The Employment Law & HR Podcast (general)
Focus on the National Minimum Wage & National Living Wage: Episode 51

What are my obligations as an employer and how can I work out if I am paying the National Living Wage?

In this weeks' episode I bring you a focus on the National Minimum Wage and Living Wage and what you should be considering carefully with regards to your employees.

In this episode I will cover:

  • The background to the National Minimum Wage
  • What the current National Minimum Wage is
  • What the National Living Wage will be from the 1st April and whom it will apply to
  • How to calculate if you are paying the correct amount
  • What to do if you are not paying enough to meet the National Living Wage
  • Your requirements for record keeping and reporting
  • The consequences if you fail to pay the National Living and National Minimum Wage
Year  21 and over    18 to 20     Under 18    Apprentice (subject to conditions)
2015 (current rate)   £6.70 £5.30 £3.87 £3.30

National Living Wage - 25 and over = £7.20

Action Points

  1. Calculate what you are currently paying your employees and check this against the National Minimum Wage & National Living Wage
  2. Check how you are recording your employee hours and rates of pay
  3. Make adjustments to ensure you are complying with the National Minimum Wage requirements

Helpful Information & Links

Time Workers: 

Time workers are those who are paid hourly and their hours include time when working, on standby or on call, travelling for work, training etc.

You take their pay for the reference period, i.e. one month and divide by the hours worked.

If their pay includes commission then you include the commission earned in the reference period (even though it may not actually be paid until the following month).

Salaried Workers:

These are workers who are paid a salary which is normally the same amount each month regardless of work undertaken.

For salaried workers you take the amount of hours worked over the year and divide by 12 and this will give you the hours for the pay reference period.

If you are unsure about how to calculate for your staff then please do not hesitate to get in touch and I would be very happy to assist you - alison@realemploymenlawadvice.co.uk

 

Need Software for recording your HR information? Check out the  HR Harbour for more information

 

List of Employers named for failing to pay the National Minimum Wage:

The 92 employers named on the 5th February 2016 are:
1. TSS (Total Security Services) Limited, London E4, failed to pay £1,742,655.56 to 2,519 employees.
2. Abbey House (Cumbria) Ltd, trading as Abbey House Hotel, Barrow-in-Furness, failed to pay £13,468.47 to 13 employees.
3. Richard Lewis Communications plc, Southampton, failed to pay, £8,751.99, to 3 employees.
4. Kiddy Academy Hunts Cross Ltd, Liverpool, failed to pay £8,297.50 to 2 employees.
5. Oldham Premier Plumbing Supplies Ltd, Oldham, failed to pay £6,270.28 to 1 employee.
6. Matt Jenkins, trading as Matt Jenkins Dressage, Chipping Norton, failed to pay £6,184.32 to 1 employee.
7. Claire Reasons & Vanessa Nimmo-Cameron, trading as Merritime Nursery, Gosport, failed to pay £5,344.48 to 1 employee.
8. JG’s Hair & Beauty Ltd, Northallerton, failed to pay £3,427.21 to 3 employees.
9. Seed Event Solutions Ltd, London EC2, failed to pay £3,407.32 to 1 employee.
10. VP Concessions Ltd, trading as Treadstone, Leicester, failed to pay £3,111.06 to 2 employees.
11. Saxons PS Ltd, Burnham-on-Sea, failed to pay £3,045.66 to 1 employee.
12. Ocean Dental Ltd, trading as Ocean Dental Implant & Aesthetic Clinic, Manchester, failed to pay £2,819.01 to 2 employees.
13. Louisa Horner, trading as The Beauty Specialist, Keighley, failed to pay £2,807.13 to 2 employees.
14. Woodside Nursery Ltd, trading as Woodside Nursery School, Waterlooville, failed to pay £2,799.03 to 1 employee.
15. Petersfield Joinery Ltd, Petersfield, failed to pay £2,720.89 to 1 employee.
16. Helping Hands Day Nursery Ltd, Tilbury, failed to pay £2,629.58 to 1 employee.
17. Care One 2 One Ltd, Caerphilly, failed to pay £2,441.00 to 1 employee.
18. Quattro Recruitment Ltd, Norwich, failed to pay £2,239.00 to 431 employees.
19. Umberto Giannini Hair Cosmetics Ltd, Birmingham, failed to pay £2,172.53 to 2 employees.
20. Bayliss Commercial Builders Ltd, Tamworth, failed to pay £2,086.30 to 1 employee.
21. Connells Residential, trading as Connells Estate Agents, Leighton Buzzard, failed to pay £2,049.14 to 1 employee.
22. Holly Tree Maintenance Ltd, Bacup, failed to pay £1,839.63 to 1 employee.
23. Floorbrite Cleaning Contractors Ltd, Manchester, failed to pay £1,703.26 to 248 employees.
24. Childcare Directory Ltd, trading as Whiz Kids Day Nursery, Peterborough, failed to pay £1,698.02 to 1 employee.
25. Hard Hat Logistics Ltd, Liverpool, failed to pay £1,695.15 to 1 employee.
26. Elaine Harvie & S J Kirkbride trading as Shades, Stevenage, failed to pay £1,527.40 to 1 employee.
27. Grove Reed Joinery Ltd, Bishop Auckland, failed to pay £1,514.20 to 1 employee.
28. Centra Link Ltd, Calne, failed to pay £1,483.14 to 1 employee.
29. Hayes Freight Ltd, Walsall, failed to pay £1,465.46 to 1 employee.
30. Stage London Ltd, trading as Stage Hair & Beauty Salon, London SW6, failed to pay £1,433.26 to 2 employees.
31. Poplars Equestrian Ltd, Bridgwater, failed to pay £1,372.93 to 1 employee.
32. Hearns Coaches Ltd, Harrow, failed to pay £1,347.50 to 1 employee.
33. E & C Joinery Ltd, Doncaster, failed to pay £1,283.33 to 1 employee.
34. A & G Garages Ltd, Manchester M11, failed to pay £1,197.39 to 2 employees.
35. Park Resorts Ltd, trading as Brynowen Holiday Park, Dyfed, failed to pay £1,184.78 to 2 employees.
36. Spinnaker Ltd, trading as Heaven Sent, Rhyl, failed to pay £1,165.70 to 1 employee.
37. Century24 Limited, London E10, failed to pay £945.11 to 1 employee.
38. Fulford News Ltd, trading as K P News & Fulford Road Post Office, Bristol, failed to pay £913.14 to 1 employee.
39. Compass Services (UK) Ltd, Swanley, failed to pay £859.20 to 1 employee.
40. Golden Financial Solutions Ltd, Bradford, failed to pay £852.15 to 6 employees.
41. Dee Set Confectionery Ltd, Stoke-on-Trent, failed to pay £838.95 to 1 employee.
42. Sara Buchanan, trading as Guys and Dolls, Holywell, failed to pay £781.28 to 1 employee.
43. Oltec Group Holding Ltd, Wigan, failed to pay £774.04 to 4 employees.
44. Priory Park Hair Salon Ltd, Stoke-on-Trent, failed to pay £766.93 to 1 employee.
45. Christopher J Sargeant Ltd, Camberley, failed to pay £729.34 to 2 employees.
46. USUK Ltd, trading as Urban Style, Peterlee, failed to pay £712.05 to 4 employees.
47. Ipsum Contracts Ltd, Worcester, failed to pay £689.00 to 1 employee.
48. Parkem Chemists Ltd, Leicester, failed to pay £687.89 to 4 employees.
49. Ultra Furniture Ltd, Kingswinford, failed to pay £599.39 to 5 employees.
50. Into The Blue (SW) Ltd, trading as Into The Blue, Barnstaple, failed to pay £589.96 to 1 employees.
51. Cormorant Survey (UK) Ltd, Doncaster, failed to pay £585.00 to 1 employee.
52. Earthgrass Ltd, trading as Khushi’s, Edinburgh, failed to pay £564.00 to 1 employee.
53. Hurnfield Hargate Ltd, trading as The Farm Café, Spalding, failed to pay £558.99 to 1 employee.
54. Carefree Communications Ltd, Rochester, failed to pay £556.61 to 1 employee.
55. The Ship Inn (Pub & Kitchen) Ltd (previous tenant), Chester, failed to pay £529.80 to 1 employee.
56. Charlie Miller Hairdressing Ltd, trading as Charlie Miller, Edinburgh EH3, failed to pay £529.68 to 1 employee.
57. Premier Posting Services Ltd, Birmingham, failed to pay £504.80 to 1 employee.
58. New Homeworld Ltd, Glasgow, failed to pay £468.00 to 1 employee.
59. Loungers Ltd, trading as Bonzo Lounge, Bristol, failed to pay £459.88 to 1 employee.
60. Zucca Bistro Ltd, East Kilbride, failed to pay £454.74 to 1 employee.
61. Linell Precision Engineering Ltd, Johnstone, failed to pay £425.67 to 1 employee.
62. Clear the Red Ltd, Manchester, failed to pay £408.33 to 2 employees.
63. Tates Travel Ltd, Barnsley, failed to pay £384.94 to 1 employee.
64. Jadruti Parekh, trading as Park Farm Centre Post Office, Allestree, failed to pay £383.98 to 1 employee.
65. The Fresh Food Company (2007) Ltd, Glasgow, failed to pay £361.79 to 1 employee.
66. Crispy Crust Ltd, trading as Pizza Hut, Edinburgh EH12, failed to pay £309.02 to 13 employees.
67. Harknss Ltd, trading as Delight Coffee House, Gloucester, failed to pay £299.00 to 1 employee.
68. Free Spirit Automotive Ltd, Leighton Buzzard, failed to pay £288.69 to 1 employee.
69. Nattrav Ltd, Bishop Auckland, failed to pay £287.93 to 1 employee.
70. Sentricare East Mids Ltd, Derby, failed to pay £265.03 to 1 employee.
71. Mini Max Tyres Ltd, Stockport, failed to pay £256.56 to 1 employee.
72. Andrea of Wembley (Watford) Ltd, Watford, failed to pay £245.38 to 3 employees.
73. Peter Limb, trading as The Interior Design Bureau, Mansfield failed to pay £215.75 to 1 employee.
74. Goldex Investments (Surrey) Ltd, trading as Costa Coffee, Oxted, failed to pay £212.88 to 1 employee.
75. Thackerays Restaurants Ltd, trading as Thackeray’s, Tunbridge Wells, failed to pay £211.70 to 1 employee.
76. Mark Andrew Development (MAD) Ltd, trading as The Fitzgerald, Manchester, failed to pay £197.01 to 1 employee.
77. Broch Tandoori Ltd, trading as Broch Tandoori, Fraserburgh, failed to pay £193.46 to 5 employees.
78. Lorraine’s Care Home Ltd, trading as Lorraine’s Care Home, Swadlincote, failed to pay £183.35 to 1 employee.
79. P&S Foods Ltd, trading as Sam’s Chicken, London NW5, failed to pay £182.00 to 2 employees.
80. Social Health Care Ltd trading as Caremark Luton & Beds, Luton, failed to pay £176.11 to 1 employee.
81. Hair Heroes Ltd, Inverness, failed to pay £173.63 to 1 employee.
82. Autovets Sussex Ltd, Brighton, failed to pay £161.81 to 1 employee.
83. Paul Mason, trading as Bassett Tea Rooms, Southampton, failed to pay £159.26 to 1 employee.
84. Paul Blaney & Elaine Blaney, trading as Craftsman Cleaners, Belfast, failed to pay £149.81 to 2 employees.
85. Emin Markets Ltd, Sheffield, failed to pay £148.77 to 1 employee.
86. The Welbeck Bakehouse Ltd, Worksop, failed to pay £133.40 to 1 employee.
87. Derek Jones, trading as Re’Lec, Northampton, failed to pay £129.36 to 1 employee.
88. Sunamgonj Spice Ltd, trading as Cinnamon Spice, Sheffield, failed to pay £123.85 to 1 employee.
89. DMR Electrical (Norfolk & Suffolk) Ltd, Halesworth, failed to pay £117.68 to 1 employee.
90. Organic Warehouse (Chelsea) Ltd, trading as Here, London SW3, failed to pay £117.50 to 1 employee.
91. Elizabeth House Ltd, Kirkcaldy, failed to pay £117.00 to 1 employee.
92. Illingworth Moor Retail Ltd, trading as Subway, Peterlee, failed to pay £102.96 to 2 employees.

Direct download: Episode_51.mp3
Category:general -- posted at: 2:51am EST

When is an employer liable for the actions of an employee?

In this weeks' episode I bring you a case regarding vicarious liability, where an employer is liable for the actions or omissions of an employee which causes harm to another. The case is a rather interesting one on the facts; Mohamud v WM Morrison.

In this episode I will cover:

  • The background to vicarious liability
  • The history of how the law has developed
  • Details of previous cases
  • The facts of this case
  • What you can do to try to mitigate the risks for your business

Action Points

  1. Ensure that you carry out good due diligence and pre-employment checks on new recruits.
  2. Deal with any issues of inappropriate conduct immediately.
  3. Ensure you have risk assessments and procedures in place.

Helpful Links

Mohamud v WM Morrison [2016]

Lister v Hesley Hall Limited  [2001] 

Rose v Plenty [1976]

Boson v Sandford [1691]

Direct download: Episode_50.mp3
Category:general -- posted at: 12:30am EST

Race Discrimination & Harassment Case: Episode 49

Is an instruction to only speak English at work discrimination?

A recent discrimination case has been decided by the Employment Appeal Tribunal concerning an instruction to a Russian employee not to speak Russian at work, an interesting case for various reasons.

In this episode I will cover:

  • What the relevant legal provisions are regarding direct discrimination and harassment
  • What is required to bring a claim for direct discrimination
  • What is required for behaviour to constitute harassment
  • Reasons you should proceed with caution with regards to employees who have been employed for less than 2 years
  • Steps you can take to prevent a claim

 Action Points

Ensure that your managers and supervisors have some training and/or knowledge of the requirements of the Equality Act and that they understand that instructions they give to employees can lead to an employment tribunal claim.

Helpful Links

Kelly v Covance Laboratories Limited

UK Business Startup Podcast

 HR Harbour


 Sign up for my fortnightly newsletter (next newsletter 29th February 2016)

www.adviceforemployers.co.uk 

Direct download: Episode_49.mp3
Category:general -- posted at: 12:30am EST

Holiday Entitlement & Pay FAQ's Answered: Episode 48

Following a surprising question from an employee client I thought that it would be helpful to dedicate an episode to answering some of the frequently asked questions abut holiday.

In this episode I will cover:

  • The background to holiday entitlement and pay in the UK
  • The Working Time Regulations requirements
  • Notice periods for taking holiday
  • Who is entitled to take holiday
  • How to calculate holiday pay
  • When you can pay in lieu of holiday
  • When holiday can be carried forward to the next year
  • Rolled up holiday pay

 Action Points

Review your contracts and policies to see if you have holiday entitlement and pay covered. Check to ensure that your part-time staff are treated the same as full time staff with holiday, and review how much you are paying employees when they are on holiday.

Helpful Links

Online Holiday Calculator

Holiday & Sickness Absence: Episode 25

Commission & Holiday Pay

How much should I pay during holidays? Episode 10

 HR Harbour

Direct download: Episode_48.mp3
Category:general -- posted at: 2:14am EST

Tribunal Time Limits & Holiday for 2015 / 2016: Episode 47

Employment Tribunal Time Limits

&

Holiday Entitlement for 2015/16 & 2016/17

In this episode of the Podcast I bring you two updates that you should be aware of.

In this episode I will cover:

  • ACAS Early Conciliation
  • Time Limits in the Employment Tribunal
  • The extension of Time Limits in the Employment Tribunal
  • Holiday entitlement under the Working Time Regulations
  • What you need to do if your holiday year runs from April to March
  • Why you may need to change the wording of your contracts regarding holiday

 Action Points

Review your contracts and handbooks with regards to your holiday entitlement and holiday year for employees. Take steps to ensure all staff have a minimum of 5.6 weeks holiday every year.

Helpful Links

ACAS Early Conciliation

HR Harbour

Direct download: Episode_47.mp3
Category:general -- posted at: 12:30am EST

Wrongful Dismissal & Breach of Confidentiality: Episode 46

Mr M Farnan v Sunderland Association Football Club

A claim for wrongful dismissal in the High Court

In this episode of the Podcast I bring you the detail and Judgement from a claim brought by a former employee of Sunderland FC which emphasises the need to have good provisions and policies for confidentiality in your employment contracts and Handbooks.

In this episode I will cover:

  • What the facts were leading to Mr Farnan's claim
  • Why Mr Farnan alleged that Sunderland FC were in breach of contract
  • What the High Court Judge considered to be serious breaches of confidentiality
  • What the High Court Judge considered in respect of an allegation that Mr Farnan had sent an offensive Christmas Card from his work email address
  • What you need to do to ensure you are covered in the event you take action against an employee in similar circumstances
  • How to protect your  confidential information

 Action Points

Review your contracts and handbooks to ensure that you have specific clauses regarding your expectations of confidentiality. If you want to prevent employees from sending emails to their personal emails and from 'banking' confidential information then you need to include an express provision to this effect.

Helpful Links

Full case report Farnan v Sunderland Association Football Club

 HR Harbour


Employment Law & HR Update Event

14th January 2016 at The Point, Eastleigh.

5pm for 5:30pm start

£4.90 per ticket

Get your ticket today as they are limited.

Direct download: Episode_46.mp3
Category:general -- posted at: 12:30am EST

Redundancy Part 6: Frequently Asked Questions

The final instalment of a mini series focusing on Redundancy

Episode 6: Unusual Redundancy & Frequently Asked Questions

This is the final episode of a mini series on redundancy in which I will focus on all aspects of redundancy and how to ensure you get things right.

In this episode I will cover:

  • How to deal with employees on maternity leave
  • What you need to do to consult employees on maternity leave
  • What to pay employees on maternity leave
  • When you have to offer an alternative role to an employee on maternity leave as a priority
  • How to deal with notice for an employee on maternity leave
  • What to do with employees on sick leave during a redundancy consultation
  • Points to consider when consulting with a sick employee
  • How to calculate redundancy pay for an employee on sick leave
  • The relevance of the ACAS code of practice
  • The legal obligation to allow an employee to be accompanied during the redundancy process
  • What to do with those employees who volunteer for redundancy

 Action Points

Check your contracts and handbooks to see if you have any contractual obligations in terms of the redundancy process particularly for employees on maternity or sick leave, and with regards to the right to be accompanied during the redundancy process. .

Helpful Links

Online tool for working out statutory redundancy pay

Employment Rights Act 1996 

Simpson v Endsleigh Insurance Services 

Guide to Redundancy

 HR Harbour


 

 

 Employment Law & HR Update Event

14th January 2016 at The Point, Eastleigh.

5pm for 5:30pm start

£4.75 per ticket

Get your ticket today at wwww.adviceforemployers.co.uk/events

 

Direct download: Episode_45.mp3
Category:general -- posted at: 12:30am EST

Redundancy Part 5: Redundancy Pay

The fifth instalment of a mini series focusing on Redundancy

Episode 5: Statutory & Enhanced Redundancy Pay

This is the fifth episode of a mini series on redundancy in which I will focus on all aspects of redundancy and how to ensure you get things right.

In this episode I will cover:

  • The eligibility criteria for a statutory redundancy payment
  • How to calculate continuous service and when it will be extended
  • The relevant date for calculating redundancy pay
  • When an employee will not be entitled to redundancy pay
  • What happens if an employee refuses to work their notice
  • What to do if an employee commits gross misconduct after being placed on notice of redundancy
  • How to calculate redundancy pay
  • How to work out a 'weeks pay' for employees with irregular hours and wages
  • What will happen if a dispute arises about eligibility for redundancy pay
  • What an employee will need to do if their employer cannot afford to pay their redundancy pay
  • Points to consider if you pay enhanced redundancy pay or a discretionary payment

 Action Points

Check your contracts and handbooks to see if you have a legal obligation to pay an enhanced redundancy payment.

Helpful Links

Online tool for working out statutory redundancy pay

Employment Rights Act 1996 

Guide to Redundancy

 HR Harbour

 

 Employment Law & HR Update Event

14th January 2016 at The Point, Eastleigh.

5pm for 5:30pm start

£4.75 per ticket

Get your ticket today as they are limited.

www.adviceforemployers.co.uk/events 

Direct download: Episode_44.mp3
Category:general -- posted at: 12:30am EST

Redundancy Part 4: Alternative Vacancies

The fourth instalment of a mini series focusing on Redundancy

Episode 4: What to do about alternative vacancies in a redundancy situation

This is the fourth episode of a mini series on redundancy in which I will focus on all aspects of redundancy and how to ensure you get things right.

In this episode I will cover:

  • Why you need to consider alternative vacancies within your organisation
  • The legal obligation upon you to inform 'redundant' employees
  • When you need to search for group company vacancies
  • What you need to do if two or more employees apply for an alternative vacancy
  • Why you must give priority to employees who are on maternity leave
  • Trial periods for alternative employment
  • When it will be reasonable or not for an employee to refuse an offer of a suitable alternative vacancy

 Action Points

Ensure that you have a mechanism in place for informing employees of internal vacancies within your business.

Helpful Links

Employment Rights Act 1996 

Guide to Redundancy

 HR Harbour

Direct download: Episode_43.mp3
Category:general -- posted at: 1:00am EST

Redundancy Part 3: Selection

The second instalment of a mini series focusing on Redundancy

Episode 3: Selecting Employees for Redundancy

This is the third episode of a mini series on redundancy in which I will focus on all aspects of redundancy and how to ensure you get things right.

In this episode I will cover:

  • Why getting the correct Pool for redundancy is so important
  • How to ensure you select a fair Pool for redundancy
  • When you can have a Pool of one employee
  • How to devise a fair selection criteria
  • What objective criteria to use in your selection
  • Why you should stay clear of subjective criteria wherever possible
  • What you should avoid scoring employees on
  • What information to give to employees about the scoring

 Action Points

Ensure that you have basic recording and measuring of employee performance, attendance and other records to make your life much easier if you do find yourself having to make employees redundant.

Helpful Links

Employment Rights Act 1996 

Guide to Redundancy

 HR Harbour


 

 

 Employment Law & HR Update Event

14th January 2016 at The Point, Eastleigh.

5pm for 5:30pm start

£4.75 per ticket

Get your ticket today as they are limited.

 

Direct download: Episode_42.mp3
Category:general -- posted at: 12:30am EST