Blue Tree HR Newsletter November 2024

Why should you care about your employees’ ‘engagement’?

‘Engagement’ is an umbrella term we HR consultants use to describe your employees’ enthusiasm, commitment and motivation towards their work and your business.

Their levels of engagement have a direct impact on their performance and your bottom line.

That’s why working on engagement within your business is really important.

Now, with all things HR, it can easily seem quite intangible. But there’s a really easy way to measure your team’s engagement.

Engagement metrics not only help us to understand how engaged your team are, but they also help us to create benchmarks and report on improvements in the future.

  • Employee satisfaction surveys:

These surveys provide insight into how employees feel about their work environment, management and overall job satisfaction.

  • eNPS (employee Net Promoter Score):

This metric gauges employees’ loyalty and willingness to recommend their workplace, clearly indicating overall engagement levels.

  • Turnover and retention rates:

Monitoring how often employees leave or stay with the company helps assess engagement.

Want to know how engaged your employees are? Get in touch with us for a confidential chat.

The 4-day week reboot

The traditional five-day work week, long seen as the standard, is increasingly viewed as outdated. Many attribute productivity problems to the rigid focus on hours and days rather than output and effectiveness.

A new 4-day week pilot project will launch this month, allowing companies to test the model along with other flexible working practices, such as flexible hours and nine-day fortnights. The results will be presented to Labour next year, with the hope that political support will grow for this shift in work culture.

It offers a potential solution to improve our work-life balance, increase productivity and make us happier and healthier.  But can it be a “one size fits all” answer for every business?

https://www.peoplemanagement.co.uk/article/1887098/employment-law-perspectives-four-day-week

HR Audit: An essential strategic tool for your business 

As an independent HR consultant, our primary goal is to work in your business’s best interests and help you to achieve your goals.

When we start working with you as a Strategic Partner, we need to understand how your business ticks, the risks it faces and the opportunities available to you.

And the most powerful tool we can use to help us do this is an HR Audit.

What is an HR Audit?

An HR Audit is a comprehensive review of your company through the lens of an experienced HR expert.

Once we understand your goals and what you’re trying to achieve, we follow a structured approach to look at what’s happening in your business.

What are the main benefits of having an HR Audit?

  • Peace of mind

We’ll ensure your company is legally compliant and protected against costly employment tribunal claims.

  • Data-driven decision making

HR can often feel intangible. That’s why we’ll create HR Metrics, report on them and create a RAG-rated priority list of actions we need to take to help you to achieve your goals.

  • Customised and cost-efficient support

Once we know what needs to be worked on, we can provide you with the best possible support and price to make it happen.

If you’d like to review your business’s relationship with its employees and create the best possible action plan, please get in touch with us for a confidential chat today.

Did you know…..82% of managers and workers who entered management positions had not received proper training and were identified as ‘accidental managers’. If not carefully managed, this can lead to low employee engagement, reduced productivity and a toxic workplace culture.

https://www.peoplemanagement.co.uk/article/1887801/two-five-employees-not-think-manager-trained-enough-survey-finds

Q&A

What’s the difference between banter and bullying?

Banter is all about light-hearted, playful teasing that’s mutual and doesn’t cross the line—everyone’s in on the joke and no one gets hurt. On the flip side, bullying is targeted, mean-spirited, and aims to upset or put someone down, often with a power imbalance in play. It keeps going even when the targeted person isn’t okay with it. The big difference? Banter respects boundaries; bullying doesn’t.

Can I force employees to use annual leave for Christmas when the business is closed?

Yes, you can require employees to use their holiday allowance when the business is closed, like at Christmas, but you’ve got to follow some rules. Check their contracts and give proper notice—usually, notice must be at least twice the length of the holiday. Just ensure you’re on the right side of the law, communicate it clearly and you’ll be good to go!

Do I have to offer flexible working?

You don’t have to offer flexible working, but employees can request it. As an employer, you’re legally required to consider these requests reasonably. Still, you can refuse if there’s a valid business reason, like impact on performance, extra costs or difficulty meeting customer demand. Ensure you handle requests fairly and follow the correct process to avoid issues.

Blue Tree HR Newsletter October 2024

What do you really know about Employer Branding?

Employer branding isn’t just a slick logo or a clever marketing strategy; it’s a powerful force, connecting your values, strategies and policies with your people.

It’s what you stand for, how the world sees your business and the amazing experience you create for customers, clients and employees alike.

Happy employees will go the extra mile for you – and your clients – and profits increase.

Neglect your employer brand and you risk people feeling negatively about your business, which can lead to plummeting morale, reduced productivity and low client satisfaction.

Ready to build a powerful employer brand? Let’s dive in…

Define your Employee Value Proposition

Show off what makes your business unique, your vision for the future and why people should join – and stay – with you.

Know your internal brand

Host focus groups and run regular pulse surveys to find out how your teams really feel about you and your brand – then take action!

Stay aligned

Your employer brand should mirror your values, strategies and daily operations. Make sure everything matches up perfectly.

Highlight your CSR efforts

Showcase your commitment to social and environmental causes. A strong CSR reputation attracts top talent who care about ethics.

Encourage advocacy

Turn your teams into brand ambassadors! Encourage them to share positive experiences, represent your company at events and help refer new talent.

Discover how to build a winning employer brand that inspires your teams and delights your clients by downloading our latest guide today!

Get your FREE copy now!

Staff laughing with eachother while they work - taken care of by the best HR solutions company Blue Tree HR Solutions

Monk mode? Fake happy? Woliday? Time to catch up!

Are you up to speed on the latest workplace buzzwords? A study by an employee recognition platform, Rippl, has revealed a new set of viral phrases shaking up the modern workplace.

Like ‘office peacocking’, when employers spruce up their offices to lure employees back post-pandemic.

Keeping up with these expressions isn’t just about staying current —it’s about shaping workplace culture, understanding employee experience and expectations and engaging with critical topics. But the debate is on, do these phrases sensationalise every day work issues? Or do they actually highlight real trends?

https://thehrdirector.com/business-news/the-workplace/ghost-jobs-acting-wage-11-viral-workplace-buzzwords-need-know/

Shared Parental Leave Hits New Heights

Shared Parental Leave (SPL) uptake has hit a record new high, with HMRC data showing there were nearly 25,000 claims last year – far surpassing the 6,200 claims in 2015 when SPL was introduced.

Suzanne Caveney, an employment partner at Eversheds Sutherland, attributes this surge to the gradual but evolving attitudes towards shared parenting and improved workplace policies and pay.

Despite the progress, SPL usage still trails behind other countries like Finland, where paid family leave is standard for both parents. The data also reveals that SPL is more commonly taken by older, highly qualified individuals in large organisations, who earn higher incomes and have progressive gender role attitudes, compared with parents who do not take up SPL and pay.

https://www.personneltoday.com/hr/uptake-of-shared-parental-leave-reaches-a-new-high/

Lonely Hearts Club: The Rise of Workplace Isolation

New data from Gallup has shown a troubling trend: workplace loneliness is on the rise. A staggering 20% of employees report feeling lonely on a daily basis, with fully remote workers feeling it even more acutely at 25%, compared to 16% of office-based staff. This loneliness is affecting overall well-being, engagement and performance.

While some employers might think that bringing everyone back to the office will solve the problem, it may not address the root cause—and could make the situation even worse.

Employers should focus instead on boosting engagement by connecting teams to their work, the company’s mission and each other. Empowering managers to be culture champions can also play a key role in bridging the gap and combating workplace loneliness effectively.

https://hrzone.com/rising-workplace-loneliness/

How to Support Employees with ADHD

October is ADHD Awareness Month – the perfect time to celebrate neurodiversity and learn how to support employees with ADHD.

With 2.6 million people in the UK diagnosed with ADHD—and that number growing – understanding the condition is more important than ever for business owners.

Plus, as employment tribunal claims related to neurodiverse conditions are on the rise, it’s crucial to know how to support your team effectively to help them thrive and avoid any legal issues.

But how much do you really know about ADHD?

ADHD, or Attention Deficit Hyperactivity Disorder, is a neurodivergent condition affecting how the brain develops and works.

Symptoms typically fall into three categories: (1) inattentiveness and distractibility, (2) hyperactivity and impulsiveness, and (3) a combination of both.

But, here’s the thing, while people with ADHD experience challenges like forgetfulness and concentration – they bring unique strengths to the table! They often excel as leaders, demonstrating high emotional intelligence, and their creativity, unmatched energy and enthusiasm can be game-changers for your business.

Want to harness that brilliance? Here’s how:

Flexible Working: Offer adjusted hours and remote work options to help manage energy levels and focus.

Clear expectations: Break tasks down into steps, set clear priorities and deadlines, and use visual aids with written instructions to help keep things organised.

Open communication: Create an inclusive culture where people feel comfortable discussing needs and challenges, and provide necessary adjustments.

Training and coaching: Provide support in areas such as time management and organisational skills, as well as company-wide education on ADHD.

Keen to find out more?

Get in touch for an informative chat about ADHD, and how you can support and empower every member of your team!

Q&A

Can I refuse to provide a reference?

Yes, unless you’re legally obligated—for example, in an employment contract, for certain financial services jobs regulated by the Financial Conduct Authority or Prudential Regulation Authority, or as part of a settlement agreement. Your reference policy can limit what you include.

What do I do if I can’t get in contact with my employee? 

Check their schedule, then try contacting them via phone, text or email. If it’s not urgent, give them time, document your attempts and make use of emergency contacts. If there’s no response, follow up in writing and consider inviting them to a disciplinary hearing, following company procedures.

I only employ one person – do I need HR advice?

Yes! Even with just one employee, HR advice is essential. You may not need a dedicated HR person, but an HR Consultant can keep you compliant, legal and running smoothly.

HR Investigations

Watch our short video which outlines the process for workplace investigations.

If you need any support during a workplace investigation please get in touch.

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Additional Bank Holiday

The extra bank holiday next is raising a few questions, so I thought I would email you to clarify the situation.

Sometimes additional public holidays are granted by Royal Proclamation. There is an additional bank holiday on 19 September 2022 for Queen Elizabeth II‘s funeral. There was also another in June 2022 for the Queen’s platinum jubilee.

Employers need to decide how they will approach these upcoming additional days off. This will be determined to some extent by the wording in the contract. Where the contract entitles employees to take as paid leave “all bank and public holidays”, the employer will have no choice but to grant the extra day in the usual way or negotiate otherwise.

Where the contract requires workers to work on “all bank holidays”, the employer can require them to work on an additional day. If they are paid a higher rate for working on a bank holiday and the contract does not limit the number of bank holidays to which the higher rate applies, the employer must pay that rate for the additional day.

However, where the contract limits entitlement to a day off work (or to a higher rate of pay where bank holidays are worked) to the “usual eight” bank holidays,  or your contract may state the employee is entitled to 28 days of holiday and this is inclusive of bank holidays, the employer will need to decide its policy in relation to the additional day.

Giving Employees the Day Off

If the employer chooses to give its workers the day off as an extra day’s paid holiday (or pay them a higher rate if they work on that day), it should express this as being a non-contractual discretionary measure that applies only during the year in question. Otherwise, workers may, in the future, have grounds to argue that time off (or the higher rate of pay) on additional bank holidays is a contractual right, implied by custom and practice.

If workers will be required to take the additional day off out of their existing holiday entitlement, the employer will need to plan ahead to ensure that it gives them the requisite notice.

If some or all workers will be required to work on the additional public holiday, the employer may wish to consider a one-off discretionary day off in lieu, as a gesture of goodwill. Where workers will be treated differently, for example, one receptionist out of three is required to work but the other two can take the extra holiday days as leave, the employer should have objective criteria for this requirement and the choice of who will work, to minimise the risks of a discrimination claim (for example because of sex or race). In this scenario, the receptionist who works on the bank holiday must be compensated either by being paid or being granted a day off in lieu.

Keeping staff happy with your bank holiday policy

Employees would have heard that there is an extra bank holiday and may assume they are entitled to a paid day off. An alternative would be to ask staff to come in and perhaps allow those that are interested an extended lunch break to watch the proceeding on a screen.

Expert HR advice for small businesses

We hope that you found this blog informative. And remember, if you require expert HR advice for small businesses, or larger concerns, our experienced and professional HR team are always on hand to help. We offer both ad hoc HR and retained HR packages to suit any HR requirements. Contact our friendly team to learn more.

Constructive Dismissal – What it is and how to avoid it.

When an employee feels that they are being forced into resigning due to their treatment at work, they may decide to make a constructive dismissal claim. It can be costly to defend such a case and extremely challenging to defend, so you want to do everything you can to avoid it. It is, therefore, essential to be aware of the potential of a constructive dismissal case.

What causes a constructive dismissal claim?

A constructive dismissal claim exists when an employee believes that the employer is deliberately making decisions to cause them to leave. For instance, reducing their pay, demoting them, or changing working hours. For example, if a part-time worker is informed that their job needs to be full-time, this could be viewed as constructive dismissal, as it may not be possible for the part-time worker to take on extra hours. These are relatively straightforward and obvious, but constructive dismissal claims can be subtle. For example, demeaning an employee, bullying, or discrimination. These are cases that are more difficult to prove. Employees need to have completed two years of continuous service with the employer to be eligible to claim for constructive dismissal unless it is ‘automatically unfair,’ such as discrimination.

How to avoid constructive dismissal claims

If you have employees who are unhappy in the workplace, there is every chance that, at some point, they will raise this type of claim. Therefore, managers need to be trained to understand when employees are unhappy. For instance, if they are exhibiting negative behaviours, their productivity levels have fallen, or you are aware that they are actively looking for a new job. As constructive dismissal can be split into two categories; change in terms and workplace treatment, there are various ways you can try to avoid constructive dismissal claims.

Create a Positive Culture

One of the most important ways to avoid constructive dismissal claims is to maintain a positive environment within the workplace. When the environment is positive and healthy, employees will feel valued and included. They will, therefore, not be left feeling that they are being mistreated.

Legitimate Processes

Any changes or decisions you make should be for business purposes and not personal reasons. For instance, if you are rejecting an employee for a job, you should have a legitimate reason to do so and should be able to provide helpful feedback to an employee. Unfortunately, there are cases when employees are rejected multiple times for roles within a company without receiving feedback. This, naturally, causes them to feel that the employer is trying to encourage them to leave. Likewise, if you are looking to change hours or pay rate, there would need legitimate reasons, and you should follow a consultancy process by liaising with your HR support, or by employing external HR solutions.

Regular Communication

You can avoid most issues through regular communication with your employees. Even a weekly check-in to ask how they are getting on and if they are experiencing any problems will help you to maintain a positive environment. If employees feel that you are entirely hands-off and are not even asking how they are, they are less likely to feel included and part of the team.

If you want to chat with us about constructive dismissal, including what this means to your business and how to avoid it, you can contact us on 01787 695084. Alternatively, for expert advice and guidance on any HR support for business issues you may have, or to discuss our complete HR solutions and how they can benefit your business, please visit our contact page.

How to Manage an Employee Grievance

As experts in HR advice and guidance, we receive a lot of queries from managers regarding employee grievances and how to manage these appropriately. Grievances are essentially a situation where an employee feels that they have been mistreated. A grievance often occurs between two staff members, or it could be against company policies, such as working conditions. Businesses need to take any grievance seriously and document the entire process. 

If you are unsure how to deal with a grievance, our step-by-step guide should help inform you.

  1. Mediation

A grievance can quite often be managed through mediation. For instance, if an employee has made a remark that another employee is unhappy about it, it may be that the situation could be resolved informally. However, if it is a serious situation, for instance, if it involves bullying or harassment, this step may not be sufficient in dealing with it.

2. Grievance Meeting

If the situation cannot be resolved informally, you should hold a meeting with the individual who has raised the grievance. It will allow you to get some more information and discuss how the employee would like to take the situation further. You should advise them of their right to be accompanied by a representative at the meeting. 

Example of Grievance:

Lucy feels she is being excluded by her manager, who is not inviting her to the weekly meetings with other team members. They have also been out for lunch, and she has been left out of this too. She has reached a point where she wants to raise a grievance about her manager’s behaviour. However, she does not wish for mediation as the situation has been going on too long.

3. Investigation

It is vital that you don’t just take sides when dealing with a grievance; you should only ever judge the situation by the facts. Grievances can often come down to hearsay, so getting all the information before you move forward is essential. For instance, if an employee has raised a grievance, find out if there is any written evidence of the exchange or witnesses who may have overheard. 

Examples of Evidence:

Asking team members if Lucy has attended weekly meetings and lunches. Has there been any discussion about why Lucy has been missing from these? Has anyone raised concerns

4. Disciplinary Meeting

If an employee has raised a grievance against another employee, and evidence supports it, the next stage would be a disciplinary meeting to discuss the situation with the other party involved. You should also inform them that they can be accompanied to the meeting.

Example of Disciplinary Meeting:

At this stage, you would speak to the manager and find out why Lucy has been excluded and provide any evidence you have for this from your investigation. Consider it from the side of the manager too

5. Decision

The next stage is the final decision you have reached following the investigation and the meetings. Then, you should arrange another meeting with the instigator of the grievance to discuss the decision you have reached and the other party.

Example of Decision:

As there is overwhelming evidence to suggest that Lucy has been deliberately excluded, which is a form of bullying, you feel there is no choice but to dismiss the manager. You cannot employ someone that is exhibiting this behaviour.

6. Appeal

There is the right to appeal this decision. In this case, another meeting should be held, and if possible, it should be undertaken by someone not involved in the rest of the meeting.

If you would like to discuss an employee grievance or have any other issue regarding HR support for business, you can contact Melanie of Blue Tree HR Solutions on 01787 695084 or by emailing her at info@bluetreehr.uk.

Employment Law Changes in 2022

As the new year kicks off, employers must be aware of upcoming changes to the employment law and adjust their policies and procedures. These are some of the employment law changes in 2022.

National Minimum Wage

The rate of the National Minimum Wage will increase to £9.18 for workers aged between 21 and 22. The rates for workers aged 18-20 will increase to £6.38 and £4.81 for those aged 16-17. Statutory sick pay will also increase to £99.35 per week. The National Living Wage is also set to rise to £9.50.

Parental Leave

There will also be an increase in the rate for statutory maternity, shared parental pay, adoption, paternity, and maternity allowance to £156.66 per week.

Right to Work

Full right to work checks will return from 5th April 2022. During the pandemic, employers had the right to carry these out remotely.

Holidays

The bank holiday, which would typically fall on 30th May, will now be on Thursday 2nd June 2022, in line with the Queen’s Platinum Jubilee. There will be another bank holiday on the 3rd of June 2022. Employers will need to check contracts to understand if their employees will be entitled to this day.

National Insurance Contributions

The National Insurance Contribution will increase by 1.25% from April 2022, and this will apply to all employed adults in the UK. Tax rates on shared dividends will also increase by the same.

Family Friendly Rights

The Employment Bill announced in 2019 is expected to be passed in 2022. In this Bill, there will be the introduction of statutory neonatal leave and pay for the parents of babies that require neonatal care. It will also include the extension of the redundancy protection period for employees on maternity leave. The period will increase for up to six months after returning to work. Carer’s leave will become a statutory right. Employees with caring responsibilities will be entitled to take one week of unpaid leave per year from the day they start employment.

Third-Party Harassment

Third-party harassment laws are also expected to change in 2022. It will include an extension to the period for raising tribunal claims and enhanced protection against third-party harassment. Third-party includes clients, customers, and members of the public.

There are some changes to the Flexible Working Regulations 2014 expected, with the Government currently consulting on the reforms. Some areas the Government are looking at include:

  • The right to request flexible working to be available to employees from the day they start.
  • Assessing the business reasons for rejecting flexible working requests and whether these are still applicable.
  • Understanding whether employers are looking into alternative working arrangements if they reject flexible working requests. 
  • Increasing awareness of flexible working and the benefits it offers.

If you would like to discuss the changes to the employment law and what these mean for you or if you need assistance with contracts, or any other HR advice and guidance, you can call us at 01787 695084 or email info@bluetreehr.uk.

Life as an HR Consultant during a pandemic.

Life as an HR consultant over the last 4 months of the pandemic has been an ‘interesting time’! 

In early March before the lockdown began business owners were understandably worried.  We could all see what was going on in China and other parts of Europe on the news and knew it was inevitably going to affect us here in the UK.

The advice given: wash hands for at least 20 seconds

First, we started looking at options. What would we do in a lockdown situation?  What if we can’t work and I won’t be able to afford to pay my staff? 

Lay-off Clause

All of my clients have contracts which include a lay-off clause – so this was our starting point.  Ideally, nobody wants to do this.  It’s in the contract but it really is a route nobody wants to use for any length of time.

Put simply, it allows employers to send staff home when there is no work. The only pay they will receive is a statutory guaranteed payment which is £30 per day for a maximum of five days in a three month period.  That’s a total of £150.00 in three months!

Many businesses closed due to the pandemic during March.

We were all in the dark as to how long the Coronavirus pandemic would continue and that dreaded word kept cropping up ‘unprecedented’!  No employer wanted to tell their staff –“go home, you will get £150.00 and hopefully, you can come back soon”, with the alternative being to pay the staff without any revenue there wasn’t really a choice.  It was quite frightening.

I started preparing letters but advised clients to hold fire with sending them out.  There were whisperings that the government was going to help in some way.

20th March 2020 the government announces the Coronavirus Job Retention Scheme.

https://www.gov.uk/government/publications/coronavirus-job-retention-scheme-step-by-step-guide-for-employers

The 20th March 2020 the government announced the Coronavirus Job Retention scheme.  Typically announcing it on a Friday at 5pm!  Monday morning my phone started ringing at 7am.  Everyone needed to know what they had to do.

Working alongside lots of other HR consultants and got involved in various HR consultants’ forums to consider what was going on.  Everyone was having to figure things out as we were drip-fed the legislation.

But what a relief! 

Everyone breathed a huge sigh of relief; Businesses saved overnight. Employers could sleep at night knowing their employees were going to continue to receive some pay when the business was shut down.

I know of business owners literally crying they were so happy; people already been made redundant were called and offered their jobs back.

Furlough

That seems like a long time ago now and furlough has become a word used more than any other in HR circles.  How we furlough, who we furlough, what can happen during furlough?

Legislation has continued to evolve and overall, I think it has been a great scheme.  There have been some downsides, but people receiving 80% pay whilst not being able to go anywhere and spend their money have mostly been quite happy.  People who earn over £30k per year have been harder hit as the cap was at £2,500 per month. On the whole it had the desired effect.  People stayed at home.

23rd March 2020 – “Stay At Home”

After the announcement on the 23rd March advising everyone to stay at home – about 80% of the employers I work with furloughed their staff. Constructions sites could continue to work, but within a week they could not get access to resources. Inevitably, staff continued to be furloughed into April when everything had come to a standstill.

Keyworkers were not furloughed and continued to work through lockdown.

Since then, I have been advising clients on the changes to the furlough scheme and planning ways of bringing employees back to the workplace or helping them manage staff who are home-working. I also became an NHS volunteer and have been helping people in need – delivering food, collecting prescriptions, and ringing up people who are lonely and need a chat.

Changes to Business

In May the redundancies started. 

Many businesses affected by the pandemic have had to make big changes and the lockdown period has given employers time to consider the most economic way of running effectively.

Unfortunately, this often means job losses.  Again, the HR forums are busy, this time managing redundancies is now commonplace and every HR consultant I know, is dealing with various redundancy situations.

Working with employers to try and avoid redundancies has been the majority of my workload through June, with the job retention scheme making it cost effective to put staff on notice during their furlough, businesses realize it is better to make these decisions now instead of later.

Flexible furlough scheme

Social distancing with anyone who does not live in your household

The flexible furlough scheme came into effect on the 1st July 2020 and this really is a good scheme. I personally think it would have been better if it had been introduced earlier. However, I appreciate the government had to make some quick decisions back in March.

This new improved scheme allows staff to work for the business on a part-time basis or shorter hours. Employers can choose: a week on/ week off or shorter days or a couple of hours a week.  Any arrangement that works for the business.  It helps with the gradual return back to work.

The Job retention Scheme Grant pays 80% of the wages for the time the employees are not working.  I have been kept me busy making sure the correct agreements with employees are in place. And ensuring employers understand what they can and can’t do.

The new ‘Normal’

It feels as though we are through the worst of the pandemic. Many businesses are back at work with the majority of their staff working. 

The way we all work has changed – with alternating shift patterns, one way systems, lots of home working, so many video calls and hand santizer literally everywhere. There are high cases of people suffering from various mental health issues which is a big issue for workplaces and a worrying outcome of the pandemic and lockdown.

We are all trying to keep a distance from each other and panic ensues every time we hear someone cough. But there seems to be some hope… people are getting on with life and employees mostly are happy to get back to some kind of normality.

We are midway through July and I wonder what the future holds.  One thing is for sure if ever there was a time for businesses to need HR support it is 2020.

If you are in need of HR support please get in touch- we give fifteen minutes of free advice to anyone who calls and are happy to answer your questions.

 

Furlough – FAQs

The Job Retention Scheme, recently proposed by the government is great news for employers. Business owners were wondering how they were going to cope during the Coronavirus (Covid-19) pandemic.

The Job Retention Scheme

Image of graphic person with a speech bubble
What is the Job Retention Scheme?

With the Job Retention Scheme, employers can put their employees on furlough. This is a temporary lay-off, meaning as soon as there is work available again staff can be asked to return to work as before.

The Government has confirmed it will provide grants to businesses. This will cover 80% of wage costs to a maximum of £2,500 per person per month.


So if you are wondering if this Job Retention Scheme could help you, I have answered a few of the frequently asked questions below:

Can I furlough part-time workers?

Yes. In fact, you can furlough all types of workers part-time, full time, employed agency, zero hours, variable hours. They will all be entitled to the Job Retention Scheme grant.

What is someone is on sick leave?

When someone is on sick leave they will continue to receive sick pay in accordance with their employment terms and conditions. If they are due to return, you can initiate a period of furlough on their return date.

Can I have rotate staff on furlough leave?

You can, but the minimum period for qualifying is three weeks, so you will need to rotate on a three-week cycle, any less and you will not receive the grant.

Can staff do a small amount of work for me whilst on a furlough period?

The government guidance stipulates that anyone on furlough is not permitted to carry out work for their employer or anyone else.

What if my employee has more than one job?

Employees who currently have more than one employer can be put on furlough by one employer and continue to work for the other. If they are put on furlough by more than one employer, they’ll receive separate payments from each employer. The 80% of their normal wage up to a £2,500 monthly cap applies to each job.

What if someone is on maternity leave?

An employee on maternity leave will continue to receive their maternity pay as before, no change. If they are due to start their maternity leave soon, they can be put on furlough, until the maternity leave starts. NOTE: If their earnings have reduced due to a period on furlough their Maternity Leave starting this may affect their Statutory Maternity Pay.

If someone is due to come back to work following maternity leave, you can initiate a period of furlough instead of returning to work.

I had a new recruit who started on during March, do they qualify?

Employers can only claim for staff who were employed on the 28th February and new starters since then do not qualify for the grant.

What about National Minimum wage?

Pay on furlough does not have to meet the national minimum wage because they are not being paid to work.

How is the 80% payment calculated?

For full time and part-time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included.

In the case of employees with variable pay, who have been employed for a full year, employers will claim for the higher of either: the amount the employee earned in the same month last year, or an average of their monthly earnings from the last year.

For staff on variable pay, who’ve been employed for less than a year, employers will claim an average of their monthly earnings since they started work.

Is the payment subject the tax and national insurance and pension?

Wages of furloughed employees will be subject to Income Tax and National Insurance as usual. Employees will also pay automatic enrolment contributions on qualifying earnings, as usual.

Employers will be liable to pay Employer National Insurance contributions on wages paid as well as the usual pension contributions.

These are difficult times for employers and we are here to help employers. If you have any questions about the Job Retention Scheme or any other employment issue. Please do not hesitate to contact me.

Preparing for difficult conversations

At some point, all managers have to hold difficult conversations. But how do you have a difficult conversation with employees?

There is no ‘one size fits all’ approach, but being prepared can really help you manage any situation, so we have created a short video about how to have difficult conversations.

We also have a handy checklist to help you prepare.

It can be tough having difficult conversations with employees, but we are here to help if you need any support. Just call 07516335419 if you would like to speak to us at Blue Tree HR Solutions.