When making certain future changes to their pension scheme, employers should keep in mind the requirement to consult with their employees before making the change. In this blog post, we run through the key aspects of member consultations to provide a reminder of what exactly employers need to do, and why they need to do it.

Who?

Employers who have 50 or more employees based in Great Britain are subject to consultation requirements set out in the relevant consultation regulations. This threshold is based on the number of employees the employer has, even if some of those employees are not pension scheme members.


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A traffic policeman on motorway patrol passed a car that appeared to be driving at 11mph. The policeman pulled the car over, and asked the driver why he was going so slowly.

“I saw a sign saying that the speed limit was 11mph” said the driver. “A big blue sign, with white numbering.”

“That’s not the speed limit, that’s the road name – the M11” said the policeman. The policeman then looked at the passenger, who was sitting rigid in her seat, a rictus grin on her face. “What’s the matter with her?” asked the policeman. “Well” said the driver, “we’ve just joined the motorway from the A120.”

Interpreting laws and regulations can be difficult – particularly in highly technical areas such as pensions, where legislation can be opaque at the best of times. The Pensions Act 2004 tried to ameliorate this problem by giving the Pensions Regulator the power to flesh out legislation by issuing Codes of Practice. Codes of Practice have a special status: they have to be laid before Parliament before they come into force; they are admissible in legal proceedings; and if they appear to be relevant to the question the court has to decide, the court has to take them into account. (Albeit, on occasion, judges have “taken into account” Codes of Practice by brusquely dismissing them.)


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As mentioned in our earlier posts, we will be featuring contributions from our global Employment & Benefits team on this blog, highlighting particular topics and issues of interest to UK employers with operations overseas.

Here is some recent commentary and guidance from our Employment & Benefits team in Hong Kong:

  • Our Employment & Benefits team

In the wake of #MeToo and the associated shift in the way allegations of sexual harassment are treated by employers, making the decision to suspend an employee can have far-reaching repercussions for employers and employees alike.

Importantly, in 2007, the Court of Appeal, in Mezey v South West London and St George’s Mental Health NHS

On 6 April, the quality requirements that pension schemes being used for automatic enrolment (“qualifying schemes”) must meet are changing.

DC schemes – what’s changing?

At present, for a DC scheme to be a qualifying scheme:

  • The employer must make a contribution of at least 2% of the worker’s qualifying earnings.
  • The total contributions paid

At the end of January 2019, the Government launched a consultation which proposes plans to boost the protection given during redundancy to pregnant women and new parents returning to work.   Under the current law, before making an employee on maternity leave redundant, employers are under an obligation to offer them a suitable alternative vacancy where