HR ……. How will the election affect employers?

06 May
by Donna Obstfeld, posted in Election, Employers, HR   |  No Comments

I wish I had a crystal ball. I want the truth. I want to know what each of the political parties will really do to help employers.

“We will protect jobs
We will reduce youth unemployment
We will increase NI by 0.5%
We will not increase VAT (yet)
We will relocate 15,000 civil servants from London
National Minimum Wage increases are needed”

DO employers consider the impact on their business when choosing who to vote for?

Have any of the political parties won the hearts and minds of employers?

Share your views as an employer or an employee.

No matter who wins the election today, DOHR will be here to help you remain legally compliant with the ever changing employment legislation and ensure your business is stronger as a result of your employees.

Salary Sacrifice: May no longer be attractive for employers

28 Apr
by Donna Obstfeld, posted in Benefits, HR Consultancy, Reward, Salary Sacrifice, Tax   |  No Comments

Personnel Today has reported that a European court ruling means employers may be forced to pay millions in unpaid VAT for salary sacrifice voucher schemes.

For a number of years now the Government have offered a number of schemes to encourage employers to provide employees with tax advantageous benefits. Some of the most common include: Child care vouchers, bikes for work, pension contributions and retail vouchers.

Employers use salary sacrifice as part of their total reward package for employees and it helps with attraction and retention of staff.

Today, it appears that employers may now be liable for up to four years worth of VAT on the value of retail vouchers.

Does your company offer vouchers under a salary sacrifice scheme?
What would it cost your business if you do become liable for four years worth of VAT on this value?
What would the impact be on your business?

At DOHR we work with employers to introduce cost effective benefits schemes which incentivise employees and save the company some money. We’ll be watching this space with interest.

To bonus or not to bonus?….. that is the question.

27 Apr
by Donna Obstfeld, posted in bonuses, HR, HR Consultancy, Incentives, pay, Reward   |  No Comments

With news that RBS are set to overhaul their bonus scheme, and the Lib Dems denouncing NHS managers pay, bonus payments for all staff are once again in the spotlight.

Companies who choose to use a bonus to incentivise performance should develop a robust and transparent scheme which encourages the particular behaviours the company values and achieves the results it needs to achieve before any payments are made.

Elements which employers should consider when developing a bonus scheme include:
~ Who to include in the scheme
~ Any differences in award levels
~ Behaviours to be encouraged
~ Bonus levels achievable
~ How to measure performance in an objective way
~ How the bonus scheme fits the corporate strategy and culture
~ How the bonus scheme fits with the company’s reward strategy
~ The views of various stakeholders

How many employers have got it wrong, hard to tell. I have seen situations where badly written bonus plans have wiped out the initial profits of the company! Not a good situation to be in!

Getting a bonus scheme right so that it incentivises and rewards the employee, while benefiting the business can be a combination of art and science. At DOHR we work closely with clients to implement, cost effective, engaging bonus schemes which add real value to the business.

Are all your employees legal? ….. are you sure?

23 Apr
by Donna Obstfeld, posted in Compliance, Employer Sponsorship, HR, HR Audit, Human Resources, Immigration, Work Permits   |  No Comments

In 2008, the UK Boarders & Imigration Agency (UKBIA) introduced fixed penalty fines of £10,000 per employee for illegal immigrants.

In 2007, there were 38 prosecutions. However, following the introduction of the fixed penalty, there were 1164 penalties imposed costing employers £11.2 million in fines. In 2009 these figures rose to 2210 penalties costing £22.1 million.

Every employer must check and keep evidence to demonstrate that they have done everything they can to ensure all their employees are legally entitled to work in the UK.

If applying for work permits for employees, UKBIA will want to see operational / legal compliance, documented HR & recruitment procedures and evidence that the employer has tried to recruit a suitable employee from the UK and the EU before looking for non EU citezens.

At DOHR we work with employers before their applications are submitted to ensure that they have the necessary policies and processes in place to enable them to successfully apply to be a sponsor.

Time for a Spring Clean

21 Apr
by Donna Obstfeld, posted in Audit, Business, HR, Human Resources, RIsk, SME   |  No Comments

You take your car for an MOT, you take yourself to the doctor for a check up, you even get an accountant to look at your books, but when was the last time you gave your employee practices an audit?

Do you know if you are legally compliant?
Are you sure you are getting the best value for money from your employees?
Are your employees motivated and engaged with your business?
Would your employees recommend you as a good employer to work for?
Do you know the risks your business is exposed to as a result of its current employment practices?

For many SMEs across London and Hertfordshire, the answer is “no”, or sometimes a little more naively “I don’t care, we are too smalll, it doesn’t affect us”.

At DOHR we carry out a full HR audit. We interview the business owners, we use questionnaires with staff, we look at documents, we review data and we ask lots of questions.

What business owners end up with is a thorough understanding of the risks their business is exposed to as a result of employing people. Sounds scary, we know, but the best way to protect a business from anything is to understand the risk, put in place actions to mitigate the risk and continue to monitor the situation on a regular basis.

Employment tribunals for discrimination, bullying and failure to follow procedures can cost thousands to defend and tens of thousands (if not more) in damages. For an SME these costs can be the difference between having a business and shutting it down. Even with one employee, it is important to get HR advice, understand what you should be doing and then decide how to do it in a way which works for your business.

HR for small businesses

20 Apr
by Donna Obstfeld, posted in Hertfordshire, HR Consultant, HR Support, Human Resources, SME   |  No Comments

An employer is never too small to need HR support. From the time you employ a single person, you are subject to employment law requirements. A written contract of employment, employers liability insurance and health and safety are the bear minimum.

Once you reach five employees, you need to offer a pension scheme (although you do not need to contribute) and you need to have certain policies documented.

Even with one employee, a business is at risk of an employment tribunal if it fails to get things right. The risk of discrimination and the legal requirement to provide time off to care for dependents are just a couple of examples of risks which are relevant to businesses of all sizes and can actually be more of a risk to smaller companies as the company is less able to take up the slack.

It is never too early to get HR advice for your business.

DOHR provides a complete HR support and consultancy service for businesses of all sizes across Northern London and Hertfordshire. Give us a call on 01923 504100 for a free chat to find out how we can minimise the risk your employees can bring to your business.

Are your employees trapped abroad?

19 Apr
by Donna Obstfeld, posted in Absence, Holidays, Human Resources, pay   |  No Comments
As a working mother, I am hearing lots of stories of friends and teachers stuck at a wide variety of holiday destinations unable to return to school.

The current travel ban is affecting everyone, but how are employers coping?

There are several issues to consider as an employer:
~ Firstly, the impact of having employees absent from work as they were on holiday and are now stuck, and
~ secondly, the impact on business of having employees unable to travel to meet with clients, attend training, attend meetings etc. or to return to the office from such meetings.

So how are employers coping?
Well the second issue is perhaps the easiest to deal with. With the increase in technology, people have laptops, internet access, skype, instant messaging, smart phones etc. and it is now easier than ever to stay in touch with people, or work remotely.

The first issue is a little more complex.
~ Employees are not likely to have taken their laptop on holiday with them, therefore they have no way to work remotely.
~ Some employees may not need a laptop for work as their role involves face to face contact with the customer i.e. in a retail environment.
~ If they are on annual leave, do you continue to pay them?
~ Do you deduct absence days from their annual leave entitlement? and what happens if they haven’t got enough?

The answers to these questions will vary significantly between businesses and there is no right or wrong answer. There are however, some key issues which must be considered when taking decisions on how to treat these employees:
~ Firstly, you need to be aware of discrimination. Treat all employees consistently. Ideally you will have a business continuity policy and procedure and this should provide you with a framework for handling such situations.
~ Secondly, clearly communicate what you are intending to do and how it will be done. This reduces fear and panic among the workers, especially those who are stuck back in the office, not knowing what to do.

To get more assistance with ensuring the risk to your business is minimised, please contact us on 01923 504100 or via our website at www.dohr.co.uk

Are you ready for fit notes?

14 Apr
by Donna Obstfeld, posted in Absence, Fit notes, Human Resources, sickness, Wellness   |  No Comments

Did you know that the next time your staff are off sick, they no longer need to bring you a sick note. From April 6th, you need to ask them about a Fit Note.

These are still issued by the GP, usually after seven calendar days of absence, but instead of just informing the employer that the employee is not fit for work, the GP now needs to focus on what the employee can do and decide whether the employee could come back given certain scenarios. GPs have to tick one of four boxes:

  • Not fit for work (this is the equivalent of the old sick note)
  • Return to work on restricted hours
  • Return to work on restricted duties
  • Return to work with physical changes to the environment

Some things to bear in mind:

  • There is no legal obligation to follow the advice given, as long as you have an objective business reason for not doing so
  • Employees do not have to return to work, even if the GP says they are able to do so with restrictions
  • If an employee returns on reduced hours, the employer only pays them only for the hours they are working
  • If the employee is on lesser duties, the employer can pay the appropriate rate for the job being done
  • Employers are not obliged to create a job for the employee to do, if they can not do their ‘normal’ job

Consistency and fairness are going to be essential in implementing this change in the law. Documenting and communicating your company sickness policy is essential. For help updating your policy and procedures, please feel free to contact us

Can you afford to give employees time off to train?

14 Apr
by Donna Obstfeld, posted in employent law, Employers, Human Resources, training   |  No Comments

On 6th April 2010, the law changed to allow all employees to request time of to train.

Here are some of the issues which need to be considered:

  • Will the training benefit the employer as well as the employee?

If it won’t benefit the employer, you can turn down the request.

  • Will you give the time paid or unpaid?

There is no requirement to pay salary while an employee is taking time off for training, even if it will benefit the employer.

  • Will you pay for the training?

Again, there is no need to pay for the training, even if it will benefit the employer.

  • By saying yes to some employees and no to others, you may open yourselves up to discrimination claims.

Have a clear policy and procedure and communicate the criteria you will judge all applications by.

To find out more about the new legal entitlement to request time off for training or for assistance with your policy development, please contact us.

Are your beliefs ‘protected’ in law?

03 Nov
by Donna Obstfeld, posted in Business, Discrimination, employent law, HR   |  4 Comments

I’m sure many of you do not follow the employment case law. However, when it makes the six o’clock BBC news, it may be worth paying attention to.

Firstly, in case any of you have missed it, here are links to two articles about the said Employment Appeal Tribunal decision handed down today. The actual EAT judgement and a BBC article summarising it.

So, what are the implication for employers?

Well since the introduction of the Employment Equality (Religion and Belief) Regulations 2003 discimination of any employee on the basis of “any religion, religious belief, or philosophical belief” has been illegal. Religion and religious belief have been widely understood and consistently interpreteted, but philosophical belief is harder to define; and if you can’t define something, how can you prevent discrimination on the basis of it?

When the law was first introduced there were concerns about office banter over many a passionate belief – football teams for example. Employee A supports Local Team United and all other employees (and the boss) support Local Team City. Can office banter be deemed discriminatory if employee A is not promoted, not offered the same opportunities etc?

When is a political belief or a deep rooted way of life a philosophical belief protected in law?

How does this affect company policy on discrimination, bullying, harrassment and equality of opportunity?

This is a case which we should all now be watching.

Thoughts and experiences please.

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