Benefit schemes and salary sacrifice. By Nichola Ross Martin
Salary sacrifice schemes allow employees to exchange part of their cash pay for tax-free non-cash benefits like flexible working, childcare vouchers, or pension contributions. These arrangements create flexible remuneration packages suitable for businesses of any size, letting employees tailor benefits to their individual needs and circumstances.
HR tip: Last in, first out redundancy selection
Last in, first out redundancy selection can be applied department-wide or across the entire organization, but must be applied consistently. However, this method may contravene age discrimination laws as it typically selects younger employees, making skills-based evaluation systems preferable.
Call centre staff suffering from acoustic shock
Call centre workers are increasingly suffering from acoustic shock—sudden loud noises through headsets causing headaches, tinnitus, and potentially permanent hearing damage. Despite over 700 compensated cases and 300 pending claims, most UK call centres lack adequate safety policies to protect employees.
Acas provides free guidance for coping with festive frivolity
Acas offers free guidance to help employers manage workplace festivities responsibly. The organization emphasizes that having clear policies and procedures in place year-round is essential for preventing party season incidents from escalating into serious workplace issues.
CBI brands skills system ‘dysfunctional’
The CBI has branded the UK’s national skills system “dysfunctional” and “irrelevant” to employers, warning it fails to meet workforce needs. The organization unveiled a four-point reform plan ahead of the Leitch Report, calling for government action to align £3 billion in public training funding with actual employer requirements and reduce the complexity of skills qualifications and advisory services.
Gender duty to cost local authorities millions
Court rulings on public sector gender duties will cost UK local authorities millions, with some facing liabilities exceeding £250 million including tax and National Insurance obligations. The Local Government Employers urges ministers to relax borrowing caps and allow legal reforms for equal pay settlements.
Executive rewards fall but still higher than employees’
Executive pay increases fell to 5 percent in 2006 with bonuses averaging 37.5 percent of base salary, down from 41 percent the previous year. However, executive compensation still significantly outpaces employee pay raises, which averaged 3 percent, reflecting stronger oversight from remuneration committees and increased shareholder scrutiny.
Feeling lazy? Blame it on the office. By Sarah Fletcher
Open plan offices are destroying employee focus through constant distractions, contributing to what experts call Workplace Attention Deficit Disorder. Persistent noise from colleagues’ conversations and lack of privacy walls make it difficult to concentrate on work tasks.
Any Answers: Managing rebellious staff
Managing rebellious staff requires understanding the root cause of dissent before taking action. Employers should investigate whether staff feel disconnected from organizational values, unsupported by management, or unclear about expectations. When challenges damage reputation and violate known policies, formal disciplinary procedures may be necessary, though prevention through good management practices and clear communication is ideal.
Case study: Risk management
Vision Service Plan improved its risk management approach using a framework developed by the Committee of Sponsoring Organisations of the Treadway Commission. The eye care firm’s strategy emphasizes strategic risk identification across the organization, defining risk appetite, and implementing internal controls alongside employee communication and ethical standards.
Dispute resolution regulations – questions of timings and beards
Employment tribunals have clarified that the statutory three-month time limit for bringing claims starts from dismissal rather than when grievance procedures begin. Using the formal grievance procedure effectively doubles the time available to file a tribunal case, encouraging employees to exhaust internal processes first.
Pay growth dips below cost of living
Pay growth is failing to keep up with the cost of living as increased immigration and more older workers entering the job market boost labour supply, according to the CIPD and KPMG survey. This is expected to keep wage pressures subdued and continue squeezing living standards into next year.
Transsexual woman launches two discrimination cases
A transsexual woman has launched parallel discrimination cases against Hitachi Data Systems in the UK and US, alleging demotion and retaliation following her disclosure of planned transition. The British tribunal hearing begins Monday in Reading, with both sides seeking potentially record-breaking damages.
Ask the expert: Refusal to prove absence is genuine
An employee with a poor absence record refuses to attend a required Occupational Health appointment. Employment law experts advise that this refusal can constitute misconduct and breach of contract, warranting disciplinary action to enforce compliance or establish grounds for potential dismissal.
Pensions bill already under fire
The government’s unpublished pensions bill faces criticism for insufficient reforms despite welcomes changes to state pension links and women’s pension credits. The National Association of Pension Funds argues the proposals maintain unnecessary complexity and means-testing while potentially increasing costs for employers.
New sector guidance to combat sex discrimination
The Equal Opportunities Commission has launched new guidelines to help pubs and breweries prevent sex discrimination, following 39 successful cases in five years. The guidance includes practical steps for managers to ensure fair employment practices and create inclusive workplaces across an industry employing over 300,000 women.
2007 Maternity legislation: A step forward? By Sarah Fletcher
UK maternity legislation changes effective April 1, 2007 extended statutory paid leave from six to nine months and introduced optional contact days. While new parents benefit, small employers worry about increased costs and temporary staffing challenges during extended absences.
Colborn’s Corner – How do we address executive pay?
Executive pay in FTSE100 companies averages 98 times employee salaries, creating fairness concerns. HR professionals must help organizations defend high executive compensation by emphasizing market realities and talent retention needs, while managing employee perceptions about pay inequality.
Unemployment hits a seven-year high
Unemployment reached 1.71 million in the three months to September, the highest level in seven years, with 27,000 more people jobless than the previous quarter. Despite the rise, employment remained near record levels at 28.99 million, with over 600,000 job vacancies available.
HR tip: Staff appraisals
Staff appraisals benefit all employees, not just those seeking advancement. Even employees content in their current roles deserve recognition and support through regular appraisals, which identify performance issues, development needs, and help maintain workforce stability.
