OCAS EMPLOYMENT LAW UPDATE - APRIL 2010
COMPULSORY PENSION CONTRIBUTIONS
From October 2012 each employer will have a “staging date” depending on the number of
employees. Those with less than 50 will be selected by PAYE Reference (Contact OCAS for
All employers must have a qualifying pension scheme or use NEST (National Employment
Employees aged 22 must be automatically enrolled from their start date but it is optional for
those aged 16- 21 and over state pension age.
Level of contributions-Large Employer – Oct 2012 to Feb 2014 – 1% /1% Employer/ee
Medium – Apr 2014 to Jul 2014 – 1% /1% Employer/ee
Small –Aug 2014 to Sep 2016 – 1% /1% Employer/ee
All Employers – Oct 2016 – Employer – 2% /3% Employee
– Oct 2017 – Employer – 3% /5% Employee
STATE PENSION REFORM
From April 2010 the State Pension Age (SPA) for women has changed. It has been widely
publicised that the retirement age for women is no longer 60 and that this will be increased
to 65, on a sliding scale, by 2020. (www.pensionservice.gov.uk)
It has not been widely advertised that this new retirement date (SPA) will be used for other
purposes i.e. Payment of National Insurance Contributions, Winter Fuel Allowance and bus
passes etc. These changes will also apply to men claiming these benefits.
The number of qualifying years for full state pension is reduced to 30 for both men and women.
From April 2010 for those earning over £31,000, the rate at which S2P (Second State Pension
previously SERPS) builds up will halve from 20% to 10%. By 2030 the S2P will build up at a
flat rate (possible £1.50pw) so everyone will get the same regardless of what they earn. The
final stage will be the withdrawal of S2P.
ADDITONAL PATERNITY LEAVE (FOR BABIES DUE AFTER 3rd APRIL 2011)
First employee to take 26 wks SMP the second then takes 26 wks Additional Paternity leave.
First 26 weeks paid i.e. SMP (6 weeks at the higher rate /20 weeks at £124.88pw),
Next 13 weeks paid under Statutory Paternity Pay – £124.88pw.
Next 13 weeks unpaid.
As with SMP you will be able to reclaim this from your monthly HMRC payment.
IMMIGRATION ISSUES .
From 25th November 2008 the Border Agency changed the way it issues permission to stay in
the UK and ID cards for foreign nationals have replaced the stickers placed in passports.
3 types of ID cards (also know as Biometric Immigration Documents) have been introduced
and all count as LIST A and LIST B approved documents for employment purposes. The card
will confirm the person’s immigration status and right to work in the UK.
Employers are expected to look at the card carefully and guidance is available at
www.ukba.homeoffice.gov.uk to check if the ID card is valid. A quick reference guide is also
available from www.business.link.gov.uk.idsmart.
Sick notes– from April 2010 they will include “may be fit for some work” but employers are not
bound by the suggestions.
Agency workers –from Oct 2011– will have the right to the same pay as permanent employees
after 12 weeks.
Right to request time off (unpaid) for training/public duties– April 2010 for those with more
than 250 employees– April 2011 for all others. The employer can refuse if there is a business
reason. Employee needs 26 weeks service and only 1 request can be made every 12 months.