Jaguar Land Rover is set to recruit thousands more staff in the next year after securing £70 million from the RGF
Posted: 14/04/2011

Jaguar Land Rover is set to recruit thousands more staff in the next year after securing £70 million from the RGF.

The money will go towards two research and development projects which will help to secure an extra £1.3 billion worth of investment for the motor industry.

In recent months the company has revealed plans to take on 1,000 more engineers, increase its workforce at its Halewood plant by 1,500 and invest £100 million into an advanced facility at Warwick Manufacturing Group (WMG).

Chief executive Dr Ralf Speth said: “Jaguar Land Rover is the leading investor in UK automotive R&D and has ambitious growth plans.
Higher Level of demand for engineers according to REC / KPMG report
Posted: 14/04/2011

Higher levels of demand for engineering workers were reported within both permanent and temporary roles this month, according to the latest REC / KPMG Report.

The Report, which compiles information from recruitment consultancies who compare demand within their sector, showed that temporary engineering roles topped the chart of every industry surveyed.
Permanent limits on non-EU migration
Posted: 08/04/2011

On 19 July 2010, the Government introduced a number of interim measures to limit the number of non-EU workers entering the UK. A permanent limit will be put in place by 6 April 2011.

The UK Border Agency operates a points based system for non-EEA migrants to the UK. Routes of entry are organised into five tiers. For each tier, applicants need sufficient points to obtain entry clearance or leave to remain in the UK. Points are awarded on objective and transparent criteria and reflect aptitude, experience, age and also the level of need in any given sector.

From 6 April 2011, some routes of entry will be subject to annual limits.

• Tier 1 will cater for entrepreneurs, investors and people of exceptional talent (including those who have won international recognition in scientific and cultural fields). For the year 2011/12, there will be a limit of 1,000 places for people of exceptional talent.
• Tier 2 will be for people coming to the UK with a job offer to fill graduate level vacancies that cannot be filled by settled workers. This will be subject to a limit of 20,700 places for 2011/12. Employees of multinational companies who are transferred to the UK are also included in this tier. There will be no cap on these intra-company transfers. Applicants will be able to stay in the UK for up to five years provided they are paid more than £40,000 per annum. Those paid between £24,000 and £40,000 will be able to enter for up to 12 months.

Employers who rely on migrant workers will find it more difficult to recruit. They would be wise to begin assessing the impact of new limits on their operation and considering alternative sources of labour.
New standard rate of Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP) and Statutory Paternity Pay (SPP)
Posted: 08/04/2011

The standard rate for SMP, SAP and SPP will be increased to £128.73 per week.

Planning ahead

For payment weeks starting on or after Sunday 3 April 2011, SMP, SAP and SPP should be paid as follows:

• SMP should be paid at the rate of 90% of the employee’s average weekly earnings for the first six weeks of maternity leave and then at the new standard rate of SMP, or 90% of the woman’s average weekly earnings if this is less than the standard rate, for the next 33 weeks of maternity leave.
• SAP and SPP should be paid at the new standard rate or 90% of the employee’s average weekly earnings if this is less than the standard rate.
Positive Budget for UK Manufacturing
Posted: 07/04/2011

The recent Budget was possibly the most positive for manufacturing that most of those reading this can remember.

There were a number of positives to be drawn from the Chancellor's speech. However, it was in the area of skills that the really heartening news was to be found. Among the highlights of the Budget was the Government's announcement of £180 million for up to 50,000 additional apprenticeship places over the next four years. Equally pleasing was the pledge to expand the University Technical Colleges (UTCs) programme in order to establish at least 24 new colleges of this type. Also welcome is the support for business consortia to set up and maintain advanced and higher apprenticeship schemes, supported by grants, creating a further 10,000 apprenticeships.

Perhaps what is most heartening about these developments is that they represent a concrete commitment on the part of Government to placing manufacturing and engineering at the heart of the UK's economic recovery. We have all heard promises from Government before. Here, at last, appears to be evidence that this administration is prepared to back up its words with deeds. Long may it continue.

As of the 6th April 2011 Employee NI Rates rise from 12.8% to 13.8%
Posted: 06/04/2011
Default retirement age phased out
Posted: 06/04/2011

In 2006, the Employment Equality (Age) Regulations introduced a default retirement age of 65 for men and women. As a result, employers are able to retire employees at the age of 65 or over, without it being deemed unfair dismissal, provided they have followed a statutory retirement procedure. This procedure involves notifying the employee at least six months in advance of their proposed retirement date and giving careful consideration to any request made by the employee to work beyond this date. Compulsory retirement below the age of 65 has to be objectively justified as a proportionate means of achieving a legitimate aim. Full details of the current provisions can be found in the Retirement topic. From 6 April 2011, the default retirement age will be phased out together with the statutory procedure for requesting the right to continue working beyond retirement date. It will still be possible for employers to adopt a compulsory retirement age (at, above or below 65) but it will have to be objectively justified as a proportionate means of achieving a legitimate aim.

Transitional arrangements will come into effect on 6 April 2011 to cover retirements that have been notified under the current retirement procedure prior to 6 April 2011.

Planning ahead

Under the transitional arrangements, employers who are following the statutory retirement procedure will be able to complete any retirements that are already underway, provided:

• The notification of retirement was issued prior to 6 April 2011.
• The person who is retiring has reached the age of 65 (or their employer’s normal retirement age, if this is higher) by 30 September 2011.
• All the requirements of the statutory procedure have been met.

Where an employer has set a compulsory retirement age below 65 (justified as a proportionate means of achieving a legitimate aim), all notifications made before 6 April 2011 continue to be valid and such retirement dismissals will be lawful, provided the employer follows the statutory procedure.
Employers will not be able to issue any new notifications of retirement under the current procedure on or after 6 April 2011.

As under the current provisions, employers who are following the transitional arrangements after 6 April 2011 will be able to agree to extend a person’s employment by six months beyond their notified retirement date, without having to issue another notification of retirement. However, an extension of more than six months, which would require a second notification, will not be possible, because the last date for issuing new notifications is 5 April 2011.

The last date for an employee to make a request under the statutory procedure to work beyond their notified retirement date will be 4 January 2012.

The last date for a lawful retirement under the transitional provisions will be 5 October 2012.

These dates are explained as follows:

• On 5 April 2011 (the last possible date for issuing a notification of retirement), an employer may lawfully issue an employee, who fulfils the relevant age requirement, with the maximum 12 months’ notice of their intended retirement date. The employee’s notified retirement date would be 5 April 2012.
• Under the statutory procedure for retirement, if the employee wishes to make a request to work beyond their notified retirement date, they must do so at least three months, but not more than six months, before their retirement date. The employee’s last date for making such a request would be 4 January 2012 (three months before 5 April 2012).
• If the employee were granted a six months’ extension, this would run from 6 April 2012 to 5 October 2012, which is therefore the last possible date for a lawful retirement under the transitional provisions.

After 6 April 2011, employers can choose to continue using a retirement age (at, below or above 65) but this will have to be objectively justified as a proportionate means of achieving a legitimate aim. In practice, employers may find this difficult. The test for justification is stringent and an employer needs evidence to support their decision. An arbitrary or unjustified retirement age will be open to legal challenge. There will be an exception where there is a statutory age limit on employment, as there is for airline pilots.

Employers who have adopted a compulsory retirement age will not have to follow the statutory retirement procedure. However, compulsory retirement is a dismissal and employers will have to follow a fair procedure to protect themselves from unfair dismissal claims. Employees are likely to make requests to work beyond a compulsory retirement age and, to be seen to be fair, employers will have to give careful consideration to such requests.

Most employers are likely to remove their retirement age to comply with the new legislation. This will mean that if an employer wishes to dismiss (retire) an older worker, they will have to rely on one of the potentially fair reasons for dismissal set out in the Employment Rights Act (conduct, capability, illegality, redundancy or some other substantial reason) and follow a fair procedure. Clearly it is better for employers to discuss and agree retirement plans with their employees. The Government wishes to encourage this and has issued guidance, via Acas, to support employers.

Employers who currently have a retirement age need to decide whether to continue with it, in which case they must ensure that it can be objectively justified, or remove it. Where a retirement age has been included in a contract of employment or staff handbook and is to be removed, this will require an amendment.