Originally written by Mike Tremeer on Small Business
The Covid-19 pandemic is having far-reaching consequences for businesses across the globe. Many have found that demand for their goods and services has fallen away drastically while others are prevented from operating due to government lockdowns. Other employers have been forced to consider redundancies in order to cut staff costs, but any small business based in the UK should give thought to other measures available before proceeding with redundancy as a last resort.
Coronavirus Job Retention Scheme
The newly announced Coronavirus Job Retention Scheme provides vital and unprecedented support to business to help pay their staff wages during the current crisis. The scheme offers employers reimbursements of up to 80 per cent of “furloughed workers” wage costs capped at £2,500 per month, in addition to other costs to employers. Furloughed workers are those who have no work to do, and they must not carry out any work while they are furloughed.
One of the key elements of the scheme is that it applies to those who would otherwise have been “laid-off”. For most employers the alternative to placing an employee on the furlough scheme would be to make their role redundant, and indeed the guidance from
Tag Archive for Employing & managing staff
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Short-time working and lay-offs – what’s the difference?
by James Simpson • • 0 Comments
Originally written by James Simpson on Small Business
As Covid-19 continues to spread across the UK, many firms have seen an extreme reduction in business. Social distancing measures introduced by the government may cause a decline in sales, as well as employees choosing to self-isolate, therefore slowing production.
To try and soften the impact, businesses are having to make the decision to let employees work from home or requiring them to take annual leave.
Badly affected businesses, however, may need to take further steps, such as reducing work hours or staff numbers.
To ensure your business stays compliant, here are some steps you need to make:
Look at your options
When deciding between short-time working and lay-offs, it’s crucial that you understand the difference between both, and what they could mean for your business and staff. “Short-time working” is when employees are provided with less work and less pay for a short period. “Lay-offs” are when employees are not provided with any work or pay for a short period, but are kept on as employees.
These are both temporary cost-cutting measures you may use when there is not enough work to go around. Short-time working and lay-offs can help you avoid dismissals or permanent redundancies, while reducing
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7 ways to cut staff costs during the coronavirus crisis
by Peter Finding • • 0 Comments
Originally written by Peter Finding on Small Business
Cashflow is a major concern for small businesses during the coronavirus crisis. The vast majority are looking to cut staff costs in order to survive the coronavirus pandemic, and indeed prosper once normality is restored.
But what if you have a talented workforce who you don’t want to lose? We all know how hard it has been to recruit over the last couple of years, especially in tech and for highly skilled positions.
How can businesses cut staff costs during the coronavirus crisis?
>See also: How to get the government’s £10,000 cash grant for small businesses
#1 – Furlough leave
Furlough leave is a new concept in the UK – it’s indefinite leave during which the government covers wage costs. Businesses can recover 80 per cent of wage costs, up to a maximum of £2,500 per month per employee.
It will cover employees who might otherwise have been made redundant, laid off or put on unpaid leave. There is no limit on the number of employees who can be furloughed. The scheme is initially in place until June 2020, although it is expected this will be extended.
While some employers will top up the grant, so employees receive full pay,
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Coronavirus: what are your sick pay obligations if your staff self-isolate?
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
As coronavirus (COVID-19) becomes more widespread, the UK is taking a ‘self-isolate’ approach to prevent further spreading.
Health secretary Matt Hancock has sent information to employers stating that employees who are told to self-isolate should be entitled to statutory sick pay.
Below, we answer some key questions around self-isolation and statutory sick pay (SSP).
When would my employee be told to self-isolate?
Your employee may be told to self-isolate when they’ve been to a country with a high risk of contracting COVID-19.
At the time of writing, the government’s high-risk countries include:
Category 1
Wuhan city and Hubei Province (China)
Iran
Daegu or Cheongdo (Republic of Korea)
Any Italian town under containment measures
Category 2
Cambodia
China
Hong Kong
Italy: north
Japan
Laos
Macau
Malaysia
Myanmar
Republic of Korea
Singapore
Taiwan
Thailand
Vietnam
They can also be told to self-isolate if there’s a chance they’ve been exposed to the virus through contact with someone who has the virus or someone who’s recently been to a high-risk area.
Employees waiting for a COVID-19 test result will be instructed to self-isolate while they’re waiting for their results.
Keep up with advice from the government which is being reviewed and updated daily.
What happens when an employee self-isolates?
When someone is told to self-isolate, they should stay at home and avoid going to work, school
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One third of freelancers say IR35 changes affecting their mental health
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Freelancers say that IR35 changes to the way they are treated for tax are affecting their mental health and even prompting suicidal thoughts.
Over one third of contractors say that HMRC’s crackdown on how they are taxed, treating them as full-time employees rather than freelancers – known as IR35 – is either damaging their mental health or sending them to their GP for anxiety or suicidal thoughts.
Fifteen per cent of freelancers caught out by the IR35 rule changes are set to default on mortgages or are in the process of selling their homes, according to one survey.
>See also: More than four in 10 businesses could phase out contractors due to IR35
One anonymous freelancer said: “Frequently having chest pains and not sleeping. Added pressure of wife not coping well due to fear of losing family home. Trying to remain calm, but frequently having suicidal thoughts.”
Currently, contractors assess their own tax status, but impending reforms coming into force from April 6 will shift this responsibility to hiring businesses.
HM Revenue & Customs wants stop “disguised employment” gaming the system; working in a permanent position within a company without paying the same tax or employee contributions as full-time
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Government backs down over minimum wage battle
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government has backed down in a row with businesses over the minimum wage.
Businesses that inadvertently push employees below the minimum wage by offering voluntary savings and benefit schemes to staff will no longer be fined.
>See also: Tory minimum wage pledge ‘not realistic’ for businesses, says IoD
The Department for Business, Energy & Industrial Strategy (BEIS) said that companies offering salary sacrifice schemes – where employees exchange part of their pay in return for benefits such as childcare vouchers or other products – technically pushing employees below the minimum wage, would no longer face financial penalties.
Business minister Kelly Tolhurst said: “We want to make it as easy as possible for employers, especially small businesses and those trying to do right by their staff, to comply with National Minimum Wage rules, which is why we’re reforming regulations.”
>See also: Protecting employees from overworking and minimum wage underpayment
Previously, HMRC pursued supermarket Iceland for a tax bill of over £20m after it allowed staff to voluntarily join its Christmas Club savings scheme, which pushed some pay below the minimum wage.
The business department also said it would relaunch its “naming and shaming” of employers who breach minimum wage rules.
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What is payroll giving and how does it help engage your staff?
by Klara Kozlov • • 0 Comments
Originally written by Klara Kozlov on Small Business
Eighty-three per cent of millennials say they would be more loyal to a business that enables them to contribute to social problems.
Clearly, in today’s competitive talent market, there is an increasing need to offer engaging experiences to retain employees.
However, although most companies realise the importance of employee engagement, the majority find it very challenging to find something to actually engage employees with.
Payroll giving is something to consider – through our Give As You Earn (GAYE) scheme over 2,500 companies and their staff to give over £74m to charity each year. Since 1987, over £1.3bn has been given.
>See also: Giving to charity good for business survey finds
What is payroll giving?
Payroll giving is a scheme that enables your employees to give to any UK charity straight from their gross salary (before tax is deducted), and to receive immediate tax relief. Charities also don’t have to claim Gift Aid, so there’s less administration for them and they can plan and budget for the future based on the regular, reliable donations received through payroll giving.
How to get started
There are several reliable, accredited payroll giving providers in the market, each with their own unique offerings. Using my own
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Apprentice winner Mark Wright on how to build the right team
by Mark Wright • • 0 Comments
Originally written by Mark Wright on Small Business
When launching a new business, every start-up entrepreneur experiences the same challenging journey, fulfilling multiple job roles at one time, until income and cash flow dictate you can employ support staff.
Where some entrepreneurs deem this an exciting step, others find the responsibility of employing staff as daunting. The difference between these two mindsets, however, is fundamental to business growth.
Those who understand that a”‘one-man-band” cannot physically grow at scale are those more likely to achieve success; yet, finding, retaining and knowing how to build the right team is a common challenge experienced by business owners globally.
At my company Climb Online, we boast an award-winning company culture with impressive staff retention rates. However, this hasn’t been developed by the luck of the draw, but rather an effective strategy focused on cultivating a passionate and driven team of “intrapreneurs” united in achieving success.
>See also: 7 hiring strategy dos and don’ts for high-growth SMEs
Share the vision
All entrepreneurs experience the challenge of finding loyal, high-performing staff who are passionate about the future success of their business.
Instead of focusing on the personality traits of those who walk in [and out] of the door, focus on uniting your employees in
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Tory minimum wage pledge ‘not realistic’ for businesses, says IoD
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The Institute of Directors says that the Government’s pledge to increase the minimum wage to £10.50 an hour by 2025 is divorced from reality.
Tek Parikh, chief economist at the Institute of Directors, told this morning’s Today radio show that the Chancellors’ minimum wage pledge “will certainly concern smaller businesses and retailers”.
Chancellor Sajid Javid announced plans for a compulsory minimum wage to be the highest in the world, extending the rate to all workers aged 21.
The move will affect four million low-paid workers.
See also: Protecting employees from overworking and minimum wage underpayment
Last week, the Labour Party pledged a £10 an hour minimum wage compared with £8.21 an hour currently for workers aged 25 and over.
However, business groups including the Federation of Small Businesses (FSB) and the British Chambers of Commerce (BCC) also raised their eyebrows at yesterday’s announcement.
Parikh said: “The announcement yesterday seems to be a bit unilateral and not in tandem with the reality that many businesses are currently facing.”
The IoD chief economist said that the Government should have consulted with business first, considering business conditions.
“The challenge for businesses now is that this announcement comes at a particularly difficult time for them. Costs
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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