David Woods' timely article is an interesting read.
As a HR professional, I spend quite a bit of time staying abreast of case law, in case it changes the way I handle specific issues as they arise. No two matters are alike and this means that we have to navigate our way through complex precedent. The law is more grey, than it is black and white.
If it were just a matter of twice yearly employment law updates, I am sure we could cope. But with the burden of proof often being on the employer, and claims being decided at the whim of individual tribunal judges, HR professionals increasingly find themselves erring on the side of caution.
It's refreshing to see that compromise agreements (recently mooted as settlement agreements) are being encouraged. However, too often these are used to ward off tribunal action regardless of the employee's prospect of winning because of the time, cost and trouble of claims. Therefore, decisions are taken by measuring the risk presented by a particular employee, rather than the risk of a particular course of action.
Reading that the government has so far failed to consult HR professionals and trade unions, who are both at the coal face of employee relations, is disappointing to say the least. According to Woods, the government have relied upon the views of lawyers in obtaining a professional view point. However, this group represents a tiny proportion of British industry and, arguably, have a vested interest in preserving their position as intepreters of the law.
Employment law should not be a minefield for employers to navigate which leaves them in fear of tackling poor performance, absence or misconduct. Employers want the freedom to get on with running their organisation, not pondering whether it's okay to dismiss someone after an inconclusive occupational health report, like in this recent case. If employment judges can't agree on how to interpret the law, how are employers meant to cope?
Your thoughts and comments would be greatly appreciated!
To read David Woods' full article, please follow the link.
Tuesday 6 December 2011
Thursday 11 August 2011
Riots: what next for employers?
Whilst it's been peaceful in South Yorkshire, the home of The HR Experts, our thoughts are with those who have not been so fortunate during the riots of the last few days. A lot of employers will be wondering how to respond in the face of this kind of destruction. So we thought a bit of free HR advice would be beneficial.
Clouds and silver linings...
Whilst you may just be getting your head around what rioters have done to your business, it may help to remember that such disruption can offer great opportunities for team building. The sense of camaraderie created by all pitching together should not be underestimated. Clean up operations, and even assisting others in the community, can all help to turn a negative into a positive.
Closed for business...
In the event that you're not in a position to provide employees with work on a temporary basis, then it's likely you will have to pay them. This can be likened to snow days; where an employer chooses to close due to disruption, employees should be paid. However, if an employee takes time off due to the riots, they have no entitlement to pay.
As an employer you can ask employees to take holiday, as long as you give notice. The notice must be at least twice as long as the holiday you want them to take. That said, employees may offer or willingly agree to take days as holiday or unpaid leave, if they understand the difficulties you are faced with. Where it is practice to do so, employers who are unable to provide work to their employees temporalily may be able to lay them off.
End of the road...
If your business has been affected by the riots to the extent that you can no longer trade, it is likely that redundancies will result. If you are able to, you should first consider ways you can avoid redundancy, such as redeployment. Shoosmith's solicitors offer some thoughts on whether notice pay is payable in such cases.
Dealing with employees...
Employees affected by the riots may need understanding and support at this time. You may find that your employees or their children have been involved in the riots, or their lives affected in some way. The effect on your business may leave employees feeling afraid about further trouble or worried for their jobs. Useful information which covers both individuals and organisation can be found from the Citizen's Advice Bureau website.
If an employee is convicted of involvement in the riots, you should check your disciplinary policy. This will guide you on what measures, if any, you should take.
If you would like any more help and advice on this subject, please contact us and we will be happy to offer you an initial free telephone consultation to discuss the matter.
Clouds and silver linings...
Whilst you may just be getting your head around what rioters have done to your business, it may help to remember that such disruption can offer great opportunities for team building. The sense of camaraderie created by all pitching together should not be underestimated. Clean up operations, and even assisting others in the community, can all help to turn a negative into a positive.
Closed for business...
In the event that you're not in a position to provide employees with work on a temporary basis, then it's likely you will have to pay them. This can be likened to snow days; where an employer chooses to close due to disruption, employees should be paid. However, if an employee takes time off due to the riots, they have no entitlement to pay.
As an employer you can ask employees to take holiday, as long as you give notice. The notice must be at least twice as long as the holiday you want them to take. That said, employees may offer or willingly agree to take days as holiday or unpaid leave, if they understand the difficulties you are faced with. Where it is practice to do so, employers who are unable to provide work to their employees temporalily may be able to lay them off.
End of the road...
If your business has been affected by the riots to the extent that you can no longer trade, it is likely that redundancies will result. If you are able to, you should first consider ways you can avoid redundancy, such as redeployment. Shoosmith's solicitors offer some thoughts on whether notice pay is payable in such cases.
Dealing with employees...
Employees affected by the riots may need understanding and support at this time. You may find that your employees or their children have been involved in the riots, or their lives affected in some way. The effect on your business may leave employees feeling afraid about further trouble or worried for their jobs. Useful information which covers both individuals and organisation can be found from the Citizen's Advice Bureau website.
If an employee is convicted of involvement in the riots, you should check your disciplinary policy. This will guide you on what measures, if any, you should take.
If you would like any more help and advice on this subject, please contact us and we will be happy to offer you an initial free telephone consultation to discuss the matter.
Friday 5 August 2011
Outsourcing HR: pitfalls and positives
OUTSOURCING has been gaining momentum for several years, but recently many more organisations have been considering this option in a bid to reduce costs and streamline processes. Outsourcing has won favour as it enables organisations to bring in specialist expertise to deliver non-core services, allowing the organisation to focus on delivering its services. Reportedly, it can also save costs of around 20%.
However, outsourcing is not without its drawbacks. Whilst the key to successful outsourcing is having clearly understood objectives and an excellent relationship, in reality the supplier is frequently selected through a tendering process which amounts to little more than a tick box exercise. In the same way that people can get good at IQ tests with practice, there is a knack to completing tender documents which means that often suppliers are chosen based on understanding the tender process, rather than ability to deliver.
Sharon Swift, Managing Director of The HR Experts, compares tendering to the recruitment and selection process, “If you were looking for someone to join your organisation, you would ensure you advertised in the right places. You would also include a range of measures and selection processes to make sure you choose the right candidate. Outsourcing is much the same – and you need to consider how you effectively measure what your outsource partner can deliver.”
What is more, outsource service providers should be experienced at handling the processes or services in question professionally and knowledgably. However, frequently cost savings come hand in hand with a reductive approach, in which processes are condensed to no more than transactions that can be monitored and billed. Rigid adherence to such an approach can leave managers frustrated from dealing with contact centre staff who are all too familiar with the ‘computer says no’ school of customer service.
“With this in mind, it is important to ensure that you achieve real value-add from the service you receive from your provider,” says Sharon. “Even though the outsource company may be cheaper than if you had the same support in-house, they should offer you a quality, responsive service. After all, it is in their interests to do so.”
Outsourcing should reduce costs of non-core activities allowing you to focus on the services you provide rather than investing in support functions. Like many other service providers, The HR Experts focus on meeting specific objectives set out by the organisations they work in partnership with. Being focused on key deliverables means that such providers are able to operate efficiently and effectively, through clear specifications which mean you get exactly what your organisation needs.
Outsource providers have specialist expertise, allow you to tap into economies of scale and must have the objectivity to review strategy and operations. There is considerable evidence that the private sector generally supply services at lower cost than the public sector. Competitive contracting out of services that have traditionally supplied by the public sector produce large savings, often of 20 per cent or more (Lundsgaard, 2002 and Bailey, 2002).
The major reasons cited for outsourcing are having access to specific skills and expertise, improved service quality and the ability to manage fluctuations in demand. On average, contracting-out HR services can bring savings in excess of 28 per cent. The top 3 reasons cited for undertaking outsourcing in the Chartered Institute of Personnel and Development’s (CIPD) 2009 Outsourcing Survey were access to skills and knowledge (71%), quality (64%) and cost reduction (61%). Other benefits of outsourcing HR include:
- Increased efficiency
- Improved people management information
- Access to HR expertise not available internally
- Increased flexibility and speed of response to HR problems
- Reduced risk as it is possible to scale up and down more efficiently
- HR resources can operate more strategically
- Access to improved HR IT systems without capital outlay
The HR Experts are a UK-based HR provider offering outsourced support and offer free initial consultations. Email info@thehrexperts.co.uk for more information or telephone (01709) 328864.
For more updates like this one, subscribe to our newsletter via our website.
However, outsourcing is not without its drawbacks. Whilst the key to successful outsourcing is having clearly understood objectives and an excellent relationship, in reality the supplier is frequently selected through a tendering process which amounts to little more than a tick box exercise. In the same way that people can get good at IQ tests with practice, there is a knack to completing tender documents which means that often suppliers are chosen based on understanding the tender process, rather than ability to deliver.
Sharon Swift, Managing Director of The HR Experts, compares tendering to the recruitment and selection process, “If you were looking for someone to join your organisation, you would ensure you advertised in the right places. You would also include a range of measures and selection processes to make sure you choose the right candidate. Outsourcing is much the same – and you need to consider how you effectively measure what your outsource partner can deliver.”
What is more, outsource service providers should be experienced at handling the processes or services in question professionally and knowledgably. However, frequently cost savings come hand in hand with a reductive approach, in which processes are condensed to no more than transactions that can be monitored and billed. Rigid adherence to such an approach can leave managers frustrated from dealing with contact centre staff who are all too familiar with the ‘computer says no’ school of customer service.
“With this in mind, it is important to ensure that you achieve real value-add from the service you receive from your provider,” says Sharon. “Even though the outsource company may be cheaper than if you had the same support in-house, they should offer you a quality, responsive service. After all, it is in their interests to do so.”
Outsourcing should reduce costs of non-core activities allowing you to focus on the services you provide rather than investing in support functions. Like many other service providers, The HR Experts focus on meeting specific objectives set out by the organisations they work in partnership with. Being focused on key deliverables means that such providers are able to operate efficiently and effectively, through clear specifications which mean you get exactly what your organisation needs.
Outsource providers have specialist expertise, allow you to tap into economies of scale and must have the objectivity to review strategy and operations. There is considerable evidence that the private sector generally supply services at lower cost than the public sector. Competitive contracting out of services that have traditionally supplied by the public sector produce large savings, often of 20 per cent or more (Lundsgaard, 2002 and Bailey, 2002).
The major reasons cited for outsourcing are having access to specific skills and expertise, improved service quality and the ability to manage fluctuations in demand. On average, contracting-out HR services can bring savings in excess of 28 per cent. The top 3 reasons cited for undertaking outsourcing in the Chartered Institute of Personnel and Development’s (CIPD) 2009 Outsourcing Survey were access to skills and knowledge (71%), quality (64%) and cost reduction (61%). Other benefits of outsourcing HR include:
- Increased efficiency
- Improved people management information
- Access to HR expertise not available internally
- Increased flexibility and speed of response to HR problems
- Reduced risk as it is possible to scale up and down more efficiently
- HR resources can operate more strategically
- Access to improved HR IT systems without capital outlay
The HR Experts are a UK-based HR provider offering outsourced support and offer free initial consultations. Email info@thehrexperts.co.uk for more information or telephone (01709) 328864.
For more updates like this one, subscribe to our newsletter via our website.
Thursday 28 July 2011
Dress Sense
SO the temperature is creeping up, but how is workplace wear faring in this heat?
Not everyone is in the position where it doesn't matter if they dress 'power casual'. This leaves many employers and employees facing the summertime dilemma of appropriate clothing for the workplace. For some, there is little choice. Men, in particular, end up hot under the collar in shirt and tie.
Most managers can recite tales when they have had to pull someone to one side because of their, ahem, 'misunderstanding' of what's appropriate. With this in mind, here are our tips for how you can manage this; whether you're wondering what to wear or how to tell someone that they need to show a bit more discretion.
Wondering what to wear?
1 Hang loose. There's nothing worse than wearing something that sticks to you when you're hot. Loose fitting clothes are probably the easiest way to stay cool and covered.
2 Career minded? They say dress for the job you want, not the job you've got. So, if you opt for casual then remember what message this may be sending out. (Unless you want to give out the impression you're on of the multimillionaires that Rick at FlipChartFairyTales has been blogging about.)
3 Au naturale. Opt for light weight, natural materials where possible. It sounds obvious but so many people forget this rule and end up with sweat patches on a polyester shirt.
4 Cold shoulder. Try to steer clear of turning up at work in vests. Some people are offended by too much flesh, and it can also give off the wrong signals. That said, women can usually get away with wearing shift dresses, or even sleeveless blouses.
5 Arm-oury. Capped sleeves are a good choice for women. Men, we know smart short sleeved shirts aren't exactly the must-have of the year. If you can go smart casual, polo or checked shirts can be a good option. Otherwise stick to 1 and 3 above.
6 Trotters. Lots of work places have policies preventing open toe, sling back or backless shoes. Unfortunately, summer weather has to take a back seat to health and safety when choosing footwear. Also, your feet may be well manicured but you don't want to set a trend and end up seeing Trevor's athletes' foot, now do you? Probably best to leave the sandals for the weekend.
7 And finally... The thing no-one likes to mention.
Smell.
Wash your clothes regularly. Take a shower. Apply antipersperant. Nuff said.
Wondering how to break the news?
Managers, if you do need to talk to employees, make sure you are being consistent. Don't focus on them as an individual. Make it about clarifying your expectations of the whole workforce. As much as reasonably practicable, the same rules should apply for men and women. Be tactful. Explain why dress and appearance are important or why, for health and safety reasons, some items are inappropriate.
For more advice on difficult conversations, repeat offenders or on Dress Policies, contact us by email info@thehrexperts.co.uk.
Not everyone is in the position where it doesn't matter if they dress 'power casual'. This leaves many employers and employees facing the summertime dilemma of appropriate clothing for the workplace. For some, there is little choice. Men, in particular, end up hot under the collar in shirt and tie.
Most managers can recite tales when they have had to pull someone to one side because of their, ahem, 'misunderstanding' of what's appropriate. With this in mind, here are our tips for how you can manage this; whether you're wondering what to wear or how to tell someone that they need to show a bit more discretion.
Wondering what to wear?
1 Hang loose. There's nothing worse than wearing something that sticks to you when you're hot. Loose fitting clothes are probably the easiest way to stay cool and covered.
2 Career minded? They say dress for the job you want, not the job you've got. So, if you opt for casual then remember what message this may be sending out. (Unless you want to give out the impression you're on of the multimillionaires that Rick at FlipChartFairyTales has been blogging about.)
3 Au naturale. Opt for light weight, natural materials where possible. It sounds obvious but so many people forget this rule and end up with sweat patches on a polyester shirt.
4 Cold shoulder. Try to steer clear of turning up at work in vests. Some people are offended by too much flesh, and it can also give off the wrong signals. That said, women can usually get away with wearing shift dresses, or even sleeveless blouses.
5 Arm-oury. Capped sleeves are a good choice for women. Men, we know smart short sleeved shirts aren't exactly the must-have of the year. If you can go smart casual, polo or checked shirts can be a good option. Otherwise stick to 1 and 3 above.
6 Trotters. Lots of work places have policies preventing open toe, sling back or backless shoes. Unfortunately, summer weather has to take a back seat to health and safety when choosing footwear. Also, your feet may be well manicured but you don't want to set a trend and end up seeing Trevor's athletes' foot, now do you? Probably best to leave the sandals for the weekend.
7 And finally... The thing no-one likes to mention.
Smell.
Wash your clothes regularly. Take a shower. Apply antipersperant. Nuff said.
Wondering how to break the news?
Managers, if you do need to talk to employees, make sure you are being consistent. Don't focus on them as an individual. Make it about clarifying your expectations of the whole workforce. As much as reasonably practicable, the same rules should apply for men and women. Be tactful. Explain why dress and appearance are important or why, for health and safety reasons, some items are inappropriate.
For more advice on difficult conversations, repeat offenders or on Dress Policies, contact us by email info@thehrexperts.co.uk.
Monday 25 July 2011
Medical Terminology Training
We have lots of GP clients and know how important it is for staff in support functions to be able to confidently process documents and information rife with medical terms that would leave most of us scratching our heads in despair!
That's why we're thrilled to be teaming up with Gill Francis Training & Development Services to offer a Medical Terminology Course.
The programme is designed for those who need to understand many of the medical terms used by the doctors and nurses at work. The interactive programme aims to take the mystery out of medical terminology.
By completing the programme delegates will find it easier to understand the medical terms used, gain confidence in spelling terms correctly and reduce the need to “look in the dictionary”.
During the session, participants will learn:
- The origins of medical terminology
- The structure of medical terms
- The commonly used components of medical terminology
- How to work out what medical words mean
- Key terminology related to four body systems:
• Cardiology
• Respiratory
• Musculoskeletal
• Digestive
- Abbreviations commonly used in Primary and Secondary Care
Each delegate will be provided with a comprehensive workbook to refer to during and after the training programme.
Lunch & refreshments included. £95.00 plus VAT per person.
Please telephone (01709) 328864 or email info@thehrexperts.co.uk to book.
That's why we're thrilled to be teaming up with Gill Francis Training & Development Services to offer a Medical Terminology Course.
The programme is designed for those who need to understand many of the medical terms used by the doctors and nurses at work. The interactive programme aims to take the mystery out of medical terminology.
By completing the programme delegates will find it easier to understand the medical terms used, gain confidence in spelling terms correctly and reduce the need to “look in the dictionary”.
During the session, participants will learn:
- The origins of medical terminology
- The structure of medical terms
- The commonly used components of medical terminology
- How to work out what medical words mean
- Key terminology related to four body systems:
• Cardiology
• Respiratory
• Musculoskeletal
• Digestive
- Abbreviations commonly used in Primary and Secondary Care
Each delegate will be provided with a comprehensive workbook to refer to during and after the training programme.
Lunch & refreshments included. £95.00 plus VAT per person.
Please telephone (01709) 328864 or email info@thehrexperts.co.uk to book.
Tuesday 21 June 2011
A time for change
Jennifer Marsden, HR Manager at The HR Experts gives her take on managing in the current climate
Headline-grabbing industrial action doesn’t just put pressure on the government – it also affects the organisations that employ striking workers, and in turn, the quality of service they provide. However, the effects on productivity don’t end there.
“We all know that people resist change,” says Sharon Swift, Managing Director at The HR Experts. “Managers often complain to us that maintaining business-as-usual at times of instability poses a huge challenge to them. Employees see through thinly-veiled attempts to raise moral, but thankfully there are many other strategies you can employ.”
Many workers are being told they have to work longer before they retire and contribute more to their pensions. What is more, in the public sector outsourcing is looming large and workers are being transferred across to the private sector where expectations can be entirely different.
The combined worry of redundancies and the sense of betrayal that comes with changes to terms and conditions can cause inertia for some. For others, energy is directed at conflict rather than co-operation. The psychological contract runs deep for employees – particularly where they have long service with organisations. Their sense of entitlement is based on years of familiar patterns; which means that they are experiencing change in both practical and psychological terms.
Everyone knows that having vision to lead through change is key, so we regularly coach senior managers on leadership styles. The type of approach differs with the level and scope of change. For example, where there is wide scale organisational change, a directive style of leadership is most effective.
However, communication is the lynch pin in overcoming resistance. Middle managers are essential to success in this area. Within both the public and private sector, we are used to advising managers how to provide a degree of stability and calm during transformation. It’s our view that, when faced with the difficult role of gate-keeper, some middle managers side with employees while others steadfastly tow the leadership line. Most, however, opt for the painful option of sitting on the fence. However, we show managers that being piggy-in-the-middle doesn’t have to be painful – or disingenuous.
We tell our clients that the best option is a simple approach which rests on effective consultation. Good managers ensure employees understand what is happening, listen carefully to their views and present the management case. Once opinions and suggestions are gathered, a proper response can be formulated giving the rationale for decisions. It is essential that this is conducted by experienced professionals who understand employment law and change management.
“Another benefit of meaningful consultation is the appreciation of attitudes it provides”, says HR expert Sharon. “It helps managers to assess the best way to implement changes and identify areas of resistance. Conflict can be managed by ensuring employees feel heard and avoiding the urge to be derisive or pass judgement.”
Having clearly communicated milestones has a hugely beneficial influence as they help provide order and stability for employees. Outlining each stage of the project and associated timescales means fewer surprises around the corner. Knowing when something will happen is not quite the same as knowing what will happen, but it does help provide a greater sense of security.
Finally, action mustn’t simply stop once you are at the end of the change process. Like most people, we recognise that change can be an opportunity to look at your successes and where you can improve. Take the time to audit and reflect on the change process. Future projects can benefit by identifying opportunities to learn and develop. Also, continue to gather employee opinion and seek opportunities for improvement. This can help organisations begin to identify and address any residual employee dissatisfaction.
Change management checklist:
Adopt the most appropriate leadership style
Develop a robust project plan with clear milestones
Inform and consult employees at all stages
Plan for resistance and try to reduce pressure points
Reflect and develop on the process for next time
The HR Experts are a UK-based HR provider offering outsourced support and offer free initial consultations to public sector organisations. Email info@thehrexperts.co.uk for more information or telephone (01709) 328864.
Tuesday 12 April 2011
HR Tips for the Successful Expansion of Your Business
In this tough climate anyone looking to expand their business faces a variety of challenges and considering HR may not be on your list of priorities. However, by making sure you have the right people in the right roles, ticking all the employment law boxes and managing your staff effectively you can save time and money in the long run, increasing your bottom line. Can your business afford not to consider HR?
So here we go…..Here are my top HR tips for expanding your business successfully.
Recruit Carefully:
Whether you’re a small business starting out or a multi-million pound company, every business can make recruitment errors. And yet, employees are usually a business’ biggest cost. A survey from leadership organisation the Chartered Institute of Personnel and Development (CIPD) found that the average cost of filling a vacancy could be as much as £6,125. Having to fork out twice because you’ve made a bad decision could seriously damage your business. Targeted advertising of vacancies and tried and tested interview techniques will help you to recruit right first time round.
Stay on Top of Employment Law:
Did you know that every employee must legally receive a contract of employment within two months of starting a role? Are you aware of current employment legislation? Whether you tackle employment legislation yourself or get an external HR service, like The HR Experts, to advise you on this, making sure you conduct your business within the legal requirements is essential. With the rapid rise of employment tribunals you do not want to risk hefty compensation claims due to employment errors.
Invest in Training and Development:
With the ‘one job for life’ attitude no longer being the norm, keeping quality employees can be vital to maintaining your skill set and avoiding frequent recruitment drives. Employees need to be able to continue learning and adapting their capabilities. By looking ahead and initiating effective learning interventions in good time, you can stay ahead of the game.
Finally, communication, communication, communication:
I am sure you have heard this before but communicating with your employees really does work. Communication can often fall by the wayside when you are busy expanding your business. It is essential, however, to make time to communicate with your staff. Have an open door policy and clear lines of communication. Your staff will feel valued and involved, increasing their commitment which will increase your profit. Let’s not forget that that is the imperative factor in expanding your business!
If you have any questions on this or any other HR issue contact The HR Experts at info@thehrexperts.co.uk
So here we go…..Here are my top HR tips for expanding your business successfully.
Recruit Carefully:
Whether you’re a small business starting out or a multi-million pound company, every business can make recruitment errors. And yet, employees are usually a business’ biggest cost. A survey from leadership organisation the Chartered Institute of Personnel and Development (CIPD) found that the average cost of filling a vacancy could be as much as £6,125. Having to fork out twice because you’ve made a bad decision could seriously damage your business. Targeted advertising of vacancies and tried and tested interview techniques will help you to recruit right first time round.
Stay on Top of Employment Law:
Did you know that every employee must legally receive a contract of employment within two months of starting a role? Are you aware of current employment legislation? Whether you tackle employment legislation yourself or get an external HR service, like The HR Experts, to advise you on this, making sure you conduct your business within the legal requirements is essential. With the rapid rise of employment tribunals you do not want to risk hefty compensation claims due to employment errors.
Invest in Training and Development:
With the ‘one job for life’ attitude no longer being the norm, keeping quality employees can be vital to maintaining your skill set and avoiding frequent recruitment drives. Employees need to be able to continue learning and adapting their capabilities. By looking ahead and initiating effective learning interventions in good time, you can stay ahead of the game.
Finally, communication, communication, communication:
I am sure you have heard this before but communicating with your employees really does work. Communication can often fall by the wayside when you are busy expanding your business. It is essential, however, to make time to communicate with your staff. Have an open door policy and clear lines of communication. Your staff will feel valued and involved, increasing their commitment which will increase your profit. Let’s not forget that that is the imperative factor in expanding your business!
If you have any questions on this or any other HR issue contact The HR Experts at info@thehrexperts.co.uk
Thursday 24 March 2011
All I've got's a sunny afternoon?
BBC Radio 2's Simon Mayo saw fit to play The Kinks' Sunny Afternoon yesterday. And appropriately so - it was unseasonably warm and George 'babyface' Osborne realised this Spring's budget. In this blog, we look at what effect these most recent announcements have on employers.
NICs
Some employers, and many accountants, may welcome the move towards integrating NICs and income tax into one system. However, for now, the government are continuing with the current system. Employers (and employees alike) will see an additional 1% being added to NICs. That said, the rate at which they become payable has now been moved to £136/week.
Petrol allowance
After April 6th, the 40p rate on business mileage increases to 45p. If employers pay less than 45p per mile then the employee can claim it back from the tax man. This applies only for the first 10,000 miles on cars, vans, motorcycles and bikes. A further 5p in the mile can be claimed back for passengers.
Company cars
Drivers of low emission vehicles (between 95gm/km and 220gm/km) will see the tax they pay on company cars drop by 1%, but this isn't effective until April 2012. Other vehicles will remain at the current rates.
Tax avoidance
The government plans to introduce legislation to crack down on employers avoiding paying NICs by offering other benefits or so-called 'disguised remuneration'. The plan is that PAYE and NICs become payable on loans or rewards made in connection with employee's employment. This can be backdated to 9th December 2010. However, Mr Osborne did indicate that they would focus on schemes designed to avoid tax, limiting the impact on genuine arrangements.
Enterprise Zones
Under the Tories, we see a re-introduction of Enterprise Zones. This incentivises businesses to move into the identified zones by offering discounted business rates. Whilst these are aimed at creating prosperity in key geographical areas, critics describe this as economical musical chairs - moving jobs rather than creating new ones.
Childcare vouchers
The tax-free limit of £55 / week is changing for new scheme members from 6th April. From this date, the tax relief will take into account the person's tax allowance, which is most likely to affect higher rate tax payers. Essentially, higher rate taxpayers will be limited to £28 per week and top rate taxpayers earning over £150,000 will be entitled to just £22 per week of tax relief.
Apprenticeships
The Chancellor has confirmed 50,000 new apprenticeships, aimed at reducing youth unemployment. Funding for a further 80,000 work experience placements has also been announced. Together with tax breaks on corporation tax, it is hoped that this will offer the stimulus to encourage businesses to recruit.
For further information on the budget and how it affects other areas of your business, see the full announcement on the HMRC website.
Monday 21 March 2011
Work Experience? Internships? Apprenticeships? Is this really also unpaid labour or could this add value to your business?
Today, unemployment is at its highest with the latest unemployment figure of almost a million 16-25 year olds known to be sat at home twiddling their thumbs. This clearly shows that young people are finding it harder and harder to find a job. Even those with a degree and a master’s degree struggle as ‘work experience’ is considered to be as valuable as going to University.
Generally, the term 'work experience' refers to a limited period of time that an individual spends with an organisation. This gives an opportunity to learn directly about the work that the company does and is also known as a placement or an internship. Today, all young people have to consider work experience. However, there are implications for this as to whether ‘work experience’ needs to be ‘paid work experience’?
National Minimum Wage - (£5.93)
There can be laws on being paid when it comes down to work experience. National minimum wage (NMW) legislation ensures that almost all workers in the UK who are over compulsory school leaving age are entitled to be paid at least the National Minimum Wage. 'Worker' has a legal definition and depends upon the existence of a contract of employment or a contract to personally perform work or services. These contracts can be written, oral or implied.
However, with high competition in gaining a job, working unpaid could be a thing of the future. With competition for graduate jobs at a high, employers are looking for more than just a good degree from their graduate recruits. Employers, particularly small and medium sized businesses, recruit for “real” positions and expect new graduates to be able to quickly adapt into their role. Employers frequently look for work experience as evidence of your skills, commitment and understanding of the career. Without experience, particularly in some sectors such as HR, media, advertising, etc, it is very difficult to compete and for many employers, it provides a route in.
The Governments Plans
Jackie Orme, Chief Executive at the Chartered Institute of Personnel and Development (CIPD) expressed that young people have suffered in the recent recession. Research shows employers are reluctant to hire from groups where they feel basic job skills are lacking. Work experience is a perfect way to break the vicious circle of no experience and give young people an opportunity to develop and demonstrate the skills and commitment employers need.
The Benefits for Organisations
Some tips for businesses may include:
· Planning ahead – think about forthcoming projects or staff holidays where a young person could provide essential resource.
· Setting expectations – brief the young person in advance rather than once they arrive to save time in the long run
· Giving responsibility – give young people projects that help your business complete work you may not have been able to deliver.
Generally, the term 'work experience' refers to a limited period of time that an individual spends with an organisation. This gives an opportunity to learn directly about the work that the company does and is also known as a placement or an internship. Today, all young people have to consider work experience. However, there are implications for this as to whether ‘work experience’ needs to be ‘paid work experience’?
National Minimum Wage - (£5.93)
There can be laws on being paid when it comes down to work experience. National minimum wage (NMW) legislation ensures that almost all workers in the UK who are over compulsory school leaving age are entitled to be paid at least the National Minimum Wage. 'Worker' has a legal definition and depends upon the existence of a contract of employment or a contract to personally perform work or services. These contracts can be written, oral or implied.
However, with high competition in gaining a job, working unpaid could be a thing of the future. With competition for graduate jobs at a high, employers are looking for more than just a good degree from their graduate recruits. Employers, particularly small and medium sized businesses, recruit for “real” positions and expect new graduates to be able to quickly adapt into their role. Employers frequently look for work experience as evidence of your skills, commitment and understanding of the career. Without experience, particularly in some sectors such as HR, media, advertising, etc, it is very difficult to compete and for many employers, it provides a route in.
The Governments Plans
Jackie Orme, Chief Executive at the Chartered Institute of Personnel and Development (CIPD) expressed that young people have suffered in the recent recession. Research shows employers are reluctant to hire from groups where they feel basic job skills are lacking. Work experience is a perfect way to break the vicious circle of no experience and give young people an opportunity to develop and demonstrate the skills and commitment employers need.
The Benefits for Organisations
Some tips for businesses may include:
· Planning ahead – think about forthcoming projects or staff holidays where a young person could provide essential resource.
· Setting expectations – brief the young person in advance rather than once they arrive to save time in the long run
· Giving responsibility – give young people projects that help your business complete work you may not have been able to deliver.
Friday 4 March 2011
Who’s holding the baby?! The due date for additional paternity leave approaches…..
In an effort to promote equality and good parenting a new right to additional paternity leave (APL) is to be introduced from the 6th of April this year. The reforms are intended to give parents greater flexibility in the way in which they share childcare responsibilities in the first year of their child's life. The regulations will be welcomed by many couples, who for financial or social reasons might prefer to adopt a shared approach to parenting in the early stages of their child’s life.
Who is eligible?
§ you are the father of a child due on or after 3 April 2011
§ your wife, partner or civil partner is pregnant and due to give birth to a child on or after 3 April 2011
§ you and your partner receive notification that you are matched with a child for adoption on or after 3 April 2011
§ your wife, partner or civil partner is adopting a child from overseas and the child enters Great Britain on or after 3 April 2011
§ the child's mother is entitled to statutory maternity leave, maternity pay or allowance or statutory adoption leave or pay
What will additional paternity leave entitle you to?
§ between 2 and 26 weeks’ APL, if the mother has returned to work. This is in addition to 2 weeks’ ordinary paternity leave. APL can only start 20 weeks after the child is born; and
§ be entitled to receive additional statutory paternity pay if the mother has not exhausted her statutory maternity pay when she returns to work. He also has the right to maintain the same terms and conditions (other than pay) as if he had been at work;
§ have the right to return to work in the same job and on the same conditions.
How does this impact on you the employer?
Some employers, however, have voiced apprehension over the new legislation. Elaine McIlroy notes that in a recent survey of HR professionals, 45% expressed concern over its introduction, citing anxieties over managing the new policy.
What can you put in place to manage the change?
Employers should have existing policies in place to manage maternity, paternity and adoption leave and, in many respects; these can be adjusted or extended to make provision for APL
Ensure line managers are briefed and trained on the new employee rights to reduce the risk of discrimination against employees who are eligible for APL. Consider issuing a Q&A on the qualification and notification requirements for APL.
Consider whether any enhanced benefits offered to mothers on additional maternity leave (such as enhanced maternity pay) should be offered to fathers on APL. We are not sure how the law will develop on this one and the Government does not believe that a failure to replicate such benefits will give men grounds for a claim, but it is arguable that treating men and women differently through this period could give rise to discrimination.
In addition, employers will have to update redundancy policies and guidelines to ensure they record that fathers on APL, like mothers on ordinary maternity leave, are entitled to be offered any suitable alternative vacancies, if their role is made redundant.
However, like every new piece of legislation that is put in place it is a waiting game to see what impact it will have and how the law develops. Nevertheless, by being aware of a few adjustments that can be made now this should enable the implimentation to be a smooth one.
Who is eligible?
§ you are the father of a child due on or after 3 April 2011
§ your wife, partner or civil partner is pregnant and due to give birth to a child on or after 3 April 2011
§ you and your partner receive notification that you are matched with a child for adoption on or after 3 April 2011
§ your wife, partner or civil partner is adopting a child from overseas and the child enters Great Britain on or after 3 April 2011
§ the child's mother is entitled to statutory maternity leave, maternity pay or allowance or statutory adoption leave or pay
What will additional paternity leave entitle you to?
§ between 2 and 26 weeks’ APL, if the mother has returned to work. This is in addition to 2 weeks’ ordinary paternity leave. APL can only start 20 weeks after the child is born; and
§ be entitled to receive additional statutory paternity pay if the mother has not exhausted her statutory maternity pay when she returns to work. He also has the right to maintain the same terms and conditions (other than pay) as if he had been at work;
§ have the right to return to work in the same job and on the same conditions.
How does this impact on you the employer?
Some employers, however, have voiced apprehension over the new legislation. Elaine McIlroy notes that in a recent survey of HR professionals, 45% expressed concern over its introduction, citing anxieties over managing the new policy.
What can you put in place to manage the change?
Employers should have existing policies in place to manage maternity, paternity and adoption leave and, in many respects; these can be adjusted or extended to make provision for APL
Ensure line managers are briefed and trained on the new employee rights to reduce the risk of discrimination against employees who are eligible for APL. Consider issuing a Q&A on the qualification and notification requirements for APL.
Consider whether any enhanced benefits offered to mothers on additional maternity leave (such as enhanced maternity pay) should be offered to fathers on APL. We are not sure how the law will develop on this one and the Government does not believe that a failure to replicate such benefits will give men grounds for a claim, but it is arguable that treating men and women differently through this period could give rise to discrimination.
In addition, employers will have to update redundancy policies and guidelines to ensure they record that fathers on APL, like mothers on ordinary maternity leave, are entitled to be offered any suitable alternative vacancies, if their role is made redundant.
However, like every new piece of legislation that is put in place it is a waiting game to see what impact it will have and how the law develops. Nevertheless, by being aware of a few adjustments that can be made now this should enable the implimentation to be a smooth one.
Monday 21 February 2011
Pre-Wedding Jitters??...Confusion Surrounding the Royal Wedding
The bank-holiday season is nearly upon us! Are you prepared?
The recent announcement of the Royal Wedding on 29th April has left many employers confused. Uncertainty surrounds whether employers have to grant employees this extra day off and if so, whether this leave is paid or unpaid. Equally, many employees may be confused or misguided as to whether they have an automatic right to take this additional day off.
Entitlement
Under the Working Time Regulations 1998 the statutory minimum holiday entitlement currently stands at 5.6 weeks a year. For most full time employees this equates to 20 days plus the standard 8 days annual public holidays. (The addition of the 29th April as a bank holiday brings the total number of bank holidays in 2011 to 9 days.)
An employee’s contractual position however may be different. For example if the employment contract states an entitlement to 20 days’ paid leave per annum plus bank/public holidays then this year they would be entitled to 29 days’ paid leave. However, if the employment contract states that they are entitled to 28 days per annum including any bank/public holidays then an employee’s entitlement would not increase with the additional public holiday. Employees on this contract would still be able to take the day off however this would be taken from their annual entitlement.
Part-time employees
Issues are likely to occur where part-time employees have their holiday entitlement rounded up to allow for their pro-rate bank holiday entitlement. For example, part-time employees who work three days a week and get the pro-rata equivalent (16.8 days inclusive of their bank holiday entitlement) will have to use some of their rounded up entitlement to take the time off as there will be no increase in entitlement for the wedding.
Most full-time staff have arrangements whereby bank/public holidays are on top of their annual entitlement. This may lead to part-time staff feeling they are being treated less favourably and may decide to claim against the employer. To avoid this, employers should offer a pro-rata increase to part-time employees too.
To pay or not to pay?
Many employers will be happy to give staff the day off with pay irrespective of their contracts. There are some companies however that have already informed their employees that the 29th April is just a normal working day and if they wish to have the day off they need to take it out of their annual entitlement. Be careful though: this should only happen if the contract of employment permits it.
How about those employees who do work on the day of the wedding, should they receive additional payment?
As with any bank holiday there is no statutory right to additional pay or time off in lieu so again the answer lies in the wording of their contract. If the contract states that bank holidays are in addition to their annual leave entitlement and an agreement is in place for pay increments when working bank holidays, you should apply this as normal.
Making your decision
When deciding whether to grant this additional holiday you need to weigh up your options and decide what’s best for you and your company. Offering the wedding day as an extra holiday is a gesture of goodwill and a positive move for employee engagement. Conversely, in such times of economic downturn and with each bank holiday costing the economy £6 billion, it is not a viable option for all businesses. Individual companies (especially smaller businesses or those just starting out) need to seriously assess whether or not they can afford this.
Planning & preparation
If you do decide to take this day as a public bank holiday, remember employees will need only to book the three days off (26th-28th April) to have an 11-day break. It is highly likely that demand for time off over that period will be high so you need to ensure that you manage those requests effectively! Whatever you decide, ensure that you communicate your intentions to your employees; they may not know what their entitlements are.
The best advice for businesses and employers is to be prepared and to check the employee contracts thoroughly before addressing your employees!!
As ever, if you have any questions on this or any other HR issue contact The HR Experts at info@thehrexperts.co.uk
Tuesday 8 February 2011
Staking a Claim
Whether or not you agree with Boris Johnson about Employment Tribunal's being barmy, you can have your say on their future by going to the BIS website.
With Tribunal claims rising, the UK coalition government is reviewing employment laws. Employers are often unclear about what they can and can’t do, with scare stories about Tribunal claims leaving them feeling backed into a corner. The Employer’s Charter helps clear up some common myths about the balance between business need and individuals’ rights.
Employer lobby groups have raised concerns that Tribunal claims are too onerous and costly, particularly for smaller organisations. As a result, ways to speed up the Tribunal process and attempts to reduce ‘weak or vexatious claims’ will be considered. Prime Minister David Cameron has stated that the change will help support business growth.
The emphasis on reform appears to be in favour of businesses, which has received support from some quarters. The key proposals include increasing the minimum service for an unfair dismissal claim from one to two years and encouraging conciliation rather than Tribunal. This is aimed at reducing the number of claims brought against employers, however fines may also be imposed for employers who are in breach of employment rights to encourage compliance. Brendan Barber, of the TUC, has hit back at the proposals, stating that “if firms treated their staff fairly, few would ever find themselves taken to court”.
A separate consultation is under way to consider the introduction of a fee to bring a claim, although it is unclear what that cost could be. This has been met with disapproval by law firms who believe it could ‘impede access to justice’. However, the rising cost of the Employment Tribunal is obviously a key concern for the government and this may also result in payment of expenses being removed.
With Tribunal claims rising, the UK coalition government is reviewing employment laws. Employers are often unclear about what they can and can’t do, with scare stories about Tribunal claims leaving them feeling backed into a corner. The Employer’s Charter helps clear up some common myths about the balance between business need and individuals’ rights.
Employer lobby groups have raised concerns that Tribunal claims are too onerous and costly, particularly for smaller organisations. As a result, ways to speed up the Tribunal process and attempts to reduce ‘weak or vexatious claims’ will be considered. Prime Minister David Cameron has stated that the change will help support business growth.
The emphasis on reform appears to be in favour of businesses, which has received support from some quarters. The key proposals include increasing the minimum service for an unfair dismissal claim from one to two years and encouraging conciliation rather than Tribunal. This is aimed at reducing the number of claims brought against employers, however fines may also be imposed for employers who are in breach of employment rights to encourage compliance. Brendan Barber, of the TUC, has hit back at the proposals, stating that “if firms treated their staff fairly, few would ever find themselves taken to court”.
A separate consultation is under way to consider the introduction of a fee to bring a claim, although it is unclear what that cost could be. This has been met with disapproval by law firms who believe it could ‘impede access to justice’. However, the rising cost of the Employment Tribunal is obviously a key concern for the government and this may also result in payment of expenses being removed.
Thursday 27 January 2011
New Year's Resolutions......
As the end of January draws closer, the time is here to reflect on the past year and what lessons have been learnt. January is undoubtedly a popular time for people to make important decisions. David Woods reports that one in three employees’ makes it their New Year's resolution to quit their job. As we all know many New Years resolutions go out the window with the January detox diet, how many of you are still going to the gym 3 times a week and have kept to the alcohol free January plan? I know I haven’t.
So what HR resolutions did you make and have they pushed aside with that cabbage soup detox diet?!
Will 2011 be the year when you get the best out of your people? Will it be the year when you review all your policies and procedures? What HR resolutions can you make?
· Give regular feedback?
Does feedback necessarily have to be in the form of a yearly appraisal? We don’t think so.
Why not try to give regular feedback in the form of 1 to 1’s with your staff. This doesn’t have to be lengthy or formal process it can be an informal chat about progress or any issues that have arisen in the day to day performance of an employee or it can just be a pat on the back for a job well done. Sharing your thoughts with an employee about their progress, giving then constructive criticism or a simple well done can have a significant impact on staff morale and improve performance.
– Manage poorly performing staff?
Whilst we are not promoting the Alan Sugar ‘you’re fired’ effect. Managing poorly performing employee’s should not be avoided. Have you got performance management procedures in place? Are you tackling situations as they arise to prevent them turning into issues? With Unfair dismissal claims continuing to rise, 56% in 2010, caution in this area is understandable. However, to ignore performance issues can cause real problems for your business in the long run and can have implications for the efficiency and morale of your team.
– Keep up to date with Employment Law?
Employment legislation does continue to change. However, are you aware of the key dates for 2011? Get these in your diary-
January 1
– Expenses for travel to temporary workplaces can no longer be counted towards the National Minimum Wage.
– Scheme for naming employers that breach national minimum wage legislation introduced. Those found to be in breach of legislation will be given three months to address the problem.
April 3
– Fathers can claim up to six months' of the mother's maternity leave provided she returns to work, under new Additional Paternity Leave arrangements. The new right is granted to fathers of children due on or after 3 April 2011. The extra leave is in addition to the current two weeks’ paternity leave entitlement.
April 4
– Single Equality Duty for public bodies comes into force, replacing the current separate duties for race, disability and gender, and including other grounds such as sexual orientation and religious belief.
April 6
– Default retirement age set to be abolished. Employers no longer able to issue notifications for compulsory retirement using the DRA procedure. Some employers may be able to objectively justify why certain workers should retire, such as those in the police force or construction industry.
– Personal allowance for income tax for basic rate tax payers under the age of 65 will be increased by £1,000.
– Employers' national insurance contributions increased by 1pc to 13.8pc. National Insurance Contributions will also be increase by 1pc for employees, and the primary threshold increased by £570. Threshold at which employers pay National Insurance raised by £21 per week.
– Employees of companies with fewer than 250 employees are granted statutory right to request time off for training or study. Already in place for businesses with more than 250 employees, the change means employers have to seriously consider any training requests received.
Also in April (date TBC)
– Right to request flexible working extended to parents with children under 18, one year older than present. Employees must be employed by the same business for 26 weeks or more before they are eligible.
– Bribery Act 2010 comes into force, introducing a new corporate offence of failure to prevent bribery by employees, agents, or other "associated persons" working on behalf of a business. This is unless a business can show that it has adequate anti-bribery procedures in place.
October 1
The Agency Workers Regulations 2010 will give agency workers the same basic employment conditions as permanent employees after just 12 weeks on an assignment. This will relate to pay, holidays and other conditions of employment.
– Manage sickness absence
According to CIPD's research employee absence is a significant cost to businesses. Whilst many employers are tackling absence and have systems in place to monitor absence more can still be done to ensure that short term sickness is not having an impact on your business. In the latest CIPD absence survey fewer than half of employers monitor the cost of absence, just under half of organisations have set a target for reducing absence and just over one third of organisations benchmark themselves against other employers.
Have a look at how you monitor sickness? We advise using the Bradford Index as this is a great tool for monitoring sickness absence and triggers points can be used to highlight any issues with employees who have recurring incidents of short term sickness.
We would also advise conducting Return-to-work interviews as they can help identify short-term absence problems at an early stage. They also provide managers with an opportunity to have a chat with staff about underlying issues which might be causing the absence which could ideally knock the problem on its head before it has an impact on your business.
Finally……. If you need any advice or have any questions why not make it one of your resolutions to contact The HR Experts at info@thehrexperts.co.uk
So what HR resolutions did you make and have they pushed aside with that cabbage soup detox diet?!
Will 2011 be the year when you get the best out of your people? Will it be the year when you review all your policies and procedures? What HR resolutions can you make?
· Give regular feedback?
Does feedback necessarily have to be in the form of a yearly appraisal? We don’t think so.
Why not try to give regular feedback in the form of 1 to 1’s with your staff. This doesn’t have to be lengthy or formal process it can be an informal chat about progress or any issues that have arisen in the day to day performance of an employee or it can just be a pat on the back for a job well done. Sharing your thoughts with an employee about their progress, giving then constructive criticism or a simple well done can have a significant impact on staff morale and improve performance.
– Manage poorly performing staff?
Whilst we are not promoting the Alan Sugar ‘you’re fired’ effect. Managing poorly performing employee’s should not be avoided. Have you got performance management procedures in place? Are you tackling situations as they arise to prevent them turning into issues? With Unfair dismissal claims continuing to rise, 56% in 2010, caution in this area is understandable. However, to ignore performance issues can cause real problems for your business in the long run and can have implications for the efficiency and morale of your team.
– Keep up to date with Employment Law?
Employment legislation does continue to change. However, are you aware of the key dates for 2011? Get these in your diary-
January 1
– Expenses for travel to temporary workplaces can no longer be counted towards the National Minimum Wage.
– Scheme for naming employers that breach national minimum wage legislation introduced. Those found to be in breach of legislation will be given three months to address the problem.
April 3
– Fathers can claim up to six months' of the mother's maternity leave provided she returns to work, under new Additional Paternity Leave arrangements. The new right is granted to fathers of children due on or after 3 April 2011. The extra leave is in addition to the current two weeks’ paternity leave entitlement.
April 4
– Single Equality Duty for public bodies comes into force, replacing the current separate duties for race, disability and gender, and including other grounds such as sexual orientation and religious belief.
April 6
– Default retirement age set to be abolished. Employers no longer able to issue notifications for compulsory retirement using the DRA procedure. Some employers may be able to objectively justify why certain workers should retire, such as those in the police force or construction industry.
– Personal allowance for income tax for basic rate tax payers under the age of 65 will be increased by £1,000.
– Employers' national insurance contributions increased by 1pc to 13.8pc. National Insurance Contributions will also be increase by 1pc for employees, and the primary threshold increased by £570. Threshold at which employers pay National Insurance raised by £21 per week.
– Employees of companies with fewer than 250 employees are granted statutory right to request time off for training or study. Already in place for businesses with more than 250 employees, the change means employers have to seriously consider any training requests received.
Also in April (date TBC)
– Right to request flexible working extended to parents with children under 18, one year older than present. Employees must be employed by the same business for 26 weeks or more before they are eligible.
– Bribery Act 2010 comes into force, introducing a new corporate offence of failure to prevent bribery by employees, agents, or other "associated persons" working on behalf of a business. This is unless a business can show that it has adequate anti-bribery procedures in place.
October 1
The Agency Workers Regulations 2010 will give agency workers the same basic employment conditions as permanent employees after just 12 weeks on an assignment. This will relate to pay, holidays and other conditions of employment.
– Manage sickness absence
According to CIPD's research employee absence is a significant cost to businesses. Whilst many employers are tackling absence and have systems in place to monitor absence more can still be done to ensure that short term sickness is not having an impact on your business. In the latest CIPD absence survey fewer than half of employers monitor the cost of absence, just under half of organisations have set a target for reducing absence and just over one third of organisations benchmark themselves against other employers.
Have a look at how you monitor sickness? We advise using the Bradford Index as this is a great tool for monitoring sickness absence and triggers points can be used to highlight any issues with employees who have recurring incidents of short term sickness.
We would also advise conducting Return-to-work interviews as they can help identify short-term absence problems at an early stage. They also provide managers with an opportunity to have a chat with staff about underlying issues which might be causing the absence which could ideally knock the problem on its head before it has an impact on your business.
Finally……. If you need any advice or have any questions why not make it one of your resolutions to contact The HR Experts at info@thehrexperts.co.uk
Thursday 20 January 2011
Parental Leave Regulations
Clegg wants to reform the “Edwardian” rules that “patronise women and marginalise men”
Deputy Prime Minister Nick Clegg has announced that the government will be pressing ahead with plans to change current parental leave regulations. As of April this year new fathers will be entitled to take up any remaining unpaid leave if their partner goes back to work early. Whilst mothers are still guaranteed the first six weeks of maternity leave receiving 90% of their full pay, these changes will mean the remaining 46 weeks can be shared in a variety of ways between the parents with men being entitled of up to 6 months of this (three months paid at the statutory rate, three months unpaid) rather than the current allowance of 2 weeks.
The announcement of these changes has sparked great debate and discussion in the media. Brendan Barber of the TUC states that this “extension is welcome. New parents should be able to decide for themselves who looks after their baby in the first year, rather than having that decision dictated to them by the government”. The changes could be advantageous for the labour market too by evening out the playing field in regards to employers hesitations when hiring women due to their concerns about time off to start a family. Now that this leave is becoming a shared responsibility it should make these worries obsolete.
From a business perspective these proposals have received a “cautious welcome” from the CIPD with David Frost of the British Chamber of Commerce stating they will “simply burden businesses with more red tape and deter them from taking on new starters”. The feasibility of companies arranging cover or managing absence for parents sharing parental leave in small blocks is questionable.
However, this is just the government’s first step towards establishing a properly flexible system of shared parental leave that is forecast to be introduced in 2015 after rigorous consultations with the Demos think tank. Therefore, The HR Experts advise that in the meantime small businesses should promote a large single block of time off for parents (rather than lots of little ones), or adopt Clegg’s “use-it-or-lose-it” time off policy for new parents so that employers can plan for cover.
For more advice on this don’t hesitate to contact us at info@thehrexperts.co.uk!
Deputy Prime Minister Nick Clegg has announced that the government will be pressing ahead with plans to change current parental leave regulations. As of April this year new fathers will be entitled to take up any remaining unpaid leave if their partner goes back to work early. Whilst mothers are still guaranteed the first six weeks of maternity leave receiving 90% of their full pay, these changes will mean the remaining 46 weeks can be shared in a variety of ways between the parents with men being entitled of up to 6 months of this (three months paid at the statutory rate, three months unpaid) rather than the current allowance of 2 weeks.
The announcement of these changes has sparked great debate and discussion in the media. Brendan Barber of the TUC states that this “extension is welcome. New parents should be able to decide for themselves who looks after their baby in the first year, rather than having that decision dictated to them by the government”. The changes could be advantageous for the labour market too by evening out the playing field in regards to employers hesitations when hiring women due to their concerns about time off to start a family. Now that this leave is becoming a shared responsibility it should make these worries obsolete.
From a business perspective these proposals have received a “cautious welcome” from the CIPD with David Frost of the British Chamber of Commerce stating they will “simply burden businesses with more red tape and deter them from taking on new starters”. The feasibility of companies arranging cover or managing absence for parents sharing parental leave in small blocks is questionable.
However, this is just the government’s first step towards establishing a properly flexible system of shared parental leave that is forecast to be introduced in 2015 after rigorous consultations with the Demos think tank. Therefore, The HR Experts advise that in the meantime small businesses should promote a large single block of time off for parents (rather than lots of little ones), or adopt Clegg’s “use-it-or-lose-it” time off policy for new parents so that employers can plan for cover.
For more advice on this don’t hesitate to contact us at info@thehrexperts.co.uk!
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