4 Top Tips For Employing Casual Workers

Casual workers can be a bonus to organisations that have to meet peaks workflow from time to time.  Often taken on a Christmas or busy periods casual workers are used extensively in many industries.  Whilst they contribute to a flexible workforce there are key things to bear in mind in terms of their employment.

1.  Ensure you issue a written agreement (contract of service) that reflects the nature of the casual work offered this is known as a zero hours contract (also casual hours contract or sessional contract).  Also ensure that you only intend to employ the worker on a casual basis ie not offering regular hours on set days at set times.  These contracts are operated on mutual no obligation basis therefore there is no obligation for an employer to provide work and there is no obligation for the worker to accept it.

2.  Be aware that truly casual workers have mimimal employment rights over and above the provision of holiday pay calculated at 5.6 weeks per annum pro rata.  This can be calculated on a quarterly basis by recording hours worked and a pro rata sum provided accordingly.  Alternatively if more regular payments of holiday pay are required, they can be provided on a rolled up basis provided this is clearly declared on the contract and in the wageslip.

3. Casual workers should receive the national minimum wage and may be paid SSP provided they meet eligible criteria.  They have the right to be protected from unlawful deduction of wages and discrimination. They have protection from whistleblowing and with health and safety.

4.  Be aware that workers that are used on a regular basis may be able to claim further employment rights in an employment tribunal. It is best therefore to retain a bank of casual workers and rotate their use so that the same worker is not offered work on a continous basis.  Assignments or pieces of work should not be too lengthy.  Furthermore, there should be sufficient gap between assignments – at least more than  a week.

 

Traits of Successful Female Business Leaders

In the last few days two powerful female business leaders have been in the media. Margaret Thatcher who has died and Karren Brady, Managing Director of Birmingham City Football Club who was interviewed on TV by Piers Morgan. The two share a remarkable achievement – they both made it big in a male-dominateed environment where the glass ceiling is alive and well; these two well and truly smashed it. Margaret Thatcher did it in the 1970s and achieved the position of Prime Minister when in those days it was truly unthinkable that a woman could do so.  Six years before she achieved that role she was seen telling a little girl on TV there would not be a woman Prime Minister in her lifetime.  Even by today’s standards it was a miraculous achievement. She then went onto shape the country giving many people standards of living that they would not have had if it hadn’t have been for the Iron Lady. Karren Brady began her rise at the tender age of 23 working her way up in the tough mans world of football. It seems to me that these two female leaders both demonstrate traits that have made them successful.

Vision and Focus

Both leaders had a clear vision. Thatcher’s was to make the country strong and properous again after years of strife with the unions that had brought the country to it’s knees. At the time her vision was very ambitious.  Whilst some may have questioned whether it was attainable, through her drive it became a reality.  She was strong and did not turn away from achieving her goal despite the many obstacles.  Her famous phrase “the lady is not for turning” demonstrated her resolve not to be dissuaded from her chosen course of action, which had the country’s interest at heart always.  Karren Brady’s vision was to turn an ailing football club into a strong and properous going concern.  She took the team into the top league with a healthy bank balance and turnover of £50m having persuaded David Sullivan a  millionaire to buy and let her run the club.  With her resolve she knew she could do it.

Dominance

Both women had to be dominant in their field.  Thatcher notoriously dominated her male colleagues in the Conservative party and even had voice coaching to lower her voice so that she spoke more like a man to increase that dominance.  Karren Brady in her own way has had to have “balls of steel” to dominate in the world of football.  Both women have had to have tenancity to achieve their goals.

Confidence

Both Thatcher demonstrated and Brady demonstrates a healthy level of self-confidence both believing in their ability and skills.  Thatcher may have appeared nervous on many occasions, which is another reason why the voice coaching was brought into play to hide her shrilly female voice when she was giving speeches.  Thatcher took risky decisions which would affect the country and Brady took risky decisions related to the football club that could have cost her millionaire boss millions, but for both women the risks paid off as they held their nerve.  They took responsibility for their actions whilst moving everyone forward.

Innovation

Innovation is key as a business leader and both women were bold to create and carry out new plans challenging the status quo constantly.   Thatcher closed down many unprofitable mines, diminished the power of the unions and sold off the publicly run utilities.  She gathered a top team of politicians around her that supported her decisions getting rid of the nay sayers she had initially brought together.  Brady collaborated with others recognising the need to form win/win situations.

Dedication

Thatcher and Brady were dedicated to the job in hand.  They put this above all else in their lives.  Whilst both had husbands and a family their job came first.  Brady went back to work after three weeks of having her first baby due to the dedication she had.  Thatcher entered politics when her her twins were very young and when most women gave up work when they married and had a family.

Whilst the two women had and have very different personalities in their own way they have achieved great things in a male environment with history that can never be altered and they act as superb role models to other women.

5 Top Tips for Pension Auto Enrolment

According to research carried out recently by RSM Tenon many small businesses are just not ready for pension auto enrolment.  56% of employers are completely unaware as to what auto-enrolment is, or do not even realise that it applies to their business and 70% had no plans at all to implement this statutory process.  Furthermore, 40% of SMEs do not offer a pension at all and a further 5% offer a pension but has no members.  With these disturbing facts in mind here are 5 top tips to implement pension auto enrolment.

1. Make a plan

The implementation of pension auto enrolment takes about nine months to one year to implement so it is important to start preparing as soon as possible.  It is a statutory process and can not be ignored.  There are key staging dates that an employer needs to be aware of (the staging date is when an employer has to start auto enrolling their employees) although it is possible to implement pension auto enrolment before the planned staging date.  The employer needs to nominate a contact within the company who will be responsible for implementing the process.  Working backward from the staging date the plan should incorporate sufficient time to complete the required processes such as those detailed below as well as developing admin procedures and setting up payroll.

2. Analyse the existing pension scheme

An existing pension scheme must meet the eligibility laid down by the Pensions Regulator.  If no pension scheme is in place then the government NEST scheme may be implemented which has no set up charges.

3. Assess the workforce

The workforce should be categorised into eligible jobholders, non-eligible job holders and and entitled workers.  Eligible jobholders will have to be automatically enrolled.  They are aged between 22 and state pension age, have qualifying earnings that trigger automatic enrolment.  Non-eligible jobholders are aged between 16-21 or state pension age and 74 and have qualifying earnings that trigger automatic enrolment.  Entitled workers have the right to join the pension scheme but do not have qualifying earnings aged between 16 and 74.  This should be an annual process once auto enrolment has been implemented.

4.  Communicate to the workforce

Information about pension auto enrolment must be provided to the workers by the employer in writing.  This should preferably be by template letter.  An employer can also decide to provide information sessions to their workforce so they can have their questions answered or could develop an information booklet (which could be given out during an induction process to new starters).

5. Inform the Pension Regulator and keep records

An employer must keep certain records in support of the employer duties that will enable them to demonstrate their ongoing compliance and should build these record-keeping requirements into their existing processes.  The scheme should be registered with the Pensions Regulator.

For more details visit http://www.sjbealehrconsult.co.uk/employee_reward.htm

Proposed Changes to Criminal Record Checks

In the UK, some previous criminal convictions are “spent” after a period of time, meaning that they do not have to be revealed to prospective employers. More serious crimes are never spent reflecting their gravity. Those looking to work with vulnerable adults and young people must undertake an enhanced criminal records check, which is now provided by the newly formed Disclosure and Barring Service (DBS). Such a check currently discloses all convictions and cautions which are then revealed to prospective employers, even those that are “spent”. However, proposals announced by the Government will permit some old and minor offences to be filtered out from checks by the DBS. This new checking system is due to be implemented within weeks, subject to Parliamentary scrutiny.

It is proposed that old and minor cautions and convictions will no longer appear on criminal records checks undertaken by employers in relation to positions where the potential recruit will be working unsupervised with children and vulnerable adults. Adult cautions will be filtered from records after a period of six years, whilst those received by a young offender will be filtered after two years. Adult convictions resulting in a non-custodial sentence will be filtered after a period of 11 years, whilst such a conviction received as a young offender will be filtered after five and a half years. Some cautions and convictions will never be eligible to be filtered from criminal records checks, including serious violent and sexual offences, offences with a custodial sentence and multiple offences.

Pregnancy and Maternity Discrimination – The Reality

In 2005 the former Equal Opportunities Commission (now the Equalities and Human Rights Commission) conducted a formal investigation into pregnancy discrimination. Their final report found that the main areas of unfair treatment during pregnancy were denial of a pay increase, refusal of promotion, having to take lower-paid work, being excluded from training and refusal of time-off for ante-natal care.
The Equality Act 2010 introduced protection from discrimination related to pregnancy and maternity leave. To show discrimination a woman does not have to compare herself to how a man might have been treated. She must show that ‘but for’ her pregnancy she would not have been dismissed or treated less favourably. All employees, casual workers, agency workers, freelancers and self-employed women are protected by sex discrimination law from day one of their employment.  Employees are also protected from detriment or dismissal on the grounds of pregnancy or maternity leave  in accordance with the Employment Rights Act 1996 and Maternity and Parental Leave etc Regulations 1999.  
An employer must not:
  • Treat a pregnant woman less favourably for a reason related to her

 

  • pregnancy, pregnancy related absence or absence on maternity leave. It is

 

 

  • discrimination to dismiss, make redundant or otherwise treat her less favourably,

 

 

  •  eg in relation to a pay rise, promotion, training;

 

 

  • Select a woman for redundancy for a reason related to her pregnancy, the consequences

 

 

  • of her pregnancy or absence on maternity leave;

 

 

  • Select a woman for redundancy because she is working part-time or flexibly unless there

 

 

  • are very good objective reasons;

 

 

  • Treat a pregnant woman less favourably because of pregnancy related absence

 

Women who are pregnant or on maternity leave also have the right to health and safety protection and the right to reasonable paid time off for ante natal care along with 52 weeks maternity leave and maternity benefits if the woman qualifies.
However despite the steady stream of legislation to protect women’s rights in this area,  it seems things have not changed.  According to a recent report conducted by Working Families, pregnant women continue to be discriminated against.  With the economic downturn has come a rise in the number of calls to the organisation from women facing maternity or pregnancy discrimination such as:
  • being singled out for redundancy
  • not being offered suitable alternative employment as part of the redundancy procedure, being dismissed from employment on the day they inform their employer of their pregnancy, or very soon after,
  • being selected for redundancy with the suggestion that pregnancy is the reason,
  • wishing return to work part time but have to leave employment instead because their employer refuses to allow them to work part time
  • finding their jobs have gone on returning from maternity leave

One woman contacted the organisation who was 28 weeks pregnant and was told she would be made redundant the next month. She was the only one of seven staff to be selected for  redundancy and was given no reasons why.  When asked why she thought she had been  selected she said “My employer doesn’t want to pay SMP” (Maternity pay).

Another organisation, Maternity Action, have reported that pregnant women or those on maternity leave have been given no reason why they have been selected for redundancy or were given reasons that were tantamount to discrimination such as preferring full time employees.  Others were not offered health and safety protection during pregnancy or maternity leave.   
A recent high profile employment tribunal case further highlights the issues.   A female employee of the company that was the first employer of the Duchess of Cambridge, alleged that when she told her male boss that she was pregnant for the third time in three years, she was told “it really isn’t ideal.” Furthermore she alleged she was “vetoed” for the position of chief financial officer on the same day she announced her pregnancy. She claimed sex discrimination, unfair dismissal and discrimination on the grounds of maternity.
Alan Sugar,  the influential business leader, has publicly commented that he feels maternity laws have gone too far, which does not help matters. 
However protecting women who are pregnant or on maternity leave encourages women’s participation in the workplace and adds to diversity and the talent pool – it therefore makes good business sense. Discrimination exposes employers to the threat of legal action with unlimited compensation in an employment tribunal as well as the risk of a damaged reputation.  

How HR Can Make Your Business More Efficient

Effective HR is vital to the successful running of any business, as an independent HR consultant advising small businesses, I should know.   As well as the HR processes of managing payroll and holiday allocation there is recruitment, performance management, grievance and disciplinary, dismissal, sickness absence, maternity and family friendly processes, payroll and holidays.
All processes that relate to staff management should be supported by robust paperwork.  Employees should be given an employment contract within eight weeks of commencing employment ideally coupled with an employee handbook that contains lots of policies providing guidance on employment procedures within the business.   Everyone should have a regular payslip.
The employee handbook should be the “bible” in how things are done in the management of employees.  If closely followed, the procedures offer protection against costly employment tribunal compensation.
For example, a procedure for managing sickness absence improves efficiency by providing clear guidance on holding meetings, undertaking investigations, monitoring and ultimately making a final decision on dismissal if things do not improve.  Managing sickness absence can be costly and time consuming if not handled well and without a procedure.   Similar guidance for managing poor performance is essential as most small businesses can ill afford to put up with its negative impact on productivity.
Grievance and disciplinary situations need to be carried out quickly to avoid low morale setting in, which can indirectly affect profits.  Efficient recruitment provides quality staff, which can make a business successful and profitable and should follow a written down structured procedure that will avoid discrimination.  Effective redundancy procedures ensure efficient downsizing cuts costs quickly yet within the confines of employment law.

If HR has a strategic focus, it can help to support the business’s long term aims and encourage efficiency.

Efficient HR processes can save a small business time and money helping to support demonstrable growth and profits.

How to Effectively Implement Flexible Working

According to a recent CIPD report the vast majority of employers offer some form of flexible working which can include part time working, term time working, job sharing, flexitime, annual hours, working from home, mobile/tele working and career breaks. 
The term flexible working describes a working arrangement that has some degree of flexibility on  how long, where and when employees work.  However, it is reported that only 63% provide the right to request flexible working requests, yet in accordance with the Families and Work Act 2007 they are required by law.  Working at home is the most commonly offered option. Large organisations are more likely to be able to accommodate requests compared to SMEs and flexible working is more common in the public sector.  Women are more likely to use flexible working compared to men with most taking up part time hours.
Some factors contributing to the increased interest in the use of flexible working include:
  • Its potential value as a recruitment and retention tool in a tight labour market.

 

  • The changing profile of the workforce (for example, with more women in the labour market and an ageing population it is increasingly common for workers to have caring responsibilities outside the workplace).

 

 

  • Advances in technology (facilitating, for example, remote working and hot desking arrangements).

 

 

  • An increasing need for businesses to be able to deliver services to customers on a 24/7 basis.

 

 

  • The economic situation – some organisations have offered part-time working or sabbaticals as a method of avoiding or minimising redundancies.

 

 

  • The increased demand for an effective work-life balance.

 

The benefits of flexible working can be much improved organisational performance, however, there can be barriers to its implementation. The main one appears to be operational pressures.  Other barriers that feature highly are a need to maintain customer/service requirements, inability to effectively manage flexible workers, existing organisational culture and the attitudes of senior managers. It appears there are more barriers for larger organisations than micro businesses.  The biggest obstacles can be the nature of the work and little relevance to the work.
When making a flexible working request an employer may refuse it for a business-related reason which includes:   
  • the burden of additional costs

 

  • detrimental effect on the ability to meet customer demand

 

 

  • the inability to reorganise work among existing staff

 

 

  • the inability to recruit additional staff

 

 

  • where it will have a detrimental impact on quality and performance.

 

Having a flexible working request refused can be quite a shock  to those who put in a request so employers should consider how to effectively communicate and implement flexible working.  The following tips may help: 
  • Establish a clear process for how flexible working works in the organisation.

 

  • Ensure that there are clear roles and responsibilities for employees, line managers and HR.

 

 

  • Assess the current levels of support offered to line managers and ensure it is sufficient.

 

 

  • Invest in ongoing communication and awareness raising.

 

 

  • Assess how conducive the organisation culture is to flexible working – and take action accordingly.

 

 

  • Make use of pilots (when introducing new initiatives) and trial periods (for individual flexible working arrangements) in order to highlight potential problems with flexible working arrangements.

 

 

  • Build in opportunities and mechanisms to monitor and evaluate progress with flexible working.

 

In addition, by providing a flexible working information pack that is given to employees containing lots of useful information on the process, provides further useful written communication.   The pack should contain a flexible working application form that allows the employee to describe the existing working pattern, the proposed changes, the impact the change would have on the role, workplace and colleagues with suggestions of how the impact could be dealt with.  This allows the employee to think through the implications for their request and to possibly overcome any rejection.   
In 2014 the government plans to extend flexible working practices to everyone and is currently consulting on this, therefore, it is really important, that employers get their act together and look at effective implementation as it is a powerful tool for staff commitment and retention. 



 
 

Eliminate Racial Discrimination Day

Today, 21 March, is Eliminate Racial Discrimination Day. The United Nations’ (UN) International Day for the Elimination of Racial Discrimination is observed with a series of events and activities worldwide on March 21 each year. The day aims to remind people of racial discrimination’s negative consequences. It also encourages people to remember their obligation and determination to combat racial discrimination.
Racial discrimination is an unpleasant activity that can take many forms.
Direct discrimination
This occurs when someone is treated less favourably because of racial reasons. colour, nationality, ethnic or national origin.  eg racist abuse or excluding someone because of their race or colour etc.
Indirect discrimination
This occurs when someone is treated less favourably because of criteria that is imposed in relation to race/colour/nationality that can not be objectively justified eg a shop that insists on female workers wear a skirt and overall.  Muslim women must cover their legs and can not comply with such a condition.
Harassment
A person harasses another on grounds of race or ethnic or national origins when he or she engages in unwanted conduct that has the purpose or effect of violating the other person’s dignity or creating an intimidating/hostile, degrading, humiliating or offensive environment.
Victimisation
This occurs with unfair treatment of an employee who has made a complaint of race discrimination.
In the UK all of the above are unlawful in accordance with the Equality Act 2010.  Employers should have an equal opportunities policy in place, training for managers and employees and monitoring processes to ensure compliance.
Employees who feel they have been discriminated against may complain in an employment tribunal.

 

Seven Common HR Mistakes to Avoid

Reflecting on the many HR issues I have helped my clients with I have noticed a common theme of basic mistakes many employers make.  They are quite simple to put right, but can be costly if they are ignored.

1) Not issuing an employment contract and employee handbook

Many businesses that employ staff still fail to provide employment terms and conditions within eight weeks of a new employee starting in accordance with the Employment Rights Act 1996.  A contract (employment terms and conditions) can contain basic policies such as grievance and discipline so an employee handbook may not always be necessary if there are only one or two members of staff.  However if there are five or more employees it might be a good idea to develop a small employee handbook to provide guidance on various HR procedures.  It is important to remember that if an employer ends up in an employment tribunal and has not issued a contract then should the employee win their case an award can be made of up to four weeks pay for the lack of this document.

2) Not undertaking a thorough investigation

With many HR issues it is really important to do a thorough investigation to avoid a miscarriage of justice further down the line.  An investigation may be necessary in relation to disciplinary matters, capability, bullying & harassment and sickness absence.  An investigation should uncover the full facts that will inform a decision of whether to take action against the employee or not.  If an employer has dismissed an employee for gross misconduct without undertaking a full investigation they could end up losing an employment tribunal.

3) Failing to take action with bullying and harassment

Let’s face it dealing with bullying and harassment in the workplace is not pleasant and many employers turn a blind eye to the plight of employees who speak of being bullied and harassed.  If an employer does not ignore the problem, many pay lip service to undertaking a full investigation and dealing with any perpetrator.  Whilst bullying per se can not be pursued in an employment tribunal, employers need to be aware that if the harassment can be pinned on a protected characteristic and proven in an employment tribunal, an employer may lose their case.

4) Failing to manage poor performance

This is another issue that employers tend to shy away from.  Perhaps it is because they would prefer not to sit down with the employee and speak about the performance issues face to face and they fear possible conflict.  Us British are not very comfortable with delivering bad news.  However, poor performance is a financial cost to businesses – direct costs are loss of productivity and profit and indirect costs of morale of those employees who watch the poor performer not being dealt with.

5) Failing to manage sickness absence

Intermittent or long term sickness absence is not easy to deal with.  With intermittent absence it is important to watch out for trends eg Monday/Friday syndrome and nip things in the bud before they get out of hand by having an informal conversation to begin with about the problem.  With long term absence many employers don’t think they can intervene when their employee sends in a sick note that means they will be off for weeks.  However it is important to deal with the situation as soon as possible by meeting with the employee to find out what is happening.  After all an employee is being paid to come to work so an employer needs to know the prognosis for the future and how quickly they will return to work, if at all.  They may need the support of an occupational health advisor preparing a report that will help an employer manage the situation. Research shows that the longer an employee is allowed to remain on long term sick without it being dealt with the longer they will be absent.    If an employee is off so long they eventually exhaust sick pay an employer may consider termination.

6) Failing to manage a disciplinary situation

Disciplinary situations in the workplace can range from misconduct to gross misconduct, but nevertheless need to handled and quickly.  If the situation is gross misconduct, then the employee may need to be suspended to get them out the workplace, prevent any conflict or further wrong doing.  A thorough investigation should then be completed as quickly as possible followed by a fair hearing allowing the employee to have their say with the right to a companion.  The outcome should be confirmed in writing with the right to appeal.  The disciplinary situation needs to be fair and reasonable to avoid a compensation award in an employment tribunal.

7) Not consulting in relation to a redundancy situation

Consulting about redundancy is part of the legal process and consultation should be meaningful.  The number of staff at risk of redundancy will dictate how long the consultation period should be.  From April 2013 if there 100+ staff the consultation period shall be 45 days.  With 20-99 staff the consultation period is 30 days and less than 20 employees there is no set time frame.  However with the latter the consultation period needs to be reasonable and I would advise that at least a week is provided between the last consultation meeting and notification of dismissal depending on the number of staff to be consulted with.  Failing to consult will attract a protective award in an employment tribunal.