Employment Appraisals, what are they?
Employment Appraisals are meetings that can be held every three months for the first year of employment and six months thereafter. They help clarify expectations and required standards, assist the development of new and existing staff and help keep a record of experience, training, strengths, and weaknesses.
Managers carry out appraisals to monitor actual performance; deal with problem areas and most importantly gain valuable feedback from employees. They should be conducted in a positive and open manner to help create an effective working relationship between the employee and the employer.
They are extremely useful and necessary during an employee’s probationary period. During the probationary period, performance in doing the job and potential abilities are evaluated to determine suitability for the position and the company. This should be set out in the company’s handbook which outlines the company’s probationary policy.
In a nutshell appraisals help the company:
• Evaluate employee performance during the probationary period
• Praise and encourage individual strengths
• Identify training requirements
• Evaluate suitability for continued employment
The company should provide adequate training and additional assistance if required, should the employee fall short in their duties. It is important to document meetings with employees during their employment and keep a copy of such on their staff file. You will need this documentation should a grievance arise during or after employment and also to refer back to it, if promises or follow up were made. It is important to keep up to date, accurate records, should you find the employee unsuitable and it becomes necessary to dismiss them.
Bright Contracts - Employment Contracts and Handbooks
UK National Minimum Wage
The Small Business, Enterprise and Employment Act 2015 is now an act of law and will amend the current penalty for underpayment of the National Minimum Wage (NMW).
Part 11 of The Small Business, Enterprise and Employment Act 2015 contains measures that amends section 19A of the NMW Act so that the maximum penalty will be determined by the amount owed to each worker and the limit on the penalty will be so the extent to which the amount owed to each individual worker can be taken into account. Previously the maximum fine was just £5,000 for each employee.
Secondary legislation will be introduced to ensure that employers in breach of the NMW regulations will be subject to a fine of up to £20,000 for every underpaid worker.
Most workers in the UK over school leaving age are entitled to be paid at least the NMW. The NMW rates are reviewed each year by the Low Pay commission.
Current NMW rates
- £6.50 for workers 21 and over
- £5.13 18 - 20 yrs
- £3.79 for 16-17 yrs, who are above school leaving age but under 18
- £2.73 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
New NMW rates from 1 October 2015
- £6.70 for workers 21 and over
- £5.30 18 - 20 yrs
- £3.87 for 16-17 yrs, who are above school leaving age but under 18
- £3.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
It is important to note that these rates, which come into force on the 1st October 2015, apply only to pay reference periods beginning on or after that date.
If HMRC finds that an employer hasn’t been paying the correct rates, any arrears have to be paid back immediately. There will also be a penalty and offenders can also be named by the government.
It is the employer’s responsibility to keep records proving that they are paying the minimum wage - most employers use their payroll records as proof. All records have to be kept for 3 years.
It is important that information outlining how much and how often an employee gets paid be shown very clearly in the written statement of particulars. The employer must provide the employee with a copy of this written statement within 2 months of their start date. This is the law!
If you have no contracts in place or wish to update your current employee contracts then simply click here? There is no need to use HR specialists or solicitors; Bright Contracts keeps things simple and easy for everyone!
Bright Contracts – Employment Contracts and Handbooks.
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What you need to know when relationships are failing!
All employers need to know how to discipline their employees fairly. Legislation and Codes of Practice place great emphasis on procedural fairness when dealing with grievances. In some instances, a grievance may lead to a constructive dismissal if it is not handled correctly. Mishandling disciplinary issues gives rise to a huge number of employment tribunal claims every year including breach of contract, unfair dismissal and discrimination.
Do you know employer’s in the UK are not legally obliged to follow the Acas statutory Code of Practice on discipline and grievance procedures should it become necessary to dismiss an employee. However, failure to do so can result in any compensation awarded in a subsequent claim brought by the employee being increased by up to 25% for not following fair and consistent procedures.
Employers who have disciplinary procedures in place must put their procedures in writing, and make it easily available to their employees (for example, by giving details in the staff handbook). It should include the procedures followed during the disciplinary process, what performance and behaviour might lead to disciplinary action, and what action your employer might take.
An employer should follow a proper disciplinary process if it believes that an employee may be guilty of misconduct. As far as possible, the aim of the disciplinary procedure should be to improve conduct, rather than simply to punish wrongdoing.
Employers are advised to follow the Acas statutory Code of Practice on discipline and grievance procedures. It provides basic practical guidance to employers, employees and their representatives and sets out principles for handling disciplinary and grievance situations in the workplace. Click here for a detailed overview.
Disciplinary procedures should include the following steps:
1. A letter setting out the issue.
2. A meeting to discuss the issue.
3. A disciplinary decision.
4. A chance to appeal this decision.
Having a well drafted company disciplinary policy and procedure in place is critical for all employers; without the latter in place, defending claims of unfair dismissal or constructive dismissal would be incredibly difficult.
The majority of unfair dismissal claims are lost by employers because they fail to follow fair procedures during the disciplinary process or simply don’t follow any!
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Criminal checks on potential new employees
Employers who carry out 'back-door' criminal record checks on potential candidates seeking employment with their company, can now face criminal charges.
There is a well-established lawful process for checking criminal records such as the DBS formerly known as a CRB check, but some rogue employers have tried to bypass that by demanding prospective employees use their rights under the Data Protection Act (DPA) to see information held about themselves.
This ‘Enforced Subject Access’ bypasses the legal criminal record check process, overriding safeguards that only allow for checks and disclosure of information appropriate to the role being applied for.
The Ministry of justice has, just this month outlawed this practice as and from the 10th of March 2015. “It is now a criminal offence under section 7 of the DPA to require an individual to make a “subject access request” to retrieve information about their convictions and cautions and provide that information to a person”
(Example)
An individual applies for a position as a waiter at a restaurant, but is told that they cannot be offered the position until they provide a copy of their criminal record. The employer states that they must make a subject access request in order to gain this information and they will only be appointed if it is supplied. The employer will have committed an offence under subsection 56(1) (a) of the DPA Enforced Access Employer Requests
An individual or employer who requires someone to make a subject access request is committing a criminal offence. The request alone is now an offence. It is now time to ensure your company changes any necessary prerequisites in the recruitment phase to ensure you are in compliance.
Committing such an offence in England and Wales can carry an unlimited fine, while in Scotland the fine can be unlimited if heard under solemn procedure or £10,000.In Northern Ireland, the maximum fine if convicted under a summary offence is £5000, or if convicted on indictment, the maximum fine is unlimited (unless expressly limited by statute)
Further information can be found on the ICO website using this link Code of Practice
It is now time to inspect your current recruitment policy and procedures and check you are not in breach of the aforementioned Act. Further information can be found on the ICO website.
Bright Contracts – Employment Contracts and Handbooks.
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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.
