Introduction to Newsletter 24.02.10

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This week’s newsletter, other than the regular payroll calendars, consists solely of a detailed article on the new medical statements, or “fit notes” that will be issued by doctors from 6 April 2009. They will have a significant impact on the way employers handle sickness absences and require employers to have a fresh look at the rules governing payment of SSP.

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In January, the Department for Work and Pensions (DWP) confirmed that the replacement medical statement, known as the “Statement of Fitness for Work” and now commonly nicknamed the “fit note” to distinguish its use from the “sick note”, will come into use from 6 April 2010 in England, Scotland and Wales.  It will also be used in Northern Ireland but the effective date is yet to be confirmed.

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The Institute of Payroll Professionals (IPP) is urging employers to prepare their payroll staff on the introduction of the ‘fit note’, which will be replacing the traditional format of a medical statement or sick note from 6 April 2010.

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THE MAYFLOWER THEATRE TRUST TAKES ON FRONTIER SOFTWARE

Frontier Software has won the HR & Payroll software contract for The Mayflower Theatre Trust in Southampton.

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Introduction to Newsletter 18.02.10

The problems caused by HMRC issuing duplicate coding notices continue to be an issue and HMRC have published at least two updates to reassure employers and employees.  We have reproduced the latest announcements below.

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PAYE Procedures - Multiple coding notices for the same employee

Two weeks ago we highlighted a coding notice problem involving the issuing by HMRC of multiple and contradictory coding notices.  The problems reached the national press and HMRC has since published two updates on the situation.

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In a judgement delivered on 11 February 2010, the London Employment Appeal Tribunal (EAT) ruled that, in the case Bateman and Others v Asda Stores Ltd, the employer was entitled to change and impose new pay structures without the express consent of individual employees, based on a clearly expressed term in the staff handbook.

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Alongside the 2009 Pre-Budget Report, the Government announced that it intended to address the problem of potentially exploitative arrangements that are implemented for some temporary workers paid at or near the National Minimum Wage (NMW).  HM Treasury has now published a consultation document, entitled National Minimum Wage workers: Travel and subsistence expenses schemes, which explains the means by which it is proposed that NMW workers should be protected.

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In a document for payroll system software developers, HMRC has provided more information about the split of the NICs earnings threshold (ET) from April 2011 into separate employee and employer thresholds.  The legislation already defines them separately but, because they have traditionally been set at the same monetary level (e.g. £110 per week for 2010/11), they have both been known as the “earnings threshold”, even though that name does not appear in legislation.

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Isle of Man: Employment Law - Update for 2010

The Department of Trade & Industry has issued the following employment law updates: Continue reading