As the New Year dawns, some changes to the detail of your employment contracts, leave arrangements and holiday pay will need to be made in April. Furthermore you will need to start to think about how you are going to resource your business with changes in how ‘temps’ are paid and, further down the line, how your company is going to employ contractors. Employment contracts Two changes may be necessary depending on your current contracts and your process for issuing them to new starters after April 6th 2020. Firstly, all new starters (including employees, zero hours’ workers, casual and seasonal workers) after this date need to be issued with a written statement on or before the first day of employment (rather than within the first 8 weeks of employment as is currently the case) Secondly, for new employment contracts issued after 6th April 2020, the mandatory information that needs to be included has been extended to include the following: normal hours of work, days … [Read more...]
Do you have a 1st April to 31st March holiday year for your staff?
If you don’t (i.e. it is the calendar year or some other arrangement) then this is not relevant. If you do have a 1st April to 31st March holiday year in your business read on…… In the current 2017/18 holiday year you may have noticed that Easter is split over two holiday years. Good Friday is on 30th March and Easter Monday is on 2nd April. The net effect is that for the 2017/18 holiday year staff may receive an extra day’s holiday. How you handle this will depend on what is in your contracts of employment regarding holiday. Legally, staff are entitled to 5.6 weeks’ holiday annually. In 2018/19 the number of bank and public holidays amount to 7 days ie one day short of the legal minimum and therefore you would be in breach of your employee’s rights. To avoid this, and depending what your contracts say, you may need to top up leave next year by one day. If you want a complimentary review of the position for … [Read more...]
What are the latest HR legal requirements business owners need to implement in April 2018?
For the SME community, the relevant scheduled changes from April 2018 are the rates paid for statutory purposes, a change to the tax treatment of payments made in lieu of notice, and the impact of new regulations from May regarding data protection of staff records. Changes in statutory payments From 1st April: Rates for statutory maternity pay, statutory paternity pay or shared parental pay rise to £145.18/week The national minimum wage for those aged 25+ rises to £7.83/hour From 6th April: Statutory sick pay rises to £92.05/week Employer contributions into a pension auto-enrolment scheme increases to a minimum of 2% Change to tax treatment of payments made in lieu of notice introduced From 6th April, the rules are being clarified, after years of ‘depending on what my accountant says’ when it comes to the tax treatment of pay in lieu of notice on the termination of an employee’s contract. All payments in lieu of notice … [Read more...]
Impending Employment Law Changes for 2017
As MDs think about the New Year or start planning for the next financial year there are a number of forthcoming employment law changes that may affect you and your business. Gender Pay Gap True this applies only to large employers (employing over 250 employees) but it is likely to be cascaded down to the SME sector in coming years. So why do something about this now? Gender pay gap reporting applies both to bonuses and pay. If there are discrepancies between male and female workers on either score when employees are doing the same job, there are likely to be fines, the cost of immediate remedial action and potential claims for back pay equalisation going back 7 years. The reporting requirement for large employers will be to publish: the difference in mean pay between male and female employees; the difference in median pay between male and female employees; the difference in mean bonus pay between male and female employees; the difference … [Read more...]
Resolving Directors’ disputes
As business advisers working with MDs we are used to solving business problems and recommending courses of action across the range of business disciplines. Recently we have been involved in a number of cases where we have sought to resolve disputes between Directors and/or shareholders across a range of issues, markets and company size. The purpose of this blog is to show how these disputes have arisen, the process we have followed to resolve them and to give reassurance to readers that you are not alone if you are faced with a potential disagreement and that help could be at hand. How have these disputes arisen? The businesses we have been working in have all been operating for at least 2 years, and in some cases, considerably longer. The theme has been a change in circumstances. From the heady days of starting up, with grand plans, a desire to work with business colleagues without a boss, the reality of running a business has caused cracks to … [Read more...]
Case Study: Leadership Succession Coaching in Action
Gordon is MD of a £24m turnover business. He is aware that in the next few years there will be a number of retirements at senior levels and there is an experience gap between Board members and the next tier down. He has identified Richard as possibly having the potential to step into a broader role over the next few years. Gordon’s challenge Gordon faced five immediate challenges: Is Richard the right person? Is he capable of stepping up? When is the right time to start the process? When are the other Directors going to retire? How do l sell the process? How do l manage the expectations of both Richard and others? Dealing with these challenges Answering these questions took a number of meetings over around 3 months. One of the solutions was to adopt the leadership profile developed by leading assessment company SHL, which could be used as a proxy benchmark of capability against a senior manager group. We also did a mapping … [Read more...]
Getting maternity leave right with your key employees
Over the last 12 months l have worked with client MDs on 6 cases of maternity leave and on two of these cases, because they have become contentious, I have reflected on the causes of these disputes. Looking at this dispassionately one might say that this reflects a normal distribution – most situations of maternity leave will be managed perfectly well by both employer and employee. However, occasionally, there will be situations where the maternity will cause a rethink in the nature of the employment relationship leading to a dispute. In some cases the maternity accelerates the amicable ending of the employment relationship. I offer these thoughts to better manage the maternity leave process to do the best you can to avoid disputes. As the MD who knows the employee’s situation, you are probably best placed to predict any risks that may emerge. Whether you want to admit to the risks is another matter. If there is any likelihood of a breakdown in the employment relationship, ensure … [Read more...]
