June - HR Review

JUNE HR Review

Recession prompts 'dramatic change' in the UK workplace.

The recession has prompted a 'dramatic change' in the nature of the UK workplace, according to a recent survey.

The study of workplace trends, conducted by the Confederation of British Industry (CBI) in conjunction with recruitment experts, revealed that employers and staff are working together to protect jobs and businesses.

Some of the key measures being taken include: introducing more flexible working hours; extra holiday and extended shut-downs; cuts in paid overtime; and freezes in pay and recruitment.
John Cridland, CBI Director-General, said, 'This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs'.

The CBI called on the Government to help firms further by improving the availability of credit for investment, and delaying the introduction of additional employment regulation.

New advisory fuel rates published

HM Revenue and Customs (HMRC) has announced changes to the advisory fuel rates for company cars.

The rates can be used to negotiate dispensations for mileage payments for business travel in company cars, and apply to all journeys taking place in a company car on or after 1 July 2009.

However, as for recent changes HMRC has permitted employers to apply the new rates ahead of this date where they are able and willing to do so.

The rates are intended to reflect average fuel costs, and apply only where employers reimburse employees for business travel in their company cars, or where employees are required to repay the cost of fuel used for private travel.

Increases to Statutory Redundancy Pay
The statutory limit on a week's pay for the purposes of calculating statutory redundancy payments will increase from ?350 to ?380 in respect of all redundancies made on or after 1 October 2009.

Employers should be mindful that employees with almost two years' continuous service on 1 October 2009 may be entitled to a statutory redundancy payment at this increased rate. For example, an employee whose employment commenced on, say, 15 September 2007 and who is dismissed on the grounds of redundancy on 18 September 2009, will be entitled to a statutory redundancy payment to which the new maximum rate of ?380 will apply. This is because the employee's two years' continuous service entitles him or her to two weeks' statutory notice, which will take his or her termination date beyond 1 October 2009.

Paternity Pay

Plans to give fathers up to six months of paternity leave have been suspended to help employers through the economic crisis. While the decision has been applauded by employment bodies, campaign groups have accused ministers of undermining the equalities agenda.