Many clients have been asking these last few weeks about Furlough and the Job Retention Scheme. We have some guidance from the government on the subject, what it is and what you are entitled to do as an employer. In Summary Fees and commissions will not be included in the 80% refund Employees can do voluntary work whilst on furlough as long as you the employer don’t generate any revenue from that activity Employees must be furloughed for a minimum of 3 weeks No employee starting work with you after 28 February 2020 can be part of the scheme It gives guidance on calculating the average working week if you have employees who work variable hours The employer remains liable for paying NI and pensions contributions but you can claim the NI and pension contributions back through the scheme Employees on sick leave or self-isolating should get Statutory Sick Pay, but can be furloughed after this. Employees who are shielding in line with public health guidance can be placed on furlough. The CJRS covers those employees who were made redundant after 28 February 2020, providing they are rehired by their employer. For full time and part time salaried employees, the […]
We have had a few of our clients ask for more information on the Good Work Plan 2020 for Agency Workers. We have tried to establish the status of the legislation surrounding Agency Workers. However, it’s still showing as a draft piece of legislation, which is likely to be in place on 6 April 2020. However, the General Election may affect this. Consecutive Contracts to be Banned Assuming that the legislation goes through, from 6 April 2020 you will be required to provide your workers with a statement of their rights on day 1 of their engagement. This means, what you will not be allowed to do is to offer a worker consecutive 12-week contracts in the same role. That is to say, this practice is expected to be banned from 6 April 2020 as an exploitative method of employing people. Same Rate of Pay Your obligation to pay temporary workers the same rate as employed staff remains unchanged if they are on an assignment in the same role for longer than 12 weeks. Agency workers can, at the moment, opt out of receiving the same pay as employed staff after the 12 weeks, this will no longer be the […]
The government has published The Good Work Plan April 2020, which is designed to implement the proposals of employment reforms which are due to come into effect in April 2020. The primary purpose is to ensure that individuals have better access to, and a better understanding of, their employment relationships. Statement of Written Particulars There will be a new requirement for you, as employers, to provide a more comprehensive statement of written particulars or contract of employment. You will also have to provide these statements to workers and not just employees. In addition, the new statement must cover more terms and must be issued on the first day of employment, unlike currently, you have 8 weeks to issue your contracts. HMRC Clamping Down The Good Work Plan has also made a commitment to further align the tribunal assessment of employment status with HMRC’s. Currently there are three categories of employment status in the tribunal forum: employee, worker and self-employed, while as far as HMRC is currently concerned there are only two, as it does not recognise ‘worker’ status. This can at times cause confusion for both the company and the individual. Tribunal Claims There will be an introduction of sanctions […]
In April 2019 new legislation on payslips and employers’ responsibilities were introduced by the government. The new law states that itemised payslips must be given to employees or workers. But a recent report shows that one in ten UK workers still doesn’t get a payslip, and thousands of businesses are at risk of prosecution. Today, you need to give itemised payslips to all workers, including staff on casual, agency and zero-hour contacts. It can be difficult to tell the difference between employees and workers, and many UK businesses hire a mix of both. In short, employees have a “contract of employment” with you and workers don’t. For now, the most important thing to remember is that all workers and employees need payslips and all payslips must be itemised. That means they must show: Gross and net pay. Deductions from pay. The number of hours worked where pay varies based on the amount of time worked (more on this shortly). How you pay your workers’ wages if you use multiple payment methods (such as if you pay part in cash and part in BACS). Depending on the types of contracts you have with your staff and what hours they work will […]
If You Pay Any Of Your Staff National Minimum Wage please read on as this could affect you and your business. The frozen food stores Iceland have fallen foul of a HMRC inspection regarding National Minimum Wage and face a huge bill for underpayment, PAYE and NIC of £21million. This eye watering amount is based on £3.5million over six years plus there are potential penalties yet to be considered. Iceland who employ 25,000 people are fighting this decision. The size of the underpayment has caused the Treasury Select Committee to question HM Revenue & Customs (HMRC) approach to NMW decisions. The underpayments centre around two issues: • A voluntary staff Christmas club – where they take a voluntary agreed amount from employees who wished to be part of the Christmas club fund and despite staff being able to withdraw their savings at any time and is managed by an independent Trustee. HMRC argues that this deduction brings the workers’ pay below NMW even though Iceland do not benefit from the deduction and the money comes back to the workers when they withdraw funds from the club. • Shoes for staff working in the stores where Iceland’s company policy for staff […]
We have been asked in the past who should pay National Minimum Wage? The answer, quite simply is everyone. Some employers think they are above the law when deciding what they will pay their employees. The National Minimum Wage applies to every employee in the UK regardless of the number of hours they do, what work they perform or even what age or nationality they are. Employees may make a claim against their employer any time with the tribunal service if they believe they are being underpaid the national standards. Those employers who have been questioned and fined by HMRC have come up with some great excuses, here are just a few: Unbelievable Excuses why Employers do not pay National Minimum Wage. The employee wasn’t a good worker so they didn’t deserve to be paid the National Minimum Wage. Offer a performance review meeting, do some training or discipline the employee for poor performance. Don’t under pay them. It’s part of UK culture not to pay young workers for the first three months as they have to prove themselves. No it is not. Although younger workers (under 25) are given a lower wage band, employers still have to adhere these […]
As an employer you may have looked at monitoring staff at work for various reasons. The Data Protection Act doesn’t prevent employers from monitoring workers, but you must remember that workers are entitled to some privacy at work. You must tell your employees about any monitoring arrangements and the reason for it. Why Monitor? It is advisable to have written policies and procedures in place regarding monitoring at work. Monitoring shouldn’t be excessive and should be justified. Staff should be told what information will be recorded and how long it will be kept. However, if you want to monitor workers by collecting or using information, the Data Protection Act will apply. Therefore, Any information collected through monitoring should be kept secure. Monitoring staff at work may be needed for a variety of reasons. It can be used to safeguard employees, for example to ensure workers aren’t at risk from unsafe working practices. In some sectors you may have a legal or regulatory need to carry out some monitoring. The information gathered through monitoring should only be used for the purpose it was carried out for. Unless it leads to the discovery of other things such as a breach of health […]
If you have transgender staff employed in your business, you may to know what the legal situation is. A recent survey by Total jobs found that 43% of transgender people look for trans-friendly employers when they are job hunting. Employers who adopt HR policies in equality, diversity, gender transition issues, and transgender inclusive healthcare benefits are distinct. Lesbian, gay and bisexual employees may also take an organisation’s trans-friendliness as a good sign that they are welcome there. It is important that all employees know how to treat transgender staff employed in your business and the issues that may arise. Transgender Staff and Gender Reassignment Gender reassignment is a ‘protected characteristic’ under the Equality Act 2010. Treating an employee less favourably than others because of gender reassignment is unlawful and is an act of direct discrimination . It is also unlawful to discriminate indirectly by imposing a provision, criterion or practice that disadvantages transgender employees. These need to be justified objectively. The provisions also extend to businesses supplying goods and services to transgender members of the public. In a recent tribunal case, Bisson v Condor Ferries, a transgender passenger succeeded in claiming direct discrimination against a cross-channel ferry company. Condor Ferries had advised her to use the disabled toilet when she asked which facilities she should use. Toilet signs with the […]
Wondering what to do if an employee acts inappropriately on social media? Always follow your disciplinary procedures to the letter. A recent Tribunal case about a man who was fired after seven and a half years’ employment for sharing another butcher’s ‘meat deal’ on social media has left the employer out of pocket. The employee won his case for unfair dismissal against his former employer, a small, and well-respected butcher in Wigan. He recommended a discount offer from another online fresh meat retailer to his girlfriend on Facebook. The directors dismissed him for gross misconduct and breach of contract. They believed the ‘advertising’ was for a competitor and breaching the company’s social media policy. The tribunal heard the employer had already decided to dismiss Hayward before they brought him into a disciplinary meeting. The buisness had no formal HR function snd they hadn’t taken advice. The employee did not receive a written or verbal formal warning. Even though he had requested one. The employee was denied a colleague or Union Rep to accompany him at the meeting. The Employers did not give a reason why his actions online were wrong. The employee was denied the right to appeal. And so, he lost confidence in his employers and did not follow up the matter further. The tribunal […]
The new GDPR Legislation will come into effect 25th May 2018. The Data Protection Act stipulates that data and records should only be stored for as long as they are useful, so it’s up to you, the employer and your HR policy, to determine how long those records are useful for. Different records may also need to be disposed of at different times. For example, it may not be necessary to retain financial information for long after an employee has left the company whilst basic contact details may be important to your company for several years after an employee has left. It’s generally recommended that personal information of employees, including contact details, appraisals and reviews be kept for at least 5 years. Keep hold of employees’ financial records for at least 3 years as HMRC may request to see them during this time. However, from 25th May 2018 this will change with the introduction of EU’s General Data Protection Regulation (GDPR). Data controllers and processors need clarity on what data they hold and how the personal data is used. You need to make sure the systems protect privacy and that contractual provisions are in place with clients and service providers to […]
