| HR & EMPLOYMENT LAW
Jackie Le Poidevin, Editor-in-Chief, HR Adviser |
Understand the Draft Law on the Right to Request a Predictable Working Pattern
The government has recently announced its backing for yet another private member’s bill aimed at bringing in provisions from its employment-bill-that-never-was. The bill would give individuals the right to request a predictable working pattern, something the government consulted on back in 2019. Although few private member’s bills normally make it onto the statute books, the government’s support means this is likely to become law, although this won’t be quick process. Here, we look at what new duties you could face and what impact the changes could have.
What are Your Proposed New Duties?
The Workers (Predictable Terms and Conditions) Bill aims to tackle so-called ‘one-sided flexibility’. This is the problem of some workers, including many of those on zero-hours contracts, having to be available for work at short notice, without any guarantee that work will actually be available.
The bill, if it becomes law in its current form, will:
- Give workers and employees the right to request a more predictable working pattern if:
– The number of hours they work is uncertain, or
– The days or times they work are uncertain, or
– They are on a fixed-term contract of less than 12 months. In this case, they will be able to ask for their contract to be made longer or permanent.
- Enable individuals to make such a request once they have 26 weeks’ service, which won’t need to be continuous.
- Enable individuals to make up to two requests in any rolling 12-month period.
- Require employers to respond within 1 month to a request (including responding to any appeal).
- Allow employers to refuse any request on broadly similar grounds to those in the flexible working legislation.
- Allow agency workers to ask either their agency or the hirer for a more predictable working pattern.
- Enable individuals to bring an employment tribunal claim if their employer handles their request unreasonably, rejects the application for an improper reason or treats them badly because of their request.
What Could the Impact be?
The government’s announcement that the bill will give ‘tens of millions more say over their working hours’ must be an exaggeration. The Office for National Statistics puts the number of zero-hours workers at only slightly over 1 million and the CIPD says that only about 3% of workers are on such contracts.
On the other hand, the Living Wage Foundation research claims that 57% of UK workers have jobs which involve variable hours or shift work of some sort, with over half of these (55%) reporting they have less than a week’s notice of their work schedules. It also says that 14% of this group – 8% of all working adults – receive less than 24 hours’ notice. This was only a survey of about 2,000 people though.
What we do know is that some sectors like hospitality rely heavily on casual workers and many businesses need to use fixed-term and agency workers at least occasionally to provide maternity and sickness cover. Responding to requests will create an increased administrative burden on employers in these situations.
However, this is only a right to request, not to have, a more predictable working pattern. Provided that you have a good business reason, you’ll be able to reject requests.
| PAYROLL
Sarah Bradford, Editor-in-Chief, Pay & Benefits Adviser |
How to Keep on Top of Your Workplace Pension Duties
The Pensions Regulator has warned employers of the need to keep on top of their workplace pension duties after in-depth compliance checks of large employers found a number of errors. The Pensions Regulator is responsible for monitoring employers to check that correct contributions are paid and that staff receive the pensions that they are due. They will take enforcement action against employers who fail to comply with their duties under auto-enrolment and fines issued by them may be substantial.
Meet Your Ongoing Duties
Employers have a number of ongoing duties under auto-enrolment. These include:
- Monitoring the ages and the earnings of staff each time that they are paid to check whether they need to be enrolled or re-enrolled in the pension scheme.
- Checking that they are paying at least the minimum contributions into the scheme.
- Managing requests to join or leave your pension scheme.
- Keeping accurate records.
- Every 3 years, undertaking re-enrolment duties and completing the re-declaration of compliance.
Who You Need to Enrol
You must enrol staff who are aged between 22 and state pension age and who earn over £10,000 a year (£833 per month, £192 per week) into your pension scheme. Staff can opt out but you must still enrol them first, even if they tell you they don’t want to join.
Minimum Contributions
You must make a minimum employer contribution of 3% into the scheme and the total contribution made by both you and the employee must be at least 8%. Contributions must be paid on earnings between £6,240 and £50,270 for 2022/23.
It is important that you use the correct earnings thresholds to calculate your contributions, and check each year for any changes. The thresholds remain at their 2022/23 levels for 2023/24. One of the key errors found by the Pensions Regulator was the use of incorrect thresholds.
Contributions must be paid over to the pension scheme by the 22nd of the following month where the payment is made electronically (or by the 19th if you pay by cheque).
Managing Requests to Join
Staff who fall outside auto-enrolment can ask to join the scheme and where they request to join, you must enrol them. You must pay contributions into the scheme where the worker is between the age of 16 and 74 and earns at least £520 per month (£120 per week).
Your Duty to Keep Records
You must keep records to show that you have met your legal duties in respect of auto-enrolment. This will include:
- The names and addresses of staff who you have enrolled into a pension scheme.
- Records showing when money has been paid into the pension scheme.
- Requests to join or leave the pension scheme.
- The pension scheme reference or registry number.
You must keep these records for 6 years, with the exception for requests to leave the scheme, which you must keep for 4 years.
Re-enrolment and Re-declaration
Every 3 years you will need to reassess your staff and re-enrol anyone who is between age 22 and state pension age and who earns at least £10,000 a year, even if they previously opted out. Once re-enrolled they can again choose to opt out.
You must also complete a re-declaration of compliance confirming that you have met your legal duties.
It is important that you understand your duties under auto-enrolment and that you comply with them.