Amongst the many announcements yesterday, the Government took the opportunity to summarise its recent progress on reforming employment law and show how it is supporting employment.In order to reduce
Amongst the many announcements yesterday, the Government took the opportunity to summarise its recent progress on reforming employment law and show how it is supporting employment.
In order to reduce barriers to businesses taking on new staff, the Government has:
• accepted the Low Pay Commission's recommendation for below inflation increases to the National Minimum Wage (while the adult rate will increase to £6.19 an hour in October 2012, the hourly rates for 16-17 and 18-20 year olds have been frozen)
• announced significant deregulation of employment law, including increasing the unfair dismissal qualifying period from one to two years from 6 April 2012 and publishing a call for evidence on dismissal processes, including the introduction of compensated no fault dismissals for micro businesses;
• completed a consultation on proposals to introduce fees for employment tribunals. The Government intends to publish the response to the consultation before summer recess 2012; and
• provided evidence to the Pay Review Bodies on the economic case for reforming public sector pay to reflect local labour markets. The Review Bodies are due to report from July 2012.
In addition, HM Treasury will conduct an internal review to examine the role of employee ownership in supporting growth and examine options to remove barriers, including tax barriers, to its wider take-up. The review will also consider findings of the work on employee ownership being led by Norman Lamb, the Minister for Employment Relations, Consumer and Postal Affairs, due to report this summer. This review will include the report to be prepared by Field Fisher Waterhouse partner Graeme Nuttall, following his appointment as the Government's independent adviser on employee ownership earlier this year.
In relation to share schemes, the Government will also consider the recommendations of the Office of Tax Simplification (OTS) in their review of HMRC tax advantaged share schemes and consult shortly on how to take these proposals forward. The OTS recommendations include the introduction of a new self-certification process to replace the current requirement to seek prior approval from HMRC of any proposed new Share Incentive Plan (SIPs), savings-related share option scheme (SAYE) or Company Share Option Plan (CSOP). The second main recommendation is to merge, over two phases, CSOPs and EMIs to create a single plan governing all UK tax-advantaged discretionary share option arrangements.
In headline terms, very little has happened on private pensions, with the Chancellor focusing on the state aspect of retirement income. In particular the predicted attacks on tax relief for high earners did not feature. But there is more to the Budget than meets the eye and in the next few days David Gallagher, one of our pension partners, will share his thoughts.
In order to reduce barriers to businesses taking on new staff, the Government has:
• accepted the Low Pay Commission's recommendation for below inflation increases to the National Minimum Wage (while the adult rate will increase to £6.19 an hour in October 2012, the hourly rates for 16-17 and 18-20 year olds have been frozen)
• announced significant deregulation of employment law, including increasing the unfair dismissal qualifying period from one to two years from 6 April 2012 and publishing a call for evidence on dismissal processes, including the introduction of compensated no fault dismissals for micro businesses;
• completed a consultation on proposals to introduce fees for employment tribunals. The Government intends to publish the response to the consultation before summer recess 2012; and
• provided evidence to the Pay Review Bodies on the economic case for reforming public sector pay to reflect local labour markets. The Review Bodies are due to report from July 2012.
In addition, HM Treasury will conduct an internal review to examine the role of employee ownership in supporting growth and examine options to remove barriers, including tax barriers, to its wider take-up. The review will also consider findings of the work on employee ownership being led by Norman Lamb, the Minister for Employment Relations, Consumer and Postal Affairs, due to report this summer. This review will include the report to be prepared by Field Fisher Waterhouse partner Graeme Nuttall, following his appointment as the Government's independent adviser on employee ownership earlier this year.
In relation to share schemes, the Government will also consider the recommendations of the Office of Tax Simplification (OTS) in their review of HMRC tax advantaged share schemes and consult shortly on how to take these proposals forward. The OTS recommendations include the introduction of a new self-certification process to replace the current requirement to seek prior approval from HMRC of any proposed new Share Incentive Plan (SIPs), savings-related share option scheme (SAYE) or Company Share Option Plan (CSOP). The second main recommendation is to merge, over two phases, CSOPs and EMIs to create a single plan governing all UK tax-advantaged discretionary share option arrangements.
In headline terms, very little has happened on private pensions, with the Chancellor focusing on the state aspect of retirement income. In particular the predicted attacks on tax relief for high earners did not feature. But there is more to the Budget than meets the eye and in the next few days David Gallagher, one of our pension partners, will share his thoughts.