The first practical stage of a new "Vetting and Barring" scheme for protection of children and vulnerable adults in England and Wales started on 12th October 2009.

The Safeguarding Vulnerable Groups Act will not be fully in force before autumn 2010 but important parts have now been now implemented.

As from 12th October 2009:

• it is a criminal offence for a barred individual to seek or undertake work with vulnerable groups or for "Regulated Activity Providers" knowingly to employ such a person;


• the previous barring lists (POVA, POCA and List 99) are replaced by two new barred lists, both administered by the Independent Safeguarding Authority rather than by different Government departments. Checks of the two lists can be made as part of an Enhanced CRB check;


• employers, social services and professional regulators must refer to the ISA information about why they stopped or considered stopping an individual from working with vulnerable groups where they consider them to have caused harm or posed a risk.

The next stages will be:

• July 2010 - new entrants and employees looking to work or volunteer with vulnerable groups can start to apply to become ISA registered;


• November 2010 – new entrants must become ISA registered before starting work with vulnerable groups; and


• April 2011 – existing workers must start to become ISA-registered.

A recent ruling ruling from the European Court of Justice, allowing employees to claim back time when they are sick while on holiday as extra leave at a later date, is not from the real world, and risks forcing good employers to ditch relatively generous occupational sick pay schemes, and opt for less generous Statutory Sick Pay schemes instead, according to the Chartered Institute of Personnel and Development (CIPD).

Ben Willmott, Senior Public Policy Adviser at the CIPD, said:

"This is an extremely disturbing ruling that could be impossible for employers to manage. It may be logical for lawyers, but it is a ruling completely divorced from the real world.

"It is well-established that employers should take on some of the risk of employees being sick on work time, but it is basic common sense that employees should in turn be willing to accept the risk that they may be sick on their holidays. A holiday resort tummy bug or an ill-timed cold is an unfortunate fact of life. None of us wants one, but why should employers be forced to award employees with extra holiday in compensation?

"Even more worrying is the risk that unscrupulous employees will now potentially be able to self-certify exaggerated or fabricated sickness while on leave, and not only gain extra holiday as a result but carry it over to the next year.

"The sad fact is that nonsensical rulings like this could force good employers to review their relatively generous occupational sick pay schemes, and consider opting for Statutory Sick Pay schemes instead. If ever there was a case of the law of unintended consequences, this could be it.

"In practical terms, following this ruling, employers should at the very least clarify their absence management policies so that employees understand they will need to phone their line manager daily if they are sick while on holiday, to confirm that they are still sick and not fit for work."

Business leaders and government call for a stand against poor people management, which is too often the cause of bullying, conflict and stress in the workplace and a significant factor in the UK's productivity gap.

The call comes as CIPD and Acas publish joint guidance on how to be a better boss, and urge government to help address the UK's people management skills deficit.

The 'five-a-day' management fundamentals developed from CIPD and Acas research and practical experience of management development are grouped under the following headings:

Managing work now and in the future

• Gains, develops and communicates clear objectives;
• Develops action plans;
• Monitors work and workloads regularly;
• Sees projects/work streams through to delivery;
• Looks collaboratively for ways of improving work processes;
• Ensures work cover, manages rosters/workloads and discusses these with staff, deals with absence fairly;
• Maintains effective working relations with senior managers.

Managing the team

• Keeps team members informed on what is happening in the organisation;
• Holds regular team meetings with time for questions, discussion and views to be expressed;
• Encourages every member of the team to participate;
• Allocates and delegates work evenly among the team in line with their level of responsibility and experience;
• Allows the team to take some responsibility for work, work allocation and problem solving;
• Solves team problems quickly and effectively if need be by taking the issue up to senior management while keeping people informed;
• Takes part in the work of the team and joins in;
• Mixes with the team in work and at rest times;
• Protects the team from excessive work demands, knows when and how to say 'no';
• Understands health and safety issues and the importance of well-being at work;
• Helps new team members to assimilate, prepares for team members to move on inside or outside the organisation.

Managing the individual

• Takes part and takes care in selection and induction to welcome and support the individual;
• Sets challenging yet achievable job and performance expectations/targets;
• Gives autonomy to let the person get on with the work;
• Often reviews performance and gives regular constructive feedback;
• Rewards good performance quickly from 'thank you', 'well done' to small gifts or prizes;
• Takes appropriate action where there is evidence of poor/unsatisfactory performance, giving opportunities for improvement;
• Takes the formal appraisal process seriously showing preparation and time allocation giving priority to development and the future;
• Provides coaching and guidance on a regular basis, and is patient;
• Shows concern, and takes action, when there are signs of stress, listening in confidence when help is requested or needed;
• Shows interest in colleagues and their lives.

Managing conflict and difficult situations

• Deals with possible conflicts early on, informally where possible;
• Acts as a mediator if appropriate showing impartiality and listening to each side;
• Talks through grievances and problems as soon as they are raised, before formal procedures are used;
• Knows when to ask for advice and help, using HR as a resource and when to pass the matter on to another manager;
• Ensures the formal disciplinary and grievance procedure is used when necessary;
• Seeks evidence from all sides before making a decision;
• Works constructively with employee representatives;
• Looks for causes behind the symptoms;
• Focuses on the future.

Managing yourself

• Understands own stress and ways of dealing with it;
• Develops, as far as possible, an open relationship with the boss;
• Learns from experience especially 'near misses';
• Looks for support and advice from other line managers and provides support to them;
• Keeps on top of work loads and communications;
• Knows what is going on in the organisation, keeps in touch and takes part in discussions;
• Is aware of own strengths and weaknesses and develops self confidence by dealing with issues;
• Has a strong interest in personal development and learning;
• Believes in the values of integrity and professionalism and expects it from others;
• Seeks to be a role model and a leader;
• Has a sense of humour and can show 'the human side'.

For more information click here.

New Guidance on Tackling Stress

New guidance, jointly funded by the Chartered Institute of Personnel and Development (CIPD), the Health and Safety Executive (HSE) and Investors in People (IIP), is now available as part of a four-year project to identify the management behaviours that will help organisations reduce stress at work.

The guidance, Line Management Behaviour and Stress at Work, draws from in-depth research involving interviews and surveys with hundreds of managers and employees, as well as an evaluation of manager training in stress management competencies across 17 organisations. It sets out the key management behaviours for managing stress at work.

The behaviours are grouped under four competency headings: managing and communicating existing and future work; reasoning/managing difficult situations; managing the individual within the team; and managing emotions and having integrity.

With ill-health relating to stress at work doubling between 1990 and 2007, stress is now the second biggest cause of employee absence behind musculoskeletal conditions. This picture is likely to get worse as a result of the recession with the World Health Organisation predicting soaring levels of stress and other mental health problems in the next few years. A CIPD survey of 3,000 employees shows that about half have seen an increase in stress at work as a result of the downturn.

To download the guide click here.

June 2009
Paternity leave scheme shelved

Plans to allow parents to share a year’s paid maternity leave have been shelved by Lord Mandelson after complaints from businesses. The pledge, contained in Labour’s manifesto at the last election, would have given fathers six months’ paid leave to look after a baby, allowing mothers to return to work early. Ministers also promised to extend paid maternity leave from nine to 12 months. The Plans would also have allowed people in lesbian and gay civil partnerships to share maternity leave and were applauded by family groups. A spokesman for Lord Mandelson’s business department said it was now reviewing the proposals and the plans to introduce the rights this year were on hold. It is now very unlikely that the proposals, in their original form, will be implemented, as planned, in April 2010.

May 2009
The Adult UK minimum wage will rise by 7p to £5.80 an hour from October 2009

The minimum wage rate for 18 to 21-year-olds will increase by 6p to £4.83 and for 16 and 17-year-olds will go up by 4p to £3.57.

The Government also announced that, from October 2010, the adult statutory minimum rate would apply to 21-year-olds. At present their minimum wage is set - together with workers aged 18, 19 and 20 - at a lower rate.

April 2009
UK protects working time opt out

Talks on the EU Working Time Directive have broken down without agreement being reached.

The collapse sees the end of the European Parliament's proposal to phase out the opt-out in three years. The UK and other countries have consistently held firm against this proposal. A conciliation meeting in Brussels between the Member States, European Parliament and the European Commission was unable to resolve the long-standing differences between the European Parliament and member states over whether to retain the opt-out or not. With the deadline for reaching an agreement rapidly approaching, and the differences between the parties too great, it was agreed there was no value in continuing the negotiations any further.

Employment Relations Minister Pat McFadden said: "We refused to be pushed into a bad deal for Britain. We have said consistently that we will not give up the opt-out and we have delivered on that pledge. "Everyone has the right to basic protections surrounding the hours that they work, but it is also important that they have the right to choose those hours. "In the UK and many other Member States, choice over working hours has operated successfully for many years. The current economic climate makes it more important than ever that people continue to have the right to put more money in their pockets by working longer hours if they choose to do so." Business Secretary Lord Mandelson said: "Millions of people are better off because of the opt-out and I am relieved we have been able to resist its removal." The dossier in its current form will formally fall when the conciliation timetable reaches its conclusion in May. It will then be for the European Commission to decide how to proceed.

Resistance to the removal of the 48 hour Opt – Out

Brussels talks on the EU Working Time Directive have broken up with the UK successfully resisting pressure to accept the removal of the right to opt-out of the maximum 48-hours week.

A meeting of the EU's Conciliation Committee was unable to resolve differences between the European Parliament and member states over whether to retain the opt-out or not.

The UK and other countries held firm against a European Parliament amendment to the Working Time Directive that would have phased out the opt-out in three years.

Employment Relations Minister Pat McFadden said:

"We have said consistently that we would not give up the opt-out and that continues to be the case. "We argued that everyone has the right to basic protections surrounding the hours that they work, but also the right to choose those hours. "Choice over working hours has operated successfully in the UK and in other Member States for many years. "In the current downturn it is more important than ever that people keep the right to put more money in their pockets by working longer hours if they wish. We refused to be pushed into a bad deal for Britain."

Talks will now be reconvened for later this month, although it will clearly be a challenge to bridge the gap between Member States and the European Parliament.

March 2009
EU judges back UK retirement age

The UK's compulsory retirement age of 65 is not in breach of EU legislation, according to a ruling by the European Court of Justice (ECJ).

The case was brought by Age Concern, which wanted to know whether it was legal for UK employers to force workers to retire at the age of 65. But the ECJ said the practice was legal if it had a legitimate aim related to employment and social policy. It said the High Court in London had to decide if the age limit was justified. As the law stands, a British employer can dismiss a member of staff without redundancy payments on that person's 65th birthday.

Age Concern maintained that this was in breach of the EU's Equal Treatment at Work Directive and said one in eight MPs would be out of a job immediately if the rule applied to them. The Conservatives and Liberal Democrats had supported the case, which was also backed by Help the Aged. The government points out that existing employment equality regulations do give employees the right to formally request to carry on working beyond 65. It says the existing law will be re-examined, and could be relaxed further, in 2011.

The High Court, which sent the case to the ECJ for clarification on the law, will now have to decide whether the aims of the government's retirement age of 65 were "legitimate". Campaigners said they were disappointed with the result, but urged the government to change its policy anyway. "We are disappointed with the ECJ's judgment which sends the message that ageism is less important than other forms of discrimination, but we will continue our fight to ensure that older British workers are judged on their skills and abilities rather than their age," said Gordon Lishman, director general of Age Concern. "The government continues to consign tens of thousands of willing and able older workers to the scrapheap. It is time for ministers to find the courage of their convictions and abolish the default retirement age without further delay." And Paul Cann, director of policy for Help the Aged, said that, given the difficult economic climate, the case had become even more important for pensioners who wanted to continue working so they could be more comfortable. "Mandatory retirement ages are unfair and the government should act to abolish them as soon as possible," he said. "Challenging financial circumstances mean it is even more important for older workers to be able to choose to work longer if they want to. Ageism in all its forms must be eradicated from our society once and for all."

The latest verdict, in what was seen as a test case, still leaves about 260 legal actions pending in tribunals. Thousands more pensioners who were forced to retire against their will have compensation claims waiting if the High Court's final ruling decides the compulsory retirement age is not justified.

February 2009
Managing the workforce in a recession

As calls on redundancy to the CIPD and Acas helplines continue to climb, the two organisations are launching joint guidance on managing the workforce in a recession.

Over a third (35%) of calls to the Acas helpline in January this year were related to redundancies, lay offs and business transfers. Figures just released by the CIPD’s HR helpline show that calls on redundancy in the same month have doubled since a year ago and now make up 18% of the total.

However the guidance ‘Managing in Recession’, launched today by the chief executives of the CIPD and Acas, emphasises the importance of organisations managing for the long-term and being innovative in their approach to avoid job cuts wherever possible.

It also focuses on the fundamental importance of managing people properly in order to maintain employee engagement, wellbeing and productivity as rising work intensity threatens to increase stress and conflict at work.

Finally, the guidance highlights the importance of organisations developing redundancy strategies so they manage this difficult issue sensitively and within the law.

To download the report click here.

January 2009
Independent Safeguarding Authority to make decisions on POVA, POCA and List 99 referrals from 20th January 2009
Key Points:
• The new Independent Safeguarding Authority (ISA) will from 20th January 2009, take barring decisions on new referrals from England and Wales under current legislation relating to PoCA, PoVA and List 99;



• CRB’s disclosure process for employers and the POVA First service are both unaffected;



• Employers will have the same duty to make referrals, but will have to send them direct to the ISA;



• From the same date, PoCA (and PoVA) provisional listing on new cases will end.

Visit the ISA Website for more information. Click here.

Holiday accrues during long-term sick leave

The ECJ has ruled that, under the Working Time Directive, employees continue to accrue holiday throughout sick leave, irrespective of the length of such leave, and that they are entitled to payment in lieu of such leave (if it has not been possible to take it) on the termination of employment.

The ruling also makes provision for member states to decide whether their own national legislation entitles an employee on sick leave to take paid annual leave during that sick leave, thus effectively enabling an employee to be on two types of leave at the same time.

It is likely that the government will now have to amend the Working Time Regulations to clarify the necessary detail and give the Judgment practical application. However there will be a number of practical issues to deal with, and if an employee is under review for frequent absence, for example, but chooses to have the absence on sick leave counted as holiday, is that leave void for sickness counting purposes?

The judgment is immediately effective for public sector employers but private sector employers can wait until at least the House of Lords makes a decision and probably until the Government amends the regulations.

No doubt more will be revealed in time, but this is not good news for employers generally, as yet another cost mounts.

No exceptions to the 48-hours maximum working week and opt-out scrapped after three years.

On 17th December 2008, the European Parliament voted by 421 to 273 in favour of scrapping the right of individual workers to opt out of the 48 hours average maximum working time week and say the opt-out must end three years after adoption of the directive.

MEPs also voted that on-call time should count as working time. These matters will now go back to the Council.

The UK government has confirmed that it remains fully committed to the Common Position agreed by the Employment Council in June 2008 and in particular to maintenance of the right of individuals to opt out of the maximum 48 week if they wish.

Brendan Barber, General Secretary of the TUC said: "This is an early Christmas present for Britain's hardest workers, and for the families who see too little of them. Members of the European Parliament have courageously defied the abusers and the slave-drivers over the loss of the 'right' to work people till they drop.

However, John Cridland, Deputy Director-General of the CBI, described the vote as "misguided". He added that: "Many people want to work longer hours, in professions ranging from manufacturing to medical research. They do so to further their careers or earn extra money, or to help their firm through difficulties. They should be able to do so if they choose."

The UK is expected to appeal to other nations which back its belief in the opt-out clause, and will enter into conciliation talks with the Council of Ministers before a decision is reached in 2009.

December 2008
Employment Act becomes law

Arguably one of the most important pieces of legislation due for implementation next April.

Since October 2004 employers and employees have been required to show to Employment Tribunals that they have followed compulsory statutory dispute resolution procedures. These procedures are basically designed to help bring about out of court settlement wherever possible. These procedures have led to all sorts of difficulty – and are to be repealed.

The 2008 Act abolishes the well intentioned but impractical 2004 compulsory rules. Instead, from April 2009, there will be a new semi-voluntary ACAS Code of Practice designed to help settle disputes out of court. It will be semi-voluntary because if an employer or employee fails to observe it and the matter goes before an employment tribunal, the tribunal will in most cases have discretion to increase or decrease monetary awards by up to 25%.

Other significant matters covered by the Act:

• increasing National Minimum Wage enforcement powers;



• strengthening the Employment Agencies Act 1973:



• and enabling trade unions to refuse membership to individuals who belong to a political party if membership of that party is contrary to the rules of the union.
Increase in Employment Tribunal Limits

On 1st February each year, there is an inflation linked increase in the statutory maximum limits on many awards made by employment tribunals. The government has recently published the increases for 2009.

The two main changes coming into effect are:

• an increase from £330 to £350 in the limit on a week's pay which can be taken into account when calculating statutory redundancy pay or the "basic award" component of unfair dismissal compensation and which applies to government guarantee arrangements for employees where an employer becomes insolvent.



• an increase in the maximum "compensatory award" component of unfair dismissal compensation from £63,000 to £66,200.
The result is that the absolute maximum statutory redundancy payment increases from £9,900 to £10,500 and the absolute maximum unfair dismissal award in "ordinary" cases increases from £72,900 to £76,700.

In some unfair dismissal cases, generally those where dismissal is for a reason which makes it automatically unfair, there is no statutory limit on the amount an employment tribunal can award. This is also true of discrimination cases - again there is then no statutory limit on the amount an employment tribunal can award.

Important Notes about Redundancy

10 basic but important points to bear in mind about redundancy:

• Redundancy is about the work requirements of the employer not about the performance of any individual employee(s).



• The fact that an employee is dismissed by reason of redundancy does not prevent him or her bringing a tribunal claim for unfair dismissal.



• In general statutory redundancy pay is calculated in the same way as the basic award component of unfair dismissal compensation. Redundancy pay is set off against unfair dismissal basic award if the dismissal is subsequently found to have been unfair (so as a general rule they cancel each other out).



• A minimum of two years continuous employment is required for a person to be entitled to statutory redundancy pay (it is one year for unfair dismissal claims).



• Maximum amount of a week's pay which can be taken into account in calculating statutory redundancy pay is (currently) £330, £350 from 1st February 2009.



• Maximum statutory redundancy pay for an individual is (currently) £9,900, achievable only by an employee aged over 61 with 20 years continuous service. Maximum unfair dismissal compensation is generally £72,900 although in some cases there is no statutory limit. These limits will increase from 1st February 2009 to £10,500 and £76,700 respectively.



• Age discrimination. Since October 2006 age limits for entitlement to redundancy pay have been removed but the age-related parts of the formula for calculating statutory redundancy pay have not been removed.



• The same dismissal procedures must be observed when a dismissal is by reason of redundancy as when dismissal is for any other reason.



• An employee being dismissed by reason of redundancy is entitled to notice.



• Special consultation rules apply if 20 or more employees are to be dismissed at one establishment within a 90 day period and employment tribunals can award very substantial "protective awards" if these consultation rules are not followed.



10 less basic points about redundancy:
• It is a criminal offence for an employer to fail to give written details of calculation of a redundancy payment to a redundant employee.



• An employee may be able to claim the equivalent of statutory redundancy pay from the State if his employer fails to pay it.



• If an employee is made redundant without being told why he was selected, it is likely that an employment tribunal would find the dismissal was unfair dismissal for that reason alone.



• It is a breach of the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 to select employees for redundancy by virtue of their status as part time workers, unless justifiable on objective grounds.



• Until October 2006 statutory redundancy pay due to an employee would be reduced or extinguished if he or she was entitled to an occupational pension starting within the 90 weeks after the redundancy. This is no longer so.



• If a woman's job becomes redundant while she is on maternity leave she will be treated as automatically unfairly dismissed if the employer had a suitable available vacancy but failed to offer it to her. A "small employer exception" to this rule was ended in April 2007.



• Civil servants are not eligible for statutory redundancy pay but their terms of service usually give them equivalent or better rights by contract. Local Authority staff and other public sector employees who are not civil servants are eligible for statutory redundancy pay under normal rules.



• In deciding whether selection of an individual for redundancy was unfair (so that the employee concerned can claim unfair dismissal) an employment tribunal must not substitute its own view for that of the employer as to what was reasonable either in respect of redundancy selection criteria or implementation of the criteria. Rather the tribunal must consider the wider question of whether the selection was one that a reasonable employer acting reasonably could have made.



• Where a business is closing and 20 or more employees at one establishment are being made redundant the employer's statutory obligation to consult extends to consulting about reasons for the closure. Only in the rare situation where there is to be closure but redundancies could be avoided will consultation over the closure decision itself not be needed.



• If an employer provides enhanced redundancy pay (ie an amount greater than that calculated in accordance with the statutory formula) it is unlawful age discrimination to pay all those being made redundant an amount calculated solely by reference to length of service or to pay them a flat amount regardless of age unless this can be objectively justified. Instead the enhanced redundancy pay must be calculated by applying the different multipliers which apply for different age groups where the statutory minimum is being paid.



With due recognition to Emplaw, who published this list.
November 2008
Redundancy fears haunt labour market
A survey of 721 UK employers reveals that the UK economy should be braced for yet more redundancies in the year ahead, with older workers set to bear the brunt. The CIPD/KPMG Labour Market Outlook 'Redundancy Special' reveals that more than a quarter of employers (26%) have contingency plans to make new or further redundancies in the next twelve months in addition to those already planned.

Organisations who have already made or planned to make redundancies in the next three months are more likely to be considering further job cuts in the next twelve months. The news comes on the back of grim unemployment statistics, which show that redundancy activity has increased sharply in recent months.

Almost one in five employers say that they are going to enforce the Government's retirement age policy - which allows UK organisations to make workers over 65 redundant without having to provide a business reason for doing so - more vigorously. The report also shows that the average cost for making workers redundant now stands at more than £10,000.

Key findings:
• Of the 26% of organisations who have contingency plans in place to make further redundancies in the coming year, 59% of them are planning to make redundancies in the next 3 months. In comparison, of the 73% who don't have contingency plans in place to make further redundancies in the coming year, just 13% of them are planning to make redundancies in the next 3 months.


• The majority of redundancies in both the private and voluntary/not for profit sectors are compulsory (81%) in sharp contrast to the public sector where 62% are voluntary.


• Managers and professionals and skilled non-manual workers are most likely to suffer from the redundancy cull.


• Half (50%) of organisations surveyed offer redundancy pay above the statutory minimum.


• The average cost of making an employee redundant varies greatly across sectors. The average payment in the public sector is £17,926, compared with £8,981 and £7,629 in the private and voluntary sectors respectively. The average payment across all sectors is £10,575.
A guide on how to address redundancy issues is available on the CIPD website. Click here.

To access the CIPD FAQs on the legal aspects of redundancy, click here.

October 2008
Poorly managed conflict is crippling British business
According to recent figures poorly managed conflicts in the workplace are crippling British business. The average UK employee spends over two hours a week dealing with conflict, which means in total more than 370 million working days were lost last year at a cost to British employers of more than £24 billion.

The statistics are from a new global report Fight, Flight or Face It, jointly authored by business psychology firm OPP and the Chartered Institute of Personnel and Development (CIPD). It surveyed thousands of employees in nine countries across three continents, in businesses of all sizes and in all sectors. A second survey revealed the opinions of 660 HR professionals in the UK, allowing for a balanced employee/employer view on conflict.

The figures reveal that stress and heavy workloads are cited as causes by 34% and 33% of employees respectively, although half (49%) feel that personality clashes and warring egos are the number one cause (49%) - all factors requiring close management in tough times.

Robert McHenry, CEO of OPP, says: "Workplace conflict is nothing new. But in the context of the current economic downturn, businesses could see steep rises in conflict as workloads increase, budgets shrink and stress levels rise. The fact that there are too few managers in British business with the insight to handle it effectively could cost us dearly.

"When dealt with in the right way, conflict can actually lead to positive outcomes such as more effective teamwork and greater innovation. Training is vital because it allows managers to understand and deal with the underlying causes."

To view the CIPD Guide on managing conflict, click here.
Worrying surge in redundancy enquiries strengthens case for interest rate cut
There are indications that an increasing number of employers are preparing to make staff redundant. Analysis of calls to the CIPD's legal helpline - which deals with enquiries from human resources managers - shows a 28% monthly increase in September in enquiries related to redundancy. Of 2051 calls to the helpline line last month 303 were related to redundancy - up from 236 in August and more than double the 142 calls recorded in September 2007. In the past year the proportion of calls to the helpline each month related to redundancy has increased from 9.7% to 14.8%.

The CIPD's Chief Economist, Dr John Philpott, says that the helpline statistics are another worrying sign that the credit crunch is set to take a bigger toll on jobs:

"A sombre September awash with bad economic news has caused more employers to take steps toward cutting staff levels. A significant decline in the demand for labour this winter now seems clear, which strengthens the case for the Bank of England's Monetary Policy Committee not only to cut interest rates tomorrow at the end of its monthly meeting but to cut big."

September 2008
CIPD pushes government to scrap mandatory retirement age after ECJ statement
The days of the default retirement age are numbered in spite of the European Court of Justice's statement* on the Heydey case, according to the Chartered Institute of Personnel and Development (CIPD). In today's tough economic climate, this ruling could spell bad news for employees currently approaching retirement.

CIPD research, Future Demand for Working Among Older Workers, highlights Heyday's concern that employees who wish to work past the state retirement age - for both personal and financial reasons - are being prevented from doing so. The research found that just under two fifths (38%) of individuals plan to carry on working beyond 65. Interestingly, among those who said they did not plan to work past sixty-five, 31% would change their mind if their employer allowed them to work flexibly; highlighting the unsuitability of a one-size fits all default retirement age. Currently, only 11% of the workforce work beyond State Pension age.

Dianah Worman, Diversity Adviser at the CIPD says: "The default retirement age should be scrapped. It leads to lazy management, not just of people at the retirement age, but of those approaching it.

"Whether or not today's statement from the advocate general still stands at the final ECJ ruling, we believe the days of the default retirement age are numbered. Employers who continue to engage, develop and motivate their older employees, rather than allowing them to coast towards an inevitable, mandatory retirement age, reap the benefits. Many organisations, like Nationwide and the Department for Work and Pensions - have already abandoned mandatory retirement and have begun to reap the benefits. Older workers have experience, talent and commitment to offer if they are treated well by their employers. The wider economy also benefits from the continued employment of this pool of talented and willing workers.

"Our research shows that many older workers want to keep working beyond the mandatory retirement age, for a mixture of financial reasons, and a desire to continue contributing and doing what they've always done. People shouldn't be forced to work until they drop. But neither should they be compelled to stop work when they still have a valuable and willing contribution to make. "The enforcement of the default retirement age is likely to increase as the credit crunch bites. Last week's ONS figures showed that middle-aged people and those up to state pension age appear to have borne the brunt of the fall in employment. In light of this, those approaching retirement may fear that they will be forced to retire as organisations look for an easier way to reduce head count."

*An advocate-general at the European Court of Justice rejected Heyday’s claim that compelling people to retire at 65 without compensation breached EU equality requirements. The senior legal adviser said a fixed retirement age was not necessarily contrary to the European rules.

Employers’ Liability Insurance
With effect from October 1st 2008 Employers will no longer be required to retain their employers’ liability insurance certificate for 40 years. In addition, Employers do not have to display copies of the current certificate on their employee notice boards. Instead, Employers can now make the certificate available electronically, provided it is reasonably accessible to relevant employees.
Other important Employment Law changes from October 1st 2008 include:
National Minimum Wage
The minimum wage rate for adults aged 22 years and over will rise to £5.73 per hour (from £5.52); The rate for 18 – 21 year olds will rise to £4.77 (from £4.60); and The rate for 17 – 18 year olds will rise to £3.53 (from £3.40).

Different rules apply to apprentices.

Maternity Leave
Women whose babies are/were due on or after 5 October 2008 are now entitled to the same terms and conditions during additional maternity leave (AML), as they enjoy during ordinary maternity leave (OML) (i.e. the same terms and conditions that would have applied to them had they been at work (except for terms relating to remuneration)). OML comprises 26 weeks' leave, available to all pregnant employees, regardless of length of service, who comply with certain notification/ evidential conditions. AML follows directly after OML and lasts for a further 26 weeks.
Adoption Leave

As above, employees who are due to adopt children on or after 5 October 2008 are now entitled to the same terms and conditions during additional adoption leave (AAL), as they enjoy during ordinary adoption leave (OAL). OAL comprises 26 weeks' leave, available to employees who have completed 26 weeks’ continuous service, and are newly matched with a child for adoption by an adoption agency. AAL follows immediately on from OAL and comprises a further 26 weeks' leave.

Companies are slow to register licences for migrant workers and could face significant consequences
According to PricewaterhouseCoopers, only around 20 companies have so far signed up for sponsorship licenses to enable them to employ migrant workers from outside the European Union. The scheme, which is due to come into effect from 1 October 2008, is expected to affect 20,000 businesses.

Julia Onslow-Cole, partner, PricewaterhouseCoopers Legal LLP, said: "A key part of the registration process is around companies proving that their HR systems are compliant according to a set of strict guidelines. However, this process takes time and the clock is ticking. In addition, employers are now beginning to think of immigration issues in a similar way in which they would consider tax obligations. Companies are unable to opt out of PAYE and this revised approach to employing migrants will ensure that migrant compliance is not optional."

For more information, visit the UK Border Agency Website

New guide champions mediation
The 190,000 individual employment tribunal claims in 2007/2008 could have been reduced by more effective use of workplace mediation, according to a new guide from the Chartered Institute of Personnel and Development and Acas.

Mediation: An Employer's Guide also offers a unique insight into an employers' experience of mediation. It draws on a comprehensive survey of CIPD members, a GfK NOP commissioned survey of 500 small/medium sized enterprises (SMEs) and a series of in-depth case studies with companies with up and running mediation schemes.

According to the survey of SMEs, the respondent organisations that use the mediation process indicated that it is successful: almost half said that the last mediation had resolved the issue completely (49%), and more than four in five (82%) said it had resolved the issues either completely or partly.

Mike Emmott, Employee Relations Adviser, CIPD says:

"Gaining the commitment of senior managers to mediation is key to ensuring that line managers buy into the process and promote its use as an informal mechanism to resolve disputes. The way in which mediation arrangements are introduced and embedded within an organisation is crucial to ensuring effectiveness in resolving internal conflict".

To download the guide from the ACAS website click here.

Right to request time off for training
The government is proposing that once they have completed 6 months employment, employees should have the right to request time off work for training. The plans closely mirror existing rights to request flexible working. There is no suggestion that employers would be legally obliged to allow such requests but it is proposed that they will be legally obliged to seriously consider them, with employment tribunals having power to award compensation to an employee if his employer simply rejects a request out of hand without proper consideration.

The government suggests that requesting time to train will "complement other rights in relation to training, most notably for 16 to 18 year olds and for Union Learning Representatives". Those are rights to time off with pay. Under the current proposals there is no suggestion that the new right will include a right to pay during time off taken for training.

The “Time to train” consultation about how the scheme might work closed on 10 September 2008. The new right itself is unlikely to come into operation before April 2010.

New School Leaving Age
Children now starting secondary schools in England will be the first to be legally required to stay in education until they are 17. The rise in the age at which pupils can end their studies is just one of several changes taking effect in English schools this term. New diplomas for subjects such as engineering and construction are also being phased in.

Head teachers say too many initiatives are being introduced at once. The increase in the education leaving age is the first such change since 1972, when it was raised from 15 to 16. There are also major changes to the curriculum for 11 to 14-year-olds and to GCSEs and A-levels. The latter will have a new A* grade to help distinguish the very best exam candidates.

The rise in the leaving age is part of a previously announced government policy to have pupils continue in some form of education or training education to the age of 18. This will take effect for school leavers from 2015. As an interim step the age will rise to 17 from 2013 - the year in which those pupils starting secondary level education now would otherwise have expected to be able to leave school. The change will not mean that pupils have to stay in the classroom, but they will have to continue to receive training. The changes have been introduced because ministers estimate there are some 189,500 young people aged between 16 and 18 who are not in education, employment or training.

Acas urges fair pay and grading systems
Acas, the employment relations service, has launched a new guide to help make businesses less vulnerable to equal pay claims through the use of job evaluation. The guide, which considers the benefits and risks of undertaking job evaluation, explains how a job evaluation risk analysis should be established and implemented.

Job evaluation - which determines the relative importance of a number of different jobs whilst avoiding prejudice or discrimination - can be a complex process. This guide will help managers and employee representatives decide whether introducing a job evaluation structure is feasible and appropriate for their business. The new Job Evaluation advice booklet is launched as the 2008 Acas' annual report shows a 25 per cent rise in employment tribunals and potential employment tribunal claims. This rise was partly attributed to equal pay claims.

Frank Blair, Director Acas Scotland, who has developed the guide, commented: "Employers sometimes find it hard to justify their grading and pay systems. Putting in place a job evaluation scheme can remedy this and can also help prevent equality and HR-related problems from arising." "However, Acas is urging businesses to be fully prepared before embarking on introducing job evaluation. A good number of the difficulties encountered by organisations will be avoided by adequate preparation. The booklet gives advice on the level of preparation required, which if undertaken properly, will create strong business benefits."

The guide can be downloaded for free. Click here.

August 2008
Vacancies falling – Redundancies rising

The latest official labour market statistics, published by the Office for National Statistics (ONS), confirm that UK job prospects are on the slide. But John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD), warns there is worse to come.

Dr Philpott commented as follows:

“This is the weakest set of labour market data since the economic slowdown began. Employment growth has ebbed to a trickle – indeed employment has fallen in several regions of the country - while the rise in unemployment is gaining worrying momentum. The number of unemployed people claiming Jobseekers’ Allowance has risen in every month since January - with each monthly increase greater than the last – and there are now more people in receipt of this welfare benefit than a year ago.

“The impact of the economic slowdown is also becoming more widespread. Nearly every sector of the economy posted fewer job vacancies in the three months to June. This is particularly evident in those parts of the private sector that until recently were major engines of job creation such as shops, hotels and restaurants, finance and business services, and construction. Moreover for the first time since the credit crunch emerged there is a clear sign that redundancies are on the rise.

“These figures only tell us what was happening to the jobs market until mid-summer. Worryingly, the latest CIPD/KPMG/Ipsos MORI Labour Market Outlook survey – published earlier this week - indicates that the jobs situation will continue to deteriorate in the coming quarter. By the end of the year it is likely that the level of employment will be falling across the country and unemployment rising at an accelerating pace as the number of people claiming Jobseekers’ Allowance climbs back toward 1 million for the first time this decade.

“With today’s ONS figures showing that the worsening jobs situation is already having a dampening effect on growth in average earnings, the prospect of a ‘pay-price’ spiral triggered by current sharply higher inflation seems remote. It nonetheless remains vital that employers and workers keep pay rises in check so as to minimise any further threat to jobs during the economic slowdown.”

July 2008
Employer Survey shows big dip in job prospects

The latest quarterly CIPD/KPMG Labour Market Outlook (LMO) survey, conducted by Ipsos MORI, of 1, 221UK employers shows employment prospects weaker than at any time since the survey began in 2004, with recruitment activity falling and redundancies set to increase.

This finding is particularly worrying given that the third quarter is normally the most buoyant for recruitment, as it covers the September wave of recruitment activity. Although the survey finds that more than 1 in 4 (29%) employers expect to increase staff levels in the third quarter this represents a sharp drop from 37% in the second quarter and is by far the lowest third quarter LMO figure recorded since 2004. The comparable third quarter LMO survey figures are: 2004 (58%); 2005 (48%); 2006 (43%); and 2007 (38%).

The number of employers planning redundancies increased from 22% to 27% between the second and third quarter LMO surveys.

Pay expectations remain modest despite higher price inflation. Employers carrying out staff pay reviews in the third quarter expect average increases of 3.7% (3.9% when bonus payments are included).

John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD) comments, “The jobs market has been one of the few bright spots in the UK economy, but cracks are appearing in the face of an increasingly uncertain economic outlook. Even if we avoid the scale of jobs fallout suffered in previous downturns, the era of the candidate’s recruitment market is already over, with people in work becoming increasingly anxious that their P45 might soon be on its way.”

Philpott continues: “With pay pressure still subdued, mounting job insecurity is being compounded by a significant squeeze on workers’ real incomes. But the absence of any sign of an emerging wage-price spiral at least offers greater hope that the Bank of England might soon be able to cut interest rates to head off the threat of recession.”

Andrew Smith, Chief Economist at KPMG, said: “Companies are now reacting to deteriorating market conditions. With sales slowing and input costs rising - but scope to raise prices limited by weakening demand - finances are under pressure.

“It looks as if employment costs, the main area over which businesses retain control, are taking the strain with employers seeking both to keep a lid on pay settlements and, in increasing numbers, planning for redundancies. The labour market is suddenly looking a lot less resilient.”

June 2008
Support for compromise deal on agency workers and the working time ‘opt-out’

The CIPD has backed the compromise agreement achieved by ministers in Europe securing the UK’s opt-out from the Working Time Regulations, while giving agency staff equal rights with permanent employees after 12 weeks.

Ben Willmott, CIPD Employee Relations Adviser, said: “This agreement does appear to protect the flexibility of the UK’s labour market. While the CIPD would have preferred a longer time period before agency staff qualify for the same rights as permanent staff, three months is better than it might have been, considering equal rights from day one was also on the table. In addition this deal seems to have secured the UK’s opt-out from the Working Time Regulations giving people the freedom to work longer than 48 hours a week if they choose to do so. “The CIPD opposes long hours working but believes that reduced hours and improved work-life balance is best achieved through changes in work organisation and through progressive people management rather than a statutory restriction on maximum working hours.

“The overall fall in working hours and in long hours working since 2000 shows that the current legislative framework on working hours is an appropriate one. “The need for organisations to attract and retain talent in an increasingly tight and diverse labour market will increasingly encourage employers to provide improved work-life balance and reduce long hours working.”

Homeworking - most Bosses say "No"

The latest quarterly CIPD/KPMG Labour Market Outlook (LMO) survey of UK employers finds that more than two thirds of employers (69%) never or occasionally accept employee requests to work from home. This is despite the fact that, of the employers who offer home-working, only 8% believe home-workers are less productive than their office-bound colleagues, while 30% say they are more productive. The remainder of employers say home-working makes no difference to productivity.

A fifth of organisations (19%) say that they are more likely to accept requests from managers or professionals. The report concludes that the much-heralded revolution in home-working is yet to take place, although a quarter of employers say that home-working will increase in their organisation in the next year.

The report calls on employers to be more progressive to improve the morale and well-being of employees and the productivity of employers and the wider economy.

Gerwyn Davies, Policy Adviser at the Chartered Institute of Personnel and Development, comments:

"Employers should be more accommodating about accepting requests to work from home, rather than fostering a culture of presenteeism. The allure of home-working for employees is becoming greater given the stress and rising costs associated with commuting. We also know that employees, particularly younger workers, are increasingly looking to work for organisations with strong green credentials - which can be enhanced by using home-working to discourage unnecessary travel. Employers and line managers should therefore have more confidence in their staff, policies and in their own management capability to ensure that they recruit, retain and make the best use of the talent they have."

Agency workers' rights at 12 weeks 'a serious risk to UK jobs' - CIPD

The government's decision to extend full employment rights to agency workers after 12 weeks of employment risks undermining the flexibility of the UK labour market, according to the Chartered Institute of Personnel and Development.

Responding to today's announcement, Mike Emmott, Employee Relations Adviser at the CIPD, said: "It is a shame that the government has ditched the sensible proposal to set up an independent commission to examine plans to extend agency worker rights. Our research shows significant employer resistance to a qualifying period of less than six months, so the government's intention to push for 12 weeks seems bound to cause a great detail of unhappiness amongst employers.

"Agency workers play a valuable role in the UK's flexible labour market. Undermining this flexibility poses a serious risk to UK jobs, and risks blocking an important pathway into work for many jobless people. At a time of economic uncertainty, and with the government committed to ambitious targets for getting more people back into work, the timing could hardly have been worse."

Draft Legislative Programme

Responding to the government's draft legislative programme, the Chartered Institute of Personnel and Development (CIPD) has expressed concern about proposals to create an entitlement to apprenticeships; moves towards 'positive measures' to increase workplace diversity; and plans to introduce legislation on agency workers' rights. However, the CIPD has also welcomed proposals for simplification in both equality legislation and skills provision, together with plans to introduce a right to request time off for training.

Education and Skills
John McGurk, CIPD Skills Adviser, said: "We are concerned that the proposed statutory entitlement to an apprenticeship could undermine employer support. Apprenticeships are valuable if they are designed to meet business needs. Employers are ready to offer apprenticeships if they meet these business needs and are being taken up by young people keen to improve themselves. But they should not be allowed to be approached by apprentices as an 'entitlement'. Youth unemployment will not be solved by a 'right' to an apprenticeship.

"We cautiously welcome the proposal to introduce a 'right to request' time off for training. The 'light touch' right to request approach has worked well with flexible working, for both employers and employees. Four out of five such requests are accepted by employers, who are in turn experiencing a higher level of employee engagement and motivation from their growing flexible workforces. However, it is important that we do not lose sight of the fact that training is a two-way street. It is of benefit to the learner, but must also contribute to meeting the business needs of the employer. If this test is not met, the employer must be able to decline requests for training."

Single Equalities Bill
Freda Line, CIPD Diversity Adviser, said: "A Single Equalities Bill offers an opportunity to simplify and clarify the plethora of different legislation affecting equality and diversity. It also offers an opportunity to break down the false hierarchies that have grown up between different forms of discrimination.

"Extreme caution needs to be exercised before introducing any proposals to allow more positive action measures. There is a very fine line between positive action and the kind of US style affirmative action which has long been seen as inappropriate for the UK. Getting this wrong will be counterproductive, potentially damaging workplace relationships and undermining the business case for diversity."

Agency workers

Mike Emmott, CIPD Employee Relations Adviser, said: "It is disappointing that the government feels the need to bring forward legislation on this issue. Agency workers play a positive role in the UK labour market. Many actively choose to work on an agency basis, preferring the combination of flexibility and rewards this approach offers. If legislation is to be enacted that reflects the current draft EU Directive, our research shows employers would resist a qualifying period of less than six months, but would be comfortable with a qualifying period between six and 12 months."
May 2008
Flexible Working – Proposed changes

Responding to the publication of Imelda Walsh's review and recommendations to extend the right to request flexible working to parents of older children, the Chartered Institute of Personnel and Development (CIPD) has issued a warm welcome for the report.

In addition to extending the right to request, the report will also recommend the Government to give more support to promote flexible working practices. Many firms have been going further than the statutory requirement for some time, and can demonstrate tangible benefits in terms of employee engagement, recruitment and retention as a result.

Mike Emmott, CIPD Employee Relations Adviser, said: "Imelda Walsh's careful and thorough review has already been welcomed by the Prime Minister. Her recommendation to extend the right to request flexible working will also be welcomed by working parents across the country. And despite the objections from some in the business lobby, it will not be opposed by many in business.

"Our research shows that part-time and flexible workers are happier, more engaged with their work, and therefore likely to perform better and be more productive. And in a tight labour market, flexible working is part of the package that can help recruit and retain the talent organisations need to deliver their objectives. It is therefore unsurprising that a great many employers, large and small, go well beyond the legislative minimums and allow employees to work flexibly regardless of their family status.

To review the CIPD's joint report, with the British Chambers of Commerce, on Flexible Working Click here.

April 2008
Two hours a day wasted on Spam

The average employee spends up to two hours a day looking at unwanted or pointless emails, according to research by web firm the Radicati Group. While many businesses use filters to deter spam, emailed newsletters, subscriber messages from social networking sites are just as great a timewaster, according to the research.

Work-from-home Agency launched

A new recruitment agency, Remote Employment, that solely supplies candidates who work from home is hoping to meet the demand of firms looking for remote workers. Accountancy, marketing and office management are among the sectors looking for people working from home.

More information at the website: Click here.

March 2008
Minimum Wage will rise to £5.73

The Government has announced that the national minimum wage will rise to £5.73 in October 2008. For 18 - 21 year olds the new rate will be £4.77, up from £4.50, and 16 - 17 year olds will get £3.53, up from £3.40.

February 2008
New CIPD guide to help managers prevent conflict at work

The CIPD has launched a new conflict management guide for line managers to help organisations avoid the 350 days a year of management time typically spent dealing with formal disciplinary and grievance cases and employment tribunal applications.

The Managing Conflict Guide for Line Managers is designed to help equip line managers with the skills and confidence to intervene at an early stage to prevent disputes from escalating to the point where the formal disciplinary or grievance procedures has to be used or an employment tribunal application lodged.

It was produced in response to a CIPD survey into managing conflict that showed organisations are increasingly relying on HR departments and external legal advice to manage the rising number of formal disciplinary and grievance cases.

Ben Willmott, CIPD Employee Relations Adviser, said that too often managers shy away from tackling conflict in case they do or say something that might be held against them during any formal proceedings. "This approach is counterproductive. By the time a dispute has escalated to the point where the disciplinary or grievance procedure is used opinions are often hardened, confrontational and very hard to change."

The research report, Managing Conflict At Work, is available to download from here.

Demand for working beyond state pension age set to soar

The demand for working beyond 65 looks set to increase markedly in the next 15 years, according to the research Future demand for working among older workers from the Chartered Institute of Personnel and Development (CIPD). Based on a survey of 1,000 workers aged between 50 and 64 years, it finds that just under two fifths (38%) of individuals plan to carry on working beyond 65. Currently, only 11% of the workforce work beyond State Pension age.

Interestingly, among those who said they did not plan to work past 65, 31% would change their mind if their employer allowed them to work flexibly. This change alone would result in a small majority of workers working beyond 65. Meanwhile a further fifth say that they would be tempted to carry on working past 65 if they were offered a deferred larger state pension. Men are more likely to plan to work beyond 65 than women, while finances are said to be the main driver behind these plans. This may reflect current concerns about individual finances and the economic outlook. Charles Cotton, CIPD reward adviser, "On one level the survey findings look very positive, in that they show a strong demand for working beyond retirement age that is as much down to financial as other reasons such as individuals wanting to use their skills and experience. However, it is clear that Government policy could do more to encourage more older workers to stay on by extending the right to request flexible working beyond parents and carers and making pension arrangements more flexible. If the Government fails to do this, its target of having a million older workers in work will become a mere aspiration."

The report also finds that employees are confused about the state of their finances and their pension arrangements in particular. Again, the CIPD argues that there is more for Government to do to improve this situation.

January 2008
CIPD research reveals death of the traditional annual pay rise

Almost half of organisations (46%) no longer award employees an across the board annual pay rise or cost of living adjustment, according to this year's Annual Reward Management survey from the Chartered Institute of Personnel and Development (CIPD). Manufacturing, production and private sector service firms are the least likely to provide such a pay rise.

The current trend is to allocate pay budgets to departmental heads to distribute among staff based on individual and or collective contribution, and movements in market rates and inflation, rather than as an across the board rise.

Charles Cotton, CIPD's Employment Conditions and Reward Adviser said: "The decline in the yearly traditional pay rise seems to be spreading throughout employment sectors. Gordon Brown for example has announced new plans to abandon annual pay negotiations in favour of a three yearly settlement for public sector workers.

"Changes to pay and reward packages can often leave employees confused, demotivated and in the dark about what they need to do to achieve reward and recognition. Line managers can play a key role in delivering messages around pay, but they need to be coached and developed on how to communicate messages around pay increases and benefits more effectively."

Other key findings

• 70% of organisations use cash based bonuses or incentive plans. Broken down by sector 86% of organisations in the manufacturing and production sector, 89% in private sector services and 30% of voluntary and public sector services provide cash based bonuses.
• Only 40% of employers plan to amend their current bonus scheme or introduce new schemes.
• Over one third of employers operate both recognition and non-cash incentive schemes. Private sector and larger employers are much more likely to operate such plans.
• 75% of employers use a combination of factors such as individual performance, market rates and team performance to determine an employees pay progression.
• 1% of employers use video/DVD, blogs or podcasts to communicate pay messages,
• 82% of private sector organisations use meetings with line managers to communicate pay messages.
• 88 % of public sector organisations communicate pay messages through HR.
Employment Rights (Increase of Limits) Order 2007, SI 2007/3570

As a result of the above order, the maximum compensatory award for unfair dismissal will increase from the current £60,600 to £63,000 and the maximum weekly pay which employment tribunals can take into account when making various awards will increase from the current £310 to £330. The changes take effect when the effective date of termination of employment is on or after 1st February 2008.

2008 'worst year for jobs in a decade' forecasts CIPD

In its annual end of year barometer report on the state of the workplace and the outlook for employment, published today, the Chartered Institute of Personnel and Development issues its gloomiest forecast for the UK labour market in a decade.

The report's author, John Philpott, Chief Economist at the CIPD said:

"We forecast a net rise in total UK employment of 75, 000 (0.25%) in the year to December 2008, only a third of the rise recorded in both 2006 and 2007, resulting from a combination of much reduced net hiring in the private sector and net job reductions in the public sector. This would be the worst year for jobs this decade and easily the worst since the Labour Government came to power in 1997.

"In the early part of the decade periods of slower growth in private sector employment were masked by relatively rapid growth in public sector jobs. A downward trend in public sector employment in the past two years has in turn been more than offset by rising numbers of private sector jobs. But 2008 will be the first year for a decade that the engine of job creation will be spluttering right across the economy.

"With higher fuel costs and food prices set to raise the cost of living in the first half of the year the squeeze on real incomes experienced by many workers in 2007 will continue to bite in 2008. With jobs also harder to come by this could reinforce the impact of the economic slowdown, possibly necessitating bigger cuts in interest rates than currently anticipated to head off the threat of recession and a worrying prolongation of the slowdown into 2009.

December 2007
Got a problem with emails?

Are emails a useful addition to the conduct of efficient business, or the exact opposite?

Certainly they can get out of hand, and I recently spoke to a man who had been absent from work for two weeks. Upon his return he had 8,600 emails waiting for him. And, believe it or not, he intended to plough, religiously, through them all. Maybe we need to learn some useful tips about managing email.

If you are interested, and want to make some resolutions for the New Year, why not read this useful article from the CIPD?

CIPD research shows that line managers need to be recognised as strategic partners of HR

The role of line managers is becoming increasingly important in influencing employee engagement in the workplace. This may not be surprising given that line managers play a crucial part in the delivery of effective people management, but what is now becoming clearer is the broadening and deepening of their involvement. New research commissioned by the Chartered Institute and Personnel Development (CIPD) shows that there is confusion as to the role of line managers and focuses on how learning and development specialists and reward professionals can provide them with the support to develop the skills necessary to carry out their roles.

The report, Line Managers in Reward, Learning and Development, written by Sue Hutchinson, Bristol Business School and John Purcell, ACAS and Warwick University, builds on previous research from the CIPD and explores issues surrounding the role of line managers in two critical areas of people management: reward and learning and development and the relationship between HR and the line. Research was undertaken in six large public and private sector organisations (Halcrow, John Lewis Partnership, McGraw-Hill, Ministry of Defence, Wiltshire County Council and Wincanton) and included the use of focus groups and interviews with line managers and senior HR professionals.

Victoria Winkler, CIPD Learning Training and Development Adviser, comments: "One major obstacle preventing progress in creating sustainable high performing organisations rests with the balance between what are and should be HR and line manager responsibilities for people management and development. Increasing line manager involvement in learning and development is one important part of the broader changing relations between line managers and human resources management. " The report also highlights concerns about the effectiveness of line managers. Common issues raised amongst the organisations interviewed was the lack of training for line managers, competing business pressures and a need to align learning, development and reward objectives with the wider organisational strategy. The report is available from the CIPD bookstore.

Season of goodwill found within small organisations

Over two thirds (69%) of organisations will provide a Christmas party this year for their staff making it the fourth most commonly provided employee perk, according to the Chartered Institute of Personnel and Development's (CIPD) Annual Reward Management survey 2008.

Workers in smaller organisations are far more likely to benefit from the Christmas spirit. Over 80% of firms employing up to 49 staff will provide a Christmas party this year, while 17% provide a seasonal gift such as hampers and vouchers. By contrast 50% of companies employing 5000 staff will hold a party this year and 15% give a gift.

The initial findings show that private sector service employers are the most generous with 84% likely to provide a Christmas party or lunch. The manufacturing industry has shown a leap this year with 77% now offering Christmas parties, an increase from 60% last year. There has also been an increase over the past two years in the public and voluntary sector organisations, however they still remain the least likely to provide a gift or throw a Christmas party.

November 2007
Traditional evaluation methods are no longer enough for organisations to measure and communicate the value of learning

Training professionals need to move away from traditional evaluation methods for their work, towards measures that address the real value learning and development contributes to strategic business objectives and in achieving high performance, according to a comprehensive new study from the Chartered Institute of Personnel and Development (CIPD).

The report argues for a shift away from trainer centred and return on investment models of evaluation, and towards "return on expectation" models that rely on deeper understanding and greater alignment with organisational priorities.

Martyn Sloman, CIPD Learning, Training and Development adviser, comments: "There seems to be too much focus on measuring what matters to us as trainers, or on how satisfied people are after a training course and not enough on what really matters to our organisational masters.

"The development of a new approach to valuing learning is long overdue. For 30 years we have regarded a hierarchical approach based on return on investment as the only way to approach the problem - it has become a holy grail for the profession. The world of learning has changed and new models are required."

The study, Value and Evaluation: From return on investment to return on expectation produced in conjunction with the University of Portsmouth Business School is based on individual interviews with chief executives or other senior managers in 12 different organisations, and separate interviews with the most senior learning and development professionals in each of those organisations. The research highlights how organisations are developing a range of different methods to assess and report on the value of learning.

The report is available from the CIPD bookstore.

Incapacity benefit reforms welcome - but real end to 'sick-note Britain' requires better support for employers from GPs

The government's plans to reform incapacity benefits eligibility by introducing a work capability assessment are welcome, according to the Chartered Institute of Personnel and Development (CIPD). However, if the government really wants to end what Peter Hain has dubbed "sick-note Britain" more action is required to get GPs to work more closely with employers to stop people slipping into long-term sickness in the first place.

Research published by the CIPD last week highlighted the poor support many employers feel they get from GPs in this area - and reported the practical measures employers believe would help improve the situation.

Ben Willmott, CIPD Employee Relations Adviser, said:

"Employers will welcome a refocusing of the incapacity benefits system onto what people can do, not what they can't. But the government rhetoric about 'ending sick-note Britain' will ring hollow until they do more to stem the tide of people falling into long-term sickness in the first place. "What employers are crying out for is more support from GPs when they are dealing with people who are in danger of slipping into long-term sickness absence - particularly with problems with mental ill-health. All the evidence suggests that a phased return to work in the relatively early stages of such health problems can be far more beneficial than the disappointingly common response of GPs to simply 'sign people off for another couple of weeks'. "It is this kind of simplistic and unhelpful attitude that is the real root of the 'sick-note Britain' tag. If the government really wants to get more people into work, they need to bridge the gap between GPs and employers.

The opponents of these reforms to incapacity benefit tests rail against the unfairness to people suffering with ill-health. But a more rigorous approach from GPs to dealing with the problems at an early stage would be better for patients as well as employers and the economy.

Work can play a hugely beneficial role in the recovery of people with mental ill-health problems like stress, depression and anxiety - and spare people the slow decline in self-esteem and employability often associated with longer-term sickness absence."

The full report is available online. Click here.

October 2007
Sickness Absence on the increase – 8.4 days per employee per year

Sickness absence at work is increasing according to research from the Chartered Institute of Personnel and Development (CIPD), with the current average at 8.4 days per employee per year costing businesses £659 per employee per year.

September 2007
New CIPD survey shows drug and alcohol misuse to be a significant cause of lost productivity

Four out of ten employers believe alcohol misuse is a significant cause of employee absence and lost productivity. And one third of organisations report that drug misuse has a similarly negative effect in the workplace, according to new research from the Chartered Institute of Personnel and Development (CIPD) and People Management magazine.

Despite the damaging impact of drug and alcohol misuse at work about four in ten of the 500 organisations surveyed have no policy in place to help them manage this challenging issue. The survey also finds employers could do more to support employees with substance dependency problems, with only 38% of employers providing co-ordinated rehabilitation support to help individuals with drug or alcohol problems return to work after treatment. Only a half of employers provide access to counselling or to occupational health services for employees fighting drink or drug problems.

However the survey finds that where organisations refer employees with drug or alcohol problems to specialist treatment or give them rehabilitation support, more than 60% remained working for the organisation after successfully managing their problem.

Ben Willmott, CIPD Employee Relations Adviser and author of the report says: "Supporting employees with drug and alcohol problems has a high success rate with many individuals returning to work. But organisations must make employees aware of the policies and support in place otherwise they will not have the confidence to hold their hand up and acknowledge they have a problem and need help.

"Since 2001 the number of organisations with drug and alcohol policies has remained around the same (58%) and where organisations do have policies they are doing very little to actively promote them. Simply adding a policy to a rarely used staff handbook is unlikely to ensure the issue is seen as an ongoing priority. Organisations should engage with their employees to ensure that they are fully aware of its provisions - this can be done via staff briefings, poster or publicity campaigns at work, internal notice boards newsletters and email alerts.

"Training managers so that they are able to identify and manage drugs and alcohol misuse in the workplace is also essential. Yet only a third of employers train managers in how to manage these sorts of issues at work.

Click here to read the survey in full.

Government fails to deliver simplification in new diversity legislation

The Government's proposals for a Single Equality Bill fail to go far enough to achieve either the simplification or consistency necessary to achieve real progress. Nor does it reduce the burden on employers in dealing with or understanding the complexities of diversity, according to the Chartered Institute of Personnel and Development's (CIPD) response to the Government's consultation.

Dianah Worman, OBE, CIPD Diversity Adviser, says: "This green paper runs the risk of delivering a compliance based model that will entrench a box-ticking approach to produce minimum standards in diversity. If Government is serious about stopping the marginalisation of people in the labour market then it must show a greater willingness to work with employers to develop a piece of legislation that will actually work.

"CIPD research, Diversity in business: a focus for progress, shows legislation is one of the main drivers of diversity, so getting this Bill right is essential if it is to support the progress of diversity. But more importantly still, Government need to ensure any such legislation goes hand in hand with a concerted approach to promote best practice on the basis of a clearly argued and properly evidenced business case for diversity.

Click here for the CIPD's full response to the Single Equality Bill consultation.

August 2007
Age Discrimination and enforced retirement at 65

Discrimination in the employment field became unlawful on 1st October 2006 when the Employment Equality (Age) Regulations 2006 came into force. The regulations specifically permit enforced retirement at (or over) age 65. The regulations were made to comply with a European Directive and the government was restricted in what it could and could not do. Objectors have argued that the Directive does not specifically allow this "age 65 retirement" exception, and argue also that it must therefore be unlawful under EC law and that it must be removed.

This point is now being argued and the High Court decided that the matter required consideration by the European Court of Justice (ECJ). The High Court has finalised five questions to put to the ECJ, the basic one being "Does the scope of the Directive extend to national rules which permit employers to dismiss employees aged 65 or over by reason of retirement?".

More no doubt later!

July 2007
Basic Holiday Entitlement to rise

UK employees will be entitled to an extra eight days’ holiday a year as the government increases the statutory entitlement.

From October 2007, the minimum entitlement will rise from 20 to 24 days. From April 2009, it will increase by a further four days, to 28.

Companies that already offer their workers 28 days or more by October 2007 will not be bound by the legislation, so long as they continue to meet those standards.

The new entitlements include the 8 recognised Statutory/Public holidays.

Impact of Age Legislation on Recruitment

A new report on Age and Recruitment produced by the Chartered Institute of Personnel and Development (CIPD), Cranfield School of Management and Beachcroft LLP, examines the impact of age legislation on recruitment.

The Age Legislation, which came into affect in October 2006, makes it unlawful to discriminate against workers, employees, job seekers and trainees because of their age. The regulations left some organisations confused and wondering whether they needed to close graduate recruitment schemes and lose language such as "experienced, young and dynamic" for fear of falling foul of the law.

Age and Recruitment provides practical guidance for employers and gives examples of innovative practice from the following organisations: ASDA, Cancer Research UK, Co-operative Group, HSBC, Marks and Spencer, NHS Employers and Royal Mail. The publication highlights what companies need to be thinking about when reviewing their recruitment practices and policies, and shows how some businesses are achieving an age diverse workforce through recruitment initiatives.

Sally Humpage, CIPD Employee Relations and Diversity Adviser, says: "CIPD research shows that some aspects of employment are causing businesses more challenges than others. The guide highlights a number of issues about recruitment practices that should be considered in light of the age legislation and hopefully debunks some of the urban myths.

"More still needs to be done to raise awareness of age discrimination issues but the research shows a number of employers are starting to move beyond good intentions towards delivering strategies that contribute to achieving an age diverse workforce."

Click here to review the report.

June 2007
Shadow Chancellor launches new flexible working guide for small firms

New research from the Chartered Institute of Personnel and Development (CIPD) and the British Chambers of Commerce (BCC) shows that small firms can implement flexible working arrangements better and with less bureaucracy than large firms - contrary to the perception that only large firms can manage flexible working successfully.

The Flexible working: Good Business report, based on interviews with managers and staff at five small firms across the country, reinforces findings from earlier research, which show a clear business case for flexible working in small and large organisations.

The research finds that, in addition to the impact on firms' bottom line, flexibility can help reduce the stress that many employees feel when they try to balance the demands of home and working life. And firms can also benefit from the positive impact of flexible working on their reputation as a responsible employer.

CIPD Director General, Geoff Armstrong, says:

"Despite misplaced talk of a "long hours culture", the UK has a flexible pattern of working time that is the envy of most of our continental cousins. Our tight labour market has created intense competition for talented and motivated people, and this has been helped by the informal nature of flexible working arrangements that meet the needs of both employers and employees. Employees who feel able to balance their lives in and outside work are much more likely to go that extra mile as their part of the bargain. Employers benefit from high levels of employee engagement and a wider talent pool. Enlightened management of people, and particularly flexible working, can make a huge contribution to business performance."

Other findings from the survey include:

• Cost is not an issue in relation to flexibility for any of the small firms examined. IT, including emails and mobile phones, can be important in providing mechanisms to keep people in touch with the office while working from home.
• Companies are clear that the positive business benefits are substantial and that flexibility pays off.
• Flexible working practices are easier to introduce as part of a common culture with shared values.
• Flexibility is a business issue: there is no need to have an HR department or bureaucratic procedures to make it work effectively.
• Flexible working in small companies is visible primarily in the way in which people are managed, rather than in formal employment contracts or company policies.
Case studies

The case studies show small firms adopting a range of flexible working practices. For example:

• Twice a year, at the beginning of the summer and winter seasons, City Sightseeing Glasgow writes to its employees to ask how many hours they would like to work in the coming season. This typically produces answers ranging from two to six days per week. Bus drivers share jobs: one driver might do four days a week and the other three, for example, or one might do five days and the other two.
• Technology makes homeworking a realistic possibility for professional workers at PI Costing in Doncaster. The company encourages its employees to be creative in extending the list of flexible working options available to them.
May 2007
Mounting recruitment difficulties rather than higher cost of living now main threat to benign outlook for pay
The latest quarterly CIPD/KPMG Labour Market Outlook survey, published on 14 May, finds that pay rises are set to remain modest, in spite of indications that more employers expect to award staff increases of at least 4%.

The median expected increase remains steady at 3% (2.5% in the public sector). However, with employer optimism rising in all but the public sector, the threat of higher pay inflation is greater than for some time amid signs of mounting recruitment difficulties.

Dr John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD), said:

"Substantial growth in the supply of labour in recent years, due mainly to increased immigration, has helped the economy avoid the wage spiral some had feared in the wake of the recent surge in the cost of living. But although this risk may subside in the coming months as the rate of price inflation moderates, a new threat is emerging in the shape of increased recruitment difficulties. This is particularly true of job vacancies requiring the kinds of skill or experience which migrants aren't always able to supply.

"When it comes to the outlook for pay inflation, a combination of greater employer optimism, increased recruitment activity and mounting recruitment difficulties may soon become a bigger concern to the Monetary Policy Committee than any possible knock-on effects of recent higher inflation. This could have a significant bearing on how much further interest rates will have to rise."

Andrew Smith, Chief Economist at KPMG, said:

"This further evidence of labour market tightening, albeit confined to particular areas, will add to concerns that the economy is operating close to capacity. Thus the MPC may feel more comfortable only when growth slows. This could well happen of its own accord as past rate increases bite - but, if not, it is too early to call the peak of the rate cycle."

April 2007
Line managers are failing to support learning and development needs

Around two fifths of organisations say that their line managers are not very effective in supporting learning and development according to a new survey from the Chartered Institute of Personnel and Development (CIPD). This despite 74% of respondents saying that their line managers have taken on greater responsibility for learning and development activities during the past two years, and overwhelming agreement that line managers are critical to supporting learning and development.

A lack of training for line managers, competing business pressures and a need to align learning and development objectives with the wider organisational strategy are all reasons cited for this gap between theory and practice.

Victoria Winkler, CIPD's Learning and Development adviser said: "As the UK's economy becomes increasingly service-led organisations cannot afford to be complacent about addressing their employees' learning and development needs. Learning and development activities are vital to ensure that the workforce is kept up to date with fast changing skills demands.

Other key findings from the survey include:

The role of line managers

• More than 90% of respondents believe that line managers are important or very important in supporting learning and development in their organisations;
• Only 12% feel that line managers take learning and development very seriously;
• Half of UK organisations only train a minority of line managers to support learning and development;
• Competing business pressures are believed to be the main reason for line managers not supporting learning and development.
Integrating learning and development
• Over half of the sample believe that learning and development professionals in their organisations don't have enough involvement in the development of organisational strategy;
• 36% of UK organisations involve the learning and development team at the initial planning stage;
• 30% of UK organisations involve the learning and development team after all major decisions.
Trends in workplace learning
• On the job training and formal training courses are once again identified as the most effective form of learning;
• 73% of UK organisations expect their use of coaching by line managers to increase in the next few years;
• Efforts to develop a learning and development culture have been the biggest change in the past year in a fifth of organisations.
Economic influences on training and development
• 52% of public sector organisations reported a cut in training funds available and only 10% expect an increase in funding in the next year;
• 78% of voluntary sector organisations report that funding for training has remained stable or increased compared to 68% in the private sector and 45% in the public sector;
• Private sector respondents are the most optimistic about their funding prospects for the next year.
Training spend and budgets
• 72% of organisations have a training budget with median average spend per employee being £272 (compared to £278 in 2006);
• Voluntary sector organisations spend more per employee per year on training (£375), compared to £273 in the private sector and £250 in the public sector;
• Organisations employing less than 250 people spend far more per head on training (£417) than those with more than 10,000 employees (£73).
The CIPD Learning and Development Survey will be available from 20 April 2007.
March 2007
Rising levels of work related stress prompts new guidance

Around one in five people experience high levels of stress at work, and 44% say that they feel under excessive pressure once or twice a week or more, costing UK employers an estimated £9.6 billion per year.

The Chartered Institute of Personnel and Development (CIPD) has published three new guides, in association with the HSE, launched on 21st March 2007 at the CIPD's Stress and the Role of Line Managers Conference in London. These guides are tailored to the needs of line managers and HR professionals to help organisations combat work related stress.

Ben Willmott, CIPD Employee Relations Adviser, says: "Workplace stress is the most common cause of long-term absence and also damages employee morale and productivity and leads to high staff turnover. Employers that fail to manage stress are also vulnerable to litigation and potentially high compensation payouts".

"Good people management can help to prevent most of the problems causing stress at work, such as lack of control over workload. If managers set clear goals, communicate with clarity, consult, provide feedback and recognition and develop and coach their teams, stress is much less likely to become a problem".

"Managers also need to be able to recognise when the people they manage are working under excessive pressure so they can intervene before individuals suffer from stress-related ill health. It is important for employees to have confidence in their managers so that they can admit to difficulties without fear of appearing weak or incompetent."

The new guidance draws on 19 key management behaviours that play a vital role in preventing, identifying, and tackling stress effectively. The behaviours have been used to create a framework enabling line managers to work on the skills required to reduce and prevent stress at work.

Key management behaviours include:

• Managing workload and resources: this requires managers to monitor team workload and refuse to take on additional work when team is under pressure;
• Empowerment: this requires managers to trust employees to do their work and give employees responsibility;
• Accessible and visible: this requires managers to make time to talk to employees and avoid being constantly at meetings;
• Expressing and managing own emotions: this requires managers to have a positive approach and avoid acting aggressively or losing temper with employees;
• Communication: this requires managers to communicate clear goals and objectives and avoid holding meetings behind closed doors.
Want a difficult job done? Then ask a woman to do it

A large number of business leaders will only appoint a woman into a very senior post in times of crisis and poor performance, according to a new report from the Chartered Institute of Personnel and Development (CIPD). This leaves female leaders facing a form of hidden discrimination which leaves them more likely to fail than their male counterparts.

The CIPD commissioned Exeter University to carry out the new research, Women in the boardroom: the risks of being at the top, which exposes the hidden problem that employers face in increasing the number of women in senior jobs. Research conducted by the University of Exeter finds:

• women are more readily appointed to tough jobs that are perceived to lead to make or break outcomes in terms of career success, than men.
• in crisis situations business leaders are more inclined to open up job opportunities to women, leaving women business leaders at greater risk of failing than their male colleagues working a the same levels.
Dianah Worman, CIPD Diversity Adviser, says: "Female leaders are all too often set up to fail. Due to limited opportunities open to female leaders many are forced to take the more difficult jobs in organisations with a history of poor performance, perpetuating the myth that women are poor performers in senior positions, and covering up the true extent of discrimination for the most desirable senior management positions.

"But the growth in the number of successful small businesses owned by women goes someway to indicate their business and leadership capabilities and highlights the talent other large organisations are missing. So old fashion attitudes are not only unfair and discriminatory towards women but they leave organisations shooting themselves in the foot.

"It is in the best interests of business to take action to enable achievement rather than sitting back and hoping for the best - organisations need to open their doors to the leadership capabilities of both halves of the population, regardless of the performance of the organisation.

"Being prepared in this way will give employers access to a larger pool of talent and enable them to select the best person for the job regardless of sex and go some way to help organisations to avoid crisis situations or navigate them better when they do."

The report pulls research together that shows women are more likely to be appointed at a time when organisations experience poor performance and often set up to fail.

Click here for a copy of the CIPD’s Change Agenda, Women in the boardroom: the risks of being at the top.
National Minimum Wage rise announced for October 2007

The Department of Trade and Industry has announced that the adult National Minimum Wage is to rise from from £5.35 to £5.52 an hour from October, with increases from £4.45 to £4.60 for 18-21 year olds, and from £3.30 to £3.40 for 16-17 year olds.

CIPD and TUC launch new guide to clarify misunderstandings about new age laws

Useful advice as to whether the new age laws prevent colleagues from sending each other birthday cards or employers running graduate recruitment schemes is contained in a guide published by the Chartered Institute of Personnel and Development and the TUC.

'Developing a new mindset on age and retirement' is for both employers and trade union reps and aims to provide comprehensive guidance across all aspects of the new age regulations that came into force last October. Before any writing of the guide took place, the two organisations carried out a series of focus groups across the UK to find out exactly what about the new regulations was concerning employers and unions. The guide is based on what employers and trades union representatives in the focus groups identified as key concerns, one of which was confusion around employees sending each other birthday cards in case these were seen as ageist.

Dianah Worman OBE, CIPD Diversity Adviser comments, "The CIPD and TUC have joined forces to ensure that HR and trade unions are better informed about what good practice on age is. The guide will hopefully contribute to creating age diverse workforces that implements the new age regulations without falling into the trap of political correctness going overboard while meeting business needs.

The guide is available to download from www.cipd.co.uk/guides

February 2007
Romance blossoms in the workplace

Cupid’s arrow is hitting its target in the workplace with one in five employees having married a colleague, according to a report by Anna Scott, from PM Online.

A further 43 per cent of workers admitted to dating someone in their office at least once during their careers, according to Office Romance 2007, a survey of 420 workers and 220 hiring managers.

Women are more likely than men to date their bosses, with 20 per cent admitting to doing it at least once during their careers, compared with 5 per cent of men. Poor work-life balance often the reason why love blossoms so readily over the water-cooler. “Forty-five percent of workers report an increase in their workloads resulting in spending longer hours with colleagues, which could lead to more office romances,” said Rosemary Haefner, vice-president human resources of CareerBuilder.co.uk, which conducted the research.

But she warned that there could be a darker side to Cupid’s bow. “It’s important to remember that even if both sides are willing participants, office relationships could have repercussions,” she said. “Policies on office romance vary from company to company, and it’s the responsibility of individuals to know where their employer stands.”

Flexible work rights should be for us all, says minister

The Times says that “Labour is putting itself on a collision course with business today by proposing that all employees should have the right to request part-time work.

All 29 million workers should have a right that is at present granted only to parents with young families, according to the minister in charge of family policy. Beverley Hughes, the Minister for Children, calls for changes to reflect the growing demand of people to be able to work flexibly. She proposes that all jobs be advertised as possible part-time or flexitime positions, unless there is a sound business case not to. Her proposals are contained in Politics for a New Generation, a book on Labour’s future agenda with contributions from a host of the Government’s rising stars. Although Ms Hughes is the first minister to call publicly for a radical extension of part-time work, her views are widely supported across the Government. But business chiefs have said that thousands of companies would simply not be able to cope with a universal right to ask for part-time work. The Government introduced the “right to request” flexible work in 2003 for parents with children under six. Since then, 22 per cent of eligible employees have requested it and 80 per cent of bosses have agreed. Although the employer can refuse, he must show the request has been considered seriously and, if it goes to tribunal, prove that he had a good reason. This April the right will be extended to the 2.8 million people who care for elderly or sick relatives”.

Extending right to request flexible working could boost business, and reduce chances of a divided workforce according to the Chartered Institute of Personnel and Development (CIPD).

Mike Emmott, CIPD Employee Relations Adviser, said:

"The existing right to request flexible working has been well received by employers, and has successfully encouraged rather than compelled employers to experiment with flexible working practices. Employers who are willing to acknowledge the lives their employees lead outside work, and seek to accommodate those lives within the necessary constraints of their need to do business, are finding they can fish in a wider pool for labour. And they're finding the people they recruit are more likely to be motivated, and to wish to remain employed by the same firm, when they are allowed to work flexibly. As with so many things, enlightened management of people can make a huge contribution to business performance".

Growth in staff fraud prompts new guidance from CIPD and CIFAS to help businesses.

Staff fraud is increasing. Examples of "insider fraud" make headlines almost daily. This can damage businesses reputation, brand and staff morale as well as losing thousands of pounds. Employers must be on their guard when vetting prospective employees and ensuring that the environment for existing employees is one in which fraud cannot prosper.

CIFAS, the UK's Fraud Prevention Service, and the Chartered Institute of Personnel and Development (CIPD) have launched free guidance to help employers understand the threats associated with fraud and help HR professionals manage the risks. John Hinds, Policy and Projects Manager at CIFAS and co-author of the guide, says: "The majority of staff within any organisation are trustworthy and honest. But businesses are now beginning to understand the scale of the threat posed by the small proportion of staff who act dishonestly and defraud their employer. "CIFAS research shows that staff fraud can have a negative impact on businesses in terms of their reputation, costs and customer service. As a result, staff fraud is now emerging as the single most significant fraud risk both to the financial services industry and to businesses handling financial transactions. It is also a serious risk to all businesses."

The guide, Tackling Staff Fraud - Guidelines for Employers, HR and Line Managers, offers advice on:
• the nature of staff fraud
• why staff fraud is a growing risk
• combating staff fraud
• vetting and security screening
• internal corporate culture
• monitoring staff
• effective policies for responding to identified staff fraud
• deterring fraudsters

The latest CIPD/KPMG quarterly Labour Market Outlook survey finds that a majority of employers expect to award staff pay rises of less than 3.5% in the busy winter pay round. But with recruitment difficulties expected to worsen at a time when employees are looking to match the recent spike in price inflation, at least 1 in 5 employers appear to be keeping their pay options open.

58% of employers expect pay rises of less than 3.5%, with around a third (32%) expecting pay to rise on average by between 3% and 3.5%. Only 13% expect pay to rise on average by 4% or above. However, 1 in 5 employers were uncertain of the outlook for pay at the time of the survey. The Spring will be the busiest period for pay reviews, with around 61% of employers planning to conduct one between now and the spring quarter.

The sick note needs to be revised to contain more information for employers, according to the body for occupational health professionals.

The Commercial Occupational Health Providers Association says the sick note needs to say more about a patient’s diagnosis, treatment and the extent of adjustments required at work.

Sickness absence costs business £13 billion a year and 13 percent of absences are estimated to be non-genuine, according to the CBI. The Department for Work and Pensions (DWP) has accepted the need for change following pressure from both employers and GP’s. However the DWP’s occupational health advisor, Cathy Harrison, said changing sick notes was “still very much at the planning stage”.

The Government plans to incorporate 8 Public Holidays into the statutory holiday entitlement of 20 days, making 28 days in total.Following the initial consultation, they propose that:

• The introduction of the additional holiday will be phased with 0.8 weeks (4 days) from 1 October 2007, and the remaining 0.8 weeks from 1 October 2008.
• The maximum statutory holiday entitlement will be 28 days, although employers may give more contractual holiday than that.
• Some or all of the additional holiday may be carried over to the following leave year with the agreement of both the employer and the member of staff
• Payment in lieu of taking holiday will not be permitted except on termination of employment.
• There will be no qualifying period for the additional holiday entitlement
• Partial days' holiday in the first year of service will no longer have to be rounded up to the nearest full day
• The additional holiday entitlement will not be excluded from the calculation of average weekly working hours under the Working Time Regulations
• The amendments to increase the holiday entitlement will extend to the sea fishing and inland waterway transport sectors (but not the maritime or civil aviation sectors which are covered by other legislation).

People Management has produced a quick guide to protection from bullying and harassment. The guide explains how to deal with bullying both procedurally and legally, whether the victims or perpetrators are in their organisations or their own department.

Click here for more information.