Wednesday, July 4, 2012

Sick Leave While on Holiday


What are the correct procedures when dealing with employee illness while they are on annual leave? 



It has been established in UK employment law for a number of years that an employee unfit for work before a period of paid annual leave is due to begin is entitled to take that leave at another time if they wish. It also follows that a worker who falls ill during their holidays should be allowed to take annual leave for the period of sickness at another time. The European Court of Justice has only recently clarified this, stating that whether an employee falls ill before or during their annual leave period is largely irrelevant. They are entitled to take the period of annual leave at another time, even if that means carrying forward the period of holiday into the next leave year*. The UK Government is planning to amend the Working Time Regulations 1998 to take account of the ECJ case law in this area.


Wednesday, June 27, 2012

Restructure and Redundancy

What are your options if you want to make a position in your business redundant but not the person? 

Q. We’d like to restructure our sales department but it would mean making a team leader position redundant. We don’t want to lose the person working in that role as they have invaluable knowledge about our business. We are trying to find another role for them. If we do offer them another role, do we have to offer them a redundancy package as well?

Wednesday, May 9, 2012

Queen's Jubilee Bank Holiday

Are Employees Entitled to a Day Off?

Q: The government have granted an additional bank holiday to mark the celebrations for the Queen’s Diamond Jubilee. Are employees automatically entitled to take this as an additional day’s paid leave?

A: There is no statutory right to any bank or public holiday. Therefore the announcement of an extra bank holiday does not increase any entitlement to holiday under the Working Time Regulations. Whether an employee will benefit from the additional bank holiday depends on the wording of their contract, and the discretion of their employer.

Monday, April 30, 2012

London 2012 - A Headache for HR?

With the advent of the biggest sporting event to be held in Britain since the Olympics last came to the UK in 1948, employers have to consider the impact on their businesses. What are the HR issues and challenges the “Olympics effect” may bring for employers and human resource managers?

A good starting point is to identify potential logistical issues that may arise once the Olympic buzz is in full flow and prepare a contingency plan to tackle them.

Thursday, April 5, 2012

New Guidance on Dual Contracts

If you employ or engage staff overseas then it’s important you know how HMRC are now approaching dual contract arrangements.

What are dual contracts arrangements?
A dual contract arrangement is often used for employees who work in and outside the UK, under two separate contracts of employment, and who may also have foreign domicile for UK tax purposes. Under this type of arrangement, the payment made for work performed outside the UK under the overseas contract is regarded as overseas earnings, which do not attract liability for tax in the UK.


Friday, March 30, 2012

43% of line managers deemed to be ineffective

A new study on the Effectiveness of Management and Leadership Development Skills sparks new debate

A new ground-breaking report from CMI and Penna sparks fresh debate about development practices in UK organisations. Higher performing companies report higher levels of line manager effectiveness, whilst low performing companies report less than half the same levels of effectivess.


Friday, March 2, 2012

Setting HR Strategy for Success

Register here for FREE for our next HR FOR GROWTH event in London, 19th March: 

©HRAdviseMe™| www.hradvise.me | Email ask@hradvise.me

Thursday, September 23, 2010

Fake Sick Notes Warning

Faking it!
Fake Sick Notes Warning to Kent firms

Boutique employment law practice Loch Associates - www.lochassociates.co.uk – is warning employers across Kent to be on the lookout for fake sick notes having discovered a website which sells them for just £5.

Anyone can contact the website http://www.doctorsnotestore.com and buy a fake fit note as they are known; they are on special offer currently, 2 for just £9.99 -
http://www.doctorsnotestore.com/NHS_fake_doctors_sick_note.html


Friday, September 4, 2009

Guidance on Employing Children

The Department for Children Schools and Family has recently produced a very useful guide on Employing Children covering everything that you need to know including the types of work that children can and cannot do, the numbers of hours they can work, how the rules differ for work experience and health and safety requirements.

The guide can be found at http://publications.everychildmatters.gov.uk/eOrderingDownload/Child_employment09.pdf



©HRAdviseMe™ www.hradvise.me Email ask@hradvise.me

Lord Turner's taxing bonus dilemma comes with a twist

This article was written by Pam Loch and appeared on the Wealthnet on 2 September 2009

Bonuses again hit the headlines last week with Lord Turner, the head of the UK Financial Services Authority (FSA) entering the debate. Controversially he has been quoted backing the introduction of taxes to curb bonus payments.

Was he misquoted or was Lord Turner suggesting a tax in the UK would control bonuses and restore trust in the financial sector? If so, what would be the implications for businesses in the UK trying to attract and retain talented employees in the future?

The Tobin Connection

Lord Turner was alleged to be backing a tax which became known as the Tobin tax after the economist James Tobin. Suggested as a way to prevent speculative trading in the 1970’s, the tax has continually been resisted by the financial sector.

The Tobin tax operated by imposing a tax on international transactions. Lord Turner was quoted as being “happy to consider taxes on financial transactions”. This has been greeted with horror by businesses concerned about the impact it could have on businesses in the UK engaging in international transactions.

Employees working in those businesses would be affected with their potential earnings being reduced as a result.

With signs of UK and global recovery, employers who have already reduced staffing levels are keen to retain their employees. Employers in a still fragile UK market therefore are rightly concerned about the impact such a tax could have on their employees’ earning capacity.

The Twist

In a television interview with Sky News however Lord Turner tells a slightly different version of events. He recognises that there may remain concerns amongst the general public about bonuses being paid for work that may not be “socially valuable work”. However if that is the case, the FSA as a regulator cannot control bonus levels. His original point was that if there is a concern then there is a choice to be made. Either;

1. Impose capital adequacy limits that increase the amount of reserves that have to be retained so that there is less profit to distribute as bonuses, or

2. Introduce a tax like the Tobin tax that would achieve a similar goal of reducing the funds available to pay employees.

The FSA cannot introduce legislation but Lord Turner did make an important point that any changes to the UK system should not be made isolation. Specifically an international agreement would be necessary. A sigh of relief? There is no doubt that the subject of bonuses is now a highly sensitive and emotive subject. The reality though is that most employers want to ensure they incentivise their staff to perform to the best of their ability and bonuses remain a key part in achieving this. Bonus arrangements have become an increasingly common element of remuneration packages to motivate and incentivise employees - a lawful performance enhancer.

If bonus arrangements have been designed well then they should incentivise the employee and the employer should benefit from their good performance. Many will argue that this is a matter between the employer and the employee as the businesses involved are private entities.

Of course a dilemma arises where the businesses are partially “owned” by the UK Government or where the actions of the employees to achieve their bonuses could have an adverse affect on the UK economy. Thrown into the pot is the tax successful businesses and employees pay on their bonuses to the UK treasury.

Directly limiting bonuses would be difficult and problematical. The UK Government would in effect have to introduce legislation that would impose a new contractual clause to override any express bonus entitlements in contracts of employment. The legislation would somehow also have to deal with discretionary bonuses in addition to contractual ones.

It would also have to provide some form of “immunity” to employers from being sued for breach of contract by their employees for non-payment of their full bonus entitlement based on their contract of employment. Then there is the question of retaining those employees and rewarding them.

The Future is …. ?

With all the potential difficulties that can derive from limiting bonuses by direct intervention in the employer/employee relationship, it is more likely that the UK Government will prefer the alternatives mooted by Lord Turner. If the UK Government acts alone however the negative impact on businesses and crucially on their ability to retain the best employees, is likely to be very significant.

With concerns remaining though about bonus levels, it will remain a topic high on the agenda in the UK and global arena too. A global response should not necessarily be ruled out. Employers therefore should not ignore the possibility that alternatives to bonuses may be the way forward to avoid intervention in their businesses and consider identifying other ways to incentivise and reward their employees.



©HRAdviseMe™ www.hradvise.me Email ask@hradvise.me

Friday, August 14, 2009

HMRC action over the taxation of temporary workers

HMRC has published concerns that organisations supplying temporary workers are creating overarching employment contracts so that temporary workers can claim tax relief for travel and subsistence expenses. To deal with this it plans to carry out a detailed investigation into the concerns and challenges will be made where organisations are considered to be non-compliant.

HMRC also warns that measures to prevent abuses of the system may be introduced. Employers should therefore review their current processes.



©HRAdviseMe™ www.hradvise.me Email ask@hradvise.me

Tuesday, August 4, 2009

Job Interviews: Careless talk costs your business - HR Zone 30 July 2009

This article was written by Pam Loch and Chloe Pereira

Many managers carrying out interviews focus not only on the skills of the candidate concerned, but also on their 'fit' for the business. Will they get on with existing employees? Do they fit with the traditional/trendy culture of the company? Will they easily adapt to the demands of working additional hours when required?

Some managers may not appreciate that the questions they ask are unlawful. Indeed, research by RecruitSure.com indicates that over a third of interviewers ask illegal questions at interview, exposing their businesses to potential claims.

Employment legislation provides protection for candidates during the recruitment process, including at interview. Candidates have the right not to be discriminated against for any of the prohibited reasons, which includes sex, race, religion, age, sexual orientation and disability.

Avoiding liability – the basic approach

Clearly managers should be provided with training on discrimination legislation and the types of questions which must be avoided. The prohibited grounds of discrimination are set out by legislation and there are obvious pitfalls which can be avoided, for example, 'how old are you'?

However, employers should also consider the questions managers may ask which do not so obviously fall under the legislation, but could be considered to be discriminatory. For example, 'how many years experience do you have in the industry'? Whilst this may seem like a perfectly reasonable question, and the motive behind asking it could be argued as being completely legitimate, it can be discriminatory on the grounds of age. Managers should be made aware that the intention behind their question won’t necessarily matter if the question itself could be interpreted as being directly or indirectly discriminatory.

A simple way to avoid this is to ensure the manager prepares all the questions they may wish to ask in advance. Each question can be carefully considered and structured, with the support of HR if required, to avoid unintentional discrimination.

Managers should also be very careful about the notes they take at interviews. Even comments to jog the memory later could be considered discriminatory, for example, 'nice young girl wearing red blouse and skirt'. Such a note may have been made as an aide memoire so the interviewer will be able to recall the candidate when reviewing his notes. However, if that candidate didn’t get the job, or if she did and another unsuccessful older male candidate suspected it was because of her/his age or sex, these records will not look good for the employer.

Although training may stop managers asking illegal questions, it will not necessarily stop them from forming their own opinions and making a decision based on discriminatory reasons. For example, a manager interviewing a female candidate notices that she is wearing an engagement ring. The manager knows he must not ask the candidate about this as he could potentially risk her bringing a claim for sex discrimination. He doesn’t expose the company by asking the candidate an illegal question, but he does decide not to offer her a second interview. He comes up with a seemingly legitimate reason, such as arguing that another candidate is more qualified.

Actually the manager has made his decision based on the assumption that the candidate is marrying and will therefore be looking to start a family soon: if he hired her she would soon be off on maternity leave.

Avoiding liability – the complete solution

In order for employers to ensure that their managers are not making discriminatory recruitment decisions, much more effort and thought needs to go into changing perception – not just practice. Employers need to educate interviewers so that they understand, for example, that 'trendy' doesn’t necessarily equal 'young', and that women make just as good employees as their male counterparts.

As well as having the appropriate mindset and asking the right questions, there are additional interview techniques which could help. Psychometric testing for example can indicate whether the candidate has the types of characteristics which will 'fit' in with the business model. For example, asking the candidate to talk about particular achievements in previous roles, rather than concentrating on her number of years experience, will help to focus the interviewer’s mind in the right direction.

The future of recruitment

Forming opinions based on subconscious perceptions will undoubtedly always form an unavoidable part of the recruitment process, but with a society and legislature continuously moving toward equality, a much more comprehensive recruitment process is likely to become part of the norm. The more thorough and considered the process, the less chance there is of not only facing claims for discrimination, but of missing out on valuable talent in potential employees which may otherwise have been discounted for illegitimate and irrelevant reasons.

©HRAdviseMe™ www.hradvise.me Email ask@hradvise.me