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Category: Employment Law

Being the Boss at the Party

Posted on by Blue Tree HR

You’ve had a busy year at your workplace and it is nearly Christmas – you have laid on a Christmas party for your employees, one of those ones where you attend a dinner and dance, there are other businesses there too. You are feeling pretty pleased with yourself, treating your staff and their partners to a 3-course meal and a tab at the bar.
You’ve been having a stressful time lately, with so many problems in production, some staff issues and constant cashflow worries, tonight you really want to chill out and relax, and you deserve it, well done you.

But Oh No…

It looks like Mike has already drunk too much and you just heard him order another triple brandy at the bar. Susan and Anna have just had a blazing argument, and Susan has walked out.
You decide to turn a blind eye, let’s face it they need to let their hair down too, and it’s they are not at work now.
You decide to go to the dance floor and have a boogie with some of the team, it’s always fun seeing people outside of work, the ladies all dressed up, hair and makeup different to usual, the men who after a few beers are using their new found drunken confidence, taking the opportunity to have a little flirt and a dance with the ladies, whilst wearing their best Christmas socks and a party hat.
It seems they are making the most of the party atmosphere. You let your hair down and start to do some of your ‘special’ dance moves and then realise you are being filmed on somebody’s phone, apparently it’s hilarious to see the boss dance. No doubt this will be on social media before the night is over, you feel self-conscious, so you go back to your seat.
You sit, and people watch for a while, your staff are doing the conga and YMCA, they are having fun, and it seems like it is a great success.
But now what?
Karen was dancing on the table and has fallen over and hurt herself – is there anyone sober to take her to A&E? You take the initiative to call her a taxi, luckily Jo, has volunteered to go with her, although part of you wished you could leave too.

And then…

The bar staff come and tell you that the tab at the bar has been used, do you want to add more money, and, extra payment is needed for a cleaner as apparently Jason has been sick and made a mess in the lobby.
This isn’t fun, why bother?
It seems that the Christmas party is an event inviting inappropriate behaviour, unwanted advances, discrimination and misconduct. Maybe it is better not to go to the effort?
The truth is there are benefits: Firstly, it’s an opportunity to show employees your appreciation for their hard work throughout the year, and it’s the chance for your team to let their hair down and celebrate their achievements.
It can also be a place where new friends are made as people get the chance to mix socially with others outside their usual departments.
And with careful planning and consideration – the problems listed above can be avoided and the bosses can enjoy themselves at parties too!

How to prepare.

To start with, make sure everyone is invited, this includes staff on holiday, long-term sick or maternity. It’s so important to make sure everyone feels included in the celebrations, so they feel appreciated.
Before the Xmas party, make sure you’ve considered all of your staff. What about those who don’t celebrate Christmas, some religions and faiths do not allow the consumption of alcohol or certain foods, so make sure alternatives are made available.
Let the staff know that the party will be an extension of the workplace. Something as simple as this may help some to differentiate between the office party and their usual Saturday night out! Establish the ground rules with a policy for work social events, you want everyone to have fun but not to cause a pile of problems for the following work days.
It’s at the party, when the drinks are flowing, where issues are most likely to occur. Inappropriate behaviour, banter that’s taken too far and even gross misconduct and sexual harassment cases can give you a real headache the next working day. If any situations arise, remember that the Christmas party is an extension of the workplace, so you have every right to investigate and take action.
Social media can be an excellent way of demonstrating your company’s amazing culture by sharing photos and updates from your party. On the flip side, it’s important to have control over what is shared. Inappropriate photos can damage your reputation. Also, some employees may have grievances with their embarrassing photos being shared online. Ensuring you have a carefully considered social media policy in your business will protect yourself and your staff.
It’s not too late to prepare if you have Christmas parties coming up. If you need help and advice on this or any other HR query, including expert HR advice for small businesses – please get in touch on 01787 695084 or email melanie@bluetreehr.uk
We’ve all heard stories of things that ‘go on’ at the office party, we hope you have a fun staff party without the stress and wish you a Merry Christmas from Blue tree HR Solutions.

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

Posted on 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.