Avoid Disability Discrimination When Recruiting
Recent figures released by the Recruitment Industry Disability Initiative (RIDI) revealed that almost 40% of disable jobseekers have been discriminated against during the recruitment process. With 82% of disable jobseekers noting that they have had “a negative experience” with a recruiter.
Considering that employment rights protect not only existing employees but also potential employees, employers need to ensure that their recruitment processes are free from discrimination. Failure to do so, could leave employers open to costly discrimination tribunal cases.
To ensure you are an equal opportunities employer, below are some points to consider during your next recruitment campaign.
• Ensure the job description and advert are carefully drafted, they must not be discriminatory.
• All interview candidates should be asked the same core questions, to ensure consistency and a fair approach.
• Selected candidates for interview should be requested to notify the company should they require any reasonable adjustments to be made in order to assist them in attending for interview. Never ask a candidate whether they have a disability.
• If made aware that reasonable adjustments are required employers are legally obliged to provide such adjustments. Reasonable adjustments at interview stage may include:
o Providing recruitment literature in large print
o Holding interviews in accessible locations or removing movable barriers like furniture
o Allowing a guide or guide dog into the workplace
o Providing disabled parking
• Interview questions should solely relate to the requirements of the position and the individual’s ability to carry-out the duties of that position.
o Inappropriate Questions:
- Are you on any medication?
- Are you able to use your legs at all?
o Appropriate Questions:
- Can you perform the essential functions of this role with or without reasonable adjustments?
• Under the Equality Act 2010 employers are not permitted to ask about the health of job applicants before making a job offer. Employers should not ask applicants to complete medical questionnaires at an early stage of the recruitment process, and should definitely not ask the individual to attend any sort of health assessment until after a job offer has been made. Job offers can be made conditional on receipt of a satisfactory medical check.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Fit for Work Service
Fit for Work Service (FFWS) is a new free government service, introduced with the intention of helping UK workplaces manage sickness absences. The Fit for Work scheme provides an occupational health assessment and general health and work advice to employees, employers and GPs.
Assessments
When an employee has reached, or is expected to reach four weeks of absence through sickness, the GP will refer them to the FFWS. Employers can also make the referral after four weeks of absence.
All referrals will be at the consent of the employee. If the employee refuses to attend, the GP may stop issuing the Fit Note. The consequence of this is that without the Fit Note, the employer is unable to pay Statutory Sick Pay (SSP)
On attending for assessment the employee will be given a return to work plan, with recommendations on how they can return to the workplace quickly.
Advice
The FFWS will offer free, “independent objective” advice to GPs, employees and employers on how to prevent sickness absences occurring, and how to assist employees returning to the workplace when absences do occur. This advice service will be accessible via telephone and online services.
Tax Exemptions
From 1st January 2015, the Government is also introducing a tax exemption of up to £500 (per year, per employee) on medical treatments recommended by the FFWS to help their employees return to work.
General Advice
Both services have been designed to compliment rather than replace existing occupational health service schemes. However, the service will be particularly beneficial to smaller organisations that are likely to have limited existing occupational health services in place. The service is being rolled out across the UK throughout 2015 and further details are expected during the year. In the meantime, employers are recommended to update their sickness absence policies to reflect the availability of Fit for Work.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Shared Parental Leave, how to avoid discrimination claims from male employees
Do you currently offer enhanced maternity pay to women on maternity leave, i.e. amounts over statutory maternity pay? If yes, you will need to consider whether or not to offer enhanced shared parental pay.
Historically, offering enhanced maternity pay did not amount to unlawful discrimination because women were granted special protection in their biological position as a mother, therefore justifying different treatment and pay. However how valid this argument will be going forward is questionable. Once parents opt to share statutory parental leave, it could be difficult to that argue that the mother has a protected biological position. This may present a discrimination risk for employers who do not offer the same enhanced maternity pay to fathers taking shared parental leave.
To date all guidance issued by the Government has ignored this issued. They have taken the stance that as enhanced payments are not imposed by legislation they will not be commenting on the issue. Consequently, employers looking to stay within the law on this issue will have to await guidance from tribunal decisions.
In the meantime the advice to employers who pay enhance maternity pay is to review all related policies and procedures. When implementing changes, possible considerations might include:
• To provide an enhanced maternity scheme and a separate shared parental pay scheme in tandem, but advise that parents who opt for shared parental leave are not eligible for enhanced maternity pay;
• To reduce enhanced maternity payments to the statutory level
• To offer an equivalent enhanced shared parental leave pay scheme that applies to parents of either gender, although the most expensive option this may well be the safest option available to employers.
This is a complex issue and one where what is correct, may well depend on the business needs and other factors, such as the gender demographics of individual workforces. Being such a grey area employers are well advised to be cautious when making any decisions.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
5 New Years Resolutions every Small Business should make for an easier 2015.
1. I will make sure all employees have an up-to-date written contract of employment
2. I will review our staff handbook and make sure it is relevant and up-to-date
3. I will make sure the business is ready for new parental leave arrangements, and changes to adoption leave
4. I will check our companies staging date, if it falls in 2015 I will make sure we are ready
5. I will review our absence policies and procedures, to ensure I can easily spot when absences become an issue and manage them appropriately and fairly. I will prepare for the Fit for Work Service programme which is to become mandatory.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
2015 - What’s in Store for UK Employers?
2015 looks set to be a busy year for employment changes. Some of the most significant changes that employers need to be aware of include:
1. Family Friendly Changes
a. Shared Parental Leave & Pay
This is brand new legislation which will apply to parents with babies due to be born/placed for adoption on or after 5th April 2015. These parents will have the flexibility to share leave in the child’s first year, something which historically only a mother/primary adopter could take. The mechanics of the new regime are complicated and employers are well advised to familiarise themselves with the regulations early. Further details are available here.
b. Changes to Statutory Adoption Leave & Pay
From 5 April 2015 there will be no service requirement in order to be eligible for adoptive leave. Adoptive pay rates will also be increased in-line with maternity pay levels. Finally, primary adopters will now be entitled to paid time off to attend up to five adoption appointments.
c. Rise of child’s age limit for parental leave
The current right to take 18 weeks’ unpaid parental leave before a child’s 5th birthday is to be extended from 5 April 2015, so that leave can be taken up to the child’s eighteenth birthday.
2. New Fit for Work Service
The new service aims to assist employees on long-term sick leave back to work, with the ultimate aim of reducing sick leave levels across the UK. Due to be rolled out during the year, the Fit for Work Service will offer employers access to free occupational assistance for employees who have been off sick for four weeks or more. Employers will also be able to claim up to £500 tax relief on payments for medical treatment for their employees where the treatment has been recommended under the new scheme.
3. Statutory Pay Rates
The usual shifts in statutory rates of pay are scheduled for 2015. Rates for statutory maternity, paternity, and adoption pay will increase from 5 April 2015, as too will statutory sick pay rates. Any changes to the national minimum wage rates will be effective from 1 October 2015.
With the general elections fast approaching in May there are a number of other topics which will either gain momentum, or possibly lose momentum over the coming months. Topics to watch out for:
1. Zero Hours Contracts
Employers should expect to hear more about Zero Hours Contracts in the press during 2015. Labour have promised that should they be voted into power in the May elections they will put in place further restrictions around the use of Zero Hours Contracts. Employers should definitely watch this space!
2. Apprenticeships
The current Government has plans to simplify the regulations surrounding apprenticeships. Further details are due; however whether this initiative will survive the May elections remains to be seen.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
What Small Employers Need to Know about Hiring New Employees
Congratulations, you’ve found the perfect candidate to join your company. Growing your company is an exciting time for any business owner, however many employers get bogged down and worried about employment legislation.
To help you get on top of employment legislation right from the start we’ve put together some key points that you need to be aware of.
• Eligibility to Work in the UK
Always request to see the individual’s passport or proof of eligibility to work in the UK. Employers found to be employing illegal workers could face fines of up to £20,000
• Contract of Employment
Employees must receive a written statement of their terms of conditions of employment within 2 months of commencing employment. Under legislation specific information must be set out in the written terms. This is most commonly issued through the contract of employment.
• Pay
New employers need to familiarise themselves with minimum wage legislation. HMRC have recently started naming and shaming employers paying less than minimum wage. Appearing on this list is likely to seriously damage any employer’s reputation.
• Payroll
Request a P45 from your new employee to assist you in setting them up on your payroll. Using payroll software is a cost efficient way of processing your payroll and will ensure that you are fully compliant with legislative requirements such as Real Time Information (RTI).
• Holidays
Under legislation all workers start to accrue annual leave as soon as they start employment. The statutory minimum holiday entitlement is 5.6 weeks (28 days), for full-time employees, pro-rata for part-time employees. Unless an employee is leaving employment, it is unlawful to pay employees in lieu of statutory holidays.
• Hours of Work & Rest Breaks
Under the Working Time Regulations any individual who works more than 6 hours a day is entitled to a 20 minute rest break. Rest breaks are generally unpaid.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Shared Parental Leave - UK
Shared Parental Leave became law in the UK on Monday 1 December 2014 and will apply to all parents of babies due to be born or placed for adoption on or after 5 April 2015. The new legislation will allow parents to share leave and childcare arrangements in the first year a child is born/placed for adoption.
With an expected 285,000 couples due to be eligible for Shared Parental Leave, it is expected that the new rules will kick start a culture of change in workplaces where fathers feel more confident in taking time off for childcare.
The Main Rules
Parents will be allowed to share a total of 50 weeks off work after having a baby. Leave may be taken at the same time or separately. Parents may take continuous or discontinuous blocks of leave.
Employers must approve requests for continuous periods of leave. Consideration and alternative arrangements can be given to requests for discontinuous blocks of leave.
Maternity/Adoption leave must be curtailed before Shared Parental Leave can commence.
Employees may submit a maximum three leave request notices, this may be increased at the discretion of the employer.
The only slightly negative aspect to the new rules is the onerous statutory notification and implementation process, which employers and employees will initially have to sift through.
What Employers Need to Do?
Whilst uptake for Additional Parental Leave (APL) was very low, it is expected that with Shared Parental Leave replacing APL the uptake will increase considerably as a result of the enhanced flexibility Shared Parental Leave offers. Whilst it is unlikely that there will be an immediate rush of requests, it is anticipated that they will gradually increase in the coming years.
In preparation, employers are recommended to revise their existing Maternity, Paternity and Adoption Policies as well as introduce a new Shared Parental Leave Policy.
In addition to a Shared Parental Leave Policy, Bright Contracts will also be providing template notification forms and producing guidance notes for managers on handling requests. Follow us on Twitter @BContractsUK for updates.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
New 2015 Living Wage Rate announced
The UK "living wage" - an hourly rate based on the amount needed to cover the basic costs of living - has been raised by 20p to £7.85, whilst The London Living Wage has been raised from 8.80 an hour to £9.15.
What is the difference between the Living wage and the national minimum wage?
The living wage is an informal benchmark, not a legally enforceable minimum level of pay line the national minimum wage. The national minimum wage is set by the business secretary each year on the advice of the Low Pay Commission. Unlike the living wage, the national minimum wage is enforced by HM Revenue and Customs (HMRC).
The basic idea of the living wage is that these are minimum pay rates needed to let workers lead a decent life.
Does this effect employers?
The living wage is a voluntary wage so employers are not legally obliged to pay it. Nevertheless, it has been adopted by more than 1,000 employers across the country benefitting 25,000 workers. Citizens UK, the community behind the living wage project say that the number of companies paying the rate has doubled in the last year. However, some business groups are not happy with the increase saying some employers might struggle to pay it.
The advice to employers should be to seriously consider the living wage, but only implement it if it is affordable.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Holiday Pay – UK Landmark Ruling!
Earlier this year the European Court of Justice (ECJ) ruled that holiday pay must correspond with normal pay which may be made up of additional amounts such as commission or overtime payments.
Whilst UK legislation would have to follow the ECJ, the ECJ did leave it up to national courts to decide how commission and overtime payments should be calculated. Employer groups have since been anxiously awaiting the UK’s decision, with fears that they could face:
• Billions of pounds in higher wage billons
• Costly claims for underpaid leave as far back as 1998
Yesterday, 4th November, the EAT finally made its long awaited judgement, ruling that:
• Many elements of pay which are currently excluded from holiday pay calculations now must be included e.g. commission and overtime payments. This will ultimately lead to higher wage bills for many employers.
• However, more positively limits have been put in place for back pay liability. Any claims in respect of underpaid holiday pay in the past will only be possible where no more than three months has elapsed between any such underpayments – in practice this is likely to mean that employees can only claim in respect of one year’s leave.
What Action Should Employers Take?
• Now: look at precisely what needs to be included in the calculation of holiday pay
• In the long term it will be worth reviewing how to structure working arrangements in order to minimise the increased liability for holiday pay. For example:
o Offering voluntary overtime rather than guaranteed overtime
o Using agency staff to cover periods of increased demand rather than offering overtime
o Revising commission plan payment schedules
o Preventing leave from being taken at certain times of the year
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Should employers pay sick pay?
If an employee is out of work sick in the UK, employers are legally obliged to pay the employee Statutory Sick Pay (SSP) from the 4th day of absence for a maximum of 28 weeks. SSP is currently set at £87.55 per week.
However, many employers offer additional sick pay to their employees, known as company or contractual sick pay.
The recommended rate of company sick pay will very much vary from industry to industry and from company to company.
Employers must specify to their employees in the contract of employment whether or not a company sick pay policy is in place. However it can be advisable to retain the specific details of the policy within the staff handbook.
It is quite normal for employers to specify different levels of sick pay between employees e.g. many employers will graduate sick pay amounts based on length of service, or at a minimum require that an employee pass their probation before becoming eligible. Employers just need to be mindful not to fall foul of discriminating against any employees.
If an employee is eligible for contractual sick pay and the employer does not pay it, the employee may be able to bring a claim for breach of contract and/or claim for the unlawful deduction from wages by the employer.
Amending Company Sick Pay Policies
Employers commonly ask whether or not they can amend company sick pay details.
Changing sick pay policies for any new recruits is generally an easy, straightforward process. For existing staff it could constitute a change to their terms and conditions. It is therefore advisable to get the employees written agreement. In order to encourage staff to willingly accept the new terms, it might be worthwhile to simultaneously introduce enhancements to their terms and conditions. For example, a pay rise, introduction of a new or improved pension scheme, a medical insurance scheme or increased holidays.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
