Are you exiting BT under the Early Leaver Scheme?

Sarah Russell of Fox Whitfield can help.

Are you exiting BT under the Early Leaver Scheme? Sarah has helped numerous BT employees.

Whether you are leaving genuinely voluntarily, or feel that you have been backed into a corner where taking redundancy is the only real option, Sarah can assist. She knows the BT settlement agreement well and knows which clauses they are likely to be prepared to negotiate on and which they are not. She provides prompt, practical advice.

Please contact Sarah on 07985 106 233 or sarahr@foxwhitfield.com.

SR 150x150 Are you exiting BT under the Early Leaver Scheme?

Sarah Russell discusses the Gender Pay Gap on the BBC

 

Sarah Russell (http://www.foxwhitfield.com/team/sarah-russell/) has today been on the BBC News and BBC World talking about the gender pay gap. 

Several large companies have recently released their gender pay information, ahead of the compulsory deadline for the public and private sector in April.  Easyjet, Ladbrokes and Phase 8 all showed significant gender pay disparities.  Many companies attributed the difference to the fact that they have more men at a senior level, and more women in less senior, customer service-type roles. 

In Sarah’s experience the situation is considerably more complex, with women at senior levels typically being paid less than male colleagues.   Women actually now out-earn men on average in their twenties, but unfortunately the gap develops in a woman’s late 30s.  It is often connected to maternity, part-time worker and/or age discrimination.

 If you have concerns about these issues, please contact Sarah by email or mobile for a free, no obligation discussion.

http://BBC News – Gender pay gap: More than 500 firms reveal their figures http://www.bbc.co.uk/news/uk-42580194

Taxation of Termination Payments

compromise agreement1 300x90 Taxation of Termination Payments

 

The Government has published a document on the “simplification of the tax and National Insurance treatment of termination payments”. That induces some draft legislation that will change the way that termination payments and settlement agreements are taxed and negotiated.

Currently employers may be able to pay notice payments tax free if there is no contractual right to pay in lieu of notice. Also employers can pay up to £30,000 tax free in some cases and higher payments are also exempt from employers National Insurance. 

The new legislation, due to come into force in April 2018 will change this. What is proposed is that:

  1. All pay in lieu of notice payments will be fully taxed and subjected to National Insurance.
  2. Employers will have to pay employer National Insurance on all termination payments of over £30,000.
  3. Payments for Injury to Feelings in discrimination claims will also be taxed.

Employers will still be able to pay up to £30,000 tax free and without National Insurance.

Employers should take this opportunity to look at their current employment contracts and ensure that they have the best contractual protection. It is likely that if these new laws are brought into force that there will be no reason why all employers should not have contractual pay in lieu of notice clauses in their contracts.  It is also essential that employers take fresh legal advice on any settlement agreements that they are using. Once the law changes in 2018 those will need important changes to ensure that they work properly. It is never a good idea to simply keep using an old settlement agreement as employment law does change so quickly. 

In summary the law may be a little clearer on tax once the new legislation is in force. What is also clear is that this will cost may employers and some employees additional tax when terminating employment or settling employment tribunal claims.

Paul Whitfield is the Principal Solicitor at Fox Whitfield.

Fox Whitfield can advise HR, employers and employees on Settlement Agreements , disciplinary processes, procedures and unfair dismissal claims. We can also arrange meetings in the evenings or at weekends to work around your working hours.

www.foxwhitfield.com

0161 283 1276

Employment Law Solicitors – Head Office based in Manchester with offices located throughout the United Kingdom.

 

 

Client Feedback

paul whitfield manchester office Client Feedback

Sometimes it’s easy to become jaded with the law and the demands of work. Then once in a while a client reminds you that what you do really matters to them, the hard work made a difference and that they really appreciated what you did.

I recently settled a case for a client. He was an employee with a strong case. He had legal expenses cover but the advice he was getting from the insurance company lawyer wasn’t great. They told him it wasn’t worth doing anything and that they wouldn’t cover his costs.

I thought it was worth him doing something and he was willing to pay some fees himself. We issued his claim and it then quickly settled for more than twice the sum the insurance company thought it was worth. The client was very happy and offered to write me a testimonial.

What he wrote was this: –

I was was referred to Paul Whitfield of Fox Whitfield by a friend. I wasn’t getting much support from the legal cover on my home insurance. Paul stepped in and won an out of court settlement on an unfair dismissal dispute. He handled the whole case and guided me through the process. Paul knows what he is doing, he is very professional and provides an outstanding service.”

The icing on the cake for my client was that I have now managed to get his insurance company to cover all of the costs they had initially refused. Money from employers is hard to get, but getting money from insurance companies is a whole new level of difficult!

My client is delighted and I am reminded why, sometimes, this is a great way to make a living.

Paul Whitfield is the Principal Solicitor at Fox Whitfield.

Fox Whitfield can advise HR, employers and employees on disciplinary processes, procedures and unfair dismissal claims. We can also arrange meetings in the evenings or at weekends to work around your working hours.

www.foxwhitfield.com

0161 283 1276

Employment Law Solicitors – Head Office based in Manchester with offices located throughout the United Kingdom.

Government launches consultation on mandatory gender pay reporting: Have your say

The Government has launched a consultation to establish the details of legislation required to be made in the first half of 2016 on gender pay reporting. The new legislation will make it compulsory for private and third sector employers (with 250 or more employees) to publish gender pay information.

You may recall from my article last month setting out what we can expect in the world of employment law following the Conservative’s election victory that one of David Cameron’s key pledges is to reduce the gender pay gap. Writing in the Times Newspaper following the Summer Budget, David Cameron said, “Transparency, skills, representation, affordable childcare – these things can end the gender pay gap in a generation. That’s my goal”.

Although statistics produced by the Annual Survey of Hours and Earnings in 2014 showed that when full time work is taken in isolation the gap between men and women’s pay has almost halved since records began in 1997, the Government believes that transparency will accelerate the reduction in the gap even further.

However, the legislation, which is due to be brought in around April 2016, is yet to be fleshed out. The consultation is giving employers an opportunity to have a say in the mechanisms of the new legislation.

More particularly, it is seeking views on the way that the information is collected; whether this should be providing an overall gender pay gap figure by calculating the difference between the earnings of men and women as a percentage of men’s earnings, providing figures broken down by full time and part time employees or broken down by job grade and title. The consultation recognises that in determining the metrics to be used there is a need to balance meaningful and comparable data against the need for individual confidentiality. It is also seeking employer’s views on the likely implementation costs and the actual / estimated time that is likely to be taken by the person responsible for analysing / publishing the information.

Another key question is whether additional narrative information should be voluntary or prescribed by the regulations and how regularly the information should be published; whether annually or, for example, every two or three years.

The consultation closes on 6 September 2015 and following the responses from the consultation we can expect to see a first draft of the regulations. Whilst it is difficult to predict what will be in the final regulations there is talk of them being phased, to give employers time to prepare.

Whether your organisation will be affected by the new regulations or you simply want to ensure that your policies and practices are providing equality to your workforce and assisting in closing the gender pay gap, myself or another member of the Fox Whitfield team have a wealth of experience dealing with discrimination and equal pay cases. We can also assist you in carrying out a qualifying equal pay audit.

If you would like further information or advice on this or any other employment related matter please contact me on 01173305980 or 07766562730. Or you can email me at dionned@foxwhitfield.com