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Legislation changes you can't afford to miss

Your Legal Diary for 2010 - Part 1

Calendars at the ready! Keep up to date with upcoming legislation changes for 2010 and beyond here! Our diary includes employment law changes, as well as highlights from the pre-budget report

JANUARY

Amended code of practice on time off for trade union duties

Acas (Advisory, Conciliation and Arbitration Service) has issued an amended "Code of practice on time off for trade union duties and activities". It gives practical guidance on how the statutory requirements on time off for trade union duties and activities should work.

FEBRUARY

Decrease of maximum unfair dismissal compensatory award

A number of limits, applying to tribunal awards and other amounts payable under employment legislation, are set to decrease.

This included the limit on the compensatory award for unfair dismissal, which decreases from £66,200 to £65,300. The new limits will be appropriate where the event that gives rise to the award or payment occurs on or after 1 February 2010.

APRIL

Paternity leave and pay is extended

Fathers will soon be able to benefit from up to 26 weeks’ additional paternity leave. This will be applicable during the second 6 months of the child’s life and if taken during the mother’s statutory pay period.

Right to request time off for training

Employers will be required to seriously consider requests made, but will be able to refuse requests where there is a genuine business reason for doing so.

The Government plans to initially introduce this to organisations with 250 or more employees from April 2010, and will extend it to cover all organisations from April 2011.

Social Security and Statutory Sick Pay Amendment Regulations 2010

The regulations will replace “sick notes” with “fit notes” and will change the format of the medical statement.

This will not only allow the doctors to record whether or not an employee is fit for work, but they’ll also have the option to indicate when an someone “may be fit for some work now”

Cars and Vans Fuel Benefit Tax Changes

The figure used as the basis for calculating the benefit of private fuel received for a company car which is chargeable to tax and Class 1A NICs will be increased from £16,900 to £18,000 from 6 April 2010. Those with company cars may want to re-assess the vaiablity of moving to car allowance scheme instead.

The figure used as the basis for calculating the benefit of private fuel received for a company van which is chargeable to tax and Class 1A NICs is increased from £500 to £550 from 6 April 2010.

As from 6 April 2010, the current flat rate for all vans of £3000 will be reduced to nil for electric vans with effect for a period of 5 years. This will reduce the employee van benefit charge to nil and remove the Class1A NICs charge on employers.

Bank Payroll Tax

Legislation in Finance Bill 2010 will introduce a new bank payroll tax. This will be set at 50 per cent. However, it should be noted that this is not a "Payroll" calculation.

It will be payable by a bank, on the amount of a bonus to which a banking employee is entitled, to the extent that the bonus exceeds £25,000.

A bank will also be liable to the bank payroll tax where the bonus entitlement arises in respect of services performed for the bank regardless of who awards the bonus.

The bank payroll tax will have effect from the time of the announcement on 9 December 2009 until 5 April 2010 for all discretionary and contractual bonus awards.

There is an exception for contractual bonus entitlements where the payer has no discretion as to the amount of the bonus because of a contractual obligation existing at the time of the Chancellor’s announcement.

Bank Payroll Tax is payable on 31 August 2010.

Join us next month for the second part of Connection's 2010 Legal Diary -helping you stay keep up to date with changing legislation.

To keep up to date with continuing legislation changes and network with fellow HR and payroll executives, come along to one of Ceridian’s Regional CCN Updates. To find out more about your nearest event visit www.ceridian.co.uk/events.