New Employment Regulations
2nd April 2010
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New Employment Regulations

This article featured in our April edition of 'Tax Tips & News'. You can receive these directly to your inbox by signing up via our website.
There are a host of new employment related regulations coming into force on 6 April 2010. This is a brief summary of those regulations that are likely to affect you or your business.

- Fit notes - these replace sick notes issued by GPs and will state what the worker can do, rather than what he or she is prevented from doing.

- Pension date - the date from which the individual can draw the state retirement pension will not necessarily fall exactly on a woman's 60th birthday. For example, a women who reaches age 60 between 6 April 2010 and 5 May 2010 will have a state pension date of 6 May 2010. This date also affects the payment of the employee's NI contributions.

- NI contribution years - individuals who reach state retirement age only have to have to accumulate 30 full years of NI contributions or credits to gain a full state pension.

- A single year of NI contributions will count towards the state pension. Until now a person had to accrue at least one quarter of their working life (about 11 years for a man, 10 for a woman) to be entitled to any state retirement pension. Each year of NI contributions will be worth roughly £3.20 of weekly pension at current rates. It will be essential to accurately record the NI number for every employee, so that each individual can collect their pension entitlement when they retire.

- Home responsibility protection credits (HRP) will be given on a weekly basis. This will allow the HRP credit be combined with actual NI contributions to make up a full year of NI credits. HRP credits are given where a person stays at home to look after a child and claims child benefit.

Sarah Sallis
Chartered Management Accountant

The Accountancy Office Limited

Basepoint Business Centre, Crab Apple Way, Vale Business Park, Evesham, Worcestershire, WR11 1GP

Telephone: (01386) 764741



The Accountancy Office takes every care in preparing material to ensure that the content is accurate and up to date. However no responsibility for loss to any person acting or refraining from acting as a result of this material can be accepted

About the Author

Sarah S

Member since: 30th June 2011

I am a Chartered Management Accountant and Director at The Accountancy Office Limited who specialise in providing professional and affordable accountancy and tax services to small businesses.

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