MEMBERSHIP INSIGHT
On your behalf On your behalf
Policy team update
The CIPP policy team review 2019, the consultations and the forums, and reminds the profession of the role they play in informing, advising and influencing policy
W hat a year it has been – as a team we are aware we say this every year. But 2019 has seen us respond to a wide range of consultations on subjects that focus primarily on the employee – increasingly referred to as a worker – and associated worker rights. NMW (andNLW) As we approached Christmas 2018, the government launched a number of consultations (Ebenezer Scrooge would have been proud at this approach to the festive break). The one which really caught our eye was the consultation published by the Department for Business, Energy & Industrial Strategy (BEIS). This was on the subject of the national minimum wage (NMW), specifically as it relates to salaried workers and salary sacrifice – which are issues that have resulted in employers being ‘named and shamed’ by BEIS (well, at least prior to its suspension whilst its effectiveness is reviewed). In November, the Low Pay Commission (LPC) published two reports on the future of the NMW (http://bit.ly/36AoLKC). These had been preceded when Bryan Sanderson, chair of the LPC, wrote in September to the BEIS secretary of state with the recommendation that the age at which a worker becomes eligible for the national living wage (NLW) be reduced in stages from 25 to 21. The chancellor of the exchequer confirmed agreement and his intention to deliver “so that it applies to those aged 23 and over from 2021, and to those aged 21 and over within five years.” You may recall that mention was made in the November issue that a meeting was
to be held between BEIS, HM Revenue & Customs (HMRC) and stakeholders to discuss policy and enforcement of the NMW. ...key issues such as salaried workers, unmeasured work and deductions from pay, including for Christmas clubs and uniforms HMRC views the CIPP as a key stakeholder when considering NMW, and regularly consults with us on NMW issues. However, with BEIS responsible for NMW policy but HMRC responsible for its enforcement, the CIPP, along with other stakeholders, has long felt that the most effective form of consultation for NMW would be a meeting which brings key stakeholders together. So, we were very pleased when our calls were recently answered, and a meeting was held between the various parties. Constructive discussions were had around several key issues such as salaried workers, unmeasured work and deductions from pay, including for Christmas clubs and uniforms. At the time of writing we were about to enter ‘purdah’ ahead of the general election and therefore will need to wait until a new government is established before any
decisions can be made on how or whether any of these issues will be addressed. We remain hopeful however that the rules and guidance around these and other issues will be simplified. We continue to remain optimistic that the meeting of BEIS, HMRC and key stakeholders wasn’t just a ‘flash in the pan’ but will form the basis of a regular forum going forward. (Yes, we do believe in Christmas miracles.) Other themes under the spotlight of consultation this year will, if delivered, bring about: ● improved worker rights Other consultations The policy team aren’t able to respond to every consultation, as resources (or Christmas miracles) do not stretch that far. However, we have been able to respond to several during 2019, including: ● ethnicity pay reporting ● extending redundancy protection for women and new parents ● off payroll working rules in the private sector ● Employment Allowance (Excluded Persons) Regulations ● proposals to reduce ill-health related job loss ● neonatal leave and pay ● proposal for a single enforcement body ● measures to address one-sided flexibility. Consultation forums You may be aware that CIPP follows a process to ensure we deliver the views ● greater employer transparency ● improved employer compliance.
4
| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56
Made with FlippingBook - Online magazine maker