The Good Employer Guide

Transcription

1 The Good Employer Guide REALBUSINESS BERR MiniGuide_F.indd 1 18/3/09 15:26:42

2 T Be de So po thr It d sim wit All ww we in o go ob on The wit BERR MiniGuide_F.indd 2 18/3/09 15:26:47

3 The Good Employer Guide Being the boss is no easy task. And keeping abreast of developments in employment law can seem complex. So the Department for Business has put together this point-by-point guide to help you navigate your way through the detail of employment law. It deals with all the main issues of employment in three simple areas starting, staying and leaving and is packed with practical tips and clever, free tools to help you comply. All the advice in this guide can be found online at a government website where you can access employment law guidance in one place, at the click of a mouse. And because it s a government resource, you can comply with many of your obligations simply by following the instructions outlined on the website. The guide is based on legislation as of February To keep up-to-date with any changes, visit: BERR MiniGuide_F.indd 3 18/3/09 15:26:50

4 2 1 Starting out... Check out your checklist Taking on a new employee isn t as easy as uttering the words: You re hired. There are certain employment processes that you need to follow. But don t be put off it s simpler than you think. The steps in this booklet will guide you through the process and offer tips to make it as quick and painless as possible. Check the Employing People checklist at: employerchecklist for more starting facts or use the Taking on a New Employee tool at: gov.uk/newemployee BERR MiniGuide_F.indd 4 18/3/09 15:26:52

5 . e 2 3 Make Choose your words carefully The language you use to advertise a role in your business must be fair and non-discriminatory subject to some special exceptions. You can t specify whether you want male or female staff, your advertisement must appeal equally to all age groups and religious and ethnic backgrounds, and it s illegal to discourage applicants with a disability. Words such as dynamic and vibrant may covertly indicate a bias towards younger candidates. sure your employee is eligible Any candidate you employ must be eligible to work in the UK. They ll have to prove this by showing you one specified document or a specified combination of two documents that proves they can legally work in the country. This could be a passport showing right of abode in the UK; a residence permit or biometric identity card issued by the UK Border Agency; or proof of exemption from immigration control. An EU passport is sufficient except for Romanians and Bulgarians who must have work permits. Be thorough scrutinise the documents to check for forgeries and make copies for your records. Read: gov.uk/eligibletoworkinuk BERR MiniGuide_F.indd 5 18/3/09 15:26:54

6 6 4Get your permit paperwork sorted Are you employing a worker from outside the EU? Migrant workers must be sponsored. If you want to extend a work permit, you need to fill in form WP1X, which is available from the UK Border Agency website: BERR MiniGuide_F.indd 6 18/3/09 15:26:55

7 : 5 Firm 6 up a verbal agreement You can hire a candidate with nothing more than a verbal contract. However, within two months, you ll have to convert this informal arrangement into a formal description of their basic terms and conditions. The government has developed an online tool that helps you compose written statements of employment so you won t forget to include important information such as disciplinary procedures and notice periods. Go to: www. businesslink.gov.uk/writtenstatement Pay fairly The minimum wage changed in October You must pay workers aged 22 and older at least 5.73 an hour. For 18 to 21 year olds, a development rate of 4.77 applies. And for 16 to 18s, the rate is Apprentices under the age of 19 or in their first year of apprenticeship are exempt, as are students on work experience. There s no room for mistakes: from April 2009, employers breaching the national minimum wage will be forced to pay the employee arrears and pay 50 per cent of the arrears as a fine up to 5,000. Check the pay, tax and pensions section of the Business Link website to make sure you ve got payroll sorted: BERR MiniGuide_F.indd 7 18/3/09 15:26:56

8 7Understand payment You can pay your staff in cash but you must deduct tax and National Insurance. Remember to provide a written itemised statement every time you make a payment to an employee. This must detail gross wages, the amounts of any deductions and the final payment. Go to: 8 Check the employment status Make sure the lines between your full-time employees and workers don t become blurred. Remember: an employee is someone who works for you under the terms of an employment contract and has specific employment protection rights, while a worker can include casual workers, agency workers and freelancers. Agencies are usually responsible for operating PAYE and accounting for National Insurance contributions for workers. 9 BERR MiniGuide_F.indd 8 18/3/09 15:26:59

9 9Staying... Re-calculate holidays Full-time workers are currently entitled to 24 days holiday a year. From April 2009, this minimum rises to 28 days and can include public and bank holidays. The entitlement for part-time workers is calculated on a pro-rata basis. So how do you work out holidays for workers when the allowance changes mid-year? The government s handy holiday calculator ( will make sure you get it spot on. BERR MiniGuide_F.indd 9 18/3/09 15:27:00

10 1 10 BERR MiniGuide_F.indd 10 1 Get to grips with parental leave Mothers-to-be have the right to paid time off for antenatal care; they re entitled to 52 weeks of statutory maternity leave, starting up to 11 weeks before the expected birth date; and 39 weeks of statutory maternity pay. You should also conduct a risk assessment for their health and safety. Keeping in touch days can be arranged, which don t interfere with leave conditions. Fathers get either one or two weeks worth of paternity leave, too. Find out how to manage expectant and new mothers at: gov.uk/workandfamilies 18/3/09 15:27:04

11 11 Changing contracts You can t arbitrarily change the contract of an employee but it can be done with their agreement. The first step to changing a contract is to write to the employee. If the employee refuses to give consent, they can continue to work under protest while you negotiate the changes. In extreme cases, an employer could be allowed to terminate a contract and offer the revised one to the employee. Acas can offer you advice on how to avoid confrontation when changing an employee s contract. Check out: changingcontracts e; 12 Help disabled employees You need to make reasonable adjustments to accommodate disabled employees. This might mean widening doorways to allow a wheelchair to pass through easily; replacing steps with ramps; relocating light switches and door handles for someone who has difficulty in reaching them; putting in audio-visual fire alarms; or providing accessible toilet facilities for disabled employees. Even providing specially modified keyboards and telephones can help arthritis sufferers and the hard of hearing. To find out what you can do to support your disabled employees, get in touch with the Disability Employment Adviser at your local Jobcentre. BERR MiniGuide_F.indd 11 18/3/09 15:27:05

12 13Know your health and safety responsibilities 14 You need to create a safe and legally compliant work environment for your employees. The employing people section of the Business Link website is jam-packed with the details you need to help you understand exactly how to do that. For example, did you know it is mandatory to obtain employers liability insurance, while public liability insurance is optional? You ll also need to register with the Health and Safety Executive or your local authority, depending on your business. Keep up employee morale Employing people isn t just about numbers: it s important to take care of staff morale too. Remember that some employee perks, such as gym membership and health insurance, are taxable as payment in kind, known as a P11D. Read more about staff incentive schemes at: uk/employeemorale 15 BERR MiniGuide_F.indd 12 18/3/09 15:27:07

13 r is y es 15 Get training Staff training isn t a legal requirement but it s amazing what it can do for staff retention, morale and productivity. To get authoritative, impartial advice on what training courses are available, talk to a Train to Gain skills broker. They ll put you in touch with a vast array of educators from technical colleges to leadership mentors. Better still, if you run a small business, Train to Gain will contribute to the cost of sending staff away on training. Interested? Visit www. traintogain.gov.uk for more information. BERR MiniGuide_F.indd 13 18/3/09 15:27:08

14 16 Be clear about disciplinary procedures All employees have the right to work without intimidation, harassment or humiliation. The best way of avoiding any discord is a clear grievance and disciplinary procedure, written down in your company handbook. You can find a useful guide on how to handle disciplinary issues in practice, what penalties you can apply and the changes to statutory procedures coming into effect this year. Go to: disciplinaryprocedure. For training courses in dispute resolution, click on: 17 Sort your sick pay Employees who are off work because of illness for more than four days are entitled to statutory sick pay (SSP), provided they meet qualifying conditions. Within limits, you can set up your own rules about how your employees inform you when they are sick. In any one period of incapacity for work, SSP is payable to an employee for a maximum of 28 weeks. For periods longer than 28 weeks, you ll need to fill out an SSP1 to claim Employment and Support Allowance. 1 BERR MiniGuide_F.indd 14 18/3/09 15:27:12

15 g n, n:. e 18 Leaving... Deal with dismissal In most cases, you can only dismiss an employee if you have a fair reason to do so. This could include conduct or capability, retirement or redundancy, or a statutory requirement that prevents them from continuing in the job a driver losing his licence, for instance. As of April 2009, the three-step dismissal process is no longer a statutory requirement but you should still follow the advice set out in the revised Acas code of practice. Go to: If you fail to comply and the issue ends up at a tribunal, the tribunal could increase the employee s compensation by up to 25 per cent. BERR MiniGuide_F.indd 15 18/3/09 15:27:15

16 19 2 Understand redundancy rules There are times when you may need to make staff redundant. The hallmark of a redundancy is that the job must disappear you can t hire new staff to do the same role. Remember to offer redundant employees alternative work wherever possible or reasonable time off on full pay for job-hunting. They also have a right to statutory redundancy pay (SRP), based on their age, period of service and weekly pay. Calculate the exact amount at: uk/redundancycalculator. Worried about staff morale? Consider temporary layoffs and early retirement before compulsory redundancy. BERR MiniGuide_F.indd 16 18/3/09 15:27:18

17 k o e v. t Learn from resignations What steps should you take when Paul, your top guy from the IT department, hands in a letter of resignation? First, ask him why he wants to leave. Would flexible working, improved remuneration or benefits change his mind? Allow a cooling-off period and, if you can t persuade him to stay, get a third party to conduct an exit interview. Remember to check what period of notice he s required to give. If it s not covered in any written agreement the statutory notice period will apply. Check: www. businesslink.gov.uk/resignations Rethink retirement Gone are the days when you had to lose your best staff when they hit 65. Older workers can draw part of their occupational pension and carry on working at the same time. Top tip: notify employees about their date of retirement at least six months in advance. You must then calculate any entitlements due under employee share or share option schemes, conduct an exit interview, retrieve any company property and arrange a gift or farewell do to thank them for their contribution. BERR MiniGuide_F.indd 17 18/3/09 15:27:19

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20 The Em REAL editorial and production Founder & editorial director Stuart Rock Managing editor Kate Pritchard Chief sub-editor Carryn Dewing Writer Charles Orton-Jones Creative director Nick Dixon Senior art editor Gary Hill Head of production Karen Gardner Illustration Paul Blow caspian publishing Founder & group editor Matthew Rock Finance director Kate Andrews Head of marketing Cassandra Donovan Marketing executive Jenna Samji Financial controller Richard Ballard Business development director Frances Hughes This guide is published by Caspian Publishing Ltd. All rights reserved. The views expressed by contributors and correspondents are their own. Reproduction in whole or in part without written permission is strictly prohibited. BERR MiniGuide_F.indd 20 18/3/09 15:26:40