Taxation of payments in lieu of notice
In the Finance Bill 2017, the government intends to implement its plans to tax all payments in lieu of notice.
There is currently a possible way around this if there was no payment in lieu of notice clause in the contract or the employer decided to breach the contract in refusing to pay notice. This would be subject to HMRC rulings and guidance of course, particularly in respect of the way the employer usually deals with such payments, and how they have approached this one.
Damages are not subject to national insurance and income tax up to the first £30,000, meaning that it was often to the advantage of employees and employers alike to pay notice by way of damages instead of in lieu of notice.
The government has been seeking to close this loophole and make all payments in lieu of notice taxable regardless of whether there has been any breach.
The loophole closing rules were in the Finance Bill 2017, but the election has got in the way of implementation. These measures will need to be implemented after the election, and may well be subject to further debate, although there are serious pressures on parliamentary time given the Brexit issue.
The Labour Party came into power in 2024 with a promise of substantial reforms aimed at enhancing worker’s rights, improving work-life balance, and addressing inequalities in the workplace.
Mental health is an increasingly important issue in the workplace, affecting employees’ wellbeing, productivity, and overall satisfaction. As more employees speak up about their struggles, UK employers must ensure they are providing a supportive environment while adhering to legal responsibilities. The legal framework surrounding mental health in the workplace is clear, but understanding how to apply it practically is key to preventing discrimination and promoting a healthy work culture. With World Mental Health Day on 10th October, now is the perfect time for employers to review their obligations and strategies for supporting mental health in the workplace.
Handling Mental Health-Related Absences: Best Practices and Legal Obligations
Mental health-related absences are a common challenge for employers, as mental health conditions can lead to prolonged or frequent time off work. Understanding how to handle these absences with compassion while fulfilling legal obligations is crucial for maintaining a supportive work environment and avoiding potential legal pitfalls. As we approach World Mental Health Day on 10th October, this article outlines best practices and key legal responsibilities for UK employers when managing mental health-related absences.
In the UK, mental health discrimination in the workplace is a growing concern as more employees speak up about their struggles with mental health issues. World Mental Health Day, observed on 10th October, provides an opportunity to reflect on the legal protections in place to safeguard employees from discrimination and to promote mental wellbeing in the workplace. This article will explore the legal framework surrounding mental health discrimination, including how the law defines mental health disabilities, employers' responsibilities, and steps businesses can take to prevent discrimination.
Supporting employees with mental health conditions is not just an ethical responsibility for UK employers; it’s a legal obligation under the Equality Act 2010. As we approach World Mental Health Day on 10th October, it’s crucial for employers to understand what reasonable adjustments are, how they can be applied to mental health, and the steps they should take to comply with UK law while fostering an inclusive and supportive work environment.
The Equality Act 2010 is a key piece of legislation in the UK that aims to protect employees from discrimination in the workplace. While much of the focus on this Act has been on physical disabilities, mental health conditions are also covered under its provisions. As we approach World Mental Health Day on 10th October, it’s important to understand how the Equality Act protects employees with mental health conditions, and what employers must do to ensure they meet their legal obligations.
In the modern workplace, stress is often considered an inevitable part of the job. However, when stress becomes overwhelming, it can lead to significant mental health issues such as anxiety, depression, and burnout. In the UK, employers have a legal responsibility to manage workplace stress and support employee wellbeing. As we approach World Mental Health Day on 10th October, this article explores the legal framework around workplace stress and provides guidance on how employers can take steps to create a healthier, more supportive work environment.
The British Airways Plc v Rollett & Others ruling underscores the importance of focusing on the actual disadvantages caused by workplace policies. Employers are now obliged to be more vigilant in assessing the broader impacts of their decisions, ensuring equity and fairness for all employees, regardless of whether they possess a protected characteristic under the Equality Act 2010.
By proactively addressing these considerations, employers can foster a more inclusive work environment and mitigate the risk of indirect discrimination claims.
Shift work is a necessity in the healthcare sector, ensuring round-the-clock care. However, long hours, night shifts, and irregular schedules can take a significant toll on healthcare workers' physical and mental health, increasing the risk of burnout. This article outlines your legal rights regarding rest breaks, the impact of shift work, and your employer's obligations to minimise the risks.
Mental health conditions are becoming increasingly prevalent in UK workplaces, with far-reaching consequences for employees, businesses, and society as a whole. Employers have a duty of care towards their employees' mental wellbeing, and certain mental health conditions may also be recognised as disabilities under the Equality Act 2010.