Archives: United Kingdom

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Proposed Changes to UK Law on the Taxation of Payments In Lieu Of Notice

The draft UK Finance Bill 2017 (the “Bill”) proposes some significant changes to the tax treatment of a payment in lieu of notice (“PILON”) for employees.  Where a UK employer exercises a contractual right to make a PILON, the payment is fully taxable and subject to national insurance contributions (“NICs”) as income, in the same … Continue Reading

New UK Directors’ Remuneration Reporting Regime

In the wake of the financial crisis and the so-called ‘shareholder-spring’ of 2012 (a period during which many shareholders refused to endorse directors’ remuneration policies), the government has introduced new rules on directors’ remuneration reporting. The new rules: (i) increase the compliance burdens regarding the reporting of directors’ remuneration policies; (ii) increase shareholder control over … Continue Reading

Major UK Effort Targets Business Security Threats from Company Insiders and External Cyber Intruders

co-authored by Bonnie Drury (Trainee Solicitor) On 27 March, the UK Government launched a new platform for public and private bodies to share information on cyber threats in real time.  The Cyber Security Information Sharing Partnership (“CISP”) forms part of the UK’s £650m National Cyber Security Programme, and has been described as a “secure Facebook”. The … Continue Reading

Why Is a Benefits Lawyer Talking about Trade Secret Theft?

At a recent forum in New York, a team of Covington & Burling LLP lawyers addressed the growing concern among companies that their most valuable assets might just walk out the front door on a thumb drive in an employee’s pocket or otherwise be taken by company insiders.  Although much of the discussion in this … Continue Reading

Safer “Bring Your Own Device” Policies: New Guidance from the UK Information Commission’s Office

On 7 March 2013, the UK Information Commissioner’s Office (ICO) issued new guidance for employers on the use of personal devices for business purposes.  The guidance is largely informed by a survey commissioned by the ICO and carried out by the market research firm YouGov.  According to the survey, 47 percent of adults in the UK … Continue Reading

Forfeiture of Incentive Pay for Violation of Employment Agreement Is Not an Unlawful Penalty, Says UK High Court

The UK High Court recently confirmed that incentive pay may be conditioned upon good behavior.  In Imam-Sadeque v BlueBay Asset Management (Services) Ltd [2012] EWHC 3511 (QB), the court concluded that forfeiting incentive pay for bad behavior does not constitute an unlawful penalty.  In that case, an employee and employer had entered into a release … Continue Reading

2013 Preview of Expected Developments in Employee Benefits and Executive Compensation

In the coming year, we expect to see continued activity on the part of the agencies and Congress with respect to employee benefits and executive compensation.  The following is a preview of major guidance anticipated in 2013. … Continue Reading

Auto-Enrollment In Pension Schemes Comes Into Force in UK

Qualifying UK employees and workers must be automatically enrolled in suitable pension schemes beginning October 1 in order to promote saving for retirement. Suitable pension schemes include defined contribution or defined benefit schemes. There is no obligation to enroll an individual who is already an active member of a qualifying employer scheme. Importantly, employers must … Continue Reading

UK Financial Services Authority Proposes Collecting Benchmarking and High Earners Reports from Regulated Entities

In August, the U.K. Financial Services Authority (“FSA”) issued a proposal to implement the requirement in the 2010 Capital Requirements Directive (“CRD III”) that competent local authorities collect information concerning the pay practices of relevant financial services firms.  CRD III requires local authorities to transmit this information to the European Banking Authority (“EBA”) to enable … Continue Reading
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