Professional October 2019

MEMBERSHIP INSIGHT

On your behalf

Policy team update

SamanthaMannMAATMCIPPdip, CIPP senior policy and research officer, reports on several think tank events and encourages your participation

T he September issue’s On your behalf report discussed the plethora of consultation documents published by government before the summer recess. The policy team has continued to canvas and gather members’ views on the proposals and changes to processes that these consultations might bring. Stakeholder involvement is important. Policy authors for government know their policy – we know payroll – and it is vital that everyone who has a view can express it. Your expert knowledge is invaluable in bringing about change to government proposals – after all, there are so many – and many (if not all) of them will impact payroll calculations, processes and workload in the coming years. After our most recent think tank roundtable which was held on Tuesday 20 August, the team received the following comment from one of the officials who had attended: “I know I found it really helpful to hear first- hand the thoughts and concerns of the delegates. It really helped me understand these and has greatly increased my appreciation of how changes may affect payroll providers and employers. It was clear to see the benefits an event like this can bring to the consultation process.” The Think Tank, which was held in Leeds and attended by representatives from the Department for Business, Energy and Industrial Strategy, Department for Work and Pensions, and HM Revenue & Customs, discussed three of the summer consultations, as follows. The discussions throughout the day were lively and interesting and the opinions expressed will be included in the consultation responses which will be submitted in October.

Health is everyone’s business: proposals to reduce ill health- related job loss This consultation sought views on different ways in which government and employers can take action to reduce ill-health-related job loss. Disabled people and people with long-term health conditions are at greater risk of falling out of work. The proposals aim to support and encourage early action by employers for their employees with long-term health conditions, and improve access to quality, cost-effective occupational health. Statutory sick pay (SSP) reforms are part of this consultation. A cornerstone of this consultation is considering how employers can do more to support workers with ill-health, rather than simply paying them. Enabling a gradual return to work after illness would be one way to support workers, but the existing SSP rules don’t allow for this. During the discussion it was clear that whilst all could see the benefits of a phased return to work, the administrative burden would perhaps be greater for those who pay occupational sick pay (OSP) than for those who only pay SSP due to the differing durations between OSP and SSP. ...the benefits would outweigh the burden It was also highlighted that complications could arise for workers who have multiple posts within the same organisation, especially if they were fit to work in one job but not the other. Despite all the complexity there was an acknowledgement that the benefits would outweigh the burden. The discussion turned to the possibility

of widening eligibility to SSP to those earning below the National Insurance lower earnings level (LEL). Acknowledging that there would be little incentive for workers earning just below the LEL to return to work as their earnings would be on a par with the SSP, the suggestion was that perhaps a percentage of SSP would be paid. This seemed to strike the right balance between supporting those on sickness absence, whilst also encouraging them to return to work when they were fit to do so. All in the room agreed that it is right to remove the LEL link but as with any change to payroll processes, there was unanimous agreement that payroll software was the key to managing the administrative burdens. Developers must be involved at the earliest stage i.e. when scenarios are being considered and are evolving so as to ensure that all relevant permutations are factored into payroll software. Transparency of flexibleworking and family related leave and pay policies The discussion then turned to the consultation looking at the way in which employers can support families. The consultation has three main strands: ● ● whether job adverts should say whether jobs can be done flexibly ● ● whether employers should publish their family related policies online so new applicants know what that company is like to work for, and ● ● whether this approach would make a difference. After an interesting discussion considering all angles, the attendees concluded that whilst well-meaning, it was unlikely that these suggestions would bring any real benefits to either employers or potential employees.

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| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54

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