NASCEmployment Affairs – RegionalMeeting Brief –

February 2018

1)National Working Rule Agreement – WRA Review Group

TheReviewGroup comprising Employer and TU representatives has met on several occasions to explore possible options for adapting/extending the WRA to be a better ‘fit’ for multiple applications, that is to be both relevant for its traditional purpose of setting industry national minimum rates of pay and benefits and as a possible basis for developing appropriate terms and conditions specific to a major site or project.

2)National Working Rule Agreement – Pay and Conditions Review 2018

The current agreement setting national minimum rates of pay and benefits for operatives expires at the end of June. In January the Trade Unions submitted a claim for uplifts. The Employers are considering their response, negotiations are scheduled to commence in the third week of March.

3)Workplace Pensions – Contributions change

From 6th April 2018 Employer contributions will rise from 1% to 2% and Employee contributions from 1% to 3% (including tax relief). From the same date the qualifying earnings Band increases, (subject to Parliamentary confirmation) to £6,032 - £46,350.

A further increase to Employer and Employee contributions is planned from April 2019.

4)Employment Tribunals – Increase in claims

Following the scrapping of fees to bring claims, not unexpectedly many more claims have been lodged. Single claimants, (eg unfair dismissal) have increased by 64% and contractual claimants, (eg unlawful deduction from wages) have increased by 400%. Consequently considerably waiting time is now being experienced between a claim being accepted and a

Hearing date, six months or more being common.

5)Right to Work in the UK - Increased requirements for Employer checks

Employers are now required to make a contemporaneous record on each copy document(s)made of the date on which the check of the document(s) was conducted, (the check must be made before the individual starts work for the Employer, in the presence of the holder of the document(s), by a Company employee). The suggested wording is ‘The date on which this right to work check was made is (enter date)’. It would also be good practice to record the Company employee carrying out the check. Records must be available for inspection at any time for the duration of employment and for two years after employment ceases.

6)Termination Payments – Tax Status

Currently where the contract of employment is silent on pay in lieu of notice it is regarded as non-contractual and may be paid to the employee free of tax, NI contributions do not apply to the employee or employer.

From 6th April 2018, irrespective of the terms of the contract of employment, all notice payments will be regarded as taxable earnings and be subject to income tax and NI contributions for both employee and employer.

The up to £30k tax free concession remains unchanged for statutory redundancy payments and any qualifying non-contractual termination payments.

7)Statutory Payments – Increasesduring April 2018

The rate of statutory National Living Wage (age 25 and over) to £7.50ph, National Minimum Wage (age 21 to 24) to £7.05ph Maternity/Paternity Pay to £140.98pw, Sick Pay to £89.35pw Redundancy Pay/Weeks Pay Limit to £489pw, Guarantee Pay to £27p day and the maximums for certain compensation awards by Employment Tribunals all increase from effective dates in April 2018.

Reminder- progress of Holiday Pay towards Average Earnings

The extract below from the Regional Meeting Brief - September 2017

Holiday Pay – Voluntary Overtime

Contractual payment elements, (eg shift pay) have always been included in holiday pay. Over the past few years as the legally required concept of holiday pay being ‘normal earnings’ (not contractual earnings) has been determined the courts have considered and ruled on elements of pay that should be included in holiday pay, to the extent that many business now simply use a ‘12 week average’. One of the remaining elements of pay where the position was unclear was ‘voluntary overtime’. An Employment Appeal Tribunal decision has now stated that voluntary overtime payments are to be included when calculating *holiday pay. There are some caveats however the principle is clear, (Dudley Metropolitan Borough Council v Willetts and others).

*This is the four weeks of holiday that are required by the Working Time Directive, in practice most employers do not distinguish between the four weeks and full holiday entitlement.

NB -Legislation limits (unlawful deductions) claims for back holiday pay underpayments to two years

- Court decisions limit making a claim for holiday pay underpaymentif a period of three months has passed without an underpayment being made, (Bear Scotland v Fulton)

HOWEVER the above limitations continue under challenge.

28/02/201 G&E Services (UK) Ltd 020 8977 9601