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Employment and Pensions Law (7 June – 21 June)

Employment News

Total pay has increased by 1.2% in real terms since April 2018

Employee Benefits – 18 June

Total pay, including bonuses, has increased by 1.2% in real terms between February 2018 to April 2018 and February 2019 to April 2019. When not adjusted to account for consumer price inflation, the increase was 3.1%. According to Jon Boys, labour market economist at the Chartered Institute for Personnel and Development (CIPD): ‘wage growth continues to outstrip inflation…However, real pay…is still £5.70 a week lower than the pre-recession high.’

Voluntary overtime must be included in holiday pay if sufficiently regular and settled

Lewis Silkin – 12 June

The Court of Appeal has ruled that ‘that the Working Time Directive (WTD) requires voluntary overtime to be included in holiday pay if it is sufficiently regular and settled to amount to normal remuneration.’ The case involved a group of NHS employees, and concluded that under both the WTD and the NHS contracts, workers must be paid for both compulsory and voluntary overtime when on holiday.

Pensions News

Court of Appeal rejects ITV appeal against TPR in Box Clever case

Professional Pensions – 20 June

The Court of Appeal has rejected overturning an Upper Tribunal ruling last year that said The Pensions Regulator (TPR) was right to use its powers to seek additional financial support from ITV for the Box Clever Pension Scheme. Box Clever collapsed in 2003 and TPR issued an FSD against ITV in 2010.

UK government urged to revisit miners’ pension scheme surplus rules

IPE – 17 June

Politicians have called for a review of the £12 billion Mineworkers’ Pension Scheme (MPS), claiming the surplus-sharing arrangement must be renegotiated. Since the scheme closed in 1994, the government has been entitled to remove up to 50% of any surplus in exchange for providing a funding guarantee. Since that time, at least £4.4 billion has been removed.

Low earners miss out on £111m in tax relief

FT Adviser – 17 June

According to analysis from workplace pension provider Now: Pensions, low earners could be missing out on up to £111m in tax relief in 2019/20. There is currently a loophole which means those earning less than the full income tax personal allowance miss out on tax relief when they are auto-enrolled into a pension. It has been estimated that this could be affecting up to 1.75 million low earners.

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