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06/06/2011 by Geoff.
You’ve decided to set up your own business (in the market as your employer) so it important to leave on good terms.This needn’t be a minefield but it’s important to do it right to avoid legal and costly penalties. The most common worry your existing employer will have is that you will steal clients. Check your employment contract and employee handbook for any restrictive covenants. There are three main types of these:
· Those that prevent you from approaching clients of your former employer
· Those that prevent you from poaching employees
· Those that prevent you from competing with your former employer generallyPut simply “stick to them”.
A guide to leaving gracefully should include:
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06/06/2011 by Geoff.
If you are expecting to pay CGT at the new rate of 28% on all or part of a capital gain on a sale in the current tax year, there may be scope to reduce the rate. This involves making a contribution to your pension scheme or a donation to a charity.It works by reducing your taxable income for all purposes – including the rule that says your rate of CGT is found by adding the gain to your taxable income. If the latter does not exceed the basic rate band of £37,400 it means that some or all of the gain is taxed at 18% instead of 28%.
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23/05/2011 by Geoff.
The new rules applying from 6 April 2011 are now known, with flexibility being the name of the game.Annuity rates are very low at present, with no signs of that changing, and the new rules will allow you to draw income from your pension fund without having to buy an annuity. If you have a secured pension income of at least £20,000 a year you will even be able to access 100% of your pension fund if you wish (with an income tax charge on it of course) and the options in your particular circumstances need to be reviewed.
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16/05/2011 by Geoff.
The tribunal compensation limits have increased, in line with inflation, for all dismissals on or after 1st February 2011.The main changes are that the maximum week’s pay for redundancy payments (or a basic award) has increased to £400, leading to a maximum award of £12,000 (30 weeks x £400). The maximum compensatory award for unfair dismissal has increased to £68,400.
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16/05/2011 by Geoff.
The Government has announced that it will abolish the default retirement age (DRA) with effect from 1st October 2011. After that date, most employers will be unable to automatically retire employees at 65 unless they can prove that the retirement age is a reasonable and appropriate method of achieving a sensible business objective. There is little assistance on what will be sufficient to justify a retirement age after October.So, after October, employees who do not wish to retire will have a right to remain in work – and Companies face a potentially substantial age discrimination claim if they dismiss them because of their age. Accordingly, employers are going to have to focus to a far greater extent on implementing efficient performance management processes to manage performance levels.
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16/05/2011 by Geoff.
A recent case has highlighted the importance of ensuring that clauses in employee contracts relating to bonus schemes should be very carefully and tightly worded. The employer in question wished to incentivise a recently hired salesperson, so offered bonuses for meeting a range of sales targets. The employee’s performance, however, was quite exceptional – so exceptional that they ended up being owed over £100,000. This was even though the contract included a clause enabling the employer to limit bonuses paid during the year. This was not used, however, and the employee refused an offer of a bonus worth 130% of annual salary. When the case reached the Court of Appeal, it was felt that only a better worded capping clause should prevent the full payment from being made, and the salesperson won their case. This is one of those ‘if only’ stories, where the employer will continually regret having neither tightened the capping clause nor invoked the one limiting bonuses paid. To ensure that your business never falls into similar traps, ensure that a specialist solicitor is involved in creating the appropriate clauses, and ascertain that your processes are sufficiently robust to take appropriate action when it is needed.
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11/04/2011 by Geoff.
On 6th April 2011, new measures to control the number of migrants that come in to the UK from outside Europe came into force. This includes an annual limit of 20,700 under Tier 2 (general), the abolishment of Tier 1 (general) category and the new Tier 1 (exceptional talent) which is limited to 1,000 people. Written by – Simone Greasley – HR & Recruitment Specialist
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05/04/2011 by Geoff.
From 6th April 2011, under the Equality Act 2010, employers will be able to take positive action on recruitment and promotion, choosing employees because of their sex, race etc. if they are “as qualified as” other candidates. This must be done on a case-by-case basis.
Written by – Simone Greasley – HR & Recruitment Specialist
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05/04/2011 by Geoff.
Mothers of children due on or after 3rd April 2011, can transfer up to six months of their maternity leave to eligible employees (normally fathers) when they return to work. Depending on the amount of SMP already received by the mother, this may or may not be paid leave.
Written by – Simone Greasley – HR & Recruitment Specialist
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05/04/2011 by Geoff.
As we reported a while ago, from 6th April 2011, the weekly rate for statutory maternity, paternity and adoption leave pay will rise from £124.88 to £128.73.Statutory sick pay will increase from £79.15 to £81.60.
Written by – Simone Greasley – HR & Recruitment Specialist
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