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Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics
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Find Previous Featured Articles | 
September 2012
Luxury Goods And Services, Website Contracts and Cookies
August 2012
The Olympics and Legal Implications of High Profile Events
July 2012
Hedging, LIBOR and Why Canadian Banks Are Setting Benchmarks
June 2012
May 2012
Employee Incentives and Share Option Schemes
April 2012
Hotels
March 2012
Marketing
February 2012
International Services
January 2012
Contract Law
December 2011
November 2011
Recruitment
October 2011
Intellectual Property Update
September 2011
Commercial Disputes
July/August 2011
Holidays, Gym Memberships, Nights Out
June 2011
Social Media and Comparative Advertising
Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics |
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Quick Links
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Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics
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Quick Links
|
Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics
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Greetings!
Welcome to our October newsletter.
With the clocks changing and the nights drawing in, this is a good time to stay indoors by the fire and get cracking on that financial paperwork you have been putting off.
The theme this month is saving for the future. This month's Scottish Widows Women and Pension Report examines the growing gap between the amount that men and women are saving for retirement. Key findings are that women are falling almost £30,000 behind men in retirement savings with over a quarter of women not saving anything for retirement but instead repaying short-term debt. This is of particular concern given the low levels of state pension pay outs. However, recent pensions reform legislation means auto enrolment will assist all eligible employees to start saving by placing a duty on all employers to automatically enrol qualifying workers into a workplace pension scheme. It's definitely a weight off our shoulders!
Our featured client this month is Bigmore Associates Limited, a firm of independent financial advisers specialising in wealth management, mortgages and life and health protection. Bigmore advise on personal wealth issues for individuals but also provide corporate support to companies on stakeholder pensions, key man insurance, commercial property and development finance.
This month we focus on the changes to pensions law and what factors employers should consider when varying terms of employment.
Finally - we are moving offices! As of Wednesday 7th November 2012 we will be the new happy residents of 17 Hanover Square, London W1S 1BN. We look forward to welcoming you there. Our new telephone number is 020 3102 6370.
If you have any queries or need advice in relation to any of the matters set out in this newsletter or any other legal issues, do not hesitate to call us on 0207 440 2540 or e-mail us at info@fortunelaw.com. We are always happy to help.
Further information
Fortune Law provides businesses with "a one stop shop" service dealing with commercial property, commercial litigation, employment, corporate and commercial law. We can also provide a dedicated service for international clients and we specialise in the hospitality sector.
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Shainul Kassam
Fortune Law Solicitors |
Tomorrow Is Worth Saving For 
You have most likely seen Theo Paphitis and the other Dragons from the Den on TV recently, or heard them on the radio, informing us about changes being made to workplace pension schemes across the UK. The gist of the message is that employees will be automatically enrolled into workplace pension schemes in what is being classed by the Government as the biggest reform to saving for retirement for over a century.
Why is this happening?
The truth of the matter is simply that we are all living longer and therefore need a bigger pension pot to rely on in later life and in order to fully enjoy retirement. Currently however, statistics show that fewer than 3 million people are paying into a company pension scheme. By 2018 the Government's aim is to have between 6 and 9 million people signed up to a private company pension scheme. The Government has also recognised that the cost of providing state pensions and means-tested benefits for those in retirement is becoming prohibitive in terms of cost and the obligation to make provisions for retirement is therefore also becoming an employer liability and responsibility.
In most cases, both employers and the government will also make pension contributions. The maximum state pension at the moment is only £107.45 per week, and so it makes perfect sense for individuals to start saving independently to survive financially upon retirement.
When is this happening?
From 1st October 2012, employees that fit certain criteria (see below) will automatically be enrolled in a workplace pension scheme. Relevant employers will receive a letter from the Pensions Regulator providing them with the correct date by which to comply. This letter will be sent 12 months before the staging date which differs from employer to employer depending on how many employees there are in the company.
The criteria for automatic enrolment are that the employee must:
- Not already be enrolled in a pension scheme at work
- Be aged 22 and over
- Be under the state pension age
- Earn over £8,105 per year
- Work in the UK
Staging Date 1 will take place in late 2012 and early 2013, with the larger firms introducing the scheme first. Then depending on the size of the company, the transition will take place over several years with completion expected by February 2018.
What do I need to do as an employer?
Unless you employ more than 50,000 employees, no action is needed at present. However, in the main your duties will be to:
- Know when to act: This depends on how many members of staff are involved. There is a full list of staging dates on The Pensions Regulator website; www.tpr.gov.uk.
- Start the planning process: assess your workforce to identify which members of staff are entitled to be enrolled (criteria mentioned above).
- Review your current pension plan if one exists: arrange for any changes to be made. Otherwise speak to a professional adviser to set up a new plan.
- Make changes to employment contract terms: see our next article for points to consider.
- Brief management personnel and inform other members of staff, HR and payroll about the changes that will need to be made.
- Communicate changes with employees: it is important to keep staff updated on the changes, advising how it will affect them and what they should expect.
- Consider your remuneration policies going forward: take into account pay increases and bonuses alongside your contributions to pensions.
If you or your company need help and advice relating to workplace pensions and the new regime, Fortune Law has the necessary expertise and experience to advise and help. Please get in touch by telephone on 020 7440 2540 or by e-mail at enquiries@fortunelaw.com.
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Featured Client: Bigmore Associates
www.bigmoreassociates.com
 | | Adam Neal, Bigmore Associates |
"We have experienced Shainul Kassam and Fortune Law from a number of different perspectives. Accordingly, there is a great deal that we can say, and all of it positive.
On occasion over the past five years we have had cause to refer a number of employment matters to Fortune Law. Paying any subsequent bill becomes a source of comfort for us - not because of its good value but more so because in doing so we know that we will have acted with integrity and in a manner that befits us as a fair but businesslike employer. These matters have varied from simple guidance on probationary periods to handling the departure from the firm of a long standing member of staff.
Away from employment matters I had some personal guidance from Shainul on my own shareholder status and agreements prior to an eventual management buy out.
What comes from such assured and professional dealings on a personal and business basis is a willingness to refer Shainul and her colleagues on to our long standing clients and contacts for their own purposes. Without breaking any client confidence I can acknowledge the role played to date in 3 hugely differing cases:
Firstly, the efficient handling of a compromise agreement for a client who was leaving his long term employment. While simple, it was the ease at
which our client felt during the process of dealing with FL that stood out.
Secondly, the negotiation and expertise brought to bear in a shareholder dispute. Though still ongoing, it is accurate to say that the additional value brought by Shainul is a personal gain to our client of a six figure sum. This is net of our clients cost of engaging Fortune Law.
Finally and most recently, Fortune Law have acted on the establishment of a new corporate structure and the required agreements to raise further invested capital to take this enterprise further.
We feel a net gain for our association with Shainul - by referring her
services we enhance our own reputation with already long-standing and well known individuals and businesses."
Adam Neal, Director
Bigmore Associates Ltd
St George's House
25 Bridge Street
Walton on Thames
Surrey, KT12 1AF
T: 01932 253939
F: 01932 248519
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Changing Terms Of Employment
Employment contracts set out the contractual rights and duties between an employer and employee and are usually signed upon hire. However, over time changes need to be made, these can relate to pay rises, bonuses, or other benefits either due to a natural progression in the specific line of work or due to various changes in legislation.
If an employer decides to make changes to terms of employment, they must take care to review the existing terms of the contract. These could comprise one of the following:
Express terms - those that have been agreed explicitly between the parties either orally or in writing.
Implied terms - these can be adopted through custom or company practice.
Incorporated terms - certain terms will be incorporated into the contract by statute such as the Equal Pay Act 1970.
If a change is required, the employer must check to see if the change is authorised in the contract whether by way of a general or specific flexibility clause or otherwise. If not, the employer must then either seek consent from the employee to vary the terms of the contract, impose the changes unilaterally or terminate the employment and offer re-employment on different terms. Obviously obtaining consent, preferably in writing is the simplest way forward and minimises the risk of employment claims such as unlawful deduction of wages and discrimination claims.
Three things to consider when negotiating changes:
- Why is the change necessary? If a restructuring or pay cut is necessary in order to secure the viability of the business going forward then employees are more likely to consent if the alternative is redundancy for example.
- Can any incentives (financial or otherwise) be awarded to staff to accept the changes and help "sweeten the deal"?
- Timing - employees are more likely to accept changes which are tied to benefits. For example, an annual pay rise or Christmas bonus or at an annual appraisal when the prospects of the company are more likely to be explained and a change can be more readily justified.
If you or your company need help and advice in making amendments to existing employment contracts and wish to minimise employment based claims, Fortune Law has the necessary expertise and experience to advice and help. Please get in touch by telephone on 020 7440 2540 or by e-mail at enquiries@fortunelaw.com. |
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