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Extension of employment rights From 6 April 2008, the Information and Consultation of Employees Regulations 2004 are extended to undertakings with 50 or more employees. These have applied to undertakings (carrying out an economic activity, whether or not operating for gain) with 150 or more employees since 6 April 2005 and 100 or more employees from 6 April 2007. To determine if the threshold has been exceeded, generally the average number of employees for each month over the previous 12 months should be used. The regulations give employees’ rights to be informed and consulted on a regular basis about certain issues affecting the organisation for which they work, such as possible redundancy scenarios and future plans for expansion/contraction of the business. Employers and employees can agree on the subjects (activities and economic situation of the business), timing (at least one meeting per year is recommended) and method of consultation. Employers may withhold information, where disclosure would seriously harm the company or be prejudicial to it. From 6 April 2008, the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 requiring employers to consult with active and prospective members for a period of at least 60 days before making significant changes to pension schemes are extended to undertakings with 50 or more employees. The obligations have applied to undertakings with 150 or more employees since 6 April 2006 and 100 or more employees from 6 April 2007. For occupational pension schemes, changes that can trigger the duty to consult include increasing the age at which benefits become payable to members, closing the scheme to new entrants and introducing member contributions for the first time. For personal pension schemes, major changes include stopping, reducing or increasing by certain specified levels any employer contributions payable under direct payment arrangements. Paul Tew, Pay Magazine Snowdrop provides a range of Payroll solutions that are fast, flexible and easy-to-use, to suit the many and varied needs of each organisation. To find out more about the software and services that we provide, please click here >>
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