Sign in
Courtesy navigation
Search
Blog posts tagged flexible working
Hello 2011: new law for employers
December 08, 2010
In its new timetable for employment law, the Government has announced a raft of changes for the next year through to 2012 - some big, some small, but if you hire even one employee you need to know the details. Which your Law Donut chums have endavoured to make as brief as possible, so you can spend more time planning the Xmas party…
The first change is to flexible working laws. As from the proposed date of April 2011, staff with children aged 18 and under have the right to ask for flexible working. The law already gives working parents the right to ask for variations on the 9-5 such as flexitime, compressed hours and so on if their children are 17 and under. April’s change rounds the numbers up to mean all staff with dependent children can ask for flexible working.
April also sees the big news of 2011 when a new law comes in to remove the default retirement age. These rules mean that you can’t automatically kiss employees goodbye when they hit 65. Apart from not losing familiar faces at work any more, the new law will affect any pension schemes you run, employment contracts and staff turnover.
If you want to retire someone, you still can, but you will need a decent reason that is “objectively justified”, such as physical strength reduced by age affecting the safety of a building site worker, for instance.
A transition period will allow the rules to take effect throughout the year. Guidance for employers on how to manage the removal of the default retirement will be published in September 2011 – we’ll update you here.
You may want to use next year to plan ahead for the next big change to employment law. For staff who are parents, the Government plans to bring in a system of shared parental leave in April 2012, which will allow both mothers and fathers to decide between them who takes parental leave. Details of how the system will work are still undecided but should be published in mid-2011.
Finally, 2012 should usher in the right to request flexible working for all employees. This is probably worth thinking about in advance, because if this law makes it through, all your staff will have the right to ask for:
- part-time working
- flexi-time
- staggered hours
- compressed hours
- job sharing
- shift swapping
- self rostering
- time off in lieu
- term-time working
- annual hours
- zero-hours contracts
- homeworking or teleworking
and, finally, a sabbatical or career break. Which is handy, because you’ll probably need one yourself after dealing with all these HR changes.
But in the meantime, it’s Christmas, and officially time to bring nothing but good cheer, bad jokes, and appalling Secret Santa presents to the team.
Happy Christmas, and a super-successful 2011 from us on the Law Donut.
When bonuses turn bad
May 07, 2010
I read recently that Portsmouth FC manager Avram Grant expects to have his first-choice team available in the FA Cup final after his key players indicated a willingness to waive the lucrative bonuses in their contracts.
To stunned audiences nationwide, Portsmouth thrashed Spurs recently and will play the Wembley final on May 15. The players’ bonuses were contracted to kick in if/when the Club reached the final.
But Portsmouth is in financial turmoil – it went into administration in February with, apparently, debts of £70 million. This leads me to wonder why the club would even offer players contracts that offer cash payments ranging from £50,000 to £100,000 in the first place.
Perhaps the club felt they needed to offer bonuses to lure top class-players away from the glittery clubs and expensive shops in London. Or maybe Portsmouth didn’t really expect to get so far in the FA Cup and were confident that the bonus clauses were good window-dressing that they’d never have to pay out. Whatever the Club’s reasoning, it’s a strategy that has backfired, and put them under even more money pressure.
This should be a warning to small businesses suffering their own money troubles. Employee perks and bonuses can be an effective way of attracting and retaining employees, eventually improving business results. But cash payouts, as well as the most common incentives, such as company cars, season-ticket loans and gym membership, can prove costly.
If you’re struggling, remember that before offering remuneration packages you should take into account how appealing any bonuses will be to potential employees – and also much it costs to provide, then administer them.
If your firm still has incentives to fulfill under your employment contracts, you may have to rethink. Negotiating discounts with local suppliers is a clever way for businesses to continue to provide great employee benefits – for example, you could negotiate a group-rate gym membership with a local firm. Small firms should also consider offering low- or no-cost opportunities such as flexible working, which employees may value more than a pricy perk.
However, don’t be too mean - it’s essential for small businesses to balance an exciting remuneration package that attracts the best candidates with the long-term financial considerations of the business. Otherwise when your big day comes round, you may find your best players are missing.
There are legal considerations to take into account when offering benefits such as flexible working. Make sure you keep up-to-date on the Law Donut.
Legal resources for you and your business - employment law, personal law and more | Law Donut
Copyright © 2009-2012
