Professional September 2018

MEMBERSHIP INSIGHT

On your behalf Policy team update

Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update

The right to request flexible working The prime minister, the Women and Equalities Committee and the Work and Pensions Committee have all recommended that the right to request flexible working should exist from the first day of employment. Many organisations, including Carers UK, Age UK and the Young Women’s Trust, have also made this call. Currently employees have the right to request flexible working once they have 26 weeks of continuous employment. We ran a quick poll, asking: ‘Do you support the recommendation that the Flexible Working Regulations 2014 (‘the Regulations’) be amended to ensure the right to request flexible working exists from the first day of employment?’ Of the 314 responses: ● 64% said they are in favour of this change; 22% of whom said it should happen regardless of industry sector, with the rest saying it should happen but only if the type of industry can accommodate it ● 30% of respondents voted no, and ● the remaining 6% were undecided. The government had already announced that it intends to review the Regulations in 2019 with a view to making any changes for 2020–21. Flexible working is one of the government’s key initiatives to help end gender discrimination in the workplace and reduce the gender pay gap. Minimum wage tick box Though there is a strong suite of policies aimed at discouraging employers from flouting minimum wage law, including fines, naming and prosecutions, the

Low Pay Commission’s (LPC’s) report on Non-compliance and enforcement of the national minimum wage: September 2017 (https://bit.ly/2mr7Zrz) recommended that more could be done to maximise their deterrent effect. Recommendations included the following. ...adding a ‘tick box’ declaration to payroll software... ● Government looks to increase the number of prosecutions and publicise those that take place. ● Government takes further action to publicise the increase in enforcement activity as part its communications campaigns. ● HM Revenue & Customs (HMRC) establishes information systems that allow government to learn as much as possible about the nature and extent of non- compliance from the cases it investigates. These information systems should provide enough information to monitor how well policy is responding to the challenge overall as well as to specific groups and issues. ● HMRC expands and formalises its work across government to both gather and share intelligence and take action on non- compliance where this is found to deliver results. ● HMRC should maximise the intelligence gathered through the new apprenticeship funding system in England to reduce non- compliance amongst apprentices.

An additional recommendation was the idea of adding a ‘tick box’ declaration to payroll software whereby the employer confirms that all of their staff are paid at the correct level. The LPC think this could be a helpful ‘nudge’ to encourage compliance and recommended that government investigates the potential of this change. At a recent meeting of professionals, representing all areas of the payroll profession, who had gathered to discuss the implications of the impending changes to the Employment Rights Act 1996 (ERA 1996) to ensure hours are shown on payslips where a worker’s pay is based on time work as well as extending the right to be issued with a payslip to all workers, this ‘declaration’ recommendation was also discussed. Overwhelmingly the ‘tick box’ was frowned upon and questions and comments flowed: ● A tick box in full payment submission returns declaring compliance is not practical because the earnings period may differ from the period on the payslip. ● The real time information system holding hours and pay information can only work when the submission relates to the earnings period and pay period. ● A correction period would need to be allowed for as the declaration could not cover any future activity. ● Who would be responsible for completing this and what would the penalties be for getting it wrong? We ran a really quick poll (two days’ duration, in July) to gather opinion and received just over 100 responses: 42% did not agree that the declaration could

| Professional in Payroll, Pensions and Reward | September 2018 | Issue 43 4

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