Tag Archive for: Businesses

‘Flexi-Job’ Apprenticeships to Offer More Flexibility for Employers

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Apprenticeships are work-based training programmes which lead to nationally recognised qualifications. In 2017, the Government introduced the Apprenticeship Levy with a view to creating funding for apprenticeships and encouraging employees to invest in apprenticeship programmes.

For some employers they can be a great way to attract and develop new talent. However a key barrier to taking on apprentices in certain sectors is the need for varied and flexible employment patterns.

What Are ‘Portable Flexi-Job Apprenticeships’?

On 6 April 2022 the Government will launch a ‘portable flexi-job apprenticeship’ pilot. This is a new type of flexi-job Apprenticeship which will allow employers taking on an apprentice to only give a three month commitment, instead of the usual 12-month minimum commitment. This will allow these apprentices to complete discrete blocks of employment with training, with different employers and businesses, throughout the course of their apprenticeship.

Who Will Benefit?

Certain sectors will particularly benefit from more short-term or project-based apprenticeships. At the moment, these portable flexi-job apprenticeships may only be carried out in certain sectors, namely within the creative and construction industries.

After the minimum three-month arrangement with one employer, the apprentice can either begin a new arrangement with the same employer or move to continue their apprenticeship with a new employer.

How Long Will the Pilot Last?

The portable flexi-job apprenticeship pilot scheme is intended to last for 18 to 24 months. It will be reviewed after 9, 12 and 18 months. The Government has said it will publish guidance ahead of the pilot start date. If the pilot is successful, it may become more widely available in the future.

If you’re interested in considering the use of apprenticeships generally or want to talk about the ‘portable flexi-job apprenticeship’ pilot and want to find out more, please contact Sue Meehan Boyes in our team on 07384 468 797.

IR35 Back in the News Thanks to Adrian Chiles

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TV presenter Adrian Chiles’ recent victory over HMRC in IR35 case has highlighted the complexity of the IR35 rules in the UK. 

Since last April private and voluntary sector businesses with an annual turnover of over £10.2 million, a balance sheet worth more £5.1 million or more, and 50 or more employees, will be responsible for deciding whether IR35 applies, and for deducting tax and NICs from contractors’ fees paid through intermediaries when it does not. 

There are a number of steps that you should be taking in respect of that and it is always worth getting specialist advice on this if the need arises. 

IR35 Considerations for Your Organisation

The first step is to decide where the responsibility for dealing with IR35 lies in your organisation, this is a matter that often straddles HR and payroll/finance and you need to make sure it doesn’t fall between the two stools.

The next is to create a list of who your organisation is contracting with, as IR35 applies to those who provide their services through a limited service company or via a supply agency. 

The next stage, and probably the most challenging, is to decide which of your contactors falls inside IR35. HMRC have provided an online tool which can assist but it may not be determinative, in which case it might be worth taking specialist advice. 

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The Three-Part Test

HMRC applies a similar test as Employment Tribunals to determine employment status, but they often arrive at different conclusions on the same individuals, and it’s worth remembering that a Tribunal decision is not binding on HMRC and vice versa. The test is as follows: 

  • Mutuality of obligations – The individual agrees to provide work, in return for a wage for the skill and work that they provide.
  • Control – The individual has given express or implied willingness to be under the employer’s control.
  • Other factors – The other terms and conditions are consistent with a contract of employment, such as ownership of significant assets, financial risk, or opportunity to profit.

Although a three-part test, traditionally the first two elements have tended to be considered to be the most important. Until recently that is. The sands may have shifted slightly, following cases involving high profile TV presenters who claimed to be working freelance, including for the BBC and ITV. HMRC challenged their employment status and, in the recent case involving the presenter Adrian Chiles, HMRC lost because of the third part of the test. 

What Does This Mean?

Now, it’s clear that it’s worth focussing on the third part of the test, we should think about some of the relevant factors which can include:

  • Is the individual in business on their own account? 
  • Does the individual use their own office, including working from home? 
  • Does the individual provide their own tools? 
  • Does the individual provide services to a significant number of other clients?
  • What percentage of total income does that end user contribute towards the individual’s financial earnings?

Employers, contractors, freelancers and consultants alike should take comfort from the shift in focus with, it would seem, greater significance now being placed on the bigger picture. However, this can be a complex area so we recommend seeking advice.

Please contact Jo Bradbury in the NQHR team on 07570 372118 if you would like to discuss these issues.

Why Investing in Employee Well-Being and Resilience Should Be on Your To-Do List

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Why Investing in Employee Well-Being and Resilience Should Be on Your To-Do List

Employee well-being and resilience are hot topics in HR right now. In this article we explore why investing in employee well-being and resilience is a no-brainer for your business and provide you with tips on how to get started or progress on your organisation’s well-being journey.

Essentially well-being is about creating a state of contentment where individuals can flourish*. Resilience is about an individual’s ‘bouncebackability’ and developing resilient employees is likely to feed into a well-being agenda.

Historically, well-being has focussed on safe working practices or management of ill-health. But more recently, a much more holistic view of employee well-being has developed.

Sitting alongside this, there has been much more of a focus on employee mental health, given the escalating numbers of employees suffering with poor mental health and the evidential links between poor mental health and poor work outcomes. This is highlighted in the Government’s recent review undertaken by Dennis Stevenson and Paul Farmer, which places responsibility on employers (along with other stakeholders) to take greater responsibility for employee mental health. In particular, Stevenson and Farmer recommended that all employers, regardless of size, should implement mental health core standards in their business.

If this isn’t enough to persuade you that employee well-being should be high on your agenda, there is growing evidence to suggest that investing in this area produces a financial return in the shape of increased productivity and lower sickness absence as well as making your organisation a great place to work.

Whilst a number of organisations have some well-being initiatives already in place, the evidence shows that well-being programmes will be most successful where they are central to the organisation. So where should you start? Below are our top tips:

  • Get buy in at a senior level. Your senior leaders set the tone and lead by example. Demonstrating the business benefits might help you to do this.
  • Identify what will work for your organisation. No two businesses are the same and what is important to one workforce might not be to another. Speak to employees via employee forums or use surveys to drill down into the details of what initiatives might work best. Look into whether there are any recognised well-being initiatives that might be useful.
  • Prioritise. Are there any quick wins you can introduce? Certain initiatives may be cheaper and easier to implement – get moving with these and then move onto the trickier, longer term projects.
  • Keep well-being on the agenda. Don’t just tick it off the list and move on. Keep the conversation alive by continuing to publicise what you are doing and continue to talk about well-being.
  • Monitor and evaluate. Only by doing this will you see what is working and positive outcomes will pave the way for future investment.

Narrow Quay HR can help your organisation on its well-being journey. Get in touch with us today to find out more.

 

*CIPD

 

Handling Difficult Conversations

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Handling Difficult Conversations

Anyone in a role managing staff within their organisation will need to be handling difficult conversations from time to time. Whether it’s talking to someone in your department about their work not quite being up to standard, managing team dynamics or dealing with a difficult personal matter that someone wants to talk to you about, conversations which may make you feel uncomfortable can’t be entirely avoided. In fact, they are a key part of strong line management and leadership. So, how can you deal with them in a more effective way?

The first step is to ensure that you are the right person to have the conversation with the member of staff. Should it be dealt with by a line manager, referred to HR or perhaps to a more senior manager? Assuming you are the right person, don’t avoid having that difficult conversation or put it off, tempting as that might be.

These are often very important discussions to have and delaying them, or, avoiding them altogether, can cause real problems. Not addressing an issue when it arises, can give the employee the impression that it’s not that important. It can also lead to low staff morale if the issue relates to a team problem. In an appraisal context, appraisers are often keen to focus on the positives and avoid having any conversation about areas which could be improved. This can mean that poor performance can go unaddressed for years, with appraisal records showing only glowing reports. At the point at which the performance needs to be tackled, this can cause real problems for employers.

Difficult conversations can be uncomfortable because they take us out of our comfort zone. They may not go as we plan or people may become upset or confrontational.

Good preparation is key.

Check the facts relating to the issue you want to discuss, and check any relevant policies or procedures. Make sure you have the necessary support from HR or your line manager if you need it. Take control of the discussion, and set the agenda. Communicate the issues and give examples and evidence to support what you are saying. Make sure the member of staff has the opportunity to respond and try to give effective and objective feedback. Try to keep calm, even if the staff member becomes emotional. Be professional; while it can be appealing to approach these discussions as a friendly colleague, and of course you do need to be understanding in your approach, it is best to approach in a professional manner.

Take notes and highlight any actions that will need to be completed after the meeting.

It is important to recognise that emotions are likely to be involved; both the employee’s and yours. It may be difficult to predict how the staff member will react. They may be angry, or they may become upset. Similarly, recognise that your emotions may be involved in this, but stay as calm as possible.

It is critical to try to end the discussion with a plan for the way forward. This will set boundaries around the issue in hand. Discuss the options with the member of staff, make a decision and agree on follow ups or reviews and where appropriate, a date and time for a further meeting.
Narrow Quay HR can help you and your line managers to deal with difficult conversations by offering training sessions on this and other essential HR topics for line managers.

For more details, please get in touch.

How To Improve Employee Engagement

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How to improve employee engagement should be a real focus in the work of leaders, managers, team heads and of course HR professionalsHow to improve employee engagement should be a real focus in the work of leaders, managers, team heads and of course HR professionals.

Employees are the heart blood of every organisation. Without them there is no organisation. Some businesses allocate countless resources to their branding, marketing, production, innovation and business development, and place their people lower down the list of priorities.

People are what makes the organisation tick and so figuring out how to improve their engagement should be high on the list from board meetings to day to day operations.

We would love to share our experience with you to see how we might work together to improve the engagement of your staff. Please get in touch.

In the meantime you might be interested in visiting Engage for Success.

Autumn Budget 2017 : Key Points For Employers

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The Autumn Budget 2017 has highlighted a number of key points that Employers need to consider for their organisations and people.

Wages

The Government has confirmed that it has accepted the recommendations of the Low Pay Commission (LPC) for increases to the national living wage (NLW) and the national minimum wage (NMW). Accordingly, from April 2018 the Government will increase the NLW, which applies to workers aged 25 and over, by 4.4% from £7.50 to £7.83. The LPC has estimated that this will benefit over 2 million workers. At the same time, the NMW rates will be increased as follows:

  • from £7.05 to £7.38 for 21 to 24 year olds;
  • from £5.60 to £5.90 for 18 to 20 year olds;
  • from £4.05 to £4.20 for 16 and 17 year olds; and
  • from £3.50 to £3.70 for apprentices.

Taxation

In accordance with its commitment to raise the personal allowance (PA) to £12,500 and the higher rate threshold (HRT) to £50,000 by 2020, the Government has announced that in the 2018/19 tax year the PA and HRT will be increased to £11,850 and £46,350 respectively. The Government has also announced that, with effect from April 2018, there will be no benefit in kind charges on electricity that employers provide to charge employees’ electric vehicles. The report further details a number of changes the Government will make to the taxation of employee expenses following a call for evidence that was published in March 2017.

Employment Status

The Government has stated that it will publish a discussion paper as part of its response to the Taylor review of employment practices, which will explore the case and options for longer-term reform to make employment status tests for both employment rights and tax clearer. It has acknowledged that this is an important and complex issue, and it will therefore work with stakeholders to ensure that any potential changes are considered carefully.

Source: UK Government

The Chancellor of the Exchequer delivered his 2017 Autumn Budget speech to the House of Commons on Wednesday 22 November. On the same day, the full Budget report was published by the Government.

Please contact us for help with understanding and implementing any of the key points above.

The Rise of the Gig Economy and the Impact on HR Practice

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The Gig Economy is a labour market characterised by the prevalence of short-term contracts and freelance work as opposed to permanent jobs. A Gig is a job that is temporary or has an uncertain future.

The Taylor Review, published in July and the more recent Work and Pensions & BEIS Committees report ‘A Framework for Modern Employment’ published this November, have identified within the Gig Economy, that there needs to be clear definition of a contractor and a review of employment status with primary legislation to set out key principles and secondary legislation to provide guidance.

The Taylor Review has looked at wider worker status including that of agency workers and recommended flexibility, being able to earn the national minimum wage and less emphasis on the requirement to perform work personally. Importantly there should now be a written statement of terms and conditions, extended to workers as well as employees, and an introduction of higher national minimum wage for hours that are not guaranteed as part of the contract. It is advisable now to record periods of continuous employment, despite breaks in service and improve the transparency of information given to agency workers more generally.

Further implications on HR practice include the right to ask for the agency worker to request a direct contract of employment after 12 months of engagement with the same hirer and the right to request a contract that guarantees hours, reflecting actual hours worked, for those who have been in post on a zero hours contract for 12 months.

Employers should be required to report on their employment practices, including their model of employment and their use of agency workers.

A Framework for Modern Employment has sought clarity in primary legislation of the key principles:

  • Legislation to introduce greater clarity on definitions of employment status, emphasising the importance of control and supervision of workers and not as focused on the right of substitution.
  • Legislation to implement a worker by default model to apply to companies who have a self employed workforce above a certain size.
  • Low Pay Commission pilot for workers who work non-contracted hours to receive a pay premium on the NMW and NLW.
  • Continuous service preserved for breaks in employment of up to one month.
  • Higher, punitive fines and costs orders on employers if they have already lost a similar case.
  • Great use of class actions in tribunals in disputes over wages, status and working time.
  • Government rules out introducing any legislation that would undermine the NMW/NLW.

And also clarity in secondary legislation to provide guidance:

  • Extension of duty to provide written statement of terms and conditions to cover workers as well as employees from day one of the job.
  • Lower the ICE threshold.
  • End the Swedish derogation for agency workers.
  • Deterrent penalties, including punitive fines, for repeat or serious breaches of employment legislation and naming and shaming for all non-accidental breaches of employment rights by business and supply chains.
  • Increased resources for the Director of labour Market Enforcement to be both reactive and proactive funded through higher fines on non-compliant organisations.

For more information and support in developing appropriate policies and practice for hiring workers within the Gig Economy, please contact us.

How To Conduct Staff Appraisals

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Staff appraisals and their link to pay can be one of a manager’s most challenging and contentious moments in their role.

Narrow Quay HR has a bespoke training designed as a package of services to help schools, businesses and health practices create, and delivery a robust and effective appraisal process.

The bespoke four hour appraisal training workshop includes:

The importance of appraisals and the legal context in which they are held
How to conduct an effective appraisal – they skills needed, how to set objectives and how to assess performance
Practical guidance and real life examples
How to tackle performance concerns and interplay with the capability procedure

The workshop is designed to provide practical training to those carrying out appraisals in schools, businesses and health practice and covers the skills that are needed as well as the wider context of the appraisal system.

We also focus on providing strategic advice and can provide a suite of tailored appraisal documentation.

So how does the Effective Staff Appraisal workshop happen? Initially we will meet with you to discuss your current appraisal process, concerns over the current process and your key aims. We will then provide written recommendations of the practical steps you need to implement or improve within your appraisal system.

This will be accompanied by a comprehensive suite of appraisal documents including: guidance for appraisers and appraisees; an appraisal policy; appraisal forms; and a letter to staff, introducing them to your new system.

We have worked with many different organisations, reviewing their pay policies and can work with you to ensure that your policy is legally compliant and operates to support your strategic aims, including linking pay with performance where appropriate.

We are on hand every step of the way to support you with implementation of the new policy and to help address any implications for staff.

Please contact us if you would like to find out more.

Tackling Unconscious Bias

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Unconscious Bias is a hot topic right now. The progress towards creating a more diverse workforce at all levels is an objective that most employers are focusing on today.

Raising awareness and investing in staff development in this area through the use of interactive workshops and training is key.

Unconscious bias is a bias that we are unaware of, and which happens outside of our control. It happens automatically and is triggered by our brains making quick judgements and assessments of people and situations, influenced by our background, cultural environment and personal experiences.

Unconscious bias can occur in many situations and in relation to many prejudices, which could include, but are not restricted to: Physical characteristics or appearances; Social context; Stereotyping and favouritism

Research has shown that unconscious bias is a habit that can be changed.

We run workshops that can help to highlight the role unconscious bias can play and provide practical strategies to mitigate its effects. This will help leaders and managers to make fair and transparent decisions and minimise discrimination.

Our unconscious bias workshops are a key strategic tool in promoting equality and diversity within your workplace and eradicating unlawful discrimination.

The workshop covers: Key concepts from the Equality Act 2010 including the protected characteristics and the types of discrimination; Examples of the Equality Act in practice; Exploring unconscious bias and how it can impact in the workplace; Practical advice on how to mitigate the effects of unconscious bias.

Please get in touch for more information and to book a workshop for you and your team.

New Leave Allowance For Grieving Parents

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The Parental Bereavement (Pay and Leave Bill) was published by the government on 13 October 2017 and aims to grant bereaved parents, who have lost a child under the age of 18, two weeks’ paid leave.

The Bill will entitle all employees to parental bereavement leave, regardless of their length of service. In addition, employees with over 26 weeks’ continuous service will be entitled to statutory parental bereavement pay. Employers will be able to recover the cost of this payment from the Government.

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