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U.S. Social Security Ruling Impedes U.S. Digital Nomad Visas in Spain

The U.S. Social Security Administration (SSA) is denying certificates of coverage to American digital nomad visa applicants in Spain. These applicants are employees of U.S. companies who want to work remotely from Spain. The SSA argues the existing Totalization Agreement…
Posted on 22nd July, 2024
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Double taxation risk for non-resident executive corporate officers of French companies

Some French jurisdictions recently challenged the criterion of physical presence to allocate the right to tax salaries paid to non-resident executive corporate officers of French companies. According to the Versailles Administrative Court of appeal (October 18 2022, Axa Group Operations),…
Posted on 15th July, 2024
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Exemption of withholding tax obligations for foreign employers of French tax residents

Additional guidelines on the scope and consequences of the measure. Further to our article dated 23rd October 2022, the Finance Bill for 2023 in its adopted version abolished the obligation to withhold wage tax at source some foreign employers of…
Posted on 20th March, 2023
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Switzerland: Employer’s obligations under the Gender Equality Act

The principle of equality between men and women is laid down in the Gender Equality Act, in particular the right to equal pay for work of equal value, and must be respected by the employer throughout the employment relationship. The…
Posted on 20th March, 2023
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Switzerland: Checklist for employee bonus entitlement

Each year, employers and employees are confronted with the same question: Who is entitled to a bonus? This article will show you how to easily check bonus entitlements in your company under Swiss employment contract law. No previous legal knowledge…
Posted on 20th March, 2023
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2023 visa routes to the UK

There are various “work visa” categories in the UK, many of which require sponsoring by a business with a relevant sponsor licence. Since the sponsor licence system was first introduced in 2008, these visa categories have evolved. Some have been…
Posted on 17th March, 2023
, in UK 
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Application of the inbound expatriate tax regime to employees returning to Italy from a posting abroad

Requirements for applying the inbound expatriate tax regime According to the rules regulating the inbound expatriate tax regime in Italy, employees are subject to tax on 30% of their Italy sourced employment income, assimilated income and income from self-employment, where…
Posted on 21st February, 2023
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Expanding into the EEA or UK for the first time

What are the main considerations when expanding into the European Economic Area (EEA) or the UK for the first time? We have created a checklist of the top 10 considerations for a business taking its first steps in the EEA…
Posted on 13th December, 2022
, in UK 
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New law in Spain for the equal treatment, non-discrimination, and protection of sexual diversity

Rights related to sexual freedom and moral integrity have evolved significantly in recent years. The new law in Spain offers greater protection against discrimination in the workplace, therefore both companies and workers must be informed to avoid conflicts, sanctions, and…
Posted on 3rd November, 2022
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The Draft Finance Bill for 2023 plans to reduce withholding tax obligations for foreign employers of French tax residents

A new wage tax withholding system has been applicable in France since 1 January 2019, burdening employers with the responsibility of withholding personal income tax from their employees’ taxable salaries and paying it monthly to the French tax authorities. This…
Posted on 23rd October, 2022
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An original organization of working hours in France: “le forfait en jours”

In France, working time regulations may be confusing. Although the legal duration of work is equal to 35 hours per week, exceptions to this rule are numerous. French Labor Law provides for multiple arrangements, including but not limited to a…
Posted on 12th October, 2022
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Amendments to the “Beckham Law” in the horizon for relocated employees in Spain

Global mobility is an irrefutable trend. In our ever-more globalized world, attracting talent has become a need to enterprises; a need that trespasses borders. This reality, known to the Spanish legislator, is the rationale behind the pre-draft of proposed amendments…
Posted on 28th September, 2022
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Mobile Working, Home Office, or Teleworking, are they under the same regulations?

Under German law, employers need to ensure they use decisive wording in agreements for mobile working, home office or teleworking to avoid possible pitfalls. Although these terms are often used as synonyms, under German law, they may have different legal…
Posted on 20th September, 2022
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Fast-Track Work Permits For Audio-Visual Industry

For the Spanish government, the audio-visual industry is of strategic importance to its economy because of its global nature, its capacity to generate employment and its potential for modernization through digitalization. To this end, the fast-track work permit for those…
Posted on 6th September, 2022
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Non-Habitual Resident

The non-habitual resident (NHR) regime is available to legal residents in Portugal who have not been a tax resident of the country during the previous 5 years. This is a very interesting fiscal optimisation tool and its financial saving allure…
Posted on 22nd August, 2022
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Delays to UK worker visas: what can employers do?

Many employers have struggled with the challenges caused by delayed VISA applications of their workers and a lack of priority appointments in all but a small number of visit visas. This has made it very difficult to reasonably plan when…
Posted on 21st August, 2022
, in UK 
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China Clarifies Cross Border Data Transfer Rules

In November 2021, China introduced their core personal data protection regulations: the Personal Information Protection Law (PIPL). The PIPL applies to personal information, which is information that may be used to identify natural persons. Article 73 of the PIPL uses…
Posted on 29th July, 2022
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5 things foreign employers should know about the French inbound expatriate regime

The inbound expatriates tax regime as provided for by Article 155 B of the French tax Code is one of the most efficient tax exemption mechanisms currently in force under French tax law. Beneficiaries of such regime who transfer their…
Posted on 21st July, 2022
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Dutch Government has announced its intention to limit tax relief on the 30%-ruling.

Under the 30% ruling an employer can provide a tax-free allowance to qualifying employees recruited or seconded from abroad to cover expatriate expenses.  The maximum tax-exempt allowance is set at 30% of the employee’s income that is subject to Dutch…
Posted on 28th June, 2022
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“The Macron Scale” of employment law damages approved by Supreme Court.

“The Macron scale” has been approved by the French Supreme Court.   After Emmanuel Macron’s election in 2017, a scale of damages, also known as the “Macron scale” (“barème Macron”), was introduced into French employment law. The Macron scale provides…
Posted on 21st June, 2022
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Employers to ensure written employment particulars are given of face fines of up to EUR 2,000 per employee

In June 2022, a new law is expected to be passed in Germany implementing the EU Directive 2019/1152 into national law. The new law supplements existing German law which already provides for the right of employees to a written record…
Posted on 14th June, 2022
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Right to Work Checks have changed from April 2022

In March 2020 Right to Work checks in the UK were temporarily adjusted due to the COVID-19 pandemic. This was to make it easier for employers to carry out checks. Temporary changes The following temporary changes were made: checks could…
Posted on 24th May, 2022
, in UK 
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Legal update – a new entry visa and work permit in Italy.

New Italian entry visa and work permit for digital nomads and remote workers The Italian Law no. 25 of 28th March 2022 has introduced a new entry visa and work permit which allows extra-EU citizens to enter and stay in…
Posted on 7th May, 2022
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A look at Italy’s attractive new tax regimes for inpatriate workers and pensioners

Back in 2019 and 2020 new, attractive tax regimes were launched for both employees and self-employed workers, and pensioners who transfer their tax residency to Italy. The Covid pandemic somewhat obscured the new regimes as permanent international moves, as opposed…
Posted on 3rd January, 2022
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The Netherlands: Dutch Budget 2022 – New Tax brackets and Tax Free Allowances

Dutch wage tax rates have been updated in the Dutch Budget 2022 as have the tax free limits of the Employment Costs Scheme which allows employer to provide tax free allowances and benefits in kind to employees. New Dutch income…
Posted on 3rd January, 2022
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UK GDPR – A new UK personal data transfer mechanism

What’s new? Eight months after the EU released their new standard contractual clauses for personal data transfers outside of the EEA, the UK Information Commissioner’s Office (ICO) issued its version of the new standard contractual clauses (SCCs). Why? Following Brexit,…
Posted on 3rd January, 2022
, in UK 
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Business immigration in Italy – the routes to obtaining a working visa and residence permit

1 - Italian Working Visa and Residence Permit Under Entry Quotas Non-EU citizens may obtain an Italian visa and residence permit upon meeting the conditions of the “Decreto Flussi”, a decree issued every year by the Italian government which sets…
Posted on 3rd January, 2022
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The requirement to make an annual Individual Tax Settlement for 2021 during March-June 2022

Individual taxpayers who were tax residents in China in 2021 may be required to handle the Individual income tax (“IIT”) annual settlement for the year 2021 from 1 March 2022 to 30 June 2022. On 8 February, the State Administration…
Posted on 3rd January, 2022
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New mechanisms of internal flexibility in companies to avoid dismissal entered the Spanish labour market playing field

On 30 December 2021 Spain introduced new labour market flexibility to avoid dismissals and meet the needs of businesses during the Covid-19 pandemic. By making these flexibility measures more accessible to companies outside of events like Covid-19, it is possible…
Posted on 3rd January, 2022
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Netherlands – Change of tax allocation rules for severance payments in cross-border situations

After 5 February 2022, the right to levy tax on severance payments in cross-border situations will no longer be based on the allocation of taxation rights over the last twelve months of the employment. Instead (in principle), it will be…
Posted on 3rd January, 2022
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UK – Investor route to a visa closed for those with £2m to invest – but alternatives remain for those wanting to invest in the UK

With the spotlight on wealthy Russians having used the Investor route as a quick path to settlement in the UK the Home Office closed this visa route to new applicants with immediate effect on 17 February 2022. Existing Investor migrants…
Posted on 3rd January, 2022
, in UK 
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Netherlands – A new tax exempt working from home allowance

Since 1 January 2022, employers can provide a tax exempt ‘working from home allowance’ of EUR 2 per working day. The allowance is intended to cover any additional expenses incurred when working at home (heating, coffee/tea etc.). This working from…
Posted on 3rd January, 2022
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Kurzarbeit in Slovakia – Emergency aid for employers – What you need to know

Kurzarbeit, or the short-term work scheme, has introduced a new procedure in Slovakia intended to help employers maintain employment when they are unable to assign work to their employees due to external factors outside of their control. Kurzarbeit replaces the…
Posted on 3rd January, 2022
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2021 Climate Law – New obligations to inform and consult employee representative bodies in France

On 22 August 2021, the French Parliament adopted the Climate and Resilience Law ("2021 Climate Law"). Since being passed, employee representative bodies must now be informed and consulted on the environmental consequences of any major project considered by an employer.…
Posted on 3rd January, 2022
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New tax regime in Belgium for inbound taxpayers

On 1 January 2022, a new tax regime came into force in Belgium for inbound employees, directors and researchers. The new regime provides for greater legal certainty (as opposed to the “old” ex-pat tax regime) for employers and qualifying employees/directors.…
Posted on 3rd January, 2022
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New employment law developments in Czech law effective from 1 January 2022

As of 1 January 2022,  several significant changes in the field of employment law have been adopted, including changes to the minimum wage and work-life balance. In this article, we assess these changes and their impact. Increase in the minimum…
Posted on 3rd January, 2022
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Implementing the Work-Life Balance Directive in Poland

A new draft act implementing Directive (EU) 2019/1158 of the European Parliament and of the Council of 20 June 2019 on work-life balance for parents and carers and Directive (EU) 2019/1152 of 20 June 2019 on transparent and predictable working…
Posted on 3rd January, 2022
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How can you support employees who are citizens of Ukraine?

Employers who employ Ukrainian citizens are now thinking about how they can help their employees and their family members. In addition to offering spontaneous support, e.g. by creating fundraisers, employers also have other options to help. Here are some suggestions…
Posted on 3rd January, 2022
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International Remote Working, Checklist for Employers

Are you ready for increased employee choices and flexibility in the workplace? There is no doubt that we are all living through an exceptional period of time, as a result of the pandemic. We have seen a revolutionary and practically…
Posted on 8th January, 2021
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Workers posted from the UK to France

As of January 1, 2021, the United Kingdom has been a country outside the European Union. A Trade and Cooperation Agreement (TCA) was signed with the United Kingdom on December 30, 2020. Since January 1, 2021, this agreement has determined…
Posted on 8th January, 2021
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Compliance with the minimum wage in the matter of posting – EU jurisprudence

CJEU, 8 July 2021, aff. C-428/19, Rapidsped : In a preliminary ruling on July 8, 2021 relating to Hungarian drivers performing their work in France, the European Court of Justice, questioned by a Hungarian administrative and Labour Court, ruled on the…
Posted on 8th January, 2021
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Remote working across borders: opportunities and traps for international employers

The attractions of remote working are obvious:  saving office space and costs for the employer, and commuting costs and time for the employee.  In the UK, figures published by the Office for National Statistics in April 2016 showed remote working…
Posted on 7th January, 2017
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From non-event to nightmare: Cross-border postings and the Posted Workers Enforcement Directive

International employers who send staff based in an EU country to work in other EU countries on a temporary basis – whether within an international group of companies, or to a customer in another state - will be familiar with the Posted Workers…
Posted on 4th January, 2017
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Europe and USA – Top tax and social security rates survey: Changes from 2015

Top rates of income tax & social security contributions – no significant changes After a period of generally increasing top-tax rates across many jurisdictions since 2008, as a response to the economic downturns seen across many countries, very few changes…
Posted on 1st January, 2016
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Quick survey of expatriate tax regimes in the European Economic Area and Switzerland

Expatriate tax breaks Some countries offer expatriates tax breaks (a tax relief or advantage) if they meet certain criteria.  Below we look at some of the countries that offer these.  Belgium A special tax regime is available for foreign executives…
Posted on 1st January, 2016
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Benelux: What are the formal requirements for an employment contract?

Netherlands Under Dutch law there are no formal requirements for an employment agreement; it can be entered into in writing or orally. However, for certain provisions (e.g. probation period, non-competition clause, amendment clause or penalty clause) it is necessary to…
Posted on 10th January, 2015
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ECA International events 2012

ECA International provides valuable data to employers operating international assignment programmes and have released their events & training programme for the first half of 2012.  These events are being run in various international locations. Resources International Events 2012
Posted on 2nd January, 2012
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New Swiss/Dutch Double Taxation Treaty

A new double taxation treaty between Switzerland and the Netherlands (the “new DTT”) contains new provisions on dividends, interest, capital gains and information exchanges. The provisions of the new DTT apply to tax years beginning on or after January 1,…
Posted on 2nd January, 2012
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UK tax – a look forward to 2012

The UK fiscal budget for 2012/13 will be set on 13 March.  We look at developments we expect to see in 2012 which have already been announced. Changes to tax allowances and bands The income tax personal allowance is to…
Posted on 2nd January, 2012
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France introduces an exceptional tax on high net income taxpayers

As part of the austerity plan started in 2011, the Finance Act for 2012 introduces an exceptional tax to be levied on those individuals with annual net taxable income exceeding EUR 250,000. The new tax is to be levied both…
Posted on 1st January, 2012
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Reforming executive pay – Government proposals and investor concern

There have been a number of recent developments with regard to executive pay.  These are summarised below. Department of Business Innovation and Skills In September 2011 the Department of Business Innovation and Skills (“BIS”) published 2 documents relating to executive…
Posted on 1st January, 2012
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The first prosecution under the UK Bribery Act 2010

The UK Crown Prosecution Service has announced the first prosecution under the Bribery Act 2010. The defendant is a magistrate’s court clerk who is alleged to have requested a payment of £500 in return for influencing the court’s conduct of…
Posted on 10th January, 2011
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Uncapped awards for failure to inform and consult on transfer of UK undertakings

A recent decision confirms that protective awards are uncapped for a breach of the information and consultation obligations under UK transfer of undertaking legislation (“TUPE”). Background A company purchased a business when it went into liquidation.  This was a relevant…
Posted on 10th January, 2011
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Wider employee share scheme exemptions from Prospectus Directive requirements now in force

The scope of the exemptions from the obligation to produce a prospectus under the Prospectus Directive were increased with effect from 31 July 2011 in the UK. Exemptions from the Prospectus Directive Under the Prospectus Directive a prospectus may be…
Posted on 10th January, 2011
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Increase of qualifying period for unfair dismissal and introduction of Tribunal fees to “increase competitiveness”

On 3 October 2011 it was announced that the length of the unfair dismissal qualifying period would increase to 2 years and that fees would be introduced for bringing Employment Tribunal claims. Unfair dismissal qualifying period In order to bring…
Posted on 10th January, 2011
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Agency Workers Regulations – in force from 1 October 2011

On 1 October 2011 the Agency Workers Regulations come into force in the UK.  Employers of the estimated 1.3 million agency workers in the UK take note! What is the effect of the Regulations? Day one rights From day one…
Posted on 10th January, 2011
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UK Immigration Update

We set out a summary of the latest developments in UK immigration law. Changes to the Sponsorship Management System (“SMS”) From 1 October 2011 there will be changes to the SMS.  This will affect the way in which applications for…
Posted on 10th January, 2011
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Carrying forward holiday entitlement accrued while on sick leave

The Employment Appeal Tribunal recently held that employees who accrue holidays during a period of sick leave will carry forward any untaken holiday entitlement to future holiday years automatically.  It is not necessary for them to have formally notified an…
Posted on 10th January, 2011
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Funds in Swiss bank accounts to be taxed from 2013

The UK and Switzerland have reached an agreement which will see funds in Swiss bank accounts taxed and the proceeds remitted to the UK Treasury. How it will work From 2013 Swiss bank accounts of UK taxpayers in Switzerland will…
Posted on 10th January, 2011
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Are your partners and LLP members really employees? Court raises spectre of employee liabilities

The Employment Tribunal found that an individual who had been a member of an LLP (paying tax and NI as a self employed person) should have been regarded as an employee.  The individual in question was originally an employee who…
Posted on 10th January, 2011
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Proposed new statutory residence test – some reflections

The consultation period relating to the proposed introduction of a statutory residence (and ordinary residence) test in the UK closed on the 9th September 2011.  We are now awaiting the publication by the Government of a summary of responses.  This…
Posted on 10th January, 2011
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Agency Workers Regulations – final guidance published

The Department for Business, Innovation and Skills (“BIS”) published final guidance on the Agency Workers Regulations 2010 (“AWR”) in May 2011. The AWR comes into force on 1 October 2011 and will not have retrospective effect.  This means that for…
Posted on 7th January, 2011
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Double taxation

The rules governing the taxation of commuters to Luxembourg have changed. On the 14th June 2011 the German Federal Ministry of Finance published the mutual agreement of 26th May 2011 between Germany and the Grand Duchy of Luxembourg regarding the…
Posted on 7th January, 2011
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Immigration crackdown on sponsor breaches predicted

A parliamentary committee’s report on lack of control over intra-company transfers (“ICT”) is predicted to spark enforcement of sponsor’s obligations. On 17 May, 2011 a report was published by the Committee of Public Accounts which raised the issue of the…
Posted on 7th January, 2011
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Proposed new residency test – complexity replaces uncertainty?

The Government has issued its proposals for a statutory residence test (“SRT”) for individual taxpayers. It is widely accepted that the current rules do not provide certainty in all cases and suffer from too great a level of subjectivity.  However,…
Posted on 7th January, 2011
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The UK Bribery Act came into force on 1 July 2010 as the FSA announces a corruption review

The UK’s Bribery Act 2010 (the “Act”) applies to all organisations carrying on business in the UK and creates a number of offences, breach of which is punishable by up to 10 years imprisonment and an unlimited fine. Organisations doing…
Posted on 7th January, 2011
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Insured benefits and the State Pension Age

Employers who want to withdraw insured benefits from employees who have reached the state pension age (the “SPA”) should be aware that it may not be as straightforward as it first appears. Background The Equality Act 2010 contains an exception…
Posted on 7th January, 2011
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The recast European Works Council (“EWC”) Directive came into force on 5 June 2011

On 5 June 2011 regulations came into force in the UK which implemented the recast EWC Directive, the result of which was a number of changes to the rules on EWC. The Transnational Information and Consultation of Employees (Amendment) Regulations…
Posted on 7th January, 2011
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UK Bribery Act Training – “Managing the risks”

CELIA Alliance member Abbiss Cadres LLP is holding further series of lunchtime workshop training sessions on the UK Bribery Act.  Places are limited and are available on a “first come, first served” basis. The sessions will look at how to…
Posted on 7th January, 2011
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New OECD Model Tax Convention – examining the new definition of “employer” in Article 15

The revised version of the condensed OECD Model brings welcome clarity to the meaning of employer for Article 15 (short term assignment) purposes. The OECD (Organisation for Economic Co-operation and Development) Council approved the 2010 Update to the Model Tax…
Posted on 4th January, 2011
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UK Budget 2011

The UK Budget was presented on 23 March 2011. Summary of the Budget’s major changes  The main points arising from this Budget are set out below: Revised legislation on “disguised remuneration” is included in the Finance Bill 2011 published on…
Posted on 4th January, 2011
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HMRC to fine small and medium sized businesses up to £3,000 for failing to keep proper records

HMRC has announced that it is to target 40% of the UK’s 4.9 million small and medium sized businesses which engage in poor record keeping and where HMRC expect that unpaid tax is likely to be due. HMRC intend to…
Posted on 4th January, 2011
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UK Bribery Act Guidance published – organisations doing business in the UK have until 1 July 2011 to ensure compliance

The UK Ministry of Justice has finally published the Guidance to the Act which now comes into force on 1 July 2011.  All organisations doing business In the UK should consider if steps are needed to ensure compliance. After a…
Posted on 4th January, 2011
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Draft guidance on Regulations extending employment protection to Agency Workers

The government has published draft guidance on the Agency Workers Regulations 2010 which come into effect on 1 October 2011.The Agency Workers Regulations implement the EU Temporary Agency Workers Directive 2008/104.  From 1 October  temporary agency workers with a minimum…
Posted on 4th January, 2011
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Victimisation claims covered by judicial immunity

Judicial proceedings immunity whereby a witness enjoys absolute immunity from any action brought on the ground that his or her evidence is false, malicious or careless extends to victimisation claims.The Employment Appeal Tribunal (“EAT”) held that a complaint of victimisation…
Posted on 4th January, 2011
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Self Assessment Tax – new regime significantly increases penalties for late filing

For the tax year 2011/12 there is a new penalty regime for late filing of tax returns and the late payment of tax.  Under the new regime penalties for filing a tax return six months late could exceed £1,300. The…
Posted on 4th January, 2011
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Looming deadline for filing annual return forms for approved and unapproved share schemes

The annual return forms must be filed by the relevant deadline or a penalty may be imposed by HMRC. Annual return forms The following annual return forms for the year ended 5 April 2011 are now available on HMRC’s website. …
Posted on 4th January, 2011
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ECJ decision to increase premiums for insured and other benefits

The ECJ has held that insurers cannot take gender into account as a risk factor when setting premiums and payouts in respect of annuities, retirement savings and accident cover. The decision is likely to affect many insured benefits provided by…
Posted on 4th January, 2011
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UK: Government guide to maternity and new additional paternity leave rights

Male employees with parental responsibility for babies that are due to be born or placed for adoption on or after 3 April 2011 will have the right to take part of their partner’s maternity leave as “additional paternity leave”, subject…
Posted on 12th January, 2010
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UK: Government considers making it easier to dismiss employees

The UK government is actively considering increasing the qualification requirement for protection from dismissal from one to two years as a means of increasing employment. Unfair dismissal rights Employees who have a years’ service when they are terminated have the…
Posted on 12th January, 2010
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UK: Breaking news – New CEBS guidelines published on 10 December

Further to our article - CRD 3 and restrictions on remuneration in the financial services sector (click here), the Committee of European Banking Supervisors (“CEBS”) has published new guidelines on the Capital Requirements Directive (“CRD 3”). These Guidelines will be…
Posted on 12th January, 2010
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UK: Bribery Act 2010 – ALERT – Are you compliant?

All organisations doing any business in the UK need to take active steps to manage the risk of criminal liability under this new Act The provisions of the Act come into force in April 2011. An obligation on all commercial…
Posted on 12th January, 2010
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UK: The EHRC have published draft Codes of Practice on the Equality Act 2010 (the “Act”)

The UK Equality Act 2010 (the “Act”) covers all areas of equality and discrimination legislation.  The Codes of Practice (the “Codes”) are key to understanding the new obligations under the Act. The Equality and Human Rights Commission (“EHRC”) has produced…
Posted on 12th January, 2010
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UK: UK Enterprise Management Incentives (“EMI”) schemes and foreign companies

The highly tax efficient share scheme for smaller companies is to be made available to foreign companies. Background EMI schemes are the most flexible of the UK’s tax favoured share option plans and provide generous tax treatment to participating employees…
Posted on 12th January, 2010
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UK: Amended Prospectus Directive finalised – extended exemption for employee shares schemes

The proposed early enactment into UK law of 2 of the recent amendments to the Prospectus Directive and the expansion of the share schemes exemption to include all EU companies. On 11 October 2010 the Council of the European Union…
Posted on 12th January, 2010
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UK: Employers may withhold discretionary bonuses even where performance is satisfactory

When determining whether to award a discretionary bonus or not the key issue for the Courts to look at is whether the employer’s decision was irrational or perverse and not whether the employees performance was sufficient to justify a bonus.…
Posted on 12th January, 2010
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UK: 2011 “Budget” date announced for review of UK fiscal regime

The UK Budget 2011 will take place on Wednesday 23 March 2011. This date is important because changes to the UK tax regime can come into effect on the day of the Budget.  Where possible, any schemes which may be…
Posted on 12th January, 2010
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UK government announces new cap on number of migrants to the UK

The government has announced that from April 2011 new measures are being introduced to limit the number of non-EEA migrants who may come to the UK. Overview of UK immigration system During 2008/9 the UK immigration system was changed to…
Posted on 12th January, 2010
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CRD 3 and restrictions on remuneration in the financial services sector

STOP PRESS An amended version of CRD (the “Capital Requirements Directive”) 3 was published on 30 September 2010 by the Council of Europe. On 10 December 2010 the Committee of European Banking Supervisors (“CEBS”) published new guidelines on the Capital…
Posted on 12th January, 2010
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UK: Court of Appeal refuses to extend legal professional privilege (“LPP”) to non-lawyers

Clients who obtain advice from non-lawyers may not be able to prevent the disclosure of information given to advisors. What is legal professional privilege? LPP applies to confidential communications which pass between a client and his lawyer and which have…
Posted on 12th January, 2010
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UK: Proposals for the protection of personal data finally published by the European Commission (the “Commission”)

Key objectives which will provide the framework for the EU’s revised protection of personal data legislation. The key objectives are those of: strengthening individuals’ rights; protecting sensitive data; making remedies and sanctions more effective; enhancing the single market dimension; ensuring…
Posted on 12th January, 2010
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UK: Effective date of termination of employment – impact on incentive plans

The Supreme Court confirm the timing of the effective date of termination (“EDT”) of employment on summary dismissal - a key date for vesting of rights under incentive plans. The Supreme Court held that when employment is summarily terminated by…
Posted on 12th January, 2010
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UK: Ability to compromise discrimination claims under the Equality Act 2010 in doubt

Care needs to be taken before settling discrimination claims until legislative fault is corrected. On 1 October 2010 the Equality Act 2010 came into force and now governs all aspects of discrimination in employment (age, sex, race etc).  However the…
Posted on 12th January, 2010
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Employment: New criminal offences to counter corporate corruption

On 8 April 2010 the Bribery Bill received Royal Assent. No date has yet been set for the new Act to come into force, however it represents a complete overhaul of corporate obligations in relation to bribery and corruption.  The…
Posted on 5th January, 2010
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Employment: New paternity rights available for new and adoptive parents from 3 April 2011

On 6 April 2010, regulations came into force granting new rights to additional paternity leave and pay for parents with children due on or after 3 April 2011. The new rights will also apply to adoptive parents who have received…
Posted on 5th January, 2010
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Employment: Equality Act passed

On 6 April 2010 the Equality Bill as amended by the House of Lords was passed without further change by the House of Commons.  It received Royal Assent on 8 April and the majority of its provisions are expected to…
Posted on 4th January, 2010
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Employment: Changes to European Works Council regulations

The Transnational Information and Consultation of Employees (Amendment) Regulations 2010 (“TICE”)  amending the Transnational Information and Consultation of Employees Regulations 1999 (the “1999 Regulations”) in order to bring them into line with the recast 2009 European Works Council Directive (the…
Posted on 4th January, 2010
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Employment: Significant changes to the UK points-based Immigration Rules from 6 April 2010

On 18 March 2010 the Home Office announced changes to the Tier 1 (highly skilled workers) and Tier 2 (skilled workers with a job offer) which impact all applications made on or after 6 April 2010 Changes to Tier 1…
Posted on 4th January, 2010
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Employment: Proposed Equality Act: Codes and new guidance in development by EHRC

In anticipation of the current Equality Bill coming into force, the Equality and Human Rights Commission (“EHRC”) has been working on producing associated statutory Codes of Practice together with non-statutory guidance. The Equality Act is intended to replace nine anti-discrimination…
Posted on 3rd January, 2010
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Compensation & Benefits: Publication of proposals from EHRC to reduce gender pay gap – voluntary participation encouraged from employers “straight away”

Last year we reported that the Equality and Human Rights Commission (“EHRC”) had been asked by the Government to review private sector pay arrangements in an attempt to increase transparency in the area of pay and narrow the pay gap…
Posted on 3rd January, 2010
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Compensation & Benefits: Total Reward – What does success look like?

Total Reward has enormous potential to improve business performance through an engaged workforce, and it is being harnessed and utilised by many UK companies Recent research from both Thomsons and the CIPD (see links in Resources below) show a third…
Posted on 3rd January, 2010
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Compensation & Benefits: New PAYE penalty regime from April 2010

HMRC has issued a draft order providing that the new penalty regime for late payment of income tax under PAYE will come into force from 6 April 2010 PAYE penalties are not currently charged.  However, given the ongoing drive by…
Posted on 3rd January, 2010
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Employment: Application of UK employment legislation to a worker travelling from one place to another

The Court of Appeal (“CA”) has upheld a decision of the Employment Appeal Tribunal that a seaman employed on a ship registered outside Great Britain can bring an unfair dismissal claim in the UK, provided he can show that he…
Posted on 3rd January, 2010
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Employment: Reduced compensation limit for unfair dismissal from February 2010

The Employment Rights (Revisions of Limits) Order 2009 sets out a new, reduced, upper limit on awards for unfair dismissal, effective from 1 February 2010. The change has been made to take account of the decrease in the retail prices…
Posted on 3rd January, 2010
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Compensation & Benefits: UK Enterprise Management Incentives (“EMI”) schemes

To become more attractive to non-UK companies Following on from the recent announcement by HM Revenue and Customs regarding a significant development concerning EMI schemes, the proposed amendment to the EMI legislation has been included in the Finance Bill 2010…
Posted on 3rd January, 2010
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Compensation & Benefits: An extra bank holiday in 2012!

The government plans to create a one-time extra bank holiday on 5 June 2012 to mark Queen Elizabeth II’s Diamond Jubilee. In addition to the extra day of holiday, the existing bank holiday in late May will be moved to…
Posted on 3rd January, 2010
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Compensation & Benefits: Normal minimum pension age set to rise to 55 from 6 April 2010

As a general rule a member of a UK registered pension scheme must reach a specified age before he can draw his pension, the normal minimum pension age (“NMPA”).  This will rise from 50 to 55 on 6 April 2010.…
Posted on 3rd January, 2010
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Compensation & Benefits: Amendment to AIM rules to now require disclosure of directors’ remuneration

On 15 December 2009, the London Stock Exchange published AIM Notice 35, detailing proposed amendments to the AIM Rules. On 17 February 2010, AIM Notice 36 was published with a new version of the AIM Rules, which are effective from…
Posted on 3rd January, 2010
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International Assignments: Amended HMRC arrival procedures for expatriate employees

Notifications of new arrivals in the UK will no longer be accepted by HMRC if the correct form is not submitted by employers HM Revenue & Customs (HMRC) has confirmed that they will no longer accept notifications of new arrivals…
Posted on 3rd January, 2010
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Employment: 42 year old banker wins age discrimination claim

A tribunal has upheld a 42 year older banker’s claims for age discrimination, unfair dismissal and protective awards against one of the largest banks in Canada, Canadian Imperial Bank of Commerce (“CIBC”).  The banker, who earned £900,000 a year, had…
Posted on 3rd January, 2010
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Compensation & Benefits: Incomplete disclosure of facts may result in both formal and informal tax rulings being withdrawn

In a recent VAT case, the High Court has ruled that taxpayer's application for judicial review of HMRC's decision to withdraw its VAT ruling with retrospective effect, because the taxpayer had failed to make a full and accurate disclosure of…
Posted on 3rd January, 2010
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International Assignments: Residency in the UK- where are we now?

In recent weeks, there have been a number of decisions highlighting the complexities surrounding residence in the UK All of the decisions, including the well-known Court of Appeal case involving Robert Gaines-Cooper, have been decided in favour of H M…
Posted on 3rd January, 2010
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International Assignments: A new concealed tax on sport?

International athletes who attend sporting events in the UK may be subjected to UK tax on a higher proportion of their worldwide earnings than has previously been the case before.  However, HM Revenue & Customs (HMRC) has denied a change…
Posted on 3rd January, 2010
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Compensation & Benefits: Revised European social security legislation from 1 May 2010

Revised EU legislation will introduce substantial changes to social security for EU employers not present in the UK and for those individuals who work temporarily outside their home EU member state The revised EU social security legislation (833/2004) will finally…
Posted on 3rd January, 2010
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Employment: Clarification of territorial scope of race and age discrimination legislation

Employees who work at least partly in the UK are entitled to rely on UK legislation to bring race and age discrimination claims. The Employment Appeal Tribunal (“EAT”) has ruled that when determining whether an employee works “wholly or partly”…
Posted on 3rd January, 2010
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Compensation & Benefits: Update on proposed auto-enrolment pension reforms

“Pragmatic approach” welcomed as “major step forward” Following the Department for Work and Pensions’ (“DWP”) consultation exercise in September 2009, key changes have been made to the draft regulations initially published.  The revised regulations relate to employers duties set out…
Posted on 3rd January, 2010
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Compensation & Benefits: Clarification of entitlement to holiday pay upon termination – contractual claim not brought under Working Time Regulations

The Employment Appeal Tribunal (“EAT”) has upheld an employment tribunal’s decision that, under the terms of the employment contract, an employee was entitled to a payment in lieu of untaken holiday accrued over the full period of seven and a…
Posted on 3rd January, 2010
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Compensation & Benefits: FRC issues final report on corporate governance and commences consultations on draft revised Combined Code and a new stewardship code

Current Combined Code is “broadly fit for purpose”. The Financial Reporting Council (FRC) has confirmed that it has found no evidence of “serious failings in the governance of business outside the banking sector” but, nevertheless, it now proposes “sensible improvements”…
Posted on 3rd January, 2010
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Employment: New regulations to implement the Temporary Agency Workers Directive

Following consultations in 2009, the regulations implementing the EU Temporary Agency Workers Directive, the Agency Workers Regulations 2010 (the “Regulations”), have been laid before Parliament.  The Regulations are due to come into force on 1 October 2011. The draft Regulations…
Posted on 3rd January, 2010
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Compensation & Benefits: Government issues concession on childcare vouchers, “not a U turn”

In our previous newsletter, we reported that the Government was planning to remove the existing tax and National Insurance Contributions (NICs) exemptions on childcare vouchers (see link to article in Resources below) from 2011. Following heavy lobbying from MPs, the…
Posted on 3rd January, 2010
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Employment: New legal right to request time off to train

The Apprenticeships, Skills, Children and Learning Act 2009 (the “Act”), the main provisions of which come into force for businesses with 250 or more employees in April 2010, will give certain qualifying employees the right to request time off from…
Posted on 3rd January, 2010
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Compensation & Benefits: New HMRC ‘rights’ Charter

On 11 November 2009, HMRC published its new Charter called 'Your Charter', setting out the rights of obligations of individuals when dealing with HMRC. The Charter notes that HMRC wants to give the taxpayer a “service that is even-handed, accurate…
Posted on 3rd January, 2010
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Employment: Revised guidance for injury to feelings compensation

The Employment Appeal Tribunal has ruled that the bands for damages awarded for injury to feelings in unlawful discrimination cases (known as “Vento” damages) should be increased in line with inflation, with immediate effect. The upper limit of the lower…
Posted on 3rd January, 2010
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Compensation & Benefits: HMRC issues new guidance on Share Incentive Plans

On 29 January 2010, HMRC issued new guidance in its Employee Share Schemes User Manual on the operation of SIPs. Resources Employee Share Schemes User Manual For further information, please contact Guy Abbiss (guy.abbiss@abbisscadres.com) or Libs Davies (libs.davies@abbisscadres.com) on +44…
Posted on 3rd January, 2010
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Compensation & Benefits: The post-Walker corporate governance environment

Governance needs to be brought “back to centre stage” but will not be achieved through “box-ticking conformity” So stated the final recommendations of the Walker report published in November 2009. Background As reported in our article dated 9 November (see…
Posted on 3rd January, 2010
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Compensation & Benefits: New company car mileage rates

From 1 December 2009, HMRC approved rates payable to an employee for use of a company car for business purposes have changed with immediate effect. (HMRC explained that the one month’s prior notice previously given for such changes does not…
Posted on 3rd January, 2010
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Employment: Continuity of employment preserved in pre-pack sales

Background Regulation 8 of the Transfer (Protection of Employment) Regulations 2006 (“TUPE”) provides that if an insolvency is with a view to the liquidation of the assets of the transferor then its provisions do not apply.  If, on the other…
Posted on 11th January, 2009
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Compensation & Benefits: National minimum wage rises (slightly)

Small increases to the national minimum wage took effect from 1 October 2009 The government has adopted the Low Pay Commission’s recommendations that: the adults rate, for workers aged 22 or over,  should rise from £5.73 to £5.80 per hour;…
Posted on 11th January, 2009
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Compensation & Benefits: Greater scope to challenge service-related pay criteria

Employers required to justify both the “adoption” and “application” of service-related pay criteria as Court of Appeal establishes a  low hurdle for employees. Background The Equal Pay Act 1970 implements Article 141 of the EC Treaty in Great Britain whereby…
Posted on 11th January, 2009
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Employment: Equality Bill Update: responses to consultation on multiple discrimination proposals published

The proposals aim to provide protection against multiple discrimination without placing undue burden on businesses. Existing law requires individuals who have experienced multiple discrimination to bring separate claims for each type of unlawful discrimination.  For example, a black woman passed…
Posted on 11th January, 2009
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International Assignments: A guide to living and working in Switzerland as a foreign individual

This guide sets out the work and residence permit rules applicable to EU/EFTA nationals and third country nationals, the tax consequences for foreigners living and working in Switzerland, together with the Swiss import and customs regulations, and details the Swiss…
Posted on 11th January, 2009
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Employment: The High Court limits damages in wrongful dismissal cases

Court confirms limit on damages for failure to follow contractual disciplinary procedure A doctor sought to claim loss of earnings of more than £4 million, in a wrongful dismissal claim.  The High Court ruled that in a wrongful dismissal claim…
Posted on 11th January, 2009
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Employment: Government launch “helpline” on government enforced employment rights

The service is available to employers and workers for information and advice, and to report breaches of National Minimum Wage, Employment Agency standards, Working Time rules and other matters. The government has launched a service which appears to be a…
Posted on 11th January, 2009
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Compensation & Benefits: Corporate Governance – what now for listed non-financial services companies?

Following the global banking crisis, much has been detailed in the press regarding corporate governance for banks and financial institutions. In July 2009 Sir David Walker published his review on the issue which was commissioned by the UK Treasury. .…
Posted on 11th January, 2009
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Compensation & Benefits: EU Commission now narrows Prospectus Directive exemption for employee share schemes

Soon after announcing a proposal for a blanket exemption the EU has revised its proposals. Background As set out in our last newsletter, on 24 September 2009, the EU Commission published its proposed amendments to the Prospectus Directive as part…
Posted on 11th January, 2009
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Employment: Changes to rates from 1 October 2009

Increases to statutory redundancy payment and basic award for unfair dismissal The limit on the maximum amount of a week’s pay taken into account to calculate the amount of statutory redundancy payments and basic awards for unfair dismissal increased with…
Posted on 11th January, 2009
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Compensation & Benefits: Pensions reforms – new disclosure rules for tax avoidance schemes

Following on from the announcements in April of this year regarding the restriction of higher rate tax relief on pension contributions for those earning more than £150,000, HM Revenue and Customs (HMRC) has updated its guidance on the disclosure of…
Posted on 11th January, 2009
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Compensation & Benefits: Childcare vouchers to lose tax and National Insurance Contribution exemptions

Employers should take advantage of the scheme now to secure the tax and NIC advantages to 2015 Controversial proposals from the government will mean that employees joining childcare voucher schemes from April 2011 will not be entitled to the existing…
Posted on 11th January, 2009
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Employment: Compulsory retirement age for all civil servants to be scrapped by 2010

Last October the UK government pledged to remove the compulsory retirement age for all junior civil servants.  The Cabinet Secretary has now promised to do the same for senior civil servants, making the civil service “retirement free”. From April 2010…
Posted on 11th January, 2009
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Compensation & Benefits: Employee Benefit Trusts (EBTs) – anti-avoidance update

HM Revenue & Customs (“HMRC) has recently published Spotlight 5: Using trusts and similar entities to reward employees - PAYE (Pay As You Earn) and National Insurance contributions (NICs), Corporation Tax and Inheritance Tax, highlighting avoidance schemes. Background Recent tax…
Posted on 11th January, 2009
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Compensation & Benefits: Report published on risk governance in non-financial service companies

Backing from ICAEW for a “hands-off" approach to the non-financial sector Those interested in where the current corporate governance debate will take us will be interested to note that on 12 October 2009 the Institute of Chartered Accountants of England…
Posted on 11th January, 2009
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International Assignments: Double tax agreement: exchange of information protocol signed to UK/Malaysia agreement

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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International Assignments: Double tax agreement – new exchange of information protocol to UK/Switzerland agreement signed

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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International Assignments: US – IRS issues guidance on new exit tax

The US Internal Revenue Services (IRS) has issued guidance on the new exit tax that applies to individuals subject to US expatriation on or after 17 June 2008. Expatriation is a term used to refer to individuals who have given…
Posted on 10th January, 2009
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International Assignments: Termination of a foreign secondment: Repatriation and reintegration obligation

Obligations for French employers to repatriate seconded employees triggered by business transfers. The temporary cross-border assignment of employees in multinational groups is a common HR management tool.  To protect seconded employees against the difficulties that may arise from the termination…
Posted on 10th January, 2009
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International Assignments: New France-UK dual tax treaty

The new treaty offers exemptions from French wealth tax and closes avoidance loopholes. France and the UK signed a new tax treaty on 19 June 2009 to replace the current tax treaty which is now more than 40 years old. …
Posted on 10th January, 2009
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International Assignments: Deadline for UK personal income tax returns looms

Tax payers who are required to file a 2008/09 UK personal income tax return and are planning to file a paper return have until midnight on Saturday 31 October 2009 to submit their return to HM Revenue & Customs. Individuals…
Posted on 10th January, 2009
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Compensation & Benefits: HM Revenue & Customs update Employee Share Schemes User Manual (“ESSUM”)

HMRC has published updates to the ESSUM including some useful clarifications on SAYE (“Save As You Earn”) and CSOP (Company Share Option Plan) options. Resources HMRC website list of ESSUM updates made on 27 July 2009 Disclaimer Content is for…
Posted on 9th January, 2009
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Compensation & Benefits: EMI options

All companies issuing EMI options should note that the relevant HMRC office has now changed address. HMRC’s Small Company Enterprise Centre (SCEC) which deals with the administration of Enterprise Management Incentive (“EMI”) options moved from its longstanding address in Cardiff,…
Posted on 9th January, 2009
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Employment: Compensation can be reduced for earnings

In unfair dismissal cases an employee does not have to give credit for earnings from alternative employment during the normal notice period (known as the “Norton Tool principle” after the case that established the rule). In a recent case the…
Posted on 9th January, 2009
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Employment: Workers can reclaim holidays lost to sickness

The European Court of Justice (ECJ) has ruled that a worker who is sick during a period of annual leave may decide to postpone his holiday entitlement to an alternative date. This case builds on the principle established in ECJ…
Posted on 9th January, 2009
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Compensation & Benefits: EU Commission proposes exempting all employee share schemes from the Prospectus Directive

The proposal extends the current employee share schemes exemption to all companies even if they  are not listed on a regulated market in the EEA,  but it may take some time to come into force. On 24 September 2009 the…
Posted on 9th January, 2009
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Compensation & Benefits: New levy on workplace parking

On 1 October 2009 new regulations come into effect that will allow local authorities in England (excluding Greater London), to introduce schemes under which employers and educational establishments will be charged for each parking space they provide. The stated aim…
Posted on 9th January, 2009
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Employment: High Court rules default retirement age of 65 is lawful

On 25th September 2009 the High Court gave judgement in the so-called “Heyday” case, a long-running challenge to the legality of the Default Retirement Age (DRA) of 65 established by the Employment Equality (Age) Regulations 2006. Heyday is a charitable…
Posted on 9th January, 2009
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Employment: Consultation on gender pay reporting in the private sector – a first step before mandatory reporting

The Equality and Human Rights Commission (“EHRC”) is consulting on ways to measure and report on the gender pay gap in private and voluntary sectors on a voluntary basis – new powers to compel reporting from 2013 appear in the…
Posted on 9th January, 2009
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Employment: Information Commissioner hikes annual data controller notification fees

It is a legal requirement for organisations to register with the Information Commissioner if they process personal data relating to living individuals. As the definition of "processing personal data” is wide enough to include holding of names on customer lists…
Posted on 9th January, 2009
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Compensation & Benefits: OFT takes anti-money laundering (“AML”) role

Some loans made to employees require employers to be licensed under the Consumer Credit Act 1974 to avoid potential criminal liability and to be able to enforce the loan.  The OFT now requires such employers to register with it for…
Posted on 9th January, 2009
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Compensation & Benefits: Extension to paternity leave revisited – employers fear administrative burdens and scope for fraud

The government will shortly be consulting on proposals to allow fathers to “share” some of a mother’s maternity leave entitlement. Currently fathers are entitled to 2 weeks paid paternity leave whereas mothers are entitled to 52 weeks maternity leave of…
Posted on 9th January, 2009
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Employment: Government brings forward review of default retirement age

The government has announced that the review of the default retirement age (“DRA”), originally scheduled for 2011, will be brought forward to 2010.  It is expected that any changes to the DRA will not be implemented until 2011. At present…
Posted on 9th January, 2009
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International Assignments: How to manage international assignments

We look at the key considerations to bear in mind when approaching the question of managing international assignees. Before the employee leaves the UK Assignment policy Employers that would like to deal with international assignments in an effective and efficient…
Posted on 9th January, 2009
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Compensation & Benefits: Employment trends survey reveals extent of workplace belt tightening

The Confederation of British Industry and recruitment consultancy Harvey Nash have published a survey revealing the extent of organisational changes employers have made or are considering making to weather the downturn. Key findings The survey attracted responses from 704 organisations,…
Posted on 9th January, 2009
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Employment: Mentoring scheme to increase numbers of female non-executive directors in FTSE

An initiative sponsored by BP and MWM Consulting, “Women for Boards” was announced on 23rd September.  The scheme aims to address the massive under-representation of women on the boards of Britain’s top companies by providing mentoring by experienced female non-executive…
Posted on 9th January, 2009
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Compensation & Benefits: New personal pension accounts regime

As the UK government moves to ensure the UK (and its employers) save for retirement and issues  more consultation on the new regime planned for 2012, now is the time for employers to plan for the new financial and administrative…
Posted on 9th January, 2009
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International Assignments: Substantial changes to EU social security regulations in May 2010

New liabilities for EU employers not present in the UK; employees working in two EU member states may no longer be able to stay in their home country social security system The revised EU social security regulations for individuals who…
Posted on 9th January, 2009
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Imminent changes to UK Immigration system require immediate action

This Alert is essential reading for organisations that employ non EU nationals in their UK workforce. From the end of November the current UK work permit scheme will be replaced with a new points-based qualifying system.  From the end of…
Posted on 9th January, 2009
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Employment: New measures crack down on unpaid tribunal awards

The Government has announced new measures to reduce the number of unpaid tribunal awards and the costs of enforcing them.  The new measures are in response to Government research which found that: 39% of awards granted have not been paid;…
Posted on 7th January, 2009
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Expatriates: New Tier 1 application forms

In response to recent changes to Tier 1 of the Immigration Rules, the UK Border Agency has released new application forms for each of Tier 1 (general) and Tier 1 (post study work).  The old versions of these forms are…
Posted on 7th January, 2009
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Employment: Paternity leave extension shelved

The Government has shelved plans to extend fathers’ paternity leave to enable mothers to return to work earlier.  Fathers are currently only allowed 2 weeks’ paternity leave, whereas the proposals would have given fathers six months’ paid leave.  The Government…
Posted on 7th January, 2009
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Compensation & Benefits: UK income tax and social security – the new realities

We look at the new tax rates in force from April 2010 as well as the new rules on tax relief for pension contributions. Changes to the UK tax system taking effect from 6 April 2010 significantly increase the tax…
Posted on 7th January, 2009
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Employment: Consultation on regulation of contingency fees in tribunal cases

The Government has announced plans to consult on the regulation of “damages-based contingency fees” (“DBCFs”) in employment tribunals.  A DBCF is a type of “no-win, no-fee” agreement which allows a claimant’s legal representative to receive a percentage of the total…
Posted on 7th January, 2009
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Compensation & Benefits: Statutory holiday pay for workers on long term sick leave

Earlier in 2009 the European Court of Justice ruled that workers who were on long-term sick leave were entitled to continue accruing annual holiday even if they had exhausted all entitlement to paid sick leave.  The ECJ also ruled that…
Posted on 7th January, 2009
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Compensation & Benefits: National minimum wage set for a small rise

Small increases to the national minimum wage will take effect from 1 October 2009.  The Government has adopted the Low Pay Commission’s recommendations that: the adults rate, for workers aged 22 or over,  should rise from £5.73 to £5.80 per…
Posted on 7th January, 2009
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Employment: Updated guidance on managing workplace stress

The Chartered Institute of Personnel and Development, the Health and Safety Executive and Investors in People collaborated to produce new guidance for line managers on managing workplace stress.  The updated guidance is entitled "Line management behaviour and stress at work". …
Posted on 7th January, 2009
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Compensation & Benefits: 3 top ways to achieve legitimate tax efficiencies

Tax and national insurance rates may be rising and HMRC may be cracking down on avoidance schemes but there are legitimate ways to achieve tax efficiencies. 1. Pay bonuses early Many companies are considering bringing forward the payment of bonuses…
Posted on 7th January, 2009
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Employment: Equality Bill 2009 – a wide-ranging reform of discrimination legislation

The Equality Bill 2009 is currently being debated in Parliament, with simultaneous public consultation on specific provisions including the proposed extension of age discrimination laws to the provision of services. The Bill is designed to replace and simplify all existing…
Posted on 7th January, 2009
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Expatriates: New rules for non-UK domiciled and not ordinarily resident taxpayers

Under the UK tax system those who have a non-UK domicile are entitled to use the remittance basis of taxation whereby only income and gains which they “remit” to the UK is taxable here. So too the remittance basis applies…
Posted on 7th January, 2009
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Employment: Using length of service criterion in redundancy selection

Since the introduction of legislation outlawing age discrimination in 2006 employers have generally been advised that “last in first out” or other service-related criteria for redundancy selection are best avoided.  However certain employers had binding redundancy selection processes, often negotiated…
Posted on 7th January, 2009
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International Assignments: Short term business visitors and PAYE

Many employers remain surprised that earnings in respect of duties performed in the UK are taxable and subject to PAYE even if the employee is not tax resident in the UK and is present in the UK for less than…
Posted on 7th January, 2009
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Employment: Consultants subject to implied duty of confidentiality

Although employers are well-advised to put express provisions in a written contract, it is established that employees are subject to an implied duty of confidentiality that prohibits them from using or disclosing their employers “trade secrets” even after the employment…
Posted on 7th January, 2009
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International Assignments: Double tax treaties

HMRC have announced (9 June 2009) the UK’s double tax treaty negotiating priorities for the period to 31 March 2010 as well as setting out recent double tax treaty developments - listing those which have recently been finalised or have…
Posted on 7th January, 2009
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Employment: EU social partners agree to increase parental leave

On 18 June 2009 the EU social partners revised an agreement to increase the period of parental leave from 3 months to 4 months per parent.  UK employees who have at least one year’s service are currently entitled to up…
Posted on 7th January, 2009
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Compensation & Benefits: New Sharesave bonus rates

Employees participating in HMRC approved Sharesave schemes are required to save a certain amount from their net pay, normally monthly.  The arrangement will normally include an entitlement to a bonus which is equal to a guaranteed number of monthly contributions. …
Posted on 7th January, 2009
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Compensation & Benefits: Thomson Online Benefits publish Employee Rewards Watch 2009

A survey by Thomsons Online Benefits has found that 88.32% of respondents thought that reward professionals are under more pressure to minimise costs and improve return-on-investment in 2009.  The research also revealed that reward professionals are poorly equipped to respond…
Posted on 7th January, 2009
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Tax/Social Security: New P45 forms

HMRC has introduced a new form P45 which must be used to record details of employment that have come to an end on or after 6 April 2009.  The new form is larger, A4 rather than A5, and incorporates new…
Posted on 7th January, 2009
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Employment: Equality Bill to reverse Malcolm

The UK Government has published the Equality Bill which would reverse the problematic House of Lords’ judgment in London Borough of Lewisham v Malcolm (“Malcolm”).  The Malcolm decision currently makes it very difficult to establish “disability related discrimination”, particularly since…
Posted on 6th January, 2009
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Employment: Pre-judgment interest in discrimination cases reduced

Unlike most other types of claims in the employment tribunals, claimants in discrimination cases can claim interest on losses incurred up to the date of judgment.  The interest accrues on a daily basis and is simple, not compounded. The applicable…
Posted on 6th January, 2009
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Expatriates: A8 workers registration scheme extended

The UK Government has decided to extend the registration scheme, which was due to end on 30 April 2009, for two more years.  The scheme will now end on 30 April 2011.  The scheme covers workers from the so-called “A8…
Posted on 6th January, 2009
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Employment: EAT rules “field breaks” count toward annual leave

In an important decision for the oil and gas industry, the Employment Appeal Tribunal ("EAT") has reversed a previous decision that “field breaks”, that is time spent onshore by offshore workers, cannot count towards statutory minimum holiday entitlement. Majority decision…
Posted on 6th January, 2009
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Employment: Offshore workers – “field breaks” count toward annual leave

An important decision for the oil and gas industry - the Employment Appeal Tribunal ("EAT") has reversed a previous decision that “field breaks” (time spent onshore by offshore workers) cannot count towards statutory minimum holiday entitlement. Decision The EAT held…
Posted on 6th January, 2009
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Employment: Government reveals new “fit notes”

The Government has begun a 12 week consultation on new "fit notes" which it proposes will replace GP’s "sick notes” in spring 2010.  This is in response to recommendations made in Dame Carol Black’s review of the health of Britain’s…
Posted on 6th January, 2009
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Immigration: Tougher immigration criteria for migrant workers

With effect from 1 April two key changes will be made to the points-based immigration system to make it tougher for nationals from outside the European Economic Area to come and work in the UK. For sponsored workers under Tier…
Posted on 3rd January, 2009
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Employment: Increases to statutory minimum holiday entitlement

Effective 1 April 2009 the statutory entitlement to paid holiday will increase to 5.6 weeks, inclusive of bank holidays.  For an employee working a 5 day week in England where there are 8 bank holidays per year this means that…
Posted on 3rd January, 2009
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Employment: Increase in Statutory Sick Pay and Statutory Maternity Pay rates

The rate of Statutory Sick Pay for qualifying periods of sickness absence commencing on or after 6 April 2009 is £79.15 per week (£15.83 per day for employees with five qualifying days per week). For payment weeks starting on or…
Posted on 3rd January, 2009
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Employment: Repeal of statutory dismissal and grievance procedures

It is almost universally agreed that the statutory dismissal and grievance procedures introduced in 2004 have failed in their stated objective of reducing the amount of claims going to employment tribunals. With effect from 6 April they will be repealed,…
Posted on 3rd January, 2009
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Employment: More employees get the right to request flexible working

At present employees with 26 weeks continuous employment have a right to request flexible working arrangements to accommodate caring responsibilities for children aged up to 6 (18 where the child is disabled) or for adult relatives or adults who live…
Posted on 3rd January, 2009
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International mobility: HMRC announces interim update on residence and tax liability (booklet IR 20)

HMRC announced the publication of an update to its long standing booklet IR 20 on the taxation of residents and non-residents. It is of limited value as it does not reflect the changes to be made in the Finance Bill…
Posted on 6th January, 2008
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Income Tax: 22 million UK basic rate tax payers to be £120 better off

On 13 May the Chancellor of the Exchequer announced a surprise amendment to be made to the Finance Bill 2008 - the personal tax free allowance will rise for the 2008/09 tax year to £6,035 from £ 5,435. The rise…
Posted on 6th January, 2008
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Employment: Government to consult on extension of the right to claim flexible working

The government has adopted proposals of a report by the Department of Business Enterprise and Regulatory Reform which recommend the extension of the right to request flexible working to all employees with parental responsibility for children up to the age…
Posted on 6th January, 2008
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Employment: A reminder of the importance of communication in redundancy situations

An EAT case* heard in March underlines the importance to employers of ensuring effectively that employee communication during the redundancy process is not overlooked. In a redundancy situation, an employee who unreasonably refuses an offer of suitable alternative employment made…
Posted on 6th January, 2008
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