Last month’s European legislation giving agency workers new rights understandably caused some grumbling among employers already struggling in difficult trading conditions.

The Agency Workers Directive gave temporary workers in the private, public or voluntary sectors across the UK entitlement to the same basic employment and working conditions as if they had been recruited directly, if and when they complete a qualifying period of 12 continuous weeks in the same job.

The improved conditions include access to facilities such as crèches, canteens and transport services from the first day of employment. Agency workers are also now entitled to information about internal vacancies for which they can apply.

After 12 weeks in the same role with the same employer, agency workers will be entitled to the same pay, holiday entitlement and working hours as permanent staff, and will also receive improved maternity rights.

However, they will not get occupational sick pay, redundancy pay or health insurance.

Keith Clay of Parkhurst Hill says: “While the direct cost of providing equal treatment to agency workers will fall on employment agencies, they may seek to pass on these costs to hirers in rates charged.

“If employers are unwilling to accept the additional costs, we may find that they simply make sure workers don’t meet the qualifying period - or they may bring agency workers in-house or even stop using them altogether.”

Employers need to take note that the regulations envisage that equal treatment can be measured against comparable employees in terms of pay, the duration of working time, night work, rest period and breaks, annual leave, pay for bank and public holidays, shift allowances, overtime rates and unsociable hours premiums.

Interestingly, the regulations do not confer employee status on agency workers, who will not therefore have the right to claim, for example, redundancy pay or unfair dismissal.

For further information contact Keith Clay.

As the launch of the National Employment Savings Trust (NEST) draws near, employers who bury their heads in the sand may leave themselves open to fines, warns Keith Lowden of Parkhurst Hill Financial Planning.

Whilst there has been a short reprieve for small companies in the timing of auto enrolment, all employers will ultimately be required to be part of the new pension scheme – NEST - scheduled to come into effect in December 2012 and aimed at encouraging low to middle income workers to save for their retirement.

Employers will, for the first time, be required to automatically enrol eligible employees into a pension scheme and pay contributions for any employees who join.

Employers with an existing scheme can use it but may have to make changes to comply with the new laws, or rely on the Government-built NEST scheme.

These new laws will be enforced and policed by the Pensions Regulator.

Minister for Pensions Steve Webb said: "Our society and economy needs to be based on a foundation of saving, not debt. Automatic enrolment will help millions save, and to not act will leave people poorer in retirement. That is why I am confirming today that automatic enrolment will start on time and all employers will be part of it.

"We recognise that small businesses are operating in tough economic times so we are softening the timetable for implementation to give them some additional breathing space. This is a sensible step that ensures long term pension issues are addressed while meeting the short and medium term needs of small business.

“We are committed to ensuring the employees of these small businesses get the chance to save and that is why no one will miss out."

Under the revised timeline, small business would begin automatically enrolling their staff in May 2015, instead of the current timing of April 2014. Half of all workers will still be automatically enrolled before the end of this Parliament.

“The key is, do you want to keep control of your employee benefits package or rely on someone else, who knows nothing about your business, to do it for you?” asks Keith Lowden.

“Why not take the opportunity now to investigate alternative solutions rather then wait for the inevitable?

“With more than 20 years’ experience in the pensions industry, our team at Parkhurst Hill Financial Planning is familiar with the challenges that businesses will face in light of these new laws and regulations.”

Parkhurst Hill Financial Planning can help:

• review your existing workplace pension scheme to make sure it will comply with, or exceed, the new requirements, or
• put a pension scheme in place if you haven’t got one yet
• with arrangements such as salary exchange that can save you money and offset the impact that these new laws will have on your business.

Keith adds: “Act now to set up your own scheme and retain complete control over your benefits package.

“If you would like to attend a seminar please let us know so that we can include your name to an invite at that time.”

Parkhurst Hill’s Payroll team can also assist with reducing the administrative and payroll costs that the new legislation may bring.

These changes are not far away - don’t leave it too late –

contact us now to arrange a consultation.

A campaign targeting tutors and coaches who have undeclared tax liabilities was launched by HM Revenue & Customs (HMRC) last month.

The Tax Catch up Plan for tutors and coaches (TCP) is for people who provide and profit from private lessons as a main or secondary income, on which the correct tax has not been paid.

Under the plan, tutors and coaches have until 31 March 2012 to inform HMRC of any unreported income for the years up to 5 April 2010 and to pay what is owed.

Those who come forward by the deadline are likely to receive the best possible terms for paying the tax owed.

After 31 March, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward. Those identified face substantial penalties or even criminal prosecution.

The Tax Catch up Plan has two stages:

* From 10 October 2011 to 6 January 2012, tutors/coaches/instructors must register with HMRC to “notify” that they plan to make a voluntary tax disclosure.

* By 31 March 2012 those who have registered to notify must tell HMRC what they owe and pay the tax, interest and penalties due.

If you need further advice, help or support regarding TCP, please contact Mike Brightwell at Parkhurst Hill.