You are currently browsing the monthly archive for October 2011.
A clear gap between the level of pay settlements in the public and private sectors is continuing, according to the latest data from IDSPay.co.uk. The median settlement level for private sector deals in the three months to the end of September is 2.6 per cent, up from 2.5 per cent in the three months to August. The median in the public sector remains at zero. More
They say all publicity is good publicity, but the problem is that in today’s media the devil is in the headline. While it is true that the average increase in the total earnings of all FTSE 100 directors was running at 49 per cent, this is far from the whole truth. In top companies the make-up of directors’ earnings is quite complex – it consists of salary, annual bonus and share-based awards – each tied to different performance conditions and each linked to different pay-out cycles. When share-based awards vest – that is when the shares are handed over to directors to sell or keep as they please – then the cash equivalent value can be substantial. The highest share-based long-term incentive plan payout in the latest year, for example, was worth more than £14 million. If the director did not receive a similar amount the year before, then the consequence is a considerable boost to total earnings. It is this minority of huge rises that that has fuelled such a large average increase in total earnings. More
When is a door not a door? When it’s ajar. When is a horse not a horse? When it turns into a field. And when is a dismissal not a dismissal? When it’s vitiated by special circumstances. Not a classic perhaps, but worth knowing, especially when such circumstances can save an employer from a finding of unfair dismissal. However, as the Court of Appeal has recently shown, the circumstances need to be very special indeed. More
The recent huge increases in gas and electricity prices have pushed inflation to record levels. In the year to September the RPI rose by 5.6 per cent, up from 5.2 per cent in August, and the CPI rose to 5.2 per cent, up from 4.5 per cent in August. More
The latest average weekly earnings (AWE) figures show a slight fall back across all parts of the private sector, with only the construction sector bucking the trend, showing modest growth after a long period of stagnation. Overall, growth in the whole economy earnings figures in the three months to August was 2.8 per cent, compared to a year earlier, down from 2.9 per cent in July. More
We’ve all heard the complaint that vexatious claims are clogging the tribunal system and discouraging employers from hiring staff. To combat this, and to encourage recruitment, the Chancellor has announced that the qualifying period for unfair dismissal claims will rise from one year to two years and that fees will be required to lodge tribunal claims. Putting aside concerns about the potentially discriminatory impact of these moves, will they address the reasons behind the doubling in the number of tribunal claims since 1999/2000? More
A recent survey of employers’ attitudes to the abolition of the statutory retirement procedure suggests that the majority of employers are doing without a default retirement age. The survey of senior HR professionals in the UK, undertaken by the law firm Norton Rose, reveals, among other things, that only three per cent of employers intend to retain a default retirement age. Unfortunately for young people already facing high unemployment levels, unpaid internships, and calls to lower the minimum wage if they are lucky enough to find a job, 22 per cent of employers believe they now have less capacity to take on younger employees. More
An IDS survey of HR professionals in leading UK firms has found that over half intend to make the same level of pay award in 2012 as they made in 2011. However, almost a third indicated that they will pay a higher award in 2012, with less than 13 per cent reporting they would make a lower award. More
