PAYROLL news
The Retained EU Law Bill makes a U-turn THE GOVERNMENT has tabled amendments to the Retained EU Law (Revocation and Reform) Bill (REUL Bill). Originally, the intention was to mass delete EU-era laws at the end of the year, but now a new direction has been decided.
Former ministers say SSP reform is needed FORMER HOME secretary, Priti Patel and former lord chancellor and justice secretary, Sir Robert Buckland have called for changes to the current statutory sick pay (SSP) system. They said it should be altered so it helps ill people “get back on their feet and back to work”. It’s estimated that two million people in the UK aren’t eligible for any sick pay at all. In addition, another ten million individuals are eligible for SSP only, but due to the current rules, don’t receive any sick pay for the first three days of absence. A consultation which looked at potential reforms to SSP, ‘ Health is everyone’s business: proposals to reduce ill health-related job loss ’ considered making it so that employees who didn’t earn at or above the lower earnings limit would also be eligible for the payments. 75% of respondents to the consultation supported this move but the government confirmed no changes would be made in this space, stating “now is not the right time to introduce changes to the sick pay system”. The consultation can be found here: http:// ow.ly/2rSY50OpZ3q.
Instead of automatically repealing all retained EU law before the end of 2023, it’s now expected that approximately 600 pieces of legislation will be revoked. The Bill can be viewed here: http://ow.ly/5Qxs50OpYiw.
The recent changes have been made due to feedback received from businesses and other organisations, and this new approach will aim to replace the ‘sunset clause’ in the Bill with a list of all the EU laws intended to be revoked under the Bill at the end of 2023. The government states this will provide certainty for businesses and other organisations by highlighting which regulations will be removed from the statute book. The government has also published a paper, entitled, ‘ Smarter regulation to grow the economy ’. This is the first in a series of publications on how sectors across the UK economy are being reformed. It provides details of an ambitious programme of reform to reduce overall regulatory burden, maximise innovation / growth and support UK businesses and consumers. This report can be located here: http://ow.ly/J7m950OpYhs. The government has already reformed or revoked over 1,000 pieces of REUL, and around 500 laws covering financial services have been exempted from the deadline, as they’re due to be repealed by a separate Bill making its way through the Commons. The same is expected for EU legislation impacting value added tax (VAT) and customs.
The Tips Bill gains Royal Assent and becomes law THE EMPLOYMENT (Allocation of Tips) Bill has become an Act of Parliament (law) by gaining Royal Assent on 2 May 2023. The Bill makes it unlawful for employers to withhold tips from staff and is expected to come into force in 2024. It’s been reported that more than two million workers across the hospitality, leisure and services sectors will have their tips protected. They’ll also be able to view an employer’s tipping records. An estimated £200 million a year will go back into the pockets of hard-working staff who will retain tips which would have otherwise been deducted. Business and trade Minister, Kevin Hollinrake said: “As people face rising living costs, it is not right
for employers to withhold tips from their hard-working employees. Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.” Through the Act, a new statutory code of practice will be developed to provide businesses and staff with advice on how tips should be distributed. Workers will receive a new right to request more information on an employer’s tipping records, enabling them to bring forward a credible claim to an employment tribunal. Businesses should act now to ensure they’re compliant in time for when the new conditions come into force. An audit of current practices is advisable, to ensure 100% of tips and service charges are being allocated the correct workers within the period required. The Bill can be accessed here: http://ow.ly/IBI050OpYw9, and the associated press release can be found here: http://ow.ly/ RiLe50OpYx8.
Diary dates
5 July
Last day of tax month 3
6 July
First day of tax month 4
Last day for submitting a real time information employer payment summary to apply to tax month 2 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 June
22 June
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 August 6 August
Last day of tax month 4 First day of tax month 5
| Professional in Payroll, Pensions and Reward | June 2023 | Issue 91 10
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