Author: Blue Tree HR

There are many implications of the Coronavirus pandemic on businesses, one of which is the situation with holiday requests at work. One important point to note is that employees who have been furloughed will still accrue their holidays. This realistically means that they could be off work for months, return and book a holiday. It can be difficult to manage these requests, especially when making the slow return to work after lockdown. As the summer starts and holiday resorts open, you can bet that the holiday requests will start to stack up.

These are some tips for managing your holiday requests at work after lockdown.

Holiday during furlough

It may be pertinent to stipulate that furloughed employees take some holiday before they return to work.  You will be required to pay them full pay for any holiday so you will need to consider your circumstances.  Enforced holiday will be cost effective in the long run as you can continue to claim job retention scheme grant for staff on holiday during furlough periods.

Understand Your Workload

It is natural to want to give all your staff holidays when they request them, after all, we could all be doing with a break! However, you must be still able to fulfil the needs of your business and if you have a barrage of holiday requests on your desk, you mustn’t leave yourself understaffed. Take some time to understand your requirements and reach an arrangement with your employees to ensure you are covered.

Consider Welfare of Employees

You may find that some employees have worked all the way through the lockdown but are reluctant to take holidays before the lockdown is fully lifted. Employees that work 5 days a week are entitled to 28 days paid holiday each year (as a minimum) and they must be taking time to rest and recuperate. It is one of the responsibilities of an employer to ensure employees are not carrying over all their holidays to the next year, especially if they have not been on furlough, as this suggests they have not had adequate rest.

Prioritise Your Workforce

You may want to consider prioritising those employees that have worked through the lockdown. Although you should manage this on a case-by-case basis. Some employees may have been on furlough but have had to home school or look after a loved one, so it is by no means a ‘one size fits all’ rule. Communication is key and understanding the concerns of your employees is just as important as ensuring the workload is covered, when it comes to dealing with holiday requests at work. 

Carry Forward

It is safe to say there will need to be some requirement for carrying holidays forward this year, either because demands have been such that it has not been possible to take holidays, or employees have been on furlough. Employees must be getting the required rest, but depending on business needs, you may want to consider a bit of flexibility with carrying holidays forward to next year. 

There is a new government law in place that states employees should be allowed to carry forward 4 weeks’ paid holiday if they have continued working and could not take holidays (particularly prevalent for social care staff) or they have had to self-isolate or had Coronavirus and not been able to take their holidays.

Holiday management using HR Software.

Managing holiday is altogether much easier if you have an HR software in place, and the time savings made in holiday management alone are a great cost saving.  Please go to https://bluetreehrsolutions.co.uk/hr-software/ for more information on our software options.  With a free demo account available to anyone interested.

If you have any concerns over holiday entitlement and how to deal with requests, you can contact us, and we will be happy to discuss the options available to you.

There are new IR35 rules (or off-payroll working) that will come into place in April 2021. These were postponed from 2020 due to the Coronavirus pandemic. IR35 changes have been brought into place to ensure that contractors are working as a contractor and not an employee in disguise. HMRC decided to implement this new rule as some contractors and clients were using the tax benefits associated with working on a self-employed basis while operating in a role as an employee of the company.

Inside and Outside IR35

If a contractor is found to be inside IR35, it means that you are recognised as an employee by HMRC, which means that you should be paying the same income tax and National Insurance like any other employee. If you are outside IR35, it suggests you are self-employed, which means that you have the tax benefits of a self-employed worker but without the benefits, such as sick pay. 

The IR35 Changes Checklist

• Does your contract specify specific start and finish times? If so, this would suggest employment, rather than self-employment.
• Do you have guidance on completing your work, will the client oversee your work? This is more like an employee’s role than a self-employed contractor.
• If you fall outside IR35, you will likely be able to substitute yourself for another contractor, if need be. This is one of the main ways to show HMRC that you are outside IR35. If the client must provide you with work, and you must take the work, it suggests you are an employee and not a contractor.
• Self-employed workers are usually paid on a project basis, rather than receiving a salary regardless of work completed. They are often paid in milestones, i.e., before the project starts, in the middle of the project, and at the end.
• You would usually provide your own equipment when working on a self-employed basis. It would be unusual for the client to provide this, although it depends on the client and the confidentiality of the work.

The three main principles are control, substitution, and mutuality of obligation. Control relates to what level the client has over the work you do. Substitution is based on whether you can provide someone else to do the work, or if it is a personal service, and mutuality of obligation relates to whether you need to receive and accept projects.

If you want to check IR35 status, you can do it here.

Most business owners are currently distracted by Coronavirus and ensuring they manage the needs of their staff working remotely. There are a lot of things to consider. However, there will be changes to the employment law 2021, and it is important to be aware of these. You will need to put measures in place to ensure your business is complying with these. These are some of the changes to the employment law 2021.

National Minimum Wage and National Living Wage

Employees aged 23 and over (current age is 25 and over) will be entitled to the National Living Wage from the 1st of April 2021. The rate will increase from £8.72 to £8.91. You must pay any employees aged 23 and over an hourly rate of £8.91. The National Minimum Wage will also increase for all other age groups. Employees aged 21-22 will be entitled to an hourly rate of £8.36, employees aged 18-20 will be entitled to £6.56 per hour, under 18’s will be £4.62 and apprentice level will be entitled to £4.30 per hour. You must update your payroll records in plenty of time before this legislation takes effect.

IR35 Changes for Private Sector

The IR35 changes were postponed during the Coronavirus pandemic, and they will now apply from 6th April 2021. Employers should ensure that they are complying with the IR35 regulations. It means reviewing your current contracts to determine whether contractors sit outside IR35 or inside IR35. Working inside IR35 means that a worker is working as if they are employed; rather than self-employed. It means that, as a business, you will have more tax to pay. If you want to ensure any of your workers remain outside IR35, you should update any contracts to reflect the difference. For instance:

• The contract should state that the contractor can be substituted at any time if necessary. The contract should not have set and breaks and lunches.
• The worker should not need to request holidays; they should only be informing you about a holiday.

These are just a couple of areas to look at but the full contract will need to be analysed to represent a self employed worker.

If the contract states that the contractor is working in the same way as employees; and under the same regulations and restrictions, you will have trouble proving that they are outside IR35.

Redundancy Pay Limits

The employment law 2021 states changes to limits on statutory redundancy pay from the 6th of April 2021. The limit will be £544 per week, and you must update your systems to reflect this important change.

Other Statutory Increases

The weekly statutory rates will increase for maternity, adoption, paternity, bereavement, and shared parental from 4th April 2021. This figure will be £151.97. Statutory sick pay will also increase to £96.35 on the 6th of April 2021. You must ensure your policies and systems are updated to reflect these changes.

Settled Status

You should be mindful of the settled status that may affect EEA residents. According to the new employment regulations since Brexit, residents within the EEA, living in the UK, will need to apply for pre-settled or settled status, under the EU settlement scheme. They must do this by 30 June 2021. It is a straightforward process, and you should ensure all your employees have completed this on time.

If you want further clarification on the UK employment law 2021 or if you have any other HR issues, you can email melanie@bluetreehr.uk or call 07516 335 419.

The Coronavirus pandemic has forced many businesses to work remotely, and this is a trend that is likely to continue, even when normality resumes. Many business owners don’t feel the need to return to the office. Some simply can’t afford to run an office anymore.

It can be daunting to try and manage a remote workforce and ensure you are doing it well. It is entirely possible to manage those undertaking remote jobs, just as well as your employees based on site. These are some helpful tips for managing remote staff.

Offer Reassurance

The COVID-19 pandemic has been a difficult time for everyone. Some people have lost loved ones or faced other hardships. Everyone has had a hard time in some respect, and employees need to feel reassured; more than ever. It can be as simple as just checking in with them daily to ask how they are and if they need anything. A quick call or text is a simple act, that can make a massive impact. Employees need to know that they are valued and always supported.

Provide Equipment

Not everyone has the means to buy a laptop or PC, and employees should not need to use their equipment for work purposes. Make sure your employees have everything they need, including a comfortable chair, laptop, and phone. They may also need access to a camera if they will be involved in online calls. It is also worth creating a remote working policy, so that employees understand what the expectations are.

Encourage Self-Management

It can be challenging not to have visibility of your employees. Realistically, you don’t know if they are working or out shopping! Trust is vital. Do not micromanage your employees, as this will make them feel demoralised. It may be beneficial to focus on productivity rather than strict working hours. If your employees get their work done and are available at vital times, it shouldn’t matter if they take a longer than usual lunch break or pop out during the day for a quick shopping trip. Greater flexibility is one of the remote working advantages.

Recognise Employees

Recognise employees who are doing well during a difficult period. You don’t need to give them money or a promotion; a simple thanks can be sufficient or even consider buying them some lunch. Employees who are recognised will be more loyal to your company and will feel better overall.

Incorporate Social Time

In the workplace, there is usually a good mix of both work and social time. It is worth encouraging this for employees working remotely. It can be as simple as an online quiz, having an online lunch together, or just a general catch-up. With so many people working on their own and not seeing their friends and family, you must do all you can to ensure social time is high on the priority.

If you need HR services Essex or throughout the UK, including any issues you may be having with remote working, get in touch, we will be happy to help manage these for you.