Business Archives - Page 2 of 2 - Blue Tree HR Solutions

Employee Holiday Allowance

Posted on May 28, 2019April 28, 2023 by Blue Tree HR

“Staff are wanting more holiday!”

“A member of staff is asking for an increased holiday allowance. How much holiday are other firms offering? If I give them extra holiday it’s not fair on the other employees, how should we manage this?”

Employee holiday allowance is a hot topic! Staff wanting additional holiday is a reoccurring concern for business owners – staff are wanting more than the standard 20 days plus bank holidays.

It also seems to be a common occurrence that people are requesting additional holiday at the job offer stage too. With the high employment rates currently in the UK, good candidates can be short supply and in some instances making demands on their new would-be employers.

With large corporate companies generally providing their employees with holiday allowances higher than the statutory 5.6 weeks per year. This is leaving smaller businesses and start-ups trying to keep up to ensure they retain their staff and recruit good people.

Paid holiday has always been an emotive subject, and woe betide the HR manager who makes a wrong calculation of a part timers holiday allowance!

So, on the whole, workers are striving for a better work-life balance and more annual leave can help with this.

Families often have both parents at work, they often need extra time off to cover children illnesses, appointments and school holidays.

Unfortunately, employees generally don’t appreciate the cost involved in giving their staff all extra holiday allowance. It can be a big cost consideration for businesses.

What are the options?

Every situation is different, and it will depend on the business. As mentioned above, there can be significant costs involved. Having staff out of the business for an extra two days per year means less output at work and more days with absent staff, with work needing to be covered.

Managing the staff holiday calendar can be problematic.

Sometimes, there are people in the workplace who don’t actually want extra holiday and find it hard to use the holiday allowance they already have.

Rewarding Long service

The first option is to consider rewarding long service with additional holiday allowance. For example, some schemes offer an extra day per year after every 5 years of service.

Unpaid leave

It may be an option that staff can request unpaid leave, allowing staff to book unpaid leave to top up their holiday allowance. This can be manageable for some businesses. Best practise, would be asking staff to request in advance and not just be absent because it’s a sunny day.

Parental Leave

Remember that, eligible parents of children under 18 are legally entitled to eighteen weeks of parental leave. Usually a maximum of four weeks in any one year, the employer can agree to more, depending on their policies. This is unpaid leave and both parents can take parental leave during each child’s childhood, for more information go to https://www.gov.uk/parental-leave

Parental leave information – Government website

Holiday exchange scheme

How about considering a scheme where employees can purchase additional holiday or sell unwanted holiday. Usually a maximum of one week. How much does a holiday day cost? The cost of a holiday day is their calculated day rate and this is taken out of their salary over the year. For example: if they are paid £120 per day – £10 will be deducted from their salary each month of the year. This can be beneficial in helping with an employee’s finances. Effectively, spreading the cost over the year, instead of deducting one day’s pay, as would be the case for unpaid leave.

A good work-life balance is important to your employee’s wellbeing. So it’s really important they take their holidays. However, if you have employees who find they always have days left at the end of the holiday year it allows them to convert unused holiday to cash.

Statutory requirements

Statutory holiday entitlement in the UK is 5.6 weeks per year. This includes 8 bank holidays. Of course, you are within your rights to stick the legal minimum and not allow unpaid leave unless employees have a statutory entitlement.

How will increasing holiday benefit my business?

Are you are under pressure to increase your employees holiday allowance? There are some possible benefits:

Reduces unauthorised absenteeism
Employees who choose to take additional holiday may be more productive as they are less tired
Encourages employees to plan in advance which in turn can make it easier for your business to manage resources/cover

Managing holiday

If you need support managing holiday allowances for your team or you have any other HR query, please get in touch.

Being The Employee On The Other Side Of The Table

Posted on February 26, 2019April 28, 2023 by Blue Tree HR

Have you ever thought about how your employee is feeling during their meeting with the boss?

As a manager or supervisor, it may be difficult to appreciate how it feels for the employees sitting opposite you during the meeting if you have not experienced it yourself. You may not remember the trepidation you had when you were due to have a one to one with your boss or the uneasiness you had speaking up about your performance in an appraisal.

I have been managing HR and personnel issues for over 15 years, but I had my fair share of meetings on the other side of the table before I was a manager, this includes performance reviews, disciplinaries and grievances.

Getting a Telling Off!

In my first job, I was involved in a huge mistake, having been left to work on my own, a large glass container holding a valuable ingredient had a crack in it. Cutting a long story short, with the help of a colleague I disposed of it.

The next day, I was sent to the Production Managers office – I remember it clearly over 20 years later. He shouted and swore at me, he was red-faced and angry, and I was holding it together as I was petrified. I had unknowingly discarded all of the remaining stock of this ingredient, which would take at least 8 weeks to produce. He accused me of losing the business thousands of pounds and that it would reduce workload for the whole business for many weeks.

I was not given advance warning of the meeting, nor given an opportunity to give my side of the story, I was alone and being shouted at by a senior manager.

In reality – what did this meeting achieve? I was now a scared employee, worried about using my initiative in the future. Confused as to why a new employee would be left with such high-value risk. My opinion of the manager was now tainted, and I felt they treated their staff terribly, yes I had made a costly mistake, but was I entirely to blame?

In later years, I was in a situation where I believed I was being treated unfairly. So, I filed a grievance. I was told that I should not stir up trouble, but I felt determined to right this wrong. I was fortunate in that the managers dealing with the grievance were understanding and showed concern for my circumstances.

People do not make grievances for fun.

In my experience it was a stressful time, I would not have carried on with the process if I did not feel so passionate about the circumstances.

Everyone is different and the reactions to a meeting with a senior manager can vary depending on so many factors. I have seen people shaking in fear of their annual performance review, even when they get on well with their manager, they are worried about what might be said in the meeting.

I have observed people telling long convoluted lies, to try and explain mistakes. The employees are so apprehensive that they make the situation worse.

Think about how the person is feeling on the other side of the table.

All managers should appreciate that there is a difference in seniority between you and the member of staff. Even if you think you are a friendly manager, who is easy to approach, with an open-door policy, your staff will always think of you as the boss, and with that comes a relationship where you are in charge and they should respect your opinion.

Staff will want you to say nice things about them, but also know that it is your job to tell them when you are not entirely happy with their performance or there is a problem.

These days statutory requirements ensure that staff are treated fairly, and all employers should provide the basic statutory rights for staff involved in grievances and disciplinaries. It is also vitally important that you think about the persons’ feelings too.

Prepare for your meetings and make sure you consider what their reaction may be.
Be patient, listen, show empathy,
take a break if needed and always remain calm.

In every staff 1-2-1 meeting it is important that the employee feels listened to, and the managers compassion for the situation, as well as behaving in a professional and unbiased manner at all times.

Any meeting or conversation will be much more beneficial if conducted well and the employee isn’t just sitting there hoping it will be over as quick as possible!

If you would like some support and advice on preparing for employee meetings, please get in touch.

Melanie Knight – Blue Tree HR Solutions

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10 Things You Must Do When Hiring An Employee.

Posted on February 8, 2019 by Blue Tree HR

1. Carry out checks on the applicant

Once you have found a suitable candidate for the position there are checks that must be completed.

Right to work checks are legal requirement (ask the candidate to show you their passport or birth certificate or relevant visa. More information can be found at https://www.gov.uk/legal-right-work-uk
Check that the candidate has the necessary qualifications as stated on their CV or at interview, you can ask the candidate to provide copies of their certificates. This applies to any qualification such as academic qualifications or a Fork lift truck driving licence. If it is relevant to your business, it is important to get the evidence.

Where necessary (i.e. care industry or working with children) ask the candidate to complete the DBS checks process as soon as possible

2. Make Offer and Get Acceptance

Send a written offer letter to the candidate. This document provides the employee with the conditions of employment, ask the candidate to reply in writing or email to accept the offer. If you have a period of time before the candidates start date make sure you keep in touch with them, ‘to keep them warm’, this is important for letting the new candidate know that you are looking forward to them joining the business. Let them know what will happen on their first day, and what to expect for the first weeks of employment.

3. Provide a Contract of Employment

This contract outlines the employee’s rights, responsibilities, and working conditions. The ‘principal statement’ must include the following details as a minimum, and can be included on an employment letter, a written employment contract, or as a separate document.

Name of the employer.
Name of the employee.
Job title and description.
Rate of pay, and payday details.
Working hours.
Start date.
Holiday entitlement (including public holidays).
Where the job is located.
Notice periods.
End date (if fixed term contract)
Information related to any collective agreements.
Pension arrangements.
Who to contact if you have a grievance

4. Make sure your business is adequately insured

To protect your business from claims made by employees who have been injured or fallen ill at the workplace. You must take out adequate Employers’ Liability Insurance cover due to the terms of the Employers’ Liability (Compulsory Insurance) Act 1969.

5. Register as an employer with HMRC

In almost all cases, you must register as an employer with HMRC within four weeks of taking on your first employee. As an employer, you will be responsible for paying your staff a salary and deducting any PAYE (income tax) and National Insurance Contributions from staff salaries.

6. Payments

When you pay your staff, you have to provide each employee with a payslip which details their gross and net pay, income tax and NICs deducted, and any other deductions (such as pensions contributions).

Since the implementation of the RTI (Real Time Information) regime in 2013, you must also submit payroll data to HMRC each time you pay your staff. Previously, this information needed to be provided at the end of each tax year.

You must also comply with the National Minimum Wage legislation. Go to https://www.gov.uk/national-minimum-wage-rates to find out the current rates of pay.

7. Pension auto-enrolment

New legislation means that employers must enrol their staff into a workplace pension scheme if they are aged 22 or over and earn at least £10,000 or more. (2018)

For more information go to https://www.fsb.org.uk/benefits/finance/pension-service which has a great pension set up service for small businesses.

8. Holiday entitlement, parental leave, sick pay, maternity / paternity pay

Employees are entitled to 5.6 weeks paid leave per year this is applicable to all employees including zero hours contractors, this includes bank holidays. This is calculated by working out how much of the year the employee will work and how many hours per week they work on average.

There are various rights for parents including paternity, maternity, parental leave, adoption leave. Make sure you familiarise yourselves with these in advance to avoid infringement of employment law.

9. Health and Safety

You will be responsible for providing your employees with a safe and secure environment to work in.

You don’t need a formal written H&S policy unless you have five or more employees, however you should take time to assess the risks your staff face at work and manage accordingly. Provide safe systems of work, training and protective equipment.

10. Engage Your Employee

Remember first impressions count, and for this reason it is important to start off well with your new employees. Being organised for their first day, having their contract of employment ready and being able to answer their questions regarding their employment, having their email set up and access to any IT systems are a good start.

People generally want to feel useful as soon as possible so make sure you have planned their work for the first week and month, give them a feel for the business introduce them to all significant people that they will be dealing with, start any required training as soon as possible.

It is commonly known that one of the main reasons people leave their job is because they didn’t like their boss, so have this is mind.

Give regular feedback and deal with any issues immediately, this prevents the niggles from becoming big problems and aid an open and honest working relationship.

There’s no doubt about it, being an employer can be a challenge, it can also be rewarding and greatly beneficial to your business when good employees are in place. An engaged workforce is a valuable asset, but they will ongoing management.

At Blue Tree HR Solutions, we aim to help business owners manage their employee with minimal hassle.

If you require support with managing new employees or any ongoing staff issues, please get in touch.

Our service is completely flexible in order to suit your company, please get in touch for further information 01787 695084 or melanie@bluetreehr.uk

Who is snooping at your personnel files?

Posted on June 15, 2018 by Blue Tree HR

[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]Back in the 1990s I started my first full time job, I was earning £7000 per year and I thought I had hit the jackpot! I really enjoyed my role, learning different skills and working with a friendly team.

I was really surprised when one day my fellow colleague asked me “Do you want to know how much everyone is earning?”

I’ll be honest, what other people were earning in the company was of no interest to me, I was a newbie and happy with my lot. I found it strange that this person was so intrigued.

Anyway, this colleague told me that when he came in at weekends to work, he was given access to the key store. Now it wasn’t that simple that he found the key to the personnel file in there, no.

He found the key to the MDs office, and in that office, there was a cupboard, inside the cupboard hanging hidden from view was another key, this key opened the desk drawer.

The desk drawer had the key to a filing cabinet, inside the filing cabinet was another key. This was the key to the fire proof/bomb proof personnel file located in another office. Shame it wasn’t sneaky employee proof!

This employee accessed every employee file and found out the salary of every worker.

A lot of effort to go to – but it shows that if someone is determined they will figure it out.

Also, what a lot of effort the MD or personnel manager had to go to every time they needed to access the files for every day purposes. Probably how this employee had figured out the hiding places as anyone would have had to follow this routine of getting each hidden key when they wanted to file something in this filing cabinet.

I never told anyone about my colleague’s antics and he got away with what surely was an act of dishonesty, and quite possibly gross misconduct. He knew it was wrong and revelled in the fact that he had done it. I wasn’t in HR in those days and I dismissed is as none of my business.

Generally, most files are electronic these days, but there is still a dusty old filing cabinet for personnel files in many offices.

What information is lurking in the filing cabinet and is it secure?

Nowadays, with data protection, we like to think that employers are generally more careful with personnel files, but are they?

Are businesses relying on their staff being honest?

Is sensitive information or personal information left on your desk or in a post tray?

Do you limit access to your computer every time you leave it?

Are sensitive folders on your PC, password protected with strong passwords.

Does your PC automatically populate passwords?

Does your office use a shared printer – could your confidential print-outs accidentally get picked up by the wrong person?

With the new General Data Protection Regulations (GDPR) which came into force in May 2018. It seems businesses are desperately making sure they have privacy policies in place, emailing everyone for consent and business owners are worrying that they might get in trouble for emailing somebody who hasn’t given written consent.

But are people protecting the data that is under their noses? Are the paper copies safe in your business?

People do tend to have a curious nature and even though they probably don’t consider opening confidential filing cabinets with secret keys, people would take a peek if information is left lying around.

GDPR turned into a bit of a last-minute frenzy, so now the heat is off, take a few minutes to check that personal information is being kept safe in the office – cabinets are locked, keys are secure, computers are password protected, and all staff are taught in general good practises of data protection.

For more information about GDPR best practises at work and HR software to manage your personnel files – eliminating the requirement for a filing cabinet– please get in touch. melanie@bluetreehr.uk[/vc_column_text][/vc_column][/vc_row]

Do you have a Bully in your work place?

Posted on April 16, 2018 by Blue Tree HR

Bullying… It’s talked about a lot, but generally it is regarding school and school children.
However, bullying is a big issue in the workplace, it can cause a lot of stress for all involved and a real headache for the manager or employer trying to deal with the problem.
There is evidence that the incidence of workplace bullying is rising, mainly due to changes in working practices and increased economic pressures.
Bullying can have a significant impact on the victim’s mental and physical health, leading to increased sickness absence and lower productivity. It can also have a negative effect on morale and may cause the employee to resign.
Everyone is encouraged to speak up about bullying and policies generally say that bullying will not be tolerated.

BUT…In reality, what can be done about bullying in the work place – two adults, one feeling harassed by the other?
Most of the bullying is happening behind closed doors or covertly in some way.
It is difficult to discipline somebody where there is little or no evidence, and you need to be treating both of your employees fairly.

What you need to know:
1. Be aware that there are several legal and practical reasons why you should take proactive steps to deal with bullying and harassment in the workplace.
o Employers are liable for acts of harassment carried out by their employees ‘in the course of employment’, regardless of whether the employer knew or approved of an employee’s actions.
o Where the act of harassment is closely connected with the employment relationship, there may also be a civil claim for damages against the harasser and the employer.
2. Familiarise yourself with the definitions of harassment.
o ACAS defines workplace bullying as “offensive, intimidating, malicious or insulting behaviour, an abuse or misuse of power through means that undermine, humiliate, denigrate or injure the person being bullied”.
o The Health and Safety Executive stresses that bullying is a pattern of behaviour rather than isolated instances, and states that it “involves negative behaviour being targeted at an individual, or individuals, repeatedly and persistently over time”.
3. Ensure you have a Bullying and Harassment policy and that the policy is well-communicated throughout the workplace.
o An anti-bullying policy is of little value unless the organisation communicates its existence and contents effectively to employees at all levels.
4. Follow the company disciplinary procedure if it appears that bullying or harassment may have taken place.
5. Be consistent in the way that you handle complaints of bullying or harassment.

Preventative measures
Anti-bullying measures should focus on prevention, which requires everyone in the organisation to be committed to creating a culture of dignity and respect.
There is evidence that bullying is less likely to occur in an environment where employees feel that the organisation listens to and values their views. Employers could create this culture by: conducting regular employee engagement surveys on various aspects of the workplace culture and environment.
Employers should involve all stakeholders in creating a positive organisational culture and devising and agreeing an anti-bullying policy, including senior managers, line managers, trade unions and other staff representatives, HR, health and safety and occupational health professionals.
The organisation should ensure that the principle of dignity at work and a zero-tolerance culture towards bullying are built into other systems, for example performance management and grievance and disciplinary policies.

Advice to anyone being bullied.
People who feel that they are being bullied should try the formula “confront, record, inform”, before using a more formal procedure:
• Confront: The employee should tell the person who is bullying him or her how he or she feels. The employee should put it in writing if necessary so that he or she can say what he or she wants to say without getting emotional, and so that the bully cannot later say that he or she did not know how the victim felt.
• Record: The employee should keep a diary of the bullying behaviour, including details of incidents, names (including witnesses’ names), dates and how it made the employee feel.
• Inform: If the bullying continues, the employee should speak to someone he or she trusts about it. This will most likely be the line manager, unless, of course, it is the line manager who is the bully, in which case employees should know that they can talk to someone else, for example a designated person in HR, a trade union official or an occupational health professional.

Advice to Employers
Firstly, follow your policy.
The employer should ask:
Is the behaviour excessive, for example in tone or frequency?
Are certain individuals singled out?
Is it broadly fair or without justification or a sense of proportion?
Does the behaviour seem motivated by passion, or by a desire to demonstrate superiority and power?
The manager should advise the complainant to keep evidence of any further incidents that occur, and not to be afraid to make further complaints if necessary.
Following resolution, the manager should meet with the parties from time to time, to minimise the risk of further and long-term damage to individual and team relationships, avoiding the need for management time to be spent on more formal procedures further down the line.
Where the manager cannot resolve the conflict, the organisation may be able to ensure that the parties have less contact in a way that is acceptable to both and does not blame or punish either.
It is vital for the organisation not to “sweep it under the carpet” and allow problems to escalate or fester. Bullying is a serious accusation and as outlined above can have serious consequences if not managed correctly.

If you need help and advice on this or any other HR query – please get in touch on 01787 695084 or email melanie@bluetreehr.uk

Are your staff self-employed? Or not? Find out here…

Posted on October 27, 2017June 19, 2023 by Blue Tree HR

There are many businesses that use self-employed contractors instead of employing staff. And who can blame them when they can avoid the minefield otherwise known as Employment Law! Also, side-stepping having to commit to the regular provision of work, pensions, holiday pay and sick pay.

If only it were that easy…..

Unless you set clear boundaries and manage the contractors effectively they can cause problems for your business or even make allegations that they were in fact employed and make a claim via employment tribunals.

Employed

Works part-time or full-time under a contract of employment and the company pays their salary. They are expected to comply with company rules and can be managed through a disciplinary process. Employees have recognized rights and duties. Employers have many commitments including, provision and contribution to an auto-enrolment pension, paid holiday and notice periods.

Self-employed

A self-employed person will run their own business and take responsibility for the success of their business. Self-employed people are more likely to be contracted to provide a service for a client. They will not be paid through PAYE and don’t have the same employment rights and responsibilities as employees or workers. They are not entitled to holiday pay, paternity or maternity leave, pension provision etc.

A self-employed person still has protection for their health and safety on a client’s premises, in some cases, will be protected against discrimination and will have their rights and responsibilities set out in the terms of the contract with their client.

The key is sticking to the agreement and following the guidance set out by HMRC.

Below are indicators of what is self-employment to check the status of self-employed individuals.

Self-Employed:

should exercise independent control and judgement over how the work is carried out
would normally work for a number of people
have professional indemnity insurance
It should be possible to make a loss
have the right to appoint a substitute and are not necessarily required to carry out work personally
can decide whether to accept offers of work or not, this, of course, leads to them having the option to determine their own working hours
normally have to correct faulty work at own cost and time
provide their own materials and equipment

Ideally, a business should be able to tick yes to the majority of the points, if not maybe it is time to think about how to clearly define the self-employed status.

If you are asking self-employed workers to attend staff meetings, be at work at a certain time, wear a particular uniform, sell a specific brand of product, charge a certain price, have performance reviews or disciplinary meetings – you should have a rethink.

Research by Citizens Advice has suggested that as many as 460,000 people in the UK could be falsely classified as self-employed, costing up to £314m a year in lost tax and employer national insurance contributions.

Following the recent landmark case where a tribunal ruled that Uber drivers were not self-employed, this has become a hot topic and the government launched a recent inquiry which will look at the status and rights of agency and casual workers and the self-employed for the purposes of tax, benefits and employment law, and how to protect them.

The reasons why Uber drivers are not self-employed:

The company claimed the drivers’ made a contract with the passenger and the company was merely their agent, but this didn’t reflect the reality of the situation—the passenger booked through the company and the driver accepted the booking
Uber interviewed drivers to assess their suitability which looks like recruitment
Uber retains the passengers’ names, addresses, and contact details and takes their money
Effectively drivers had to accept trips
Uber set the route for the driver to follow
Uber fixed the fare
Uber rated the performance of their drivers
Uber handled complaints against drivers and rebate

Penalties

If the contractor works purely for the same company over a period of time they may gain ‘worker’ or even ’employee’ status in the eyes of an employment tribunal. Claims are often made by contractors who have missed out on a redundancy payment or who feel they are entitled to holiday pay. If a claim is submitted for a redundancy payment it is likely to be accompanied by a claim for unfair dismissal. There is, surprisingly, little financial risk to the contractor in making a claim in the employment tribunals.

Summary

Ascertaining whether a worker is an employee or self-employed is not as simple as looking at the label the parties have attached to the relationship.

Employment tribunals will look at the realities of the relationship as a whole, considering a range of factors and making a balanced decision.

The importance of ascertaining employment status cannot be under-estimated, because there is so much at stake for the employer who tries to deny his worker’s statutory employment law rights.

It is unlawful for the employer to privately agree with his employee that the statutory rights will not apply. The only exceptions are where there is an ACAS-approved COT 3 form signed or where the employee has signed a properly drafted Settlement Agreement after having received independent legal advice.

Having self-employed workers is a perfect solution in many industries and we have experience with various employers who have self-employed contractors, for example, hairdressers, beauticians, mortgage advisers and airlines hiring self-employed pilots. And when managed correctly the arrangement works well for both parties, and everyone can benefit.

Please get in touch if you have any queries regarding self-employed people in your workplace, or if you have any other queries relating to expert HR advice for small businesses.