DONT TAKE THE RISK - WORK PLACE PENSION IS THE LAW!!

 
DON'T TAKE THE RISK
 
A WORKPLACE PENSION IS THE LAW!
 
 
 
 
The Pension Regulator (TPR) has fined Swindon Town £22,900 after it failed to put eligible workers into a pension scheme.
 
Charles Counsell,  for TPR said
 
"This case illustrates what can happen when an employer buries their head in the sand and disregards their duties. Failing to comply on time will not save you money. Not only do you risk a fine, you will also have to make back dated contributions".
 
DONT TAKE THE RISK!!
 
Contact us today we can sort out all your
Auto-Enrolment Pension requirements.
 
Can you really afford not to.
 
01472 345888

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NATIONAL LIVING WAGE FROM APRIL 2016

National living wage (NLW)


1. About the new national living wage

The government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.

With record employment, the highest GDP growth in the G7, over 2 million jobs created since 2010, and 1.1 million more forecast by the Office for Budget Responsibility (OBR), the government believes that now is the right time to take action to ensure low wage workers can take a greater share of the gains from growth.

The new national living wage is an essential part of this. It ensures that work pays, and reduces reliance on the state topping up wages through the benefits system.

2. Rates

From April 2016, the government will introduce a new mandatory national living wage (NLW) for workers aged 25 and above, initially set at £7.20 – a rise of 50p relative to the current National Minimum Wage (NMW) rate. That’s a £910 per annum increase in earnings for a full-time worker on the current NMW.

The adult NMW rate is currently £6.70. From 1 April 2016 the premium will come into effect on top of the NMW, taking the national living wage to £7.20. The NMW will continue to apply for those aged 21 to 24, with the premium added on top for those aged 25 and over, taking the total hourly rate to the national living wage.

3. Low Pay Commission and future rates

The government published the Low Pay Commission’s (LPC) new remit on 8 July 2015. The government has asked the LPC to recommend the level of the path of the national living wage going forward, with the target of the total wage reaching 60% of median earnings by 2020. On OBR forecasts a full-time NMW worker will earn over £4,800 more by 2020 from the NLW in cash terms.
The LPC will also continue to provide recommendations for the other NMW rates as they have done previously.

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National Minimum Wage and National Living Wage

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice. Any changes to the rate are normally introduced in October each year.

Key points

  • Most workers over school leave age will be entitled to receive the NMW.
  • The NMW rate is reviewed annually by the Low Pay Commission.
  • The minimum rate depends on the age of the worker.
  • HM Revenue &Customs (HRMC) can take employers to court for not paying the NMW.
  • There are a number of exemptions to those who receive the NMW. These do not relate to the size of the business, sector, job or region.
  • The compulsory National Living Wage is the national rate set for people aged 25 and over.
The rates from 1st October 2015 are:
  • £6.70 for workers 21 and over
  • £5.30 18-20 yrs
  • £3.87 for 16-17 yrs, who are above school leaving age but under 18
  • £3.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
It is important to note that these rates, which come into force 1 October 2015, apply to pay reference periods beginning on or after that date.

Exemptions

There are a number of people who are not entitled to the NMW.
  • Self-employed people.
  • Volunteers or voluntary workers.
  • Company directors.
  • Family members, or people who live in the family home of the employer who undertake household tasks.
All other workers including pieceworkers, home workers, agency workers, commission workers, part-time workers and casual workers must receive at least the NMW.

Agricultural Wages

Agricultural and horticultural workers in England employed after 1st October 2013 must be paid the appropriate NMW rate (see above).
Workers who were already employed before 1 October 2013 will still be entitled to the same terms and conditions set under their contract of employment; this may include overtime rates, agricultural wages, sick pay or dog allowance. DEFRA will continue to enforce complaints made by workers in respect of underpayments or non-compliance with terms and conditions of an Agricultural Wages Order before 1 October 2013 for up to six years after the breach occurred.
For agricultural workers in Scotland there is no change, and in Wales workers must be paid at least the Agricultural Minimum Wage, or the NMW if that's higher.

Family member exemption

For this exemption to apply, workers must either be a member of the employer's family, or live in the employers' family home.
Either the worker is a member of the employer's family and:
  • resides in the family home of the employer.
  • shares in the tasks and activities of the family.
Or the worker resides in the family home of the employer, and:
  • is not a member of that family, but it treated as such (in regards to the provision of living accommodation, meals and the sharing of tasks and leisure activities)
  • is neither liable to any deductions, nor to make any payment to the employer, or any other person, as respects the provision of the living accommodation or meals.
  • if the work had been done by a member of the employer's family, it would not be treated as work.

Non-payment of the NMW

It is against the law for employers to pay workers less than the National Minimum Wage or to falsify payment records.
If an employer doesn't pay the correct rate, a worker should talk to their employer and try to resolve the issue informally first. If this doesn't work a worker may make a formal grievance to their employer.
A worker can make a complaint to HMRC who will investigate the complaint. If HMRC find that an employer hasn't paid at least the National Minimum Wage, they can send a notice of arrears plus a penalty for not paying the correct rate of pay to the worker.

The National Living Wage

A compulsory National Living Wage is due to be introduced on 1st April 2016 for all working people aged 25 and over, and will be set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 will continue to apply.

Who will be entitled to the National Living Wage?

Generally all those who are covered by the National Minimum Wage, and are 25 years old and over, will be covered by the National Living Wage these include:
  • employees
  • most workers and agency workers
  • casual labourers
  • agricultural workers
  • apprentices who are aged 25 and over.

Penalties for failure to comply

With the introduction of the National Living Wage the penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days.
The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.

The Low Pay Commission

The Low Pay Commission which currently recommends the level of the minimum wage will recommend any future rises to the National Living Wage rate.

The Living Wage

The new National Living Wage is different from the Living Wage, which is an hourly rate of pay and updated annually. The Living Wage is set independently by the Living Wage Foundation and is calculated according to the basic cost of living in the UK. Employers choose to pay the Living Wage on a voluntary basis.

Working Time Directive - Mobile workers - September 2015

The European Court of Justice in a recent case gave the judgement that mobile workers who have no fixed place of work, and spend time travelling from home to the first and last customer, should have this time considered as working time. The Court add that because the workers are at the employer's disposal for the time of the journeys, they act under their employer's instructions and cannot use that time freely to pursue their own interest.
Acas is assessing the impact of this judgement on workers and employers in Great Britain, including whether it has any effect on the payment of the National Minimum Wage, and will provide more detailed guidance when it is available.

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MERRY CHRISTMAS AND NEW YEAR TO ALL OUR CLIENTS AND FRIENDS
 
Please note that our Christmas Closure will be as follows:
 
 
Closed  - Thursday 24 December 2015 12:30
 
Re-Open - Monday 4 January 2016 8:30
 
CHECK OUT OUR CHRISTMAS CARD TO YOU BELOW
 
 
 
video
 
 


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DO YOU HAVE ANYTHING THAT YOU WOULD LIKE TO DONATE FOR OUR CHRISTMAS APPEAL 2015. 

WE ARE SUPPORTING LOCAL CHARITIES  HARBOUR PLACE AND WOMENS AID BOTH HERE IN GRIMSBY.

ANY DONATIONS WILL BE GRATEFULLY RECEIVED AT OUR GRIMSBY OFFICE OR WE WILL COLLECT UP TO FRIDAY 18TH DECEMBER 2015.  GIVE US A CALL ON 01472 345888 AND THANK YOU FROM EVERYONE.

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CHANGES TO THE ADVISORY FUEL RATES FROM
1 DECEMBER 2015

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LATEST CHANGES TO EMPLOYMENT LAW


The latest changes to employment law

 

Each October new employment law legislation is introduced, resulting in some important changes for employers. Here we outline some of the key changes coming into effect on 1 October:


National Minimum Wage increase

The National Minimum Wage increases from £6.50 to £6.70 for workers aged 21 and over from 1 October 2015. The minimum wage will also rise for younger workers (those aged 18-20, and under 18s) with the minimum hourly rate being increased to £5.30 and £3.87 respectively. Apprentices also stand to gain from a wage increase as the hourly rate of £2.73 rises to £3.30 per hour.
Smoking in cars containing children is banned

Company vehicles are already covered by existing smoke-free legislation. However, from 1 October, drivers of private cars in England and Wales will be banned from smoking cigarettes if passengers aged under 18 are present. The new legislation will affect those employees using a company car for family purposes, so employers are advised to review their company car and smoking policies.

Section 54 of the Modern Slavery Act 2015 becomes law, subject to Parliamentary approval

Issues such as forced or compulsory labour, servitude and human trafficking are examples of existing modern slavery. From October 2015, businesses with a turnover of £36 million or more per annum will be required to publish a modern slavery statement every year. Such employers will have to state the measures that they have taken to prevent modern slavery from existing in their business or supply chain.

New Fit for Work service to begin accepting employer referrals  

The new Fit for Work service (FFW) introduced by the Government is to be fully functional by the autumn. The service aims to aid employees in returning to work after a period of sickness or absence. Advice from occupational health can be obtained through the Fit for Work website and telephone helpline. As part of the new service, employers will be able to refer their employees for free occupational health assessments if an employee has been absent from work for a minimum of four weeks.
 

For the latest advice on running your businesses, from employing staff, to tax-efficient strategies, please contact us.

 

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