Originally written by Peter Done on Small Business
We use a self-employed cleaner who comes in three-four hours during office hours on a Friday. This is no longer suitable and we have an alternative company ready to deal with it. What, if anything, do we need to be aware of before terminating the existing cleaner’s services?
Status of employment: There are a number of issues raised by your question. The first is whether the cleaner is actually self-employed (working under a “contract for services”) or in fact your employee (working under an “employment contract”).
There is no detailed definition of who is an employee incorporated into the legislation and even if the employer pays the PAYE and NI they may still be able to establish that there was no employment relationship but this is more common in the construction industry. Some guidelines for the purpose of determining employment status have now been laid down in various cases over the years. The factors which have emerged from those cases are summarised below and are based on whether the individual is in business on their own account, which requires a determination of who controls the work done particularly with respect to the right to delegate,
Tag Archive for Employment Contracts
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Terminating a contract – what if your worker is only part-time?
by Peter Done • • 0 Comments
Originally written by Peter Done on Small Business
We use a self-employed cleaner who comes in three-four hours during office hours on a Friday. This is no longer suitable and we have an alternative company ready to deal with it. What, if anything, do we need to be aware of before terminating the existing cleaner’s services?
Status of employment: There are a number of issues raised by your question. The first is whether the cleaner is actually self-employed (working under a “contract for services”) or in fact your employee (working under an “employment contract”).
There is no detailed definition of who is an employee incorporated into the legislation and even if the employer pays the PAYE and NI they may still be able to establish that there was no employment relationship but this is more common in the construction industry. Some guidelines for the purpose of determining employment status have now been laid down in various cases over the years. The factors which have emerged from those cases are summarised below and are based on whether the individual is in business on their own account, which requires a determination of who controls the work done particularly with respect to the right to delegate,
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How to tell your staff they’re working reduced hours
by Helen Watson • • 0 Comments
Originally written by Helen Watson on Small Business
With the Job Retention Scheme (JRS) coming to an end and the Job Support Scheme (JSS) taking its place, employers wanting to take advantage of the new scheme will need to enter discussions with staff about working reduced hours and cutting pay.
#1 – Review the employment contract
Any change to an employee’s hours of work and pay will amount to a contractual change of their current terms and conditions of employment. Despite the new government scheme being introduced, this does not give a unilateral right to change an employee’s terms and conditions of employment. It is important to review their current terms and any contractual rights to amend terms, on a temporary or permanent basis, before consulting with the employee about the proposed changes.
#2 – Consider whether reduced staff hours are appropriate
Employers should consider whether reduced staff hours are appropriate bearing in mind that the JSS is designed to support “viable” jobs only. To be eligible for the scheme, an employer must be able to provide at least a third (33 per cent) of the employee’s normal contracted working hours. If this is not possible, then other options may be more appropriate, such as
Hot Business News Today
How to tell your staff they’re working reduced hours
by helenwatson • • 0 Comments
Originally written by helenwatson on Small Business
With the Job Retention Scheme (JRS) coming to an end and the Job Support Scheme (JSS) taking its place, employers wanting to take advantage of the new scheme will need to enter discussions with staff about working reduced hours and cutting pay.
#1 – Review the employment contract
Any change to an employee’s hours of work and pay will amount to a contractual change of their current terms and conditions of employment. Despite the new government scheme being introduced, this does not give a unilateral right to change an employee’s terms and conditions of employment. It is important to review their current terms and any contractual rights to amend terms, on a temporary or permanent basis, before consulting with the employee about the proposed changes.
#2 – Consider whether reduced staff hours are appropriate
Employers should consider whether reduced staff hours are appropriate bearing in mind that the JSS is designed to support “viable” jobs only. To be eligible for the scheme, an employer must be able to provide at least a third (33 per cent) of the employee’s normal contracted working hours. If this is not possible, then other options may be more appropriate, such as lay
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What should you include in an employment contract?
by Alex Bearman • • 0 Comments
Originally written by Alex Bearman on Small Business
A written employment contract is not necessary to establish an employment relationship in law. However, there are many good reasons why employers will want to have in place well-drafted terms of employment.
Fundamentally, like all written agreements, employment contracts help to provide the parties with certainty. Staff are more likely to feel that they are part of a well-run business if the terms of their employment are set out in a sensibly drafted contract. The sense of security which this provides should not be underestimated.
Here are some of the tangible benefits for businesses of investing in the preparation of a written employment contract.
>See also: How to deal with a furloughed employee who refuses to return to work
The legal obligation
Subject to some very limited exceptions, all employers are required to provide their employees with a written statement of employment particulars setting out certain key terms including:
the names of parties
the date of commencement of the employee’s employment
the rate of pay
terms relating to hours of work
the place of work
terms relating to holiday entitlement
the length of notice required by either party to terminate the contract
Where an employer fails to provide the employee with written particulars, a complaint can
Hot Business News Today
What should you include in an employment contract?
by Alex Bearman • • 0 Comments
Originally written by Alex Bearman on Small Business
A written employment contract is not necessary to establish an employment relationship in law. However, there are many good reasons why employers will want to have in place well-drafted terms of employment.
Fundamentally, like all written agreements, employment contracts help to provide the parties with certainty. Staff are more likely to feel that they are part of a well-run business if the terms of their employment are set out in a sensibly drafted contract. The sense of security which this provides should not be underestimated.
Here are some of the tangible benefits for businesses of investing in the preparation of a written employment contract.
>See also: How to deal with a furloughed employee who refuses to return to work
The legal obligation
Subject to some very limited exceptions, all employers are required to provide their employees with a written statement of employment particulars setting out certain key terms including:
the names of parties
the date of commencement of the employee’s employment
the rate of pay
terms relating to hours of work
the place of work
terms relating to holiday entitlement
the length of notice required by either party to terminate the contract
Where an employer fails to provide the employee with written particulars, a complaint can
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6 top tips to prepare for IR35 tax changes – Small Business checklist
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Nearly three-quarters of businesses are completely unaware of IR35 tax changes coming into effect this April.
From April 2020, company employers will have to decide whether freelance contractors are truly freelance or whether they are on open-ended contracts, saving employers money but which HMRC sees as tax and national insurance avoidance.
HMRC wants to crack down on freelance contractors with full-time positions in businesses, which it sees as abusing the system.
>See also: How to wind up your personal service company ahead of IR35 legislation
Seventy-one per cent of businesses surveyed by consultancy Sullivan & Stanley are unaware of the IR35 changes coming into effect on April 6 2020.
More than half of businesses surveyed (54pc) say they haven’t received enough information and 52pc say it’s contradictory or confusing.
Fewer than four in 10 firms (37pc) say they’ll have a strategy in place to cope with IR35 by the time changes kick in.
One fifth say they expect to be ready up to three months after IR35 is enforced, 32pc say four to six months after the change date, and nearly one in 10 (9pc) think it will take them anything between seven to 11 months beyond April 2020 to
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Seven key types of small business employment contract
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
As a small business owner, your legal responsibilities when taking on staff can be somewhat daunting but with a little help you can soon understand what’s needed.
When you start taking on employees you will be faced with a fair amount of legal responsibilities. It’s important you understand all your obligations as an employer as if you don’t comply with UK employment law you can easily find yourself in front of an employment tribunal.
One of your first duties as a new employer is to ensure you comply with employment contract law.
See also: Five areas of employment law small businesses must be aware of
Full-time contracts
Employees are legally entitled to a written statement of the main terms and conditions of employment if their employment contract lasts at least one month or more.
You, the employer, must provide the written statement within two calendar months of the employee starting work.
There are a number of things which an employment contract must include as legal requirements. These requirements are specified in the Employment Rights Act 1996. An employment contract must include:
The name of the employer and the employee
The employee’s start date, taking into consideration previous periods of employment which are counted
The