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Summer is nearly with us along with some more changes to employment legislation!
May has been a busy month for us, and June looks to be no different.
I will be away on holiday from 15-19 June inclusive, so if you can leave any minor issues until my return, that would be great. However, please call the office if you have any urgent enquiries and we'll arrange for someone to call you back.
Kind regards,
Angela
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Dealing With Expenses Claims
The ongoing uproar regarding employee expenses makes it clear that having unclear rules and a lax attitude when implementing them, causes major issues for a business. As well as this, consideration should be given to the potential impact such fraud can have to a business’ bottom line.
So how can employers ensure they are not being ripped off by employees’ expense claims?
- Have clear rules in place. In the employment statement of terms and conditions or the staff handbook, have a clause for expenses and ensure it states that only those “reasonably and properly incurred” will be reimbursed “upon production of the appropriate receipts”.
- Clarify “reasonable” expenses. Support expense clauses with a policy that states acceptable expenses, and whether management approval will be needed in order to incur them.
- Communication. Ensure you communicate the policy to the workforce and that they understand it.
- Enforce it! The point of having a policy is that it is put in place and enforced. Ensure universal following of the rules and apply them consistently. If you do not enforce the policy, employees can claim that they did not believe it applied to them because it was not enforced in the past. Employers will be unable to take action if employees can list others who have made similar expenses claims without action being taken.
What if a member of staff has put in an exaggerated expense claims?
Firstly, the allegation should be investigated before any disciplinary action is taken. Once suitable evidence is found to support the allegation then disciplinary action may be taken, and the employer must ensure that it follows its own internal policy and meets the requirements of the ACAS Code of Practice. The employer must act reasonably and consistently when deciding the action to take. A verbal or written warning may be sufficient for minor/inadvertent breaches, but for cases of deliberate fraud or deceit, summary dismissal for gross misconduct will usually be appropriate.
If an employer discovers false claims, can it demand that the employee pays back any excess?
As long as the employer has sufficient evidence, it can seek to reclaim the money from the employee. If an employer has an enforceable deduction from wages clause in its written terms and conditions can generally rely on this to make the appropriate deductions directly from the employee’s salary. However, reclaiming money is difficult if you do not have this clause in your contract. The Employment Appeal Tribunal has made clear that even employees giving retrospective consent to deduct wages after the event in question, is unlawful.
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New Fit Note Unveiled
On Thursday 28th May, a new fit note was unveiled by the government in a bid to clamp down on the sick note culture, and get people back to work rather than drift into long term sickness.
The new fit note will give people advice on how to stay in work, and if they cannot work, how their employer can help them to return to work sooner. For example, if an employee has problems with mobility, suggesting a role where the work can be carried out sitting down rather than standing up.
Dealing with sickness is a challenging issue and the current sick note deems a person either fit or unfit for work. Lord Bill McKenzie, Work and Pensions Minister believes “how important it is to help people who are sick to stay in work or get back to work quickly – the new fit note will help do just that.”
Getting people back to work is not only good for their economic and social well being, it is also of great benefit to the country’s finances. Currently the cost of ill health in terms of working days lost and worklessness is over £100 billion a year.
The new fit notes will roll out across Britain in Spring 2010, and the aim is that they will be computer generated in the doctor’s surgery, to replace hand-written notes.
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National Minimum Wage to Rise
From 1 October 2009, following Government approval of the recommendation of the Low Pay Commission, the national minimum wage will increase to £5.80 an hour. This increase of 7p, from the current rate of £5.73 an hour, represents an increase of just 1.2%, compared with an increase of 3.8% in 2008.
The following increase in rates will apply to younger workers:
- For 18-21 year olds - £4.77 to £4.83 an hour; and
- For 16 and 17 year olds - £3.53 to £3.57 an hour.
Currently the adult rate covers workers aged 22 and over, and from 2010, this will be extended to cover 21 year olds.
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Statutory Redundancy Pay to Rise
In April the new budget was announced, following pushing from unions, there is to be an increase in the rate of statutory redundancy pay (SRP).
From 1 October 2009, SRP will increase to £380 per week, following the rise to £350 per week in February 2009. The increase is much less than it could have been though, considering the unions wanted an increase to £500.
The change means that those made redundant on or after 1 October could receive a maximum redundancy payment of £11,400, i.e. 20 years x 1.5 weeks x £380.
Unfair Dismissal Rates
The weekly rate of pay for unfair dismissal, which is usually set at the same rate as SRP, will remain unchanged. Although this is slightly unusual, watch this space because it could change when the new legislation for SRP comes into effect.
Top Tip
The increase in SRP could add an extra maximum £1500 on to any SRP payments you may have to make. You can avoid these extra costs by finishing any redundancies by September 30, 2009.
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Shared Maternity Leave Put On Hold
In 2005, proposals that woman should be paid 90% of her salary for the first 26 weeks of maternity leave, along with splitting leave between parents, have been put on stop by Business Secretary Peter Mandelson.
A spokesman from the Department of Business, Enterprise and Regulatory Reform (BERR) stated that “It is only right that in tough economic times we look afresh at the costs and benefits of new regulations.” The announcement that has been received with open arms by the Chartered Institute of Personnel and Development, who believe the added administration of the measure would have been a burden in good times but could be “the straw that breaks the camel’s back in a recession.”
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Olney Rugby 7's
Crispin Rhodes are proud sponsors of a Bucks under 20 rugby 7’s team compromising county and Bucks players, the Crispin Rhodes Crusaders, who will be playing in the Olney 7’s Tournament on Saturday, 4th July from 10.30am.
Come and join us for a fun, family day out and to cheer on the crusaders! The tournament takes place at the Recreation Ground, East Street, Olney, Bucks, MK46 4DW. Up to 20 teams will compete in a day packed full of excellent rugby and socialising.
The day includes activities for children, and all the family with the social side continuing into the night with live music and a hog roast.
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Your Questions Answered
Q: What happens if an employee is given notice and goes on garden leave but then goes to work for another company?
A: If it states in their contract that under garden leave, they are not allowed to work for anyone else, if they then did, they would be in breach of contract. As part of a breach of contract action, you may be able to obtain an injunction to prevent the employee working during their notice period, although the cost of doing so may prevent you. If you want to seek legal action, it should be taken as soon as possible in this case. You would also qualify for damages for breach of contract to compensate you for any loss you suffer as a result of the breach.
Another easier option is to withhold their pay and if you wanted to, take disciplinary action to dismiss them for gross misconduct on the basis that their breach of contract was fundamental. Any action taken would probably depend on the length of the notice period and how senior the employee in question is. By stopping pay, if the employee is working elsewhere, they may bring a breach of contract claim against the employer, which you can then counter claim for their breach.
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In Closing
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I hope you have found this month's newsletter useful and informative. If so, then why not forward it on to someone. if not, then do tell us how we could improve it.
Crispin Rhodes is a specialist human resources company that offers a wide range of cost effective HR services, tailored to the needs of small and medium size businesses.
We provide advice and tailored service packages embracing recruitment, HR policies and procedures, discipline and grievance, sickness, terms and conditions of employment, maternity, paternity and adoption, redundancy, psychometric testing and one to one personal development.
Thank you once again, and for now I wish you all the best.
Kind regards,
Angela Rhodes
Crispin Rhodes Ltd
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Tel 01908 576991 - Fax 01908 607533 - Free HR Resources - Newsletter Archive - Contact Us
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Crispin Rhodes Ltd, 4 Aldrich Drive, Willen, Milton Keynes, MK15 9JH - VAT Reg No: 690381621
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Crispin Rhodes Ltd is a company registered in England and Wales with company number 3336715
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