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CRONER PULSE 2014 PEOPLE PREDICTIONS FOR THE FUTURE
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Croner Pulse 2014
PeoPle PrediCtions for the future
Croner Pulse 2014 PeoPle PrediCtions for the future
Croner Pulse, now in its third year,
makes for compulsive reading
with forecasts from experts on key
developments in HR, employment
and health & safety that will influence
your business during 2014. We also
look back on past trends to deliver
valuable insight into key moments in
time and the effect they too can have
on your business.
www.cronersolutions.co.uk
foreword
Croner Pulse is our annual commentary with predictions on hr, employment tribunals, pay and benefits, and health and safety matters. every year our subject matter experts look forward to the likely developments and provide you with insights for the coming 12 months.
We also reflect on some of the issues raised in the past year, as well as demonstrating how Croner has helped companies to resolve issues. I hope your organisation finds it useful throughout 2014.
As ever our forecasts are based on the extensive contact with clients we’ve enjoyed throughout the previous 12 months, together with an in-depth analysis of the calls made to our 24/7 Advisory Service that serves as a unique barometer of the issues of most concern to business.
This year, we have made this report as interactive as ever, providing you with lots of quick links to other useful information to keep you on top of the legislative outcomes and changes due in the months ahead.
Croner Pulse 2014 PeoPle PrediCtions for the future
Andy Hague
Managing Director, Croner
3
con
ten
tshr
2014: The Year Ahead
What to expect 4
employment tribunals
2014: The Year Ahead
What to expect 8
Pay and benefits
2014: The Year Ahead
What to expect 10
health & safety
2014: The Year Ahead
What to expect 15
Where you see this symbol there is an interactive element.
hr 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
Richard Smith, Head of Product Development
4
richard has some 20 years’ experience of
employment law which includes undertaking
litigation both at tribunals and on appeal.
since joining Croner in the mid-90s, he’s
also headed up the company’s uK-wide
litigation team and employment consultancy
business and retains a keen interest in helping
organisations manage the complexities of
the law while continuing to focus on
their business.
“the past year has seen a
number of legislative changes
coming into force that will help
companies to deal with unfair
dismissal and associated claims.
looking to the future there are
also some positive changes to
the transfer of undertaking
regulations and consultation on
‘zero hours’ contracts.”
settlement agreements and unfair dismissal ComPensation
one of the key changes made in 2013 was to
introduce new provisions to facilitate ‘settlement
agreements’ – which were earlier known as
compromise agreements. Previously, introducing
the idea of a voluntary severance with an
employee was legally very risky. the employee
might have resigned and claimed a breach of trust
and confidence and in turn constructive dismissal,
but even if no offer was accepted it would then
have been difficult, for example, to ‘fairly discipline
the employee’ if the employers hand had been
shown. so, the government introduced provisions
from July 2013 (contained in a revised section
111a of the employment rights act 1996) which
means that if the employer made an offer it would
not be admissible in evidence, in order to negate
the risks highlighted. acas have issued both a Code
of Practice and extra statutory guidance on the use
of such agreements.
However, the protection of confidentiality can be
lost where there is improper behaviour on the part
of the employer and it would be unjust to refuse to
admit evidence of their proposal; this is determined
by the tribunal which hears the case. Behaviour which
might cause protection to be lost includes undue
pressure to agree, as well as threats and discriminatory
actions. Employers, if they are to take advantage
of the provision, should be very careful to act with
propriety and fairness and should always seek specific
professional advice.
over 50% of the calls
to Croner’s employment
advice line in 2013 related to
absence and sickness, conduct
and gross misconduct
hr 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
5
maximum ComPensation for unfair dismissal
Significantly, this came hot on the heels of reductions
in the statutory maximum for compensation for unfair
dismissal. This generally comprised of a Basic Award
(essentially the same value as a statutory redundancy
payment) and a Compensatory Award, which was
previously capped at £74,200. This second element has
been reduced to a maximum of either £74,200 or the
equivalent of one year’s pay or whichever is the lower.
This has the effect of markedly reducing the maximum
pay-out for most claimants.
Many observers have pointed out that the average
award for unfair dismissal was much lower than the
maximum and thus, in practice, this change will have
a limited effect. We believe, however, that we will
see a more significant effect on the expectations of
employers and employees in terms of what could be
achieved if a matter were litigated. Taken together with
the changes to settlement agreements there could be
a scenario where an employer decides not to proceed
with an employee via normal capability procedures,
but instead sits the employee down, offers a sum of
up to one year’s pay and points out that the best the
employee could do in an employment tribunal would
be to get a few months extra. We think that in those
cases most employees would accept a sum and thus
there will be more settlements and fewer employment
disputes finding their way to employment tribunal.
Employers will need to be careful, however, as under
the new provisions there is nothing to prevent such
evidence being used in other claims – for example,
sex or race discrimination. With a growth in this
type of claim, employers may be wise to avoid the
use of the proposal (certainly, where there is risk of
such a claim) or at least to wait until there is already
a dispute to which old rules on ‘without prejudice’
offers may apply. Additionally, there is the attraction
to the claimant of unlimited compensation levels and
damages for elements such as injury to feelings which
are not available in unfair dismissal claims.
last year we predicted a rise from 60% of tribunal cases either settled via acas or withdrawn and the latest figures show a Ytd increase to 72% of cases that have been settled or withdrawn.
Croner expects cases to emerge where
the employer has attempted to make an
offer which has gone awry and where an
employment tribunal admits evidence of an
abortive settlement conversation – and for
these cases to be somewhat contentious.
hr 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
6
emPloYee-shareholder status
From September 2013 a new class of employee
shareholder has been created. Essentially, this allows
an employer and employee to agree that the employee
should benefit from shares in the company. The
value can range between £2k and £50k, which can be
disposed of in a tax efficient manner in the future, free
of Capital Gains Tax, but in return the employee waives
a variety of employment rights such as redundancy
payments and unfair dismissal.
These proposals were extensively criticised as
unnecessary from a wide variety of quarters when
first proposed and have not been widely welcomed as
adding to employment relations. The idea of providing
such agreements is to align the interests of worker
and employer – providing both with a share in the
success of the company. However, it is unclear why it
was thought necessary to link this with a reduction in
employment rights generally and there is no evidence
of any widespread take up. Some commentators have
suggested that perhaps this proposal will mainly be
used by employers to provide tax breaks to certain
employees in smaller companies who might have
been offered shares in any event. Ultimately, there will
be no significant benefit in employment relations or
reduction in employment tribunal cases as a result.
tuPe amendments, surPrisinglY sensible
Following Government consultation on changes to the
Transfer of Undertaking (Protection of Employment)
Regulations 2006 new regulations have been issued
and come into effect on 31 January 2014. These
changes are, broadly speaking welcomed and are
surprisingly sensible. In the consultation there
had been some suggestion that ‘Service Provision
Changes’– a definition of when TUPE will apply where
there is a change in contracting arrangements would
be abolished or limited – but most respondents
including business find that the certainty created by
these provisions are of benefit and the Government
had accepted this.
Consultation on zero hours
The Government is consulting
on whether there is abuse
of ‘zero hours’ contracts
and is collating evidence as
to how they are used and
whether there is abuse of
power between employer and
employee. Some causes of
particular concern are a lack of transparency as to the
arrangements, negative consequence of refusing hours
and exclusivity clauses that stop the employee doing
other work whilst providing no guarantee of any work.
We expect an outcome in 2014 with some proposals
to regulate contracts with no minimum hours.
Yet, it is not hard to envisage that there could be some
difficulties in making this work in practice. For example,
employers might offer a low number of fixed hours,
but then replicate the harsher terms prohibited in a
zero hours contract; or they may enter into a series of
short term contracts on a ‘per assignment’ basis rather
than have an ongoing zero hours arrangement. We will
await the outcome with interest!
There will be some minor but helpful changes to TUPE such as:
• Allowing renegotiation of collective
agreements after one year
• Small employers are able to consult
directly with staff
• Increasing the period for the provision of
employee information from the outgoing
to the new employer
• Enabling changes in workplace location to
be treated as redundancy and falling within
the definition of ‘economic, technical or
organisational changes entailing changes
in the composition of the workforce (which
may be held to be automatically unfair
at present)’
HR 2014: THe YeaR aHead
CRoneR Pulse 2014 PeoPle PRediCTions foR THe fuTuRe
7
fleXiBle WoRKinG ReQuesTs
The Government intends to extend the right to request
flexible working to all employees, not just those who
are parents or carers. Employees will need 26 weeks’
continuous service to be eligible and employers will be
required to deal with requests reasonably (although
they will no longer have to follow a statutory
procedure). The expected start date of 6 April has
been postponed, but implementation is still expected
in 2014. The statutory procedure will be removed for
all requests, which will ease the administrative burden
for employers.
WHaT To eXPeCT in 2014
There are a number of big topics
on the agenda for 2014 that will have varying
degrees of impact on business and need to be
considered when planning for the coming year.
• The increasing pace of economic recovery
combined with costs of living issues could
see employers face pressures for increasing
pay and could have more difficulty
attracting and retaining staff with
suitable skills
• The Scottish Referendum could lead to
changes in UK employment law; employers
need to reflect on policy changes,
particularly where they have sites in both
countries and if there is a ‘yes’ vote
• 2014 will see more major sporting events.
Employers will need to give thought
to leave planning and also requests
for facilities in work time to watch
matches for example the World Cup or
Commonwealth Games
As is often the case, predicting the future can
be difficult where there is minimal visibility or
details to review. The coming year could see
immigration on the agenda with issues around
Bulgarian and Romanian workers; and more
pressure to reduce even EU immigration.
Yet, what would that mean for unskilled
labour requirements?
Needless to say, with a with a general election
looming there will be a showcasing of the
manifesto of each of the parties. What might
they be suggesting to go into the 2015
promise list? Conversely, will there be any
measures in advance to win votes from the
coalition? And finally, we wait to see the
cumulative impact of all the employment law
changes to know if there will be less focus on
employment law and tribunals.
2014
follow Richard’s insights into existing and new employment law
legislation as well as human resources issues at his blog, smith’s Quips
daTe foR THe diaRY World Cup 2014, an england match is
scheduled for 24 of June at 5pm uK
time and so needs careful planning
to ensure business productivity isn’t
impacted by this distraction through
the working day.
Three things that could help:
1. Provide a TV in reception or another
central place
2. Hold a football related competition
or sweepstake
3. Enable workers to make work time
up in other ways
Those with shift-workers need to consider
a match starting at 8pm one evening, and
those employing foreign nationals may
need to plan around other matches as
the battle for the world cup unfolds.
emPloYment tribunals 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
Andrew Willis, Head of Litigation
8
andrew has specialised in employment law
since qualifying as a solicitor in 2000 and
joining Croner three years later. since then
he has specialised in employment tribunal
litigation while conducting tribunal cases of all
kinds, becoming a regional litigation manager
in 2007 and then department manager in 2009.
Prior to studying law, andrew worked in private
industry and for the nhs.
“in 2013 a number of the
changes that Croner predicted
regarding employment tribunals
have been introduced. in
particular, they have had an
effect on one of the most
common claims in tribunal
cases, that of unfair dismissal,
as well as the tribunal
process itself.“
within the workplace the introduction of
‘protected conversations’ has provided a
mechanism by which employers can enter into
confidential discussions with employees about
terminating employment. this can now be achieved
without fear of those discussions being referred
to in later unfair dismissal proceedings – although
it is worth noting that this protection does not
extend to claims regarding automatic unfair
dismissal or discrimination.
more Pressure to settle Claims earlY
The effects of this change on tribunal case numbers
will be difficult to quantify. Yet, when combined with
the increase in the unfair dismissal qualifying period
(introduced in 2012), and the new lower cap on unfair
dismissal compensation, it will almost certainly lead to
more employers settling potential claims ahead of any
tribunal proceedings.
new ‘sift’ stage for tribunals
The incentive for claimants to consider early
settlement has been further increased by the
introduction of tribunal fees last July, together with
a new ‘sift’ stage at the beginning of the tribunal
process, following which the employment Judge may
order a party to ‘show cause’ in writing if it appears
the employment tribunal has no jurisdiction, or a claim
or response has no reasonable prospects of success.
Again, it is too early to gauge the effect of these
changes, particularly fees, on case numbers.
does it add up?
early reports suggest the number of individual claims is down. Yet the sift stage could be distorting figures, as no information is available yet on the number of claimants seeking fee remission. many may have applied for full or partial discount and are still simply being processed through the system.
emPloYment tribunals 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
9
tribunal fees
Fees are now payable in respect of different types of
claims brought in the employment tribunal:
• For Type A claims (e.g. claims for a redundancy
payment, breach of contract, unauthorised
deductions and claims relating to annual leave
under the Working Time Regulations) a £160 issue
fee is payable initially, with a hearing fee of £230 if
the case runs – a total of £390;
• For Type B claims (e.g. claims of unfair dismissal and
the various claims of discrimination), a £250 issue
fee is payable initially, with a hearing fee of £950 –
a total of £1200.
Claimants falling below capital and
income thresholds, including those
on a number of defined benefits, can
claim fee remission.
tribunal rule Changes
New tribunal rules were introduced with effect from
July 2013. Among the changes were:
• The introduction of an initial paper sift of the ET1,
followed by a full paper sift of all ET1s, ET3s and all
other documents on the tribunal file
• New express powers for addressing non-compliance
with orders, including striking out and the award
of costs
• Witness statements to be taken as read.
what to exPeCt in 2014
Looking ahead, the final elements
of the current batch of tribunal reforms –
which will again incentivise the parties to
consider early settlement – are expected to
come into effect in 2014.
We may expect a reduction in the overall
number of claims and earlier settlement of
those that are lodged, but those that do run to
hearings are likely to be more complex and of
higher value. Two of the main changes:
• A process of early conciliation will
require all claimants to notify Acas of an
intention to lodge a tribunal claim, which
could provide an early opportunity for
conciliation and settlement if both parties
are willing
• At the same time, the Government may
finally introduce the power to impose
financial penalties on employers who have
breached a worker’s rights where there are
‘aggravating features’. The penalty will be
50% of any award, which will be capped at
£5,000 and halved if paid within 21 days
2014
mark wells, managing director
of blanchard wells, explains why
they have made Croner part of
their critical management team for
employment advice and support.
watCh the video >
delivering PeaCe of mind
PaY and benefits 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
Viv Copeland, Head of Croner Reward
10
viv brings 30 years’ experience to Croner’s
comprehensive pay and benefits information
and advice service where, each year, she’s
responsible for publishing some 60 regional,
national and industry specific salary
benchmarking surveys. she joined wolters
Kluwer in 2001 from the reward group, where
she was director, and is a regular contributor of
pay and benefits commentary and statistics to
the daily telegraph.
“the past few years have
seen an increased focus on
more open communication
to keep employees motivated
through difficult economic
times. throughout 2013, it
was therefore important for
businesses to identify innovative
and new ways to manage and
reward performance, but at the
same time keep costs low.”
5 february is officially the top sick day of the year.
stress is one of the major causes of
people taking days off sick, but this
can be reduced by taking staff surveys,
offering flexible working options
and finding other ways to assist
struggling employees.
nearly half (48%) of the adult workers
surveyed by Croner are much more
stressed than 12 months ago.
find out more >
a CiPd survey in 2012 reported that,
after a small decrease, absence is back
up to the levels observed in 2011
and 2010, at an average of 7.6 days
per employee.
what makes a great employer?
You may not think that there is a
major difference between good
and great. You might be doing fine
as you are, but what difference could it make if
you were considered to be a ‘great’ employer?
DoWNLoAD oUR WhITE PAPER NoW To SEE
WhAT ELSE YoU CoULD BE DoING >
What makes a great employer?a Croner White paper
the drive towards more open communication
has also meant that employees today have a
far deeper understanding of how their company
works. this increased awareness has enabled
companies to build stronger relations with their
employees and encourage business growth.
date for the diarY
PaY and benefits 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
11
As the economy shows continual signs of
improvement it remains important for employers
to focus not only on employee motivation, but
on getting them ‘positively engaged’. As markets
improve, maintaining high levels of motivation and
performance, and a keen focus on keeping morale high,
will support staff retention and business growth.
PaY PaCKets shrinKing in real terms
Yet, the economic turmoil of the past few years has led
us to a point where pay packets, in real money terms,
are shrinking. According to new research from Opinium
Research and commissioned by Santander, workers in
the UK collectively spend an estimated £67 billion per
year on costs related directly to their job. The research
found that workers were spending more than 10% of
their annual income on work-related expenses. Yet, the
latest reports on pay increases from the ONS Labour
Market Statistics November 2013 are showing a 0.7%
increase over 2012 and inflation at around 2.2% in the
past year. We believe that pay and rewards will come
under the spotlight more as the recovery strengthens.
engaged employees = better profits
Croner again sponsored
the national business
awards ‘employer of
the Year award’ in
2013. We also spoke to
entrants and finalists
to understand what made them top employers
and what helped them to grow in a downturn.
We found that employee engagement is
absolutely critical for success.
DoWNLoAD ThE WhITE PAPER To
DISCovER moRE WINNING EmPLoYEE
ENGAGEmENT STRATEGIES >
building high morale
To keep employees engaged it is important for
companies to show that they are still listening.
The coming year will see many more companies
establishing a ‘morale or engagement index’
with employees.
national business awards
Croner once again sponsored the
National Business Awards. Andy hague,
managing Director of Croner, who was
a judge of this year’s awards, said, “It’s
always good to see how companies are
developing innovative and inspiring ways
to look after their people. Especially,
how they keep them engaged and set
themselves apart as a more attractive
employer. There is increased competition
for top talent in the UK and companies
with the right approach to managing and
engaging their people, will win.”
What makes a great employer?a Croner White paper
PaY and benefits 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
12
watCh Your attitude
As markets pick up and job moves become easier,
gauging the mood and feelings of all employees will
be really important. Finding out what they think
about the company and the environment they work
in, colleagues, remuneration and benefits will play an
important role in improving productivity, engagement
and ultimately business success.
5 Year PaY awards and foreCast trends
Since the start of the recession when pay awards were running around 3.3%, these figures have dropped to an
average of 1.9% in 2010, recovered slightly in 2011 and 2012 and then dropped again in 2013 to just under 2%.
This rollercoaster for pay awards reflects the difficult economic situation in the UK during this period.
As for forecasts, interestingly these also fell in 2009 and 2010, but the fall was more gradual and then stabilised in
2011. There was a further dip in 2012, but the figures stabilised again in 2013. Overall forecast pay awards for 2014 are
around 2.5%, down from 3.5% in early 2008.
As you can see from the trends above, the general movement is an overall reduction in pay awards and
forecasts, with little sign of significant changes any time soon.
In addition the issue of pay packets shrinking in real terms because of low pay rises and ‘higher’ inflation continues.
employee attitude survey from Croner reward
Assists with future planning, helps you to
understand what is working well, and what
needs improvement. Carry out a survey once a
year to monitor trends.
DoWNLoAD oUR BRoChURE NoW To fIND
oUT hoW oUR PAY AND BENEfITS SERvICES
CAN BE USED To GRoW AND DEvELoP YoUR
oRGANISATIoN >
Team w
ork
Salary
Morale
Good place to work
Respect
Trust
Ho
urs o
f wo
rk
Feedback
Training provision
Praise
Personal development
Job title
Employee – employer relationship
Conc
ern
Work/life balanceConfidence in Senior Management
Role
s &
res
pons
ibili
ties
Job security
Co
mp
etitive salary
Communication
PaY and benefits 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
13
sPotlight still on direCtors PaY
New reporting requirements on directors’
remuneration are now in force and ensure every
element of directors’ pay and bonuses are scrutinised.
The legislation provides an express requirement
for quoted companies to ensure that the report on
directors’ remuneration contains a statement by the
chairman of the remuneration committee. It also
has to contain the company’s policy on directors’
remuneration and specific information on how the
directors’ remuneration policy was implemented in the
financial year to which the report relates.
Once in place the remuneration policy can only be
amended by going through a process involving the
shareholders. Pay also needs to be closely tied to
performance and the new guidelines emphasise the
link between remuneration and the company’s long-
term strategy.
mastering new PaY and benefit legislation
Pay and benefit professionals will need to master the
primary legislation in the form of the Enterprise and
Regulatory Reform Act 2013 and then be aware of the
introduction of any secondary legislation as and when
it comes onto the statute book.
The restrictions on remuneration payments to
directors will need to capture payments made to
directors either when joining or leaving the company
and must be consistent with the approved directors’
remuneration policy.
are you keeping up-to-date with salary trends?
Croner reward has two essential software
solutions that are totally compatible with one
another and designed to simplify job evaluation
and salary benchmarking processes
auto-enrolment deadlines
the ‘staging dates’ or deadlines for auto-
enrolment will run until 2017, but dates vary
depending on the size of company and more
information can be found on the Pensions
regulator’s website
The legislative reforms took effect from 1st October
2013 and are applicable to Annual General Meetings
held in reporting years commencing after this date.
However, the legislation only applies to UK registered
companies and specifically not to foreign registered
companies that are listed in the UK.
auto-enrolment
Pension auto-enrolment is also at the forefront of HR
minds at the moment, as more companies reach their
deadline for having to comply with the new rules.
Many see this as a cost to the business not a benefit,
but it may be seen from an employee’s point of view
as an additional benefit.
These changes will have different implications for
companies in terms of HR time and effort, they may
need to reallocate money for employee benefits, which
needs to be carefully worked out as there is only so
much in the benefits pot.
Key Challenge
the company must ensure that it keeps full
records of all payments made to directors so
that the information can be properly presented
in the directors’ remuneration report.
the challenges to the company revolve around
ensuring that due diligence is exercised in
applying decisions that are consistent with the
votes of the shareholders in general meeting.
PaY and benefits 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
14
As with any new Government scheme there are likely
to be further changes in 2014 following a consultation
on technical changes to automatic enrolment
legislation which ran from 25 March 2013 to 7 May
2013. The consultation sought views on proposals to
simplify the automatic enrolment process within the
existing policy framework and without
changes to primary legislation. This is
likely to lead to more changes being
introduced in April 2014.
You can find out more by
downloading the governments
guidance: technical Changes to
automatic enrolment
what we PrediCted for 2013
• A greater demand for workplace
communication – to keep staff in the
picture about company performance, its
impact on conditions and pay and other
reward and recognition initiatives
• Continued scrutiny of executive pay and
directors’ remuneration – especially in
instances where workforce pay awards
are limited
• Increased clamour for staff pay rises due
to the pain of higher energy, fuel and food
costs and changes in tax, child benefit and
child tax credit
what to exPeCt in 2014
• Expect a high attrition rate from
people auto-enrolled in pension schemes
• A new health and Work Service that
may be launched in spring 2014 will help
employers with staff who have been off
sick for more than 4 weeks
• Pay and settlements are difficult to
predict, but we believe that there may
be a downward trend in early 2014 and
levels may take time to recover despite
economic growth, as companies realign
their spending
• There will be fewer pay freezes; companies
will give pay awards, but these are likely to
be reduced
• Salaries will continue to come into focus
and as national minimum wage rates may
rise on 1 october 2014 companies need to
be prepared to keep a watch on salaries
2013
2014
Croner business director andrew
walker blogs on pay and benefits
issues at walker talker
health & safetY 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
Paul Harrison, Head of Health & Safety
15
Paul leads Croner’s 40-strong health & safety
consultancy team, providing clients with
direct health & safety support and serving
as an external resource to in-house health
& safety management. Paul has worked at
Croner for over 20 years in various consultant
and consultancy management roles advising
businesses on both hr and health & safety
matters.
“this year sees the 40th
anniversary of legislation that
has transformed and modernised
health and safety in great
britain: the health & safety
at work etc act 1974. “
Although Great Britain had long been at the forefront
of employee welfare prior to the Act, it made health
& safety law goal-setting rather than prescriptive,
allowing employers to comply with the law in their
own way. It also introduced the health & safety
Executive (HSE) which remains the body responsible
for the enforcement of British Health and Safety law
along with essential research and guidance work.
The HSE’s mission is to ‘prevent death, injury and
ill health in Great Britain’s workplaces’. Given the
statistics showing the huge reductions in the numbers
of deaths and injuries to employees since the Act was
introduced, the HSE’s mission seems to have been
accomplished. However, an interesting development is
the statistical shift towards mental health issues
and it is likely that the HSE will focus increasingly on
this area.
health & safety trends between 1974 and 2013
fatal injuries to employees have fallen by 85%
(riddor). Yet estimates show an increase in
the total number of cases of stress, depression
and anxiety
You Can find more statistiCs
on the hse website >
health & safetY 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
16
fee for intervention
The present Government have continued their efforts
to reduce the burden on business, notably by removing
automatic strict liability for breaches of health and
safety regulations and by simplifying the process for
the reporting of accidents.
However, accidents are still happening; moreover the
cost of getting health and safety wrong has increased
owing to the continued implementation of HSE’s ‘Fee
for intervention’ (FFI) scheme, allied to the increasing
costs of insurance. Since its introduction, FFI statistics
have shown that charges made by the Health &
Safety Executive (HSE) introduced in October 2012
have exceeded £5.5 million, based on information
gained through the Freedom of Information Act. These
may range from slips, trips and falls, to not providing
enough toilets or washing facilities.
The sectors that received the most fines were
manufacturing (38%) and construction (36%).
At the bottom of the table were water and waste
management (3%) and agriculture (2%). The HSE
dispatched fives batches of invoices throughout the
year at two-monthly intervals to 11,281 businesses.
The region to receive the most invoices was the North
West, and the fewest the North East.
insurers maY insist on risK assessments
We saw recently the Report of the Business Task
Force, which turned its attention to health & safety
with a recommendation to exempt low-risk small
businesses from having to write down risk assessments
and to allow national governments to define ‘low
risk’. Regardless of the outcome, it is suggested that
the prevailing claims culture may well mean that
insurers continue to insist on written risk assessments
– if it’s not written down how can compliance be
demonstrated? The Report of Lord Young in 2010,
‘Common Sense, Common Safety’, which framed the
Government’s strategy on health & safety made much
of the impact of the claims culture, but, surprisingly,
this seems to have slipped down the agenda recently.
aCCidents still haPPen!
The potential for hefty fines should encourage
a greater focus on accident prevention. The
top calls to our health & safety advice line in
2013 consistently featured accidents (18%),
risk assessments (14%) and policy (14%)
40th anniversarY
Since the health & Safety at Work Act 1974
was first introduced the UK has now one of
the safest countries in the world. Croner has
been advising and supporting health & safety
for over 40 years
health & safetY 2014: the Year ahead
Croner Pulse 2014 PeoPle PrediCtions for the future
17
government review
The pro-business or anti-regulation theme of the
Government continues, but there remains very little
they can actually do as UK legislation primarily applies
European law at a local level. Perhaps recognising this,
the Government is currently reviewing the balance of
competences between the EU and the UK, with the
EU’s competence to set minimum health and safety
requirements to be covered in a report due out before
spring 2014. Of course, changes in the law often lead
to confusion for businesses; so our clients continue to
rely on Croner to keep them abreast of developments
and advice on how to implement good safety
standards in a sensible, proportionate way.
Croner has been around ever since the Act was first
introduced and we will continue to offer our clients
wide-ranging, legally-sound information, allied to
commercially-focused and pragmatic advice. We will
also continue to help clients take responsibility for
health & safety within their workplace by offering
training and on-site support with the emphasis on
providing practical, common-sense guidance through
the rules and regulations which, over the past 40 years,
have helped to make the UK the safest workplace in
Europe.
what to exPeCt in 2014
• Additional consolidation and simplification
of Approved Codes of Practice
• further evolution of the ffI process as the
inspectorate learn how best to implement
the regime
• Continued Government PR relating to
reducing the regulatory burden for
small business
• Under the auspices of the ‘Review of the
Balance of Competencies’ health & safety
to come into focus again in early 2014
• A further increase in the number of
corporate manslaughter/homicide
cases being opened by the Crown
Prosecution Service
• The Care Sector coming under increased
scrutiny by the CQC; this is highly relevant
as health & safety is a key element in
care provision
• Sustainability and environmental
management to take on greater
significance as the UK emerges
from recession
2014
Croner Comment on the Cordia case:
“whilst this case may seem
draconian, employers would be
advised to ensure risk assessments
are carried out for all foreseeable
risks. Cordia demonstrates what
happens to those who ignore this
advice; moreover, there is the
question of whether insurers might
withdraw cover in cases where
fundamental errors/omissions of
this nature have been made.”
beware – slip risks
The case of Kennedy v Cordia (Services) LLP
(2013) at the Scottish Civil Court, shows that
employers need to take the initiative.
Kennedy, a home carer employed by Cordia in
Glasgow, suffered serious damage to her wrist
when she slipped on ice covered with snow
while on a night visit to a terminally ill client.
The Court of Session ruled that the company
was liable for failing to properly assess the
risk posed by the weather conditions and not
providing Ms Kennedy with proper footwear
which could have prevented her fall.
Conduct25%
Croner Pulse 2014 PeoPle PrediCtions for the future
18
toP Calls to the Croner adviCe line 2013
Croner takes over 350,000 calls concerning hr, employment, legal matters and health & safety every year.
this is a breakdown by percentage of all calls and the key topics discussed
HoT EMPloyMEnT ToPiCS FoR 2013
HoT HEAlTH & SAFETy ToPiCS FoR 2013
HoT lEGAl ToPiCS FoR 2013
a breakdown of the top ten call topics from employers on employment issues by percentage and by month dealt with
by the Croner advice line in 2013.
a breakdown of the top ten call topics from employers on commercial and legal matters by percentage and by month dealt
with by the Croner advice line in 2013.
a breakdown of the top ten call topics from employers on health & safety by percentage and by month dealt with
by the Croner advice line in 2013.
absence and
sickness21%
accidents/riddor18%
Contract – legal33%
gross misconduct
10%
Policy 14%
Company and Clubs
8%
disciplinary Procedure
10%
e-mail14%
litigation 8%
grievance9%
legislation13%
Property and leases
7%
redundancy8%
fire 9%
P11d/bik –Payroll
4%
terms and Conditions
7%
hazardous substances
6%
debt Collection
4%
other4%
occup. health
4%
PaYe3%
Capability4%
training4%
intellectual Property
2%
Performance2%
welfare4%
dPa and Privacy
2%
risk assessment
14%
other –legal29%
Croner Pulse 2014 PeoPle PrediCtions for the future
19
historiC adviCe line Calls
this is based on the top three reasons for employers calling the Croner advice line as
published in the solutions magazine every month. the longest bar is the most popular reason
in that month, the middle bar the second and the smallest bar the third most popular reason.
2009
2007
20
12
2010
2008
20
13
2011
redundancy
disciplinary procedure
absence/sickness
terms and conditions
holiday entitlement
Conduct
gross misconduct
maternity
aPril 2009
sePt 2008
sePt 2007
maY 2010
aPril 2011
June 2012
The statutory dismissal and disciplinary procedures (SDDPs) no longer applied from 6 April in England, Scotland and Wales
Lehman Brothers falls
Northern Rock crisis
UK Coalition elected and Greek crisis bail out
The introduction on the new ‘fit note’ arrived with a cost to the UK economy of absence and unemployment due to ill health estimated at £100bn each year
Celebrated the Queen’s Diamond Jubilee and the ONS reported a sizeable downward effect on average actual hours worked by around 17% compared with the same week of 2011
Croner Pulse 2014 PeoPle PrediCtions for the future
hot emPloYment toPiCs for 2013
a breakdown of the top ten call topics from employers on employment
issues by percentage and by month dealt with by the Croner advice line
in 2013.
MARCH
Co
nduc
t
abs
ence
/sic
knes
s
dis
cipl
inar
y
Pro
cedu
re
term
s an
d
Co
ndit
ions
gri
evan
ce
redu
ndan
cy
gro
ss m
isco
nduc
t
oth
er
Cap
abili
ty
Perf
orm
ance
liab
ility
susp
ensi
on
sho
rt s
ervi
ce
dis
mis
sal
20%
20%
20%
20%
20%
20%
21%
18%
19%
19%
19%
13%
12%
12%
4%
3%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
8%
5%
5%
5%
5% 5% 5%5%
5%
5%
FEBRUARy
JAnUARy
JUnE
APRil
MAy
10%
10%
10% 10%
10%10%
10%
7%
7% 7%
7%
7%
7%
7%
7%
7%
7%
7%
9%
9%
9%
9%
9%
9%
8%
9%
9%
9%
9%9%
9%
9%
9% 9%
9%
9%
9%
9%
7%9%
9%
9%
8%
8%
8%
8%
8%
4%
4%
4%
4%
4% 4%
4%
4%
4%
4%
4%
4%
4%
3%
3%
AUGUST
JUly
25%
25%
25%
26%
25%
25%
25%
24%
24%
23%
24%
24%
23%
11%
11%
11%
11%
6%
6%
6% 6%
DECEMBER
oCToBER
noVEMBER
SEPTEMBER
20
Croner Pulse 2014 PeoPle PrediCtions for the future
KeY health & safetY toPiCs in 2013
a breakdown of the top ten call topics from employers by percentage
and by month dealt with by the Croner advice line in 2013.
MARCH
Polic
y
e-m
ail
acc
iden
ts/r
iddo
r
ris
k a
sses
smen
t
legi
slat
ion
fire
Co
ntra
cto
rs
envi
ronm
enta
l h
ealt
h &
saf
ety
haz
ardo
us
subs
tanc
es
h&
s g
ener
al a
dvic
e
Cus
tom
er s
ervi
ces
Preg
nant
&
nur
sing
mo
ther
s
trai
ning
dis
play
scr
een
eq
uipm
ent
mes
sag e
lef
t
wel
fare
Co
ntra
cto
rs
wo
rkpl
ace
refe
r to
spe
cial
ist
occ
upat
iona
l hea
lth
Pers
ona
l Pro
tect
ive
eq
uipm
ent/
Clo
thin
g
dan
gero
us g
oo
ds
supp
ort
19%
19%
19%
18%
18% 18%
22%
19%
20%
17%
16%
12%
17%
18%
17%
16%
15%
13%
14%
9%
9%
7%7% 7% 6% 6%
13%
13%13%
13%
7%
7%
7%
15%
14%
16%
16%
12%
12%
7%
12%
10%
11%
11%
11% 6%
6% 6%
5%
4%
4%
4%
4%
5% 3%
6%
6%
6%
8%
5%
5% 5%
5%
5% 5% 5%
5%
6%6%
5%
5%
5%
5%
5%
5%
8%
4%
FEBRUARy
JAnUARy
JUnE
APRil
MAy
10%
11%
7%
46%
44%
8%8%
11%
5%5% 3% 3%
6%
6%6%
5% 4% 4% 4% 3%
AUGUST
JUly
25%
18%17%
12%11%
11%
13%
7% 7%
7%
6% 6%6% 6%
15%
16%
14%
4%6%8%8% 5%5%
DECEMBER
oCToBER
noVEMBER
SEPTEMBER
21
Croner Pulse 2014 PeoPle PrediCtions for the future
hot legal toPiCs for 2013
a breakdown of the top ten call topics from employers on commercial
and legal matters by percentage and by month dealt with by the Croner
advice line in 2013.
MARCH
19%
19%
19%
17%
17%
17%
17%
16%
15%
10%
10% 10%
4%
4% 3%
4%
4%
4%
4%
4%
4%
4%
FEBRUARy
JAnUARy
JUnE
APRil
MAy
9% 9%
9%
8%
8%
8%
8%
10%
10%
10%
10%
10%
7%
6%
7%
43%
43%
45%
45%
42%
42%
41%
39%
39%
38%
36%
9%
9%
9%
9% 8% 7% 6% 6% 5%8%9%
11%
11%
5%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
2%
2%
2%
2% 2%
2%
2%
2%
2%
2%
2%2%
3%
3% 3%3%
2%
2%
2%
6%
6%
5%
5%
5%
5%
5%
5% 5%
5%
5%
5%
AUGUST
JUly
11%
11%
12%
13%
13%
7%
7%15%
13%
15%
DECEMBER
oCToBER
noVEMBER
SEPTEMBER
Co
ntra
ct –
leg
al
oth
er –
leg
al
Co
mpa
ny a
nd C
lubs
liti
gati
on
Pro
pert
y an
d le
ases
deb
t C
olle
ctio
n
inte
llect
ual P
rope
rty
dPa
and
Pri
vacy
insu
ranc
e –
lega
l
inso
lven
cy –
leg
al
Pi a
nd n
eglig
ence
trad
ers
refe
r to
leg
al
Co
mm
erci
al
P11d
/ bik
– P
ayro
ll
PaY
e
nat
iona
l ins
uran
ce
term
inat
ion
Pa
ymen
ts –
Pay
roll
smP/
mat
erni
ty
– Pa
yro
llem
ploy
men
t
rela
ted
secu
riti
estr
avel
& s
ubsi
tanc
e
– P a
yro
ll
ssP
onl
y
ove
rsea
s
empl
o ym
ent
– Pa
yro
ll
Payr
oll
adm
inis
trat
ion
tort
and
def
amat
ion
4%
23%
22
Croner Pulse 2014 PeoPle PrediCtions for the future
leading Provider and Pioneer of suPPort for human resourCes and health & safetY management – and so muCh more
Accessible our 24/7, 365-days-a-year helplines give you instant, unlimited access to expert advice.
Commercial our consultants are more than a mine of legal knowledge, their understanding of your business ensures they are always practical and commercially focused.
Expert Specialists in employment law, hR and health & Safety, our consultants are always learning so you benefit from their knowledge of new legislation and rulings.
flexible We put you in the driving seat when it comes to how you use our services – you can choose exactly how and when you want us to step in and help.
Proactive our automated tools and on-the-ball consultants help you make sure that nothing that could jeopardize your business falls through the gaps.
Supportive Being a good compliance partner is about supporting people as well as procedures, so we’re pleased clients consistently comment on consultants’ fantastic and friendly help, guidance and reassurance.
human Resources
• 24/7 telephone advice
• Audits and reviews
• Consultancy services
• Contracts and handbooks
• Crisis support
• Document templates
• Employee assistance programme
• Employee management software
• Employment relations management
• Information and insight
• Legal expenses insurance
• Reward practice and strategy
• Salary benchmarking
• Training
• Tribunal representation
• Web-based management tools
health & Safety
• 24/7 telephone advice
• Accident reporting
• Audits and reviews
• Consultancy services
• Document templates
• Environmental management
• facilities management
• Incident support
• Information and insight
• Legal expenses insurance
• Training
• Web-based management tools
Specialist Sectors
• Information and insights
• Interpretation of legal changes
• Advice lines
• Tools and templates
“A great result for all of us and testament to doing things properly and keeping good records. I would like you to thank the team at Croner who helped us with the many complexities of this case.”
John Spence, hR Director & Business Safety Champion, Imperial Commercials Ltd
What our clients say
download the free Croner emPloYment CalCulator aPP for iPhone and iPad
Croner has launched a free App to help HR professionals
and SMEs calculate redundancy, maternity and annual leave
payments and rights.
The Croner Employment Calculator App has been designed
for quick and easy calculations of potentially complex
statutory rights and payments applicable to the UK.
It is a must have resource for HR professionals,
workplace administrators in small and medium
enterprises, and individuals wanting to know
their statutory entitlements.
The Croner Employment Calculator App is
now available to download from iTunes or by
searching for ‘Croner Employment Calculator’
via your iPhone or iPad.
Croner
Tel: 0800 634 1700
Email [email protected]
www.cronersolutions.co.uk
about Croner
Croner is the UK’s leading provider of workplace advice,
information and software with an extensive suite of
products and services designed to help owner-managed
businesses and large corporations manage risk and
compliance more efficiently and effectively.
Our services include practical advice and consultancy,
pay and benefits, online tools, support for employment
tribunal representation and other specialist areas.
If you would like to find out more about how we can
support your organisation with employment or safety
management, contact us on 0800 634 1700,
[email protected] or visit
www.cronersolutions.co.uk.
Croner is a trading name of Wolters Kluwer (UK) Limited. Registered in England & Wales, No. 450650.
Registered office: 145 London Road, Kingston upon Thames, Surrey, KT2 6SR.
Wolters Kluwer (UK) Ltd is authorised and regulated by the Financial Services Authority for general insurance business.
