UK
Subscribe to UK's Posts

Returning to the Workplace in the UK: Key Issues for Employers

As the UK Government works through its phased COVID-19 recovery strategy and lockdown restrictions are progressively eased, employers in the United Kingdom are contemplating the implications of returning staff to the workplace. In this article, we address some of the key issues for employers to consider, with a particular focus on the UK Government’s “Covid-secure” workplace guidance. The issues raised in this article are subject to any local requirements that may apply in Wales, Scotland and Northern Ireland. Access the full article.

Continue Reading

Brexit Update: Effects on Employment

The United Kingdom is no longer a member of the European Union and has entered into a transition period until December 31 2020, unless an extension of 1 or 2 years is agreed by July 1 2020 (the Brexit Long Stop Date). During this transition period, the UK will continue to trade with the EU in much the same way as it did before its exit. Negotiations will take place throughout this year to determine the future permanent relationship between the UK and the EU. The UK's Prime Minister, Boris Johnson, has repeatedly stated that the transition period will not be extended beyond the end of this year. This is an ambitious deadline to reach a comprehensive agreement with the EU and the possibility of a "no deal" Brexit remains an event for which companies should prepare. Against this backdrop, this update summarises the current status of the UK's relationship with the EU and sets out some of the key legal implications associated with a "no deal" scenario for certain...

Continue Reading

UK Tax Changes Shift Worker Classification Burden to Clients

The UK Government has confirmed that it will extend to the private sector tax rules designed to target tax avoidance by contractors who operate through an intermediary personal service company (PSC). The UK Government has announced that new “off-payroll working” tax rules (commonly known as IR35) will apply to the private sector from April 2020. The move will shift responsibility for determining the tax status of individuals who personally provide services through an intermediary personal service company from that PSC to the end user client. The IR35 rules apply if An individual personally performs services for a client, or is obliged to do so Those services are provided under arrangements involving an “intermediary”, i.e., the arrangement for the provision of the services is made between the client (or an agent on its behalf) and the PSC, rather than between the client and the individual; and The individual would be regarded as an employee or office-holder,...

Continue Reading

Responses to Gender Pay Inequity: A Quick World Tour

Most major jurisdictions have pay equity laws, but their approach is far from uniform. Global companies need to evaluate compliance with these laws on a country-by-country basis whilst simultaneously addressing their compensation policies globally. A sample of the rules across several countries helps to identify trends that can drive effective global policies. Australia The Australian Workplace Gender Equality Act of 2012 mandates equal pay for equivalent or comparable work. There are annual reporting requirements for employers with 100 or more employees. Those reports must include the following indicators: gender composition of the workforce, gender composition of governing bodies, and equal compensation between men and women. Employers are penalised by being publicly named if they fail to lodge a public report on time, or inform employees or other stakeholders that a public report was lodged, or give the requested compliance data under the Act. Canada The...

Continue Reading

The Global Repercussions of Local Employment Risks

While campaigning for President in 1932, Franklin Roosevelt promised a crowd in Pittsburgh that he’d balance the federal budget while cutting “government operations” by 25 per cent. When he returned to Pittsburgh during his 1936 campaign, Roosevelt asked his staff how to answer questions about that unfulfilled promise and was told “deny you were ever in Pittsburgh.” So much has changed since then: what is said and done is now instantly visible. This lesson came earlier to politicians, it is now unavoidable for business entities. There is no option to deny that you were there. Let’s look at some consequences of this global visibility: El Super, a small California-based grocery chain with approximately 600 unionized workers, failed to resolve a routine labor dispute at one store with the union representing those employees. As a result of this dispute involving just one store, El Super’s Mexican parent company, Chedraui Commercial Group, found itself subject to...

Continue Reading

UK Employment Rate and Compensation Increases Now in Effect

In case you have been distracted by other recent events in the UK, here is a reminder that the compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation increased as of the first week of April 2019. This alert sets out the changes in full and highlights important consequences for employers. Access the full article.

Continue Reading

UK Employment Alert: Changes To The Taxation Of Termination Payments

The government has published its response to feedback received on its proposals to simplify the taxation of termination payments, expected to come into force in April 2018. The following table sets out the main proposals and the effect these will have on employers. Importantly, there is no change to the current £30,000 tax free allowance.   Proposal Change Effect 1. Termination payments above £30,000 to be subject to employer National Insurance contributions (NICs). Currently, termination payments above £30,000 only attract income tax, not NICs. While employer NICs will be payable under the proposal, employee NICs won’t. At 13.8%, the addition of employer NICs could add a not inconsiderable cost to paying a termination payment exceeding £30,000. 2. All payments in lieu of notice (PILONs) (contractual and non-contractual) to be taxed as income. Currently, contractual and non-contractual PILONs are taxed differently. Contractual PILONs (that are provided...

Continue Reading

TUPE Changes for UK Employees: Implementation Date – Confirmed as 31 January 2014

We reported in the autumn on some small but important changes to TUPE planned to take effect in early 2014. We promised to let you know if there was any delay in the proposed implementation date of 1 January 2014. The UK Government has now confirmed that the TUPE changes will in fact take effect from 31 January 2014. What Are The Key Changes? A summary of the key changes can be seen in our previous alert here. What Does This Mean For Employers? Employers will not be able to rely on any of the new provisions for TUPE transfers occurring before 31 January 2014. Employers who were planning on undertaking a TUPE transfer on or shortly after 1 January 2014, with a view to relying on some or all of the new provisions, may now, if possible, wish to consider delaying that transfer until the changes take effect on 31 January 2014. This consideration is particularly relevant for any employers who may be running simultaneous pre-transfer redundancy and TUPE...

Continue Reading

STAY CONNECTED

TOPICS

ARCHIVES