Management Archives - Blue Tree HR Solutions

Furlough – FAQs

Posted on March 30, 2020April 28, 2023 by Blue Tree HR

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

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.

For full details on government scheme.

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.

Contact me at melanie@bluetreehr.uk

Preparing for difficult conversations

Posted on February 26, 2020 by Blue Tree HR

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.

Download the checklist

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.

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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Tag: Management