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 […]
The National Minimum Wage is due to increase on 1st April 2017. The hourly rate for the minimum wage depends on your age and whether you’re an apprentice. You must be at least school leaving age to get the National Minimum Wage. At least aged 25 to get the National Living Wage. And the minimum wage will still apply for workers aged 24 and under. The New Rates are: 25 and Over £7.50 21 to 24 £7.05 18 to 20 £5.60 Under 18 £4.05 Apprentice £3.50 Apprentices are entitled to the apprentice rate if they are under 19 years of age. Or if they are 19 or over and in the first year of their apprenticeship. After the first year, the national minimum wage appropriate to their age will be applied. Please be sure you have implemented these changes with your employees pay by 1st April. If you want to discuss The National Minimum Wage or any other pay or salary issues in the workplace, give us a call – 01706 565332 Metis HR is a professional HR Consultancy based in the North West of England supporting clients across the country. We specialise in providing outsourced HR services to small and […]
There is no change to the minimum wage (National Living Wage) planned for people over 25 on 1 October 2016. But other categories of workers will see rises. You must be at least school leaving age to get minimum wage rates. Minimum wage rates from 1 October 2016 are as follows: Adults between the age of 21 and 24 will see their pay increased from £6.70 per hour to £6.95. (a 3.7% increase) 18 – 20 year old’s will get a 4.7% rise from £5.30 per hour to £5.55 16 – 17 year old’s will get £4.00 per hour, an increase of 3.4% from their current £3.87. The apprentice rate will increase to £3.40 per hour. It’s a criminal offence to not pay someone the National Minimum Wage or National Living Wage. As well as to fake payment records. HMRC and The Minimum Wage Employers who discover they’ve paid a worker below the correct minimum wage must pay any arrears immediately. Use the National Minimum Wage and National Living Wage calculator to work out arrears. HM Revenue and Customs (HMRC) officers have the right to carry out checks at any time. They can also ask to see payment records. They […]
New legislation affecting employment rights and responsibilities is introduced every April. This year, the development receiving the most attention is the introduction of the national living wage. But are you aware of other important employment law changes on their way? National Living Wage is Introduced As it is, there will be significant change is to be made for the lowest-paid workers. With the introduction of the national living wage on 1 April 2016. Workers aged 25 and over will be entitled to the national living wage rate of £7.20 per hour. This is from the first pay reference period beginning on or after 1 April 2016. The national living wage is a new top rate of the national minimum wage. Employers should check that employees’ pay is not brought below the new rate. Because these can happen through salary-sacrifice arrangements, such as tax free payments schemes, taken off employee’s gross pay, like childcare vouchers. Employers should also be aware of any pay implications if 1 April 2016 falls part way through a payroll period. You will need to know which date the employer must start paying the national living wage from. National Minimum Wage Penalties Increase The penalty for employers […]
October marks annual governmental revisions and updates to employment law. This HR Fact Sheet highlights the pick of this autumn’s changes. 1. MODERN SLAVERY STATEMENTS Slavery is NOT a thing of the past. Slavery is real and exists today. However, forced or compulsory labour, servitude and human trafficking are all what constitutes slavery today. Companies with an annual turnover of £36m plus have now (from this October) to publish a MODERN SLAVERY STATEMENT. Whilst government guidelines are promised (in line with the Modern Slavery Act, 2015), the statement can be prepared now. It should contain ways in which the company actively prevents modern slavery from occurring in their business. Especially, including the whole supply chain in which they commercially exist. 2. SIKH SAFETY HELMET EXEMPTION Turban-wearing Sikhs are now (from October 1st 2015) exempt from wearing safety headwear AT ALL WORKPLACES. Because the exemption has been extended from construction sites to places such as warehouses, factories, transportation, etc. Emergency response workers and armed forces will still be required to wear head protection. 3. MINIMUM WAGE INCREASE As from October 1st 2015, the national minimum wage hourly rate has been increased from £6.50 to £6.70 for adults, as well as similar increases for young workers […]
