*Employment Relations Forum

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Transcription:

*Employment Relations Forum

Agenda Introductions current trends in HR and beyond Gender Pay Reporting Damian Warburton, Acas The Apprenticeship Levy Gareth Jones, GMLPF Modern Slavery Gary Booth, Hope for Justice Employment Law update Emlyn Williams, Weightmans Open Forum Lunch

Pay Trends Wage Growth stagnant since 2008 Poor in comparison to EU countries Employment higher in UK, but, Lower skilled, lower quality jobs? Impact of NLW?

Other trends Future of performance management Productivity gap now highest since records began Acas Publications: Dress codes and appearance at work http://www.acas.org.uk/index.aspx?articleid=4998 A Framework for effective leadership http://www.acas.org.uk/media/pdf/f/b/the_acas_fr amework_for_effective_leadership.pdf

* Reporting the gender pay gap

Which employers are affected? Relevant employer Has 250 or more relevant employees on relevant date Public authorities to be included in these Regulations Private and voluntary sector employers in England, Wales and Scotland; companies, partnerships, LLPs etc Relevant date = 5 th April 2017 and each anniversary thereafter Separate Regulations to cover English public sector awaited; devolved issue for Wales and Scotland

Which employees are in scope? Relevant employee: (a) ordinarily works in Great Britain; and (b) contract of employment governed by UK legislation (GPG Regs) employment under a contract of employment, a contract of apprenticeship or a contract personally to do work (s83 EqA) Employees, workers, LLp members, some self-employed contractors

What must be reported upon? Overall percentage difference in mean hourly pay between male and female employees. Overall percentage difference in median hourly pay between male and female employees. Overall percentage difference in mean and median bonus payment and the proportion of male /female who received bonus. Percentage of male and female employees in each pay quartile (hourly pay bands).

How is ordinary pay defined in the Regulations? Includes: Basic pay, paid leave, maternity pay, sick pay, area allowance, shift premium pay, bonus pay and other pay (including car allowance paid via payroll, on call & standby allowance, clothing, first aid or fire warden allowances). Excludes: Overtime pay, expenses, value of salary-sacrifice schemes, benefits in kind, redundancy pay, arrears of pay, tax credits.

When must reporting take place? Rolling annual timetable relevant date for calculating snapshot of 2017 pay data Relevant date for 2018 Relevant date for 2019 5 April 2016 5 April 2017 5 April 2018 5 April 2019 Relevant period for calculating 2017 mean bonus Relevant period for calculating 2018 mean bonus Relevant period for calculating 2019 mean bonus Publication of 2017 pay and bonus data before this date Publication of 2018 pay and bonus data before this date

The regulations of publication Publish data in English on your website, in a manner accessible to employees and the public for a period of at least 3 years. Obtain sign off from a director, or equivalent, to confirm data is accurate. Send evidence of compliance to Government sponsored website. Provision of a contextual narrative will be voluntary.

Enforcement Non compliance will be an unlawful act under the Equality Act 2010. This would enable the EHRC to issue notices to address non compliance if thought appropriate. However the main enforcement driver will be reputational damage in the public eye. Government will be monitoring compliance levels and will produce sector-based GPG data and highlight employers publishing particularly full and explanatory information. Review of the Regulations within 5 years of commencement.

Gender pay reporting The Acas guidance & Good practice measures

5 Steps 1 Collect essential information 2 The calculations 3 Publish the figures 4 Making a supportive statement (narrative) 5 Planning to manage the pay gap

Related policies are current Do the organisational people policies support a strategy to reduce the gender pay gap? Equality & Inclusion, in particular awareness of group disadvantage and positive action. Unwanted behaviour, eliminating sexist cultures, inappropriate banter. Flexible working, formal and informal, availability and impact on progression. Talent and people development, access at all levels.

Communication - map stakeholders Board and shareholders Managers Employees Trade unions or other employee representatives Future recruits The general public Competitors The local press

Next Steps 1. Do nothing is not an option! Employers should be preparing now. 2. Review your current pay practices and understand any existing pay differentials. 3. Consider GPGs on departmental/geographical/functional level and compare to workforce composition. 4. Analyse rationale behind current arrangements to identify potential risk areas. 5. Where pay gaps exist due to under representation of women at senior level, consider what could be done to attract, develop and retain female employees. 6. Formulate communications plan well before the data is published.

How Acas can help Equality and diversity review Free half day diagnosis Board presentation Focus group facilitation Unconscious bias training Job evaluation

Apprenticeship Reform Update ACAS NW Event Gareth Jones Apprenticeship Strategy Manager GMLPF gareth@gmlpf.net @gmlpfapps

Apprenticeship Reforms 1. Apprenticeship Levy 2. Apprenticeship Funding for Non Levy Payers 3. Co Investment & Additional Payments 4. Apprenticeship Funding Bands 5. Digital Apprenticeship Service 6. Register of Apprenticeship Training Providers

Apprenticeship Levy The basics The levy will be 0.5% of pay bill, to be paid monthly alongside usual PAYE payment and applies to all UK based businesses Will raise approx. 2.7bn per annum across UK Every employer gets an allowance of 15,000 per year 1250 per month, unused allowance carried forward one month to next Effectively means, Levy only paid on pay bill in excess of 3m (0.5% x 3m = 15,000) Levy will be collected from April 2017, 1 st payment made in May 2017

Apprenticeship Levy The basics Pay bill = total amount of your employees earnings subject to Class 1 National Insurance Contributions Includes any money they make from employment e.g. wages, bonuses, commissions, pension contributions Does not include other payments e.g. benefits in kind If in scope for Levy, each month employers will have to: Let HMRC know whether you need to pay the Levy Include the levy you need to pay in your usual PAYE payments to HMRC by the 19 th or 22 nd of the following month Connected Companies Where several companies in a group, they will only be able to use one 15,000 allowance Definition of connected companies is based on Employment Allowance definition

Apprenticeship Levy The basics Levy money paid will be accessed by employer via the new Digital Apprenticeship Service Amount entering DAS account is based on proportion of paybill that is based on employees living in England Employers will be able to get out more than they pay into the levy via an automatic 10% top up to their account Levy funds will expire 24 months after they have been credited to employers DAS account payments taken on 1 st in, 1 st out basis New Funding systems for Apprenticeships implemented 1 st May 2017 Apprenticeship Levy can only be used to pay for training and assessment for apprentices that work in England Apprentices starting their Apprenticeship prior to the end of April 2017 will continue to have their programmes funded under current system.

Apprenticeship Levy What does it mean in real terms? Levy affects approx. 1.3% of UK employers Approx. 19,000 employers Example: Civil Service Annual Salary Cost 11.13bn (source: National Audit Office Central Government staff costs) Approximate Levy sum: 0.5% x 11,13bn = 55,650,000 Employers with pay bill over 2.8m will have to report to HMRC in case they go over threshold during the year, even if they don t pay the Levy

Apprenticeship Levy Examples of what employers may pay? Example 1: an employer who would pay the levy An employer with an annual pay bill of 5,000,000: Levy sum: 0.5% x 5,000,000 = 25,000 Subtracting levy allowance: 25,000 15,000 = 10,000 annual levy payment Example 2: an employer who would not have to pay the levy An employer with an annual pay bill of 2,000,000: Levy sum: 0.5% x 2,000,000 = 10,000 Subtracting levy allowance: 10,000 15,000 = 0 annual levy payment New indicative online tool for employers to estimate levy contributions and begin to plan their training requirements and financial spending

Those with pay bill of less than 3,000,000 98.7% of employers Non Levy paying Employers Will be expected to make contribution towards cost of training (coinvestment) and Government will pay the rest Must be cash, cannot be in kind payments Paid direct to chosen training provider Each Apprenticeship Framework and standard has been allocated to a new funding band They will not use DAS until at least 2018 Expectation that all employers will use DAS by 2020

Co Investment Employers will pay their providers the agreed co investment direct and over the life of the apprenticeship Co investment also applies to those Levy paying employers who have used all their Levy contributions and wish to purchase more apprenticeship training There will be additional payments available to both employers and providers

Additional Payments 16 18 year olds Government will pay 1,000 to employers, and a further 1,000 to training providers if they train a 16 18 year old apprentice Disadvantaged young people Government will pay 1,000 to employers, and a further 1,000 to training providers if they train 19 24 year olds leaving care or who have a Local Authority Education and Healthcare plan Small Employers Employers with fewer than 50 employees will have 100% of the training and assessment costs covered when training a 16 18 year old (or 19 24 year old formerly in care or has a Education, Health and Care plan Additional learning support We will pay training providers up to 150 a month to support these learners, plus additional costs based on evidenced need English and Maths training To meet minimum standards of English and maths we will pay training providers 471 for each of these qualifications (Level 1 and 2)

Funding Rules Cross border funding Applying a single test for funding through the English system: based on whether the apprentice s main place of employment is England. Workplace is where the apprentice is expected to spend the majority of their time during their apprenticeship. Transferring funding During 2018 we will introduce means for employers to transfer up to 10% of the levy funds to another employer with a digital account, or to an ATA. New employer steering group to design this system so that it meets their needs Prior qualifications Now and in the future, you can train any individual to undertake an apprenticeship at a higher level than a qualification they already hold. From May 2017, an individual can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills

Funding Bands Number Band limit 1 1,500 2 2,000 3 2,500 4 3,000 5 3,500 6 4,000 7 5,000 8 6,000 9 9,000 10 12,000 11 15,000 12 18,000 13 21,000 14 24,000 Every apprenticeship will be placed in a funding band The upper limit of each funding band will cap the maximum: amount of digital funds an employer who pays the levy can use towards an individual apprenticeship. that government will co invest towards, where an employer does not pay the levy or has insufficient digital Employers can negotiate the best price for the training they require If employers want to spend more than the funding band limit, using their own money, then they will be free to do that. Funding bands do not have a lower limit. 15 27,000

Digital Apprenticeship Service Help employers regardless of whether they pay levy or not: Select an Apprenticeship Framework or Standard Choose the training provider or providers they want to deliver training Choose an Assessment Organisation (Apprenticeship Standards only) Post Apprenticeship Vacancies From May 2017, levy payers will be able to: See the funds they have available to spend in England Set the price for training agreed with the training provider Pay for apprenticeship training and assessment electronically to providers Levy payers will be able to register for DAS account Jan 2017

Register of Apprenticeship Training Providers (RoATP) Employers can only spend the funds in your digital account or access government support for apprenticeship training delivered by an approved training provider. New Register of Apprenticeship Training Providers (RoATP) All providers wanting a role in delivering apprenticeship training from May 2017 must apply Only for those who deliver training, not for managing agents, intermediaries, etc. Alongside application process, new procurement exercise will run for delivery of apprenticeships to non levied employers with contracts to be awarded to successful providers

Register of Apprenticeship Training Providers (RoATP) Expectation that main provider will deliver more than half of each apprentice training Three routes for application Main Supporting Employer Provider Will look at three tests: Due Diligence Financial Health Quality, capacity and capability Must pass all three to be on register Register now open in October 2016 for applications

Next Steps Government has said further info to be published: December 2016 further guidance from HMRC on how to calculate and pay the Levy HMRC currently consulting (until 14 th November) on how employers: Calculate Levy Report Levy Pay Levy All part of draft Finance Act 2016 see link for more detail http://www.legislation.gov.uk/ukpga/2016/24/pdfs/ukpga_20160024_en.pdf

More info Read further go to https://www.gov.uk/government/collections/apprenticeship changes Plan your apprenticeship spending https://estimate my apprenticeshipfunding.sfa.bis.gov.uk Check out the draft regulations for the calculation, payment and recovery of the Apprenticeship Levy https://www.gov.uk/government/publications/draft legislation regulationsfor the calculation payment and recovery of the apprenticehip levy

hopeforjustice.org Gary Booth Hope for Justice 0121 557 6010 gary.booth@hopeforjustice.org

HOPE FOR JUSTICE To live in a world free from slavery

Modern Slavery Slavery - Freedom taken. e.g. - Forced labour - Debt bondage Human Trafficking - Act, Means, Purpose eg. - Recruited Poland, Deceived regarding nature of work, Exploited for labour

Facts 40 million slaves globally. 13,000 slaves in the UK. HFJ rescued 250 victims since 2015-90% victims of labour exploitation. Government and Prime Minister commitment to tackle Modern Slavery.

Modern Slavery Act 2015 Section 54, Part 6 of the Act: Transparency in Supply Chains Commercial organisations MUST prepare an annual slavery and human trafficking (HT) statement. Statement to outline the steps to ensure that slavery and HT are not present in their supply chains or in their own business. Non compliance can trigger an injunction, repetitional and brand damage, lost tendering opportunities.

Risk Indicators High risk business sectors - Agriculture, Food, Construction, Distribution. Risk Indicators - Migrant workforce, poor English skills, outsourced recruitment, seasonal work, manual work. Ignorance or lack of awareness to the threat of Modern Slavery.

Good Practice Buy in at board room level. Awareness/training throughout workforce and supply chain. Ground up approach - Reporting procedures, employee engagement, independent pathways, preventive initiatives. Robust audit/compliance including employee interviews.

Benefits Ethical and moral transparency. Competitive advantage. Enhanced brand reputation. Enhanced employee trust and confidence = employee retention

Case study - UK Food Processing Business Business priority to Mitigate the threat of Modern Slavery in their business/supply chain. UK based supply chain - recruitment and farms. At risk Business - Outsourced manual recruitment, Migrant workforce, Poor English, Minimum pay, Business Approach - Buy in at board room HR Director (champion), Invested in an anti slavery post, inspired trust and confidence from workforce, social reformist. HFJ - Corporate partner - Training, independent pathway for employees to share concerns, consultancy (support, guidance, expertise).

Benefits Business approach recognised as ground breaking within their business sector. Protected and enhanced brand reputation. Competitive advantage Transparency in the business and supply chain Positive employee feedback.