Human Resources

Changes from April 1 every employer needs to know about 

There’s never a dull moment for Employers or HR professionals, and the Government changes from April 1 have kept us all nicely busy as we update our systems to suit. Here’s everything you need to know to stay on top of the latest updates to employment legislation.

The National Living Wage (and National Minimum Wage) is going up!

Thousands of low paid workers are set for a pay increase next month, as the Government increases the National Living Wage from £8.72 per hour to £8.91 per hour.

The changes announced last November will finally come into effect next month with everyone aged 23 and over set to benefit from the 2.2% increase, including the two ages previously exempt now joining the ’25 years and over’ club as eligible for the scheme. That’s around 4% of the UK population who’ll benefit from the change from April 1.

Until now, anyone below 25 years has been forced to settle with the lower-paid National Minimum Wage, with pay rates under this scheme starting at £4.55 for 16 and 17-year-olds and rising to £8.20 for ages 21 to 24 years. Now, 23 and 24-year-olds will receive a pay increase of close to 9%, while those already in the 25+ age bracket will receive an increase of just 2.2%. Those aged 21 to 22 years, while not yet eligible for the new NWL scheme will see their minimum wage rate increasing by 2% to £8.36 per hour.

So, make sure you’ve made those changes to your payroll system from April 1.

 

Family-related pay and statutory sick pay are also on the rise.

Also commencing this month, an increase to the weekly rate for family-related absence and statutory sick pay. From April 4, maternity, paternity, adoption, shared parental and parental bereavement pay increases to £151.97 per week, and from April 6, statutory sick pay increases to £96.35 per week.

Employees must always meet several criteria to qualify for these types of pay, and the UK Government website explains each one in full.

Since each of the new rates become mandatory on their respective date, employers and HR professionals are expected to familiarize themselves with the changes immediately. Also critical is your ensuring any documentation referring to the rates is amended to reflect the changes and for all employees to be notified.

 

Redundancy pay rates are also changing in April.

Another key change for Employers and HR specialists to be aware of is the statutory redundancy pay which was increased from April 6. From this date, the maximum weekly pay has increased to £544.

The maximum compensatory award for unfair dismissal also increases for those taking place on or after April 6, from £88,519 to £89,493.

 

Gender Pay Gap reporting has been extended until October 2021.

Employers with over 250 staff are required by law to report on the difference in pay between their male and female workers. Typically, the report is due for submission at the close of March although in 2021, due to the ongoing situation with the Covid-19 virus, the deadline has been extended to October 5.

 

Introducing IR35 on April 6.

The new ‘anti-avoidance tax legislation’ also comes into effect this month, with employers now responsible for proving any contractors are self-employed and not employed by the business, to reduce tax fraud.

As of April 6, any employer who uses self-employed contractors in its business is required to become familiar with the difference between the two types of worker – employed or self-employed contractor – for tax purposes, to ensure they are meeting the correct tax requirements.

Since the above are all legislated it’s critical to implement any changes to avoid headaches down the track.

In need of some HR advice? Wherever you are in the UK, you can arrange a chat with one of our friendly professional HR advisors at any time.

Call us on 0330 0881857 or email enquiries@optimal-hr.co.uk

We’re also on Facebook, Twitter, Instagram and Linked In!

 

 

 

 

 

 

 

 

 

 

 

 

Each one of us will likely experience an issue with a work colleague at some stage during our career. You might think it inevitable, what with a good few hours of our days spent working, whether it’s from a physical workspace or a home office – and the latter just as likely a place for conflict to arise.

In fact, during the Covid-19 pandemic – a time when many of us have found ourselves working from a remote location – workplace bullying and harassment is said to have risen dramatically. Perhaps it’s no surprise when you consider the upheaval caused these past twelve months, with lives forced to adapt to new ways of working at speed or even to drop their work altogether through being furloughed. It’s no wonder stress is on the increase and the most level-headed of humans are seeing their patience tested like never before.

Still, despite the pressures we’re feeling at work currently – even in pre (and post) Covid times – there is no excuse for workplace bullying, and every employer has a duty of care to its staff in terms of their wellbeing. But what exactly do we mean by bullying? It’s worth reminding ourselves since some employees may not even recognise a situation as one where they’re being bullied; and similarly, might fail to see their behaviour toward a colleague as unacceptable.

The Government defines bullying and harassment as “…behaviour that makes someone feel intimidated or offended”, with harassment unlawful under the Equality Act 2010 (you can read more on this topic here). It can take on many forms – offensive or insulting comments, spreading malicious rumours, misuse of power, and threats or even acts of physical abuse.

While the workplace will always be a place where opinions differ or relationships turn sour, it is essential you have a mechanism in place for managing difficulties and preventing harassment and bullying from becoming something that ‘just happens’. Here’s how.

Create a workplace bullying and harassment policy 

Just as you have policies in place for other essentials across your business – for health and safety, absence, and equal opportunities – you’ll need one for anti-bullying and harassment, either in stand-alone form or as a component within another policy such as a Code of Conduct Policy. While the document needn’t be war and peace, the content must at minimum be clear on the following points:

• What you class as bullying or harassment within your organisation (and refer to the Government’s Equality Act 2010 to validate the legalities around harassment)
• How you intend to deal with bullying and harassment
• The steps to follow if an employee feels any bullying or harassment toward them

Above all else, it’s your responsibility as an employer to make your staff aware of the policy document and how to obtain a copy.

Let your team know your thoughts on bullying. 

Most companies have a mechanism for on-boarding staff, where information on procedures and compulsory training is delivered to new starts. While this provides a great opportunity to explain your policy against bullying and harassment, it should never end there. Posting infographics on the walls around the building, particularly in break out areas, is another opportunity to ensure your message stays in people’s minds both to help prevent untoward behaviour and to remind staff of what to do if and when any bullying occurs.

Assign a pair of supporting ears. 

Now, while some employees will feel comfortable raising concerns around bullying directly with their line manager, plenty will feel unable to do so; certainly, when it’s their manager who is posing an issue to them. Provide a point of contact for your team to approach with any concerns around bullying or harassment, preferably, someone you feel they will see as someone they can trust – ideally, an HR professional. If you’re a larger organisation, you may have an internal HR team with specific HR professionals who pick up these issues.  If you don’t have that resource internally, is there a leader in the organisation who takes that responsibility. Whoever takes on the role, make sure your staff knows who they are and how to make contact with them whenever necessary.

Shine a spotlight on virtual bullying and harassment.

HR professionals and business leaders know how bullying takes places across different formats but understandably, your staff might be less savvy than you, seeing only physical face-to-face confrontations as an issue. Most, if not all, businesses use email and internal messaging to communicate internally and it is here where much untoward behaviour occurs. Similarly, virtual meeting spaces such as Zoom, Microsoft Teams and Google Meets are prime places for belittling of colleagues, often without anyone realizing they have behaved inappropriately toward a colleague. By providing your employees with the knowledge or specific training around cyber-bullying, you’ll help everyone to recognize the virtual world is no different to the physical one in terms of acceptable behaviour with all team members responsible for their actions towards others.

Always remember your staff wellbeing lies at the heart of a winning culture. Look after your team well, and the rest of the business will look after itself.

In need of some HR advice? Wherever you are in the UK, you can arrange a chat with one of our friendly professional HR advisors at any time.

Call us on 0330 0881857 or email enquiries@optimal-hr.co.uk

We’re also on Facebook, Twitter, Instagram and LinkedIn!

Updated government advice on shielding and protecting people who are clinically extremely vulnerable has been published by the Government.

It reinforces the Prime Minister’s statement that clinically extremely vulnerable staff should not attend their place of work during the period of restrictions. Formal shielding notifications have been issued which will act as evidence for the employer that such individuals are advised not to work outside their home.

People who live with someone who is clinically extremely vulnerable can and should still attend work.

Two additional groups of people have been added to the clinically extremely vulnerable list. These are:

• Adults with stage 5 chronic kidney disease
• Adults with Down’s syndrome

There is no new advice for those who are clinically vulnerable, though the over-60s and clinically vulnerable should be particularly careful to follow the rules and minimise contact with others. The Cabinet Office advice is that public sector employees, including those working in the education sector, should continue to go into work. There is no different advice for clinically vulnerable staff who are working, except that generally extra consideration should be given to workers who are at higher risk.

The DfE guidance on full opening of schools is still to be updated at time of writing but we are expecting revised guidance to be issued.

The Government has released guidance for UK employers to assist with staff returning safely to the workplace.

The Department for Business, Energy and Industrial Strategy (BEIS), along with Public Health England (PHE) and the Health and Safety Executive (HSE), developed the best practice for safe ways to return to work.  Included in the consultation were businesses and unions, with the aim to give employers and staff confidence in returning to work safely at this time.

They key outcomes which businesses need to consider are:

If you can, work from home

Employers should continue to help staff work from home wherever possible.  For staff who are unable to work from home, and those where the workplace was not told to close, staff should go to work.  Employers and staff should be in contact with each other about when their workplace will open, if it is not already.

A COVID-19 risk assessment must be carried out (in consultation with trade unions or workers)

The risk assessment will provide employers with guidelines to put in place in their workplace.  Employers should, where possible, publish their risk assessments on websites, with businesses employing over 50 employees expected to do so.

Wherever possible 2 metres social distancing should be maintained

Workplaces may need to be re-designed to ensure the two metre distance is required.  Staggering start times, altering walkways to become one way, using different entrances and exits and considering other changes such as alterations to seating layouts in rest areas.

If 2 metres social distancing is not possible, the transmission risk must be managed

Barriers can be installed, to be used alongside staggered start times and new shift patterns.  Creating fixed teams will minimise the risk of transmission through reduced contact amongst staff.

Cleaning processes must be clear and enforced 

As with earlier guidance provided, workplaces must be cleaned more frequently than prior to COVID-10, all staff should be aware to maintain high standards with regards to the high risk/high contact areas, including keyboards, door handles.  Facilities should be provided at entrances/exits for either hand washing or hand sanitising.

See the link below for the guidance documentation in full:

https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19

Car Dealer magazine announced that they have been inundated with calls from furious sales staff who have not been paid properly under the furlough scheme.

It is understood  that some dealerships are withholding commissions earned in March. By taking such action this has clearly unsettled many employees and has many implications in terms of loyalty and future engagement of their sales teams.

Some dealerships are refusing to include commissions when calculating furlough payments, even though government advice that it should be. Dealerships are relying on the clause in contracts stating that commission is ‘discretionary’. Whilst this may be the case, they should also consider whether it is custom and practice, especially for employees who have been employed for many years and haven’t had contracts updated for a long period of time.

Mel Stead, Managing Director of Optimal People & Business Services says “We have seen a significant increase in the number of Car Sales Executives registering with our recruitment agency over the last few weeks and many have expressed their disappointment in the way these dealerships have treated them.  Long term, this will have a significant impact on dealerships both from a brand and an employee engagement perspective. Whilst the automotive industry has been impacted immensely due to lockdown, making costs savings like this can only be detrimental to the business”

To read the full article click on the below link;

https://cardealermagazine.co.uk/publish/mass-sales-staff-walkouts-likely-dealers-fail-look-employees-crisis/191053

April 30, 2020Iy

If you are in need of any support or guidance on how to support your employees then please give us a call on 01422 897152 or email enquiries@optimal-hr.co.uk

The main aim of UK Coronavirus Job Retention Scheme (also known as the furlough scheme to many) has been to protect businesses and safeguard jobs. The scheme is one of the most supportive schemes for businesses across the world and has provided welcomed financial support during one of the toughest periods in the UK economy in history. To add to this, business owners looking to bring employees back from being furloughed have been provided with extended  support through further announcements from the Chancellor on the 29th June which bring much needed flexibility to the scheme and allows employers to gradually introduce employees back to the workplace over a phased period and still be eligible for financial support from the UK government. So, what’s new? From July 1st, the scheme will enable employers to bring back furloughed employees on a part time basis. It will also see employers contributing to salaries of employees who have been furloughed from August onwards with the financial support given being lowered over a phased period until the scheme closes in October. The CJRS will also close to new entrants from the 30th June and employers will only be able to furlough employees that have previously been furloughed for a full three-week period before 30th June. A business that brings employees back to work on a part-time basis from 1st July can claim financial support for any days not worked and the 3 week minimum furlough period has also been removed from this date to provide greater flexibility to employers. When making a claim through the HMRC website for the funding, employers will able to report and claim for a minimum period of one week. The one-week period is to enable grants to be calculated accurately across working patterns. However, this is a minimum period. You can claim for longer periods such as two weeks or a month if you wish. In terms of workers returning part time there is no restriction on the number of hours an employer decide the employee should return to work on, so consideration should be given to how much work is available and the organisations ability to pay wages for staff returning. If an employee is unable to return to work, or the business does not have enough work, then employees can remain furloughed and employers can continue to claim the grant for the full hours under the existing rules. How tapering of the scheme will work From August 2020, the CJRS scheme will be slowly reduced to reflect businesses bringing employees back to the workplace. The scheme updates mean that the following will apply for the period people are furloughed: June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything. August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed. September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed. October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed. HMRC will require employers to submit data on the contracted working hours for an employee and actual hours worked. It will also be important to communicate and state in writing to employees so that they agree and understand what they will be paid. This should prevent an unwelcome and unwarranted audit by HMRC. There will be a further update and guidance and how to calculate claims on the 12th June. Optimal People & Business Services provides HR advice and support to businesses across the UK.  Whether you require general advice or more strategic support to look at bringing workers back, restructuring your business or making redundancies then we can help.  For a confidential discussion please call us on 01422 897152 or email enquiries@optimal-hr.co.uk

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