DWP proposes auto-enrolment changes
16th May 2013
The Department for Work and Pensions (DWP) is consulting on proposals to make the automatic enrolment process more straightforward. A number of larger employers have now gone through the process of auto-enrolling their workforce and, taking into account feedback received in relation to the auto-enrolment process, the DWP has identified a shortlist of areas which could benefit from practical or technical improvement.
These include giving more flexibility on:
The consultation also seeks views on:
making assessment of the workforce easier,
making it easier for money purchase schemes to show they meet the scheme quality requirements,
removing the duty to enrol particular groups, such as those who benefit from protection because they have already exceeded the lifetime allowance for tax purposes.
Sufficient forward notice will be given of any changes that are made following the consultation process to enable employers and providers to update their systems.
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House of Lords backs down on ‘Employee shareholder’ scheme
14th May 2013
The government’s proposals to introduce a new ‘employee shareholders’ status, which were initially defeated in the House of Lords, have been modified and will be implemented in autumn 2013.
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The new status, which is part of the Growth and Infrastructure Act, was initially rejected by the Lords amid widespread criticism. Lord Forsyth of Drumlean said he was “...astonished that the Coalition would even think of bringing forward such a measure...”, and that the proposals were “...ill-thought through, confused and muddled.”
The government has had to make extensive concessions to its original proposals in order to get the House of Lords to agree to the scheme.
Telecoms firms ordered to pay £100,000 NMW arrears
10th May 2013
Two telecommunication companies have been ordered to pay wage arrears of almost £100,000 to 197 of their call centre telesales workers.
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The companies claimed that the employees were apprentices but an employment tribunal ruled that they were not apprentices and were entitled to a higher rate of national minimum wage than they had been paid. Axis Telecom Ltd was ordered to repay £21,224.53 in arrears to 14 workers and Servizon Ltd was ordered to repay arrears of £75,117.28 to 183 workers. In addition, a penalty of £5,000 was imposed on each company. For further information on apprentices and the NMW see Fact sheet 17 – ‘Apprentices’.