK based company that provides human resources and outsourced personnel services in Milton Keynes and surrounding areas. |
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