Redundancy & Protective Awards

Ex-Thomas Cook workers could be in line for thousands of pounds of extra pay.

When a business goes into administration or liquidation employees have a right to claim monies owed to them by the company but how this is claimed depends largely on their status as creditors. 

Claims can be made on the National Insurance Fund via the Redundancy Payments Service (RPS), usually in the following circumstances:

1) By employees made redundant within the first 14 days of administration;

2) By those who have lost their jobs on company liquidation;

3) By preferential creditors (members of staff) who were retained during the initial administration period, but who have been unable to claim all monies owed to them from the sale of business assets.

However, where there has been complete failure by the employer to consult with employees regarding their dismissal, you can still make a claim for an additional “Protective Award” even if your employer becomes insolvent, and the tribunal is likely to award a payment of 90 days’ pay to each employee. 

What is a Protective Award?

A Protective Award is an award of compensation of up to 90 days’ gross pay, that can be awarded by an Employment Tribunal, for failure by your employer to collectively inform and consult you where you have been dismissed on the grounds of redundancy and the government’s National Insurance Fund would cover your award.

How to Make a Claim

If you are interested in making a Protective Award claim against your former employer, contact Employment Law Services (ELS) for free initial legal advice. There are very strict time limits for bringing these claims and they must be brought within three months less one day of the date of your dismissal so please contact us as soon as possible.

New Vento Bands For Injury to Feelings Awards

There are new ‘Vento’ guidelines for injury to feelings awards in discrimination claims presented after 6 April 2019.

The new bands are:

  • lower band (less serious cases): £900 to £8,800
  • middle band: £8,800 to £26,300
  • upper band (the most serious cases): £26,300 to £44,000

This annual update to the Vento guidelines, setting out the bands of awards for injury to feelings, adjusted for inflation, is taken into account by Tribunals when considering what to award for damages in discrimination cases as a remedy for the hurt, humiliation and degradation suffered by the employee and is considered separately from any claim for financial loss such as loss of earnings.

The EqA 2010, most of which took effect on 1 October 2010, brought together and strengthened the previous discrimination legislation. It is concerned with discrimination in respect of the “protected characteristics” of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

An employer can be “vicariously liable” for discrimination or harassment committed by an employee in the course of employment. However, there is a defence available to an employer if it can show that it took all reasonable steps to prevent the employee from doing the discriminatory act or from doing anything of that description, commonly known as a “statutory defence”.

How can Employment Law Services (ELS) help? 

At Employment Law Services (ELS) we can offer advice and support to Employers to help them to ensure they have taken all reasonable steps to prevent discrimination including, drafting appropriate HR policies and procedures, offering training courses and e-learning on equality and diversity and bullying and harassment and support with any individual issues that you may encounter.

If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0800 612 4772.

 

 

The new bands are:

 

New National Minimum Wage Rates – 1 April 2019

New National Minimum Wage (NMW) and National Living Wage (NLW) Rates take effect from 1 April.

          Old Rate         New Rate         Increase (%)
                               
                               
25 years +         £7.83         £8.21         4.9%
21-24 years         £7.38         £7.70         4.3%
18-20 years         £5.90         £6.15         4.2%
16-17 years         £4.20         £4.35         3.6%
Apprentice rate         £3.70         £3.90         5.4%

 

The national minimum wage (NMW) is a prescribed minimum hourly rate of pay which employers must legally pay to most of their workers. The legislation which underpins the NMW is highly technical in nature and many employers have unintentionally fallen foul of the rules and have, in addition to being hit with sizeable financial penalties, have been named and shamed for underpaying their workers.

Employers must keep sufficient records to establish that workers have received the NMW and it will be presumed that the worker has not received the NMW unless the employer can prove to the contrary.

The NMW is enforced by HMRC. The enforcement measures available to HMRC include service of notices of underpayment, civil penalties, “naming and shaming”, recovery of underpayments through tribunals or civil courts, and criminal prosecution. HMRC’s policy on using these measures is set out in BEIS: National Minimum Wage Law: Enforcement.

If you are unsure about what records you need to keep and/or how long you need to keep them don’t hesitate to contact us.

How Employment Law Services (ELS) Help SMEs to Prevent Problems & Protect Their Business

https://youtu.be/2laGL4dOsLw

A short video about the services Employment Law Services (ELS) LTD provide to SMEs throughout the UK. Thanks for sparing 2 mins to watch it!

If you’d like more information about how we can help you and your business, Contact Us via our website and one of our team will be in touch or alternatively you can call us on 0800 612 4772.

Employment Law Services Achieves a Major Milestone

Back on 16 December 2008 Employment Law Services (ELS) was formally incorporated as a limited company and on 1 January 2009 we officially commenced our first year of trading and as the bells struck midnight on New Year’s Eve not only were we celebrating the dawn of a new year, we were also celebrating achieving a significant milestone in the history of Employment Law Services (ELS), 10 fantastic years of trading!

Employment Law Services (ELS) Achieves a Major Milestone

Over the past decade we have seen our team grow and our operations expand from being a local specialist employment law firm to being a UK wide employment law firm, providing employment law and HR advice and support and Employment Tribunal Representation not just for companies in central Scotland but for SMEs throughout the whole of the UK!   Undoubtedly, the dedication and commitment of our amazing team has been key to our continuing growth and success but so too have many others, not least our clients who have put trust in us to look after all of the employment and HR needs year after year and whose demands, challenges and feedback has been invaluable in helping us to continue to drive ongoing improvements in how we deliver a fixed fee employment law service to employers that is prompt, practical, reliable, and tailored to their specific requirements at a price that won’t break the bank. 

As we reflect on the past 10 years and look forward to the next 10 years and beyond we would like to acknowledge and thank all those who have helped shape our business and so to all of our clients, suppliers and supporters, thank you for 10 amazing years and we very much look forward to another 10 great years as the preferred employment law business partner for SMEs throughout the UK.

2019 – HR and Employment Law changes employers need to know

In 2018, employers and managers had many employment law and HR changes to deal with. This included the introduction of GDPR, gender pay gay reporting, changes to taxation of termination payments and increases to the NMW.

2019 is set to be another busy year for employers; we have provided an overview of what to expect in the coming months.

Executive Pay Reporting

From 1st January 2019, UK based companies who employ over 250 UK employees will be expected to publish the pay gap between their CEO and average worker.

It is important that larger organisations are prepared for not only the figures but any potential implications these figures may have on the company’s reputation and employee morale.

Brexit

On 29th March 2019, the UK will officially cease to be a member of the EU, although a transition period will remain in place until the end of 2020.

The EU Settlement Scheme will ensure EU workers in the UK will be able to obtain settled or pre-settled status. This means EU workers will be able to live and work in the UK after 31st December 2020. For individuals to have the right to settled status, they must have lived continuously in the UK for 5 years. It remains unknown how non-UK resident citizens will be affected by Brexit.

National Minimum Wage

From 1st April 2019, the National Minimum Wage and National Living Wage will both increase.

At present, the National Living Wage (the rate of pay for those aged 25 and over) will increase from £7.83 per hour to £8.21 per hour.

The National Minimum Wage (the rate of pay for those under 25) will increase as followed:

  • From £7.38 to £7.70 for those between 21 to 24-year olds;
  • From £5.90 to £6.15 for between 18 to 20-year olds;
  • From £4.20 to £4.35 for 16- and 17-year olds;
  • From 3.70 to £3.90 for apprentices.

Payslips

From April 2019, employers will be expected to provide itemised payslips for employee’s wages which vary on how many hours they have worked. Employers will be expected to include the number of hours the employee is being paid for.

Before this new legislation comes into force, employers should:

  • Ensure payroll processes are up to date and ready to collect new information required;
  • Adjust the format of current payslips so that this new information can be included.

How can Employment Law Services (ELS) help?

If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0370 218 5662.

Is failing a drug test a reason for an automatic dismissal?

A recent decision made by the Employment Tribunal has highlighted the importance of not treating a positive drug test result as a reason for automatic dismissal.

In the case of Ball v First Essex Buses Ltd, Mr Ball was employed as a bus driver and had over 20 years’ service with his employers. Part of his employment involved a routine drug test, in which the employee was expected to provide a saliva sample. To the employee’s surprise, the drug test came back and had tested positive for cocaine. Because of this, his employers suspended him and advised him he would be required to attend a fact-finding meeting.

At this meeting the employee argued that he had not taken any drugs apart from medication prescribed by his GP and that he had arranged to have a hair follicle test to prove this. This test then came back negative.

At the disciplinary hearing, Mr Ball was informed that his employer would only consider the saliva test results and not the independent hair follicle test results as they had not been carried out by one of the companies approved testers.

It was concluded that he failed the random drug test and his employment should be terminated with immediate effect. The employee appealed but remained dismissed.

Employment Tribunal considerations

When determining whether a dismissal is fair or unfair, the Employment Tribunal will assess whether the employer acted reasonably or unreasonably. In which they will look at the procedure the employer followed: Did the employer carry out a proper investigation? Was the employee given the opportunity to take a colleague into the meeting and were they given the opportunity to appeal the decision? They will then look to see whether the reason for dismissal fell within the band of reasonable responses.

In Bell v First Essex Buses Ltd, the Employment Tribunal held that: “Given the random nature of the test; the contra-indicators of the claimants good character, age (he was 60 years old), health, etc; the possibility of cross-contamination; the possibility of mislabelling the sample; the two negative hair follicle tests; and the claimants offer to retake any drug tests, the respondents decision to dismiss was therefore outside the band of reasonable responses.”

Important points that were noted included:

  • The employer had not stated in his disciplinary procedure that failing a random drug test would be viewed as gross misconduct;
  • The investigatory officer did not give the employee the chance to dispute the drug test in line with their alcohol and drug procedure;
  • The dismissing and appeal officer refused to take into consideration all other justifications for the employee having failed the drug test.

On these grounds the dismissal was held as procedurally and substantially unfair.

Comment

Employers should be cautious when treating drug test results as black and white. In this situation Mr Bell’s employer failed to recognise the independent evidence presented by the employee. To reduce the risk of a claim, it is important that employers are not closed-minded and look at all the facts of the case before coming to any harsh decisions. In this situation the employee had an exemplary record and it could be argued his employers were too harsh when applying their drug and alcohol policy.

How can EmployEasily Legal Services help?

If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0370 218 5662. 0000

All I want for Christmas is…. A stress-free payroll!

Christmas and New Year can be the most expensive time of the year for most people. If you employ people, the festive period can bring a number of problems that you will need to be aware of before you can wind down for you break.

In this blog we will detail some of the most common employer Christmas payroll issues and how to avoid them.

December Pay Date

The December pay date can be awkward, paying your employees a few weeks earlier means a longer month in January.  

Generally, most employees will get paid the last working day of each month, however, if your organisations pay date falls before Christmas, your employees should be paid as normal. Failure to do so exposes your business to potential claims of breach of contract.

At Employment Law Services (ELS), we are often asked at this time of year: “Do we have to bring our employees pay dates forward in December?”

The short answer to this is, no. Employers are not legally obliged to bring their employees pay dates forward for December unless it says so in the contract of employment.

Christmas Bonuses and Gifts

Many employers choose to hand out Christmas bonuses and gifts to their employees to thank them for another successful year in business. On paper, this may look like a straightforward matter, however, for your payroll team it can be a huge challenge.

Employers should set out the difference between cash gifts and physical gifts and then consider whether the employee can sell this gift on for cash or whether the employee in receipt of the gift is a named director of the company and how much money they earn.

This can be a fairly complex matter and therefore, it is important that your payroll team are clear on both definitions.

Employers should note, that they do not have to pay a bonus to employees at all unless it states otherwise in the contract of employment.

Christmas Working Hours

There are no legal requirements around festive working hours and while a lot of employers choose to close the business for the full 2 weeks, others may choose to have their employees work in between. In this event, employers should ensure they have made the appropriate arrangements with pay roll so that these employees are paid the correct salary and on time.   

How can EmployEasily Legal Services help?

If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0370 218 5662. �

An employer’s guide to Christmas employment issues

With Christmas only 4 weeks away, the employment issues surrounding this holiday often create a HR headache for employers. This blog is intended to arm employers with the correct knowledge and guidance to help make the festive season as stress free as possible.

1. Overtime

If an employee has normal working hours, overtime usually means any time you work beyond these hours. Normal working hours will be set out within the employment contract. It is important to note, that despite how busy you are with the working year coming to an end, you can not force employees to work overtime unless the employment contract states otherwise.
The Working Time Regulations sets out that employees do not have to work more than 48 hours per week on average. If an employee wishes to work beyond the 48-hour limit, they must put this in writing. This is otherwise known as the opt-out agreement.

2. Managing client gifts

No matter how well intended a client’s gift may be, the potential exists for impropriety. And, whilst it may be flattering to be in receipt of the gift, employers and employees should remain cautious before accepting a client’s token of appreciation. Accepting gifts of high value, could be viewed as something that has potential to influence the professional relationship.
In addition, if a high-valued gift is viewed as giving someone a financial advantage to prompt that person to carry out their duties or activities improperly, accepting the gift may result in an offence under the Bribery Act 2010.
Therefore, all employees should be reminded of the rules and policies on accepting client gifts. For example, all gifts received should be entered into a register and no gifts of a certain value should be accepted without prior consent from a line manager.

3. Winter sickness bugs

With the cold and flu spreading more easily in the winter months, employees are more likely to catch illnesses and pass them on.  Given the high costs that are associated with short-term sickness, employers should ensure that they have in place an easily implemented sickness absence policy, including who should be the point of contract during the absence, what evidence will be required, sickness pay details and return to work interviews.

4. Adverse weather conditions

As an employer, it pays to be fully prepared for whatever weather the winter throws at you – whether its wind, rain, storms, snow or ice.

So, what issues should you keep in mind?

• You are not legally obliged to pay employees if they do not come into work because of the weather
• You should have a policy that outlines this
• Try to be flexible where possible – can you both come to a short-term arrangement in which the employee can work from home until the weather improves?

5. Dress code and Christmas jumpers

Some employers choose to relax their dress code at Christmas. Allowing employees to dress down and wear Christmas jumpers can help bring some festive cheer into the workplace. However, employers should be cautious about the wording when notifying employees about this, ensure they know Christmas jumpers and casual dress is optional and not compulsory. In addition, employers should be sensitive to employees who do not celebrate Christmas or do not wish to dress any differently at this time of year.

How can Employment Law Services (ELS) help?

If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0370 218 5662.

The law on payslips is set to change by April 2019: Start preparing now!

Providing your employees with payslips is generally a routine process that does not require a lot of thought behind it.

Under UK law, a payslip should be issued to all employees each time they are paid. Employers do not need to issue payslips to non-employees, this includes contractors, freelancers and workers. There are further exceptions made for the police service, merchant sea men and master or crew members working in share fishing.

At present, the law states that an employee’s payslip should be issued on or before pay day and should set out the following:

• Earnings before and after any deductions
• The amount of deductions that may change each time the employee is paid, for example, tax and national insurance

As of April 2019, employers will need to state how many hours all employees and workers are being paid for on the slip. This is because workers who have not been receiving a payslip up until now have been seen to struggle when attempting to calculate what deductions are being taken from their pay. And, if the pay calculated does not support what it states on the payslip, they are able to dispute this more easily in front of an Employment Tribunal.

How can Employment Law Services (ELS) help?

If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0370 218 5662.