Tag Archive for: HR Londonderry

Are you ready for April’s statutory rates changes?

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In just a few weeks, changes to statutory rates will come into effect. So what are these and how can you ensure your company avoids negative publicity for non-compliance? Here, we share the changes you need to know about, plus why 179 companies have been hit with huge fines.

The start of April is when businesses are required by law to adhere to the new statutory pay rates.

The latest list published by the government outlines 179 companies fined for not paying minimum wage to their employees. Global brands such as Wagamama, Marriott Hotels and TGI Friday’s are among the top offenders, while Northern Ireland based businesses Moy Park, Wilson’s Country Limited, QCS Contract Cleaning Ltd and Tayto were also named and shamed. The result of this has seen all 179 companies incur hefty fines, as well as being obliged to compensate workers for their shortfall.

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Wagamama is believed to have failed to pay £133,212 to 2630 workers, while TGI Friday’s owed its staff £59,348.

Reasons for underpayments include failing to pay workers for travelling between jobs, not paying overtime and deducting money for uniforms.

As well as being required by law to pay back the shortfall to employees, the named companies face fines of up to 200% of the wages owed.

Julie Pollock from Consult HR said: “Employers should not underestimate the power of the Government in this area and the compliance officers can commence an investigation and remove information from an employer’s premises with no warning. They have also taken to ‘naming and shaming’ those employers found to be in breach exposing them to negative publicity.”

In Wagamama’s case, the breach came about because the company did not provide a uniform: Wagamama’s gave staff T-shirts that they expected to be worn with a black skirt or trousers. However, by not paying for the additional items, the restaurant breached minimum wage regulations.”

Unpaid breaks, requiring staff to arrive early for their shift and unpaid time spent in meetings could all lead to underpayment of wages.

There are also warnings that employers making deductions from staff for the cost of the Christmas party could also fall foul of the law if these deductions lowered employees’ wages to less than the minimum wage.

Moreover, additional payments such as tips and service charges should not count towards wages.

Back in 2017, Argos topped the list for paying below the minimum wage because staff were expected to attend unpaid briefings and undergo lengthy security checks outside working hours.

Primark and Sports Direct were among 260 UK employers who had been named and shamed by the government for failing to pay the national minimum wage and national living wage.

The key here is to ensure that as a business, you are adhering to the new statutory rates.

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Confused by what exactly this all means? Don’t panic! We’ve laid it all out for you…

The changes are as follows:

National minimum wage

The hourly rate will increase as follows:

  • From £7.05 to £7.38 for 21-24 year olds
  • From £5.60 to £5.90 for 18-20 year olds
  • From £4.05 to £4.20 for 16-17 year olds
  • From £3.50 to £3.70 for apprentices aged under 19 or in the first year of their apprenticeship.

National living wage (for 25 years and over)

The hourly rate will increase from £7.50 to £7.83 for 25s and over.

Statutory Sick Pay (SSP)

The weekly rate of SSP increases from £89.35 to £92.05.

Statutory Maternity Pay (SMP)

The weekly rate of SMP increases from £140.98 to £145.18.

Statutory Adoption Pay (SAP)

The weekly rate of SAP increases from £140.98 to £145.18.

Statutory Paternity Pay (SPP)

The weekly rate of SPP increases from £140.98 to £145.18.

 Statutory Shared Parental Pay (SShPP)

The weekly rate of SShPP increases from £140.98 to £145.18.

The government takes a ‘no excuse’ approach against companies for failing to pay staff less than minimum wage and ‘ignorance of the law’ will not be an acceptable explanation for non-compliance.

Undertake a review of your working practices and make necessary adjustments to any areas of risk is the advice from Julie Pollock from Consult HR, if you want to avoid penalties and protect your business from reputational damage.

If you need some help with a particular staffing issue, get in touch here today! Don’t forget to follow us on Facebook here for the latest HR news and free advice, and leave your name & email address in the comments section below to sign up for our monthly newsletter.

How to avoid tears, tantrums and legal actions following your office Christmas party

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Tis the season to be jolly but with the office Christmas party comes the need to keep both your employees and business safe during the festive frenzy. With a staggering 9 out of 10 businesses having had an employment issue as the result of a Christmas party, here are my top tips for avoiding tears, tantrums and legal actions this festive season.

You are invited to attend…

As an employer organising a Christmas party, you are undoubtedly responsible for the behavior of your employees at the event. When it comes to inviting staff, avoid discrimination claims by extending the invite to everyone. This includes those who are sick, on maternity leave or who may have mentioned they are unable to attend.

At the time of inviting employees, it is important to address the code of conduct that is expected of them, highlighting that social events connected with work are an extension of the workplace. In particular, staff should adhere to the Dignity at Work and Bullying and Harassment policies or indeed, these should be put in place if they are not already in existence.

The Chief Constable of the Police in Lincolnshire was held accountable for the actions of a male employee, who sexually harassed a female colleague, whilst at a pub. The Employment Appeal Tribunal in The Chief Constable of Lincolnshire v Stubbs [1999] ICR 547 upheld the original Employment Tribunal’s conclusion that “attending a public house for relaxation immediately after the end of the working day is, in our view, merely an extension of employment…”

 

Office Christmas party

It was the drink talking…

In Judge v Crown Leisure Ltd [2005] IRLR 823 (CA), a company director who attended the office Christmas party advised Mr Judge that he planned to align his salary soon to meet that of a new employee who was earning considerably more. Two years later, with no advance in salary, Mr Judge resigned and claimed constructive dismissal. His claim was dismissed in the view that the Director was merely providing “words of comfort”.

Beware of promises made. Don’t make promises about pay rises or promotions at the Christmas party. The employer here was not held to it but a different tribunal may have ruled differently. Plus, the entire affair is costly in time and money so it’s best to avoid this type of conversation outside of the office.

The morning after

As employers are obliged to provide a safe place of work, be mindful of employees who are required to work the day after the Christmas party, especially those who have to drive or operate office machinery.

Employers should make employees aware of their expectations in not returning to work the day after the Christmas party under the influence of alcohol or drugs. With this in mind, it is advisable to limit the amount of free alcohol that employees have access to at the Christmas party.

 

Office Christmas party

Secret Santa implications

Although fun and a highlight of the festive season, the anonymity surrounding Secret Santa can result in inappropriate or offensive gifts being swapped. An easy way to avoid potential problems, is to make staff aware that this practice falls under the Dignity at Work and Bullying and Harassment policies, which they should keep in mind when purchasing gifts. It’s also advisable to put a spending limit on gifts in order to ensure that all staff feel included.

Beware of social media

While many believe there is no such thing as bad publicity, a clip or photos of your office Christmas party going viral on social media, for all the wrong reasons, can bring with it much more than just a hangover. With the popularity of social media on the rise, comes an increase in the number of cases involving inappropriate use of social media sites.

To avoid this, employers should have a Social Media Policy in place, which advises employees not to place material online which could negatively affect the reputation of the employer, or which breaches its Bullying and Harassment Procedures. Employees should be reminded about the practice of social media in the run up to Christmas.

The Christmas bonus conundrum

At this time of year, it is common practice for Christmas bonuses to be given, as a gesture of goodwill. However, with the effects of the economic downturn still lingering, employers often question whether they are obliged to give employees such bonuses.

If an employee’s contact is silent in relation to this payment, it can be argued that if this has previously been a custom, it is an implied term in his/her employment contract. To avoid this, employee contracts should be very clear that Christmas bonuses are at the discretion of the employer.

 

Office Christmas party

Have fun

While this all might sound a bit Scrooge, we don’t advocate that your Christmas party should be a bland affair, free of all fun. With the correct communications and employee expectations laid out beforehand, the office Christmas party can be a great event, devoid of drama and disciplinary hearings.

Happy Christmas from Consult HR.