The cost of complying with employment legislation is the biggest administrative burden for small businesses, according to a survey carried out by the Forum of Private Business (FPB). The results of the FPB's 'Cost of Compliance' survey show that UK small firms spend a total of £2.4 billion every year on complying with employment legislation. The FPB adds that employment law is also a growing burden for firms that have to make redundancies or dismiss staff.
For more on this story go to:
http://www.fpb.org/news/2243/Help_at_hand_for_small_firms_struggling_with_employment_law.htm
www.ukba.co.uk
Showing posts with label employees. Show all posts
Showing posts with label employees. Show all posts
Saturday, 10 October 2009
Friday, 25 September 2009
Small firm staff 'more flexible'
Employees working at smaller firms are more likely to adapt their working week to try and help their firms survive the recession, according to research conducted by Orange.
The research revealed that over 65% of staff in companies with under ten employees are prepared to reduce their hours, put in extra unpaid time or accept a pay cut to help their employer in the economic downturn.
In businesses that have a workforce of over 1,000 the amount of staff prepared to make these sacrifices dropped below 40%.
www.ukba.co.uk
The research revealed that over 65% of staff in companies with under ten employees are prepared to reduce their hours, put in extra unpaid time or accept a pay cut to help their employer in the economic downturn.
In businesses that have a workforce of over 1,000 the amount of staff prepared to make these sacrifices dropped below 40%.
www.ukba.co.uk
Thursday, 24 September 2009
New recruitment ‘set to rise‘
The number of businesses planning to take on new employees has risen for the first time in three years, according to a study by recruitment company Manpower.
The research revealed that firms in the sectors of transport, communications, hotels and restaurants were most likely to take on new staff in the coming months.
"There are a number of early positive hiring indicators emerging which suggest we may have reached a turning point," said Mark Cahill of Manpower.
www.ukba.co.uk
The research revealed that firms in the sectors of transport, communications, hotels and restaurants were most likely to take on new staff in the coming months.
"There are a number of early positive hiring indicators emerging which suggest we may have reached a turning point," said Mark Cahill of Manpower.
www.ukba.co.uk
Wednesday, 2 September 2009
Firms worried about talent exodus
Small business bosses are worried that they will lose important staff when the economy emerges from the recession, according to a survey by business advisory firm Deloitte.
The survey revealed that 65% of businesses are extremely worried about losing valued staff once the jobs market recovers and big firms start recruiting again.
Businesses are advised to make sure that they engage with their staff to ensure that they will not have a dearth of talent when the recession ends.
"As with previous recessions any upturn in the economy will unleash pent up demand by employees acting on their desire to move on. Companies really need to be thinking about this and seek to attract and engage those already within the organisation," said Eddie Barrett of Deloitte.
www.ukba.co.uk
The survey revealed that 65% of businesses are extremely worried about losing valued staff once the jobs market recovers and big firms start recruiting again.
Businesses are advised to make sure that they engage with their staff to ensure that they will not have a dearth of talent when the recession ends.
"As with previous recessions any upturn in the economy will unleash pent up demand by employees acting on their desire to move on. Companies really need to be thinking about this and seek to attract and engage those already within the organisation," said Eddie Barrett of Deloitte.
www.ukba.co.uk
Thursday, 27 August 2009
Sugar apprentice site 'a gimmick'
A website for apprenticeships in England backed by Lord Sugar has filled 1,185 vacancies out of the 18,000 advertised, figures show.
The Conservatives have branded it a "failure" and an "expensive gimmick".
Lord Sugar, the face of BBC's The Apprentice and now government enterprise tsar, said businesses should get behind the scheme.
The government said the apprentice system was working, and successful completion rates were rising.
In June, a parliamentary answer given by the Skills Minister Kevin Brennan said 616 apprenticeship vacancies had been filled out of 17,588 advertised.
But the National Apprenticeship Service said building up the numbers of vacancies and applications was "taking time".
The number of apprenticeships accepted has risen rapidly since that date as students reach the end of their courses, it said.
Read more: http://news.bbc.co.uk/1/hi/education/8193681.stm
www.ukba.co.uk
The Conservatives have branded it a "failure" and an "expensive gimmick".
Lord Sugar, the face of BBC's The Apprentice and now government enterprise tsar, said businesses should get behind the scheme.
The government said the apprentice system was working, and successful completion rates were rising.
In June, a parliamentary answer given by the Skills Minister Kevin Brennan said 616 apprenticeship vacancies had been filled out of 17,588 advertised.
But the National Apprenticeship Service said building up the numbers of vacancies and applications was "taking time".
The number of apprenticeships accepted has risen rapidly since that date as students reach the end of their courses, it said.
Read more: http://news.bbc.co.uk/1/hi/education/8193681.stm
www.ukba.co.uk
Tuesday, 25 August 2009
SMEs ‘scared to make redundancies’
Despite the recent rise in the unemployment rate research has suggested that small business owners are afraid of making redundancies for fear of being sued for unfair dismissal.
According to research conducted by business insurers Premierline Direct small firms fear the potential financial consequences of redundancies, with limits on awards for unfair dismissal and redundancy payments increasing earlier this year.
Of those small business owners concerned about being sued by workers over 70% said that their firm did not have necessary funds to pay out compensation and 36% said would be worried they hadn't followed the correct procedures.
37% of small businesses that have had to let staff go did not seek legal or HR advice beforehand, leaving themselves open to potential legal action.
"Redundancies have increased considerably in line with the economy's performance and many business owners are facing the prospect of having to make staff redundant; something which they might not have experienced before," said Chris Little, managing director of Premierline Direct.
www.ukba.co.uk
According to research conducted by business insurers Premierline Direct small firms fear the potential financial consequences of redundancies, with limits on awards for unfair dismissal and redundancy payments increasing earlier this year.
Of those small business owners concerned about being sued by workers over 70% said that their firm did not have necessary funds to pay out compensation and 36% said would be worried they hadn't followed the correct procedures.
37% of small businesses that have had to let staff go did not seek legal or HR advice beforehand, leaving themselves open to potential legal action.
"Redundancies have increased considerably in line with the economy's performance and many business owners are facing the prospect of having to make staff redundant; something which they might not have experienced before," said Chris Little, managing director of Premierline Direct.
www.ukba.co.uk
Friday, 7 August 2009
60% of UK staff favour smaller firms
Almost two-thirds of employees would rather work for a smaller business than a larger one, according to research conducted by recruitment firm Angela Mortimer plc.
The study of around 1,400 employees found that 60% would choose a comparable offer from a smaller business rather than a large corporate as they believed that smaller firms offer a good working environment and opportunities for career development.
"For candidates big is no longer beautiful. Twenty years ago the received wisdom was to join a BA or a BT or a big bank. Now they value the flexibility of opportunity that SMEs can offer," said Mike Morgan CEO of communications firm the Red Consultancy.
www.ukba.co.uk
The study of around 1,400 employees found that 60% would choose a comparable offer from a smaller business rather than a large corporate as they believed that smaller firms offer a good working environment and opportunities for career development.
"For candidates big is no longer beautiful. Twenty years ago the received wisdom was to join a BA or a BT or a big bank. Now they value the flexibility of opportunity that SMEs can offer," said Mike Morgan CEO of communications firm the Red Consultancy.
www.ukba.co.uk
Tuesday, 21 July 2009
Changing terms and conditions of employment
It is not unusual for employers to want to change their employees' terms and conditions of employment to bring them into line with changes in the law or developments in the sector, or just to make them more user friendly.
Recently, however, many employers have considered doing so to save costs in the current economic downturn. For example, by changing shift patterns to reduce the need for overtime, removing benefits that can no longer be afforded, or even reducing rates of pay.
It must be remembered that a contract of employment is like any other contract, and generally cannot be varied unilaterally. Also, each employment contract is a unique agreement between the employer and the individual employee. The fact that more than 99% of the staff have agreed to a variation will not make it binding on the one individual who has not.
However, there are ways and means by which employers can achieve the desired objective.
Read more here: http://www.fpb.org/hottips/452/Changing_terms_and_conditions_of_employment.htm
Author: http://www.maceandjones.co.uk/
www.ukba.co.uk
Recently, however, many employers have considered doing so to save costs in the current economic downturn. For example, by changing shift patterns to reduce the need for overtime, removing benefits that can no longer be afforded, or even reducing rates of pay.
It must be remembered that a contract of employment is like any other contract, and generally cannot be varied unilaterally. Also, each employment contract is a unique agreement between the employer and the individual employee. The fact that more than 99% of the staff have agreed to a variation will not make it binding on the one individual who has not.
However, there are ways and means by which employers can achieve the desired objective.
Read more here: http://www.fpb.org/hottips/452/Changing_terms_and_conditions_of_employment.htm
Author: http://www.maceandjones.co.uk/
www.ukba.co.uk
Tuesday, 14 July 2009
Limited company sub-contractor deemed to be 'employee' in unfair dismissal claim
A recent Employment Tribunal has found in favour of a limited company sub-contractor, who successfully managed to claim for unfair dismissal against his client as his working practices were seen to be akin to those of an 'employee'.
Andrew Tilson, a sub-contractor, working through his own limited company, took Alstom Transport to an employment tribunal - claiming for unfair dismissal.
Alstom, which operates several underground train services in the capital, claimed that Tilson could not claim for unfair dismissal as he was working via his own limited company, and was not an employee.
However, Tilson's barrister argued that, despite paying his own income tax and NICs, the way the claimant interacted with Alstom at the Golders Green depot was the true indicator of his employment status.
The Tribunal Judge agreed, and said that the close working relationship between the claimant and Alstom Transport demonstrated that Tilson was, in fact, an "employee", and could therefore claim for unfair dismissal under the terms of the Employment Rights Act 1996.
This hearing could have have ramifications for users of sub-contractors in many other industries apart from IT, and is more evidence that the true employment status of contractors can only be derived from the true working practices they follow, rather than the wording of any contracts they have in place, or the company structure they work under.
www.ukba.co.uk
Andrew Tilson, a sub-contractor, working through his own limited company, took Alstom Transport to an employment tribunal - claiming for unfair dismissal.
Alstom, which operates several underground train services in the capital, claimed that Tilson could not claim for unfair dismissal as he was working via his own limited company, and was not an employee.
However, Tilson's barrister argued that, despite paying his own income tax and NICs, the way the claimant interacted with Alstom at the Golders Green depot was the true indicator of his employment status.
The Tribunal Judge agreed, and said that the close working relationship between the claimant and Alstom Transport demonstrated that Tilson was, in fact, an "employee", and could therefore claim for unfair dismissal under the terms of the Employment Rights Act 1996.
This hearing could have have ramifications for users of sub-contractors in many other industries apart from IT, and is more evidence that the true employment status of contractors can only be derived from the true working practices they follow, rather than the wording of any contracts they have in place, or the company structure they work under.
www.ukba.co.uk
Sunday, 12 July 2009
New Employment Measures Necessary During Critical Recovery Period
Alternative to redundancy proposed
Business leaders believe a package of labour market investments and reforms, including an alternative to redundancy, could help stem the tide of job losses as the recession pushes unemployment towards three million.
A report by the CBI and Siemens plc also highlights longer-term issues and warns that levels of employment regulation are at a "tipping point", having added £70bn to business costs since 1998.
The report stresses that the UK must work much harder to remain an attractive global jobs destination, and that there is a need to improve skills levels and assess the real impact of employment laws on future job creation.
Although firms are doing their utmost to protect jobs by introducing flexible working and pay freezes, the CBI predicts that unemployment will continue rising to peak at 3.03 million in the second quarter of 2010, so action taken in the short term could still save jobs and businesses.
Read more: http://www.cbi.org.uk/ndbs/press.nsf/0363c1f07c6ca12a8025671c00381cc7/9b9a4bacc1622174802575e400370f75?OpenDocument
www.ukba.co.uk
Business leaders believe a package of labour market investments and reforms, including an alternative to redundancy, could help stem the tide of job losses as the recession pushes unemployment towards three million.
A report by the CBI and Siemens plc also highlights longer-term issues and warns that levels of employment regulation are at a "tipping point", having added £70bn to business costs since 1998.
The report stresses that the UK must work much harder to remain an attractive global jobs destination, and that there is a need to improve skills levels and assess the real impact of employment laws on future job creation.
Although firms are doing their utmost to protect jobs by introducing flexible working and pay freezes, the CBI predicts that unemployment will continue rising to peak at 3.03 million in the second quarter of 2010, so action taken in the short term could still save jobs and businesses.
Read more: http://www.cbi.org.uk/ndbs/press.nsf/0363c1f07c6ca12a8025671c00381cc7/9b9a4bacc1622174802575e400370f75?OpenDocument
www.ukba.co.uk
Monday, 29 June 2009
60% of businesses in the UK plan to freeze pay or negotiate pay cuts with staff
......according to a new employment survey by the Confederation of British Industry (CBI) and recruitment group Harvey Nash.
The survey of more than 700 companies also revealed that more than half the businesses surveyed expect recruitment levels to take more than a year to return to 2007 levels and 40% revealed they have put a freeze on graduate recruitment.
However, the survey also showed that many job losses had been avoided by staff working with their employees over reduced rates of pay and patterns of work.
"This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs," said John Cridland, CBI Deputy Director-General.
www.ukba.co.uk
The survey of more than 700 companies also revealed that more than half the businesses surveyed expect recruitment levels to take more than a year to return to 2007 levels and 40% revealed they have put a freeze on graduate recruitment.
However, the survey also showed that many job losses had been avoided by staff working with their employees over reduced rates of pay and patterns of work.
"This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs," said John Cridland, CBI Deputy Director-General.
www.ukba.co.uk
Saturday, 20 June 2009
Employees on long-term sick leave will be entitled to take all holiday that they have accrued when they return to work
Small business owners have criticised the House of Lords ruling, which means that someone who had been on sick leave for two years would be entitled to around 40 days of paid holiday on their return.
"Allowing workers to accrue statutory paid holiday entitlement during sickness absence will have serious financial and practical ramifications for employers across the UK," said Tim Marshall, partner and UK head of employment at lawyers DLA Piper.
www.ukba.co.uk
"Allowing workers to accrue statutory paid holiday entitlement during sickness absence will have serious financial and practical ramifications for employers across the UK," said Tim Marshall, partner and UK head of employment at lawyers DLA Piper.
www.ukba.co.uk
Friday, 5 June 2009
Employers could face additional costs if workplace adjustments are required to allow an early return to work under the new fit note scheme
The Reforming Medical Statement consultation opened by the Department of Work and Pensions yesterday, set out proposals to replace the 'sick note culture' and help more people stay in work rather than drift into long-term sickness - about 172m working days were lost in 2007 due to sickness absence.
Under the new system, expected to roll out across the UK next spring, GPs will replace the hand-written sick note with a computer-generated medical fit note explaining what work a patient is able to do.
However, the consultation points out that some workplace costs could be incurred when accommodating early returns to work. "There is some potential for additional costs if workplace adjustments are required to facilitate an early return, eg. specialist equipment or adjustments to working time agreements," it says.
But the consultation also points out that some adjustments - such as changes to work patterns - do not have costs attached and overall a "net benefit is expected for employers".
Meanwhile, recommendations include changing the medical statement to allow doctors to specify if they would need to see an individual again when their current statement expires.
This would help reduce uncertainty for employers about when an individual can be expected to return to work and also enable employees to make their own informed decisions about when to return to work and reduce unnecessary burdens on doctors, the consultation states.
The government is also considering whether to remove the option for doctors to issue a medical statement when an individual is fit for work. This would end the practice, which has no basis in law relating to medical statements, of employers seeking medical evidence of fitness for work before allowing an individual to return, it said.
EEF's chief medical officer, Sayeed Khan welcomed the proposals. He said: "A fit note recognises that for many conditions a phased return to work is beneficial to both the company and the worker. Recovery from some of the most common causes of long-term ill health, including back pain and minor mental health problems, can often be speeded up by appropriate activity. The fit note provides employers with the information to help an early, but appropriate return to work."
The 12-week consultation forms part of the government's response to Dame Carol Black's report into the health of Britain's working age population , which was published in March 2008.
Source: Personnel Today
www.ukba.co.uk
Under the new system, expected to roll out across the UK next spring, GPs will replace the hand-written sick note with a computer-generated medical fit note explaining what work a patient is able to do.
However, the consultation points out that some workplace costs could be incurred when accommodating early returns to work. "There is some potential for additional costs if workplace adjustments are required to facilitate an early return, eg. specialist equipment or adjustments to working time agreements," it says.
But the consultation also points out that some adjustments - such as changes to work patterns - do not have costs attached and overall a "net benefit is expected for employers".
Meanwhile, recommendations include changing the medical statement to allow doctors to specify if they would need to see an individual again when their current statement expires.
This would help reduce uncertainty for employers about when an individual can be expected to return to work and also enable employees to make their own informed decisions about when to return to work and reduce unnecessary burdens on doctors, the consultation states.
The government is also considering whether to remove the option for doctors to issue a medical statement when an individual is fit for work. This would end the practice, which has no basis in law relating to medical statements, of employers seeking medical evidence of fitness for work before allowing an individual to return, it said.
EEF's chief medical officer, Sayeed Khan welcomed the proposals. He said: "A fit note recognises that for many conditions a phased return to work is beneficial to both the company and the worker. Recovery from some of the most common causes of long-term ill health, including back pain and minor mental health problems, can often be speeded up by appropriate activity. The fit note provides employers with the information to help an early, but appropriate return to work."
The 12-week consultation forms part of the government's response to Dame Carol Black's report into the health of Britain's working age population , which was published in March 2008.
Source: Personnel Today
www.ukba.co.uk
Saturday, 30 May 2009
Small business owners have been warned that if they do not address the increasing stress levels of staff then their company's productivity will suffer
Recent research by Investors in People and YouGov has found that 38% of employees in the UK say that their stress levels are higher than a year ago, but only 29% think their business is doing anything to address this.
Only 5% of employees said they are receiving more support from their managers than they did before the downturn and a mere 12% think their manager has adapted very well to the effects of the downturn.
"Increased stress in the workplace is associated with reduced productivity. Our research suggests that management has so far not addressed the current increase in workplace stress," said Simon Jones, chief executive of Investors in People.
www.ukba.co.uk
Only 5% of employees said they are receiving more support from their managers than they did before the downturn and a mere 12% think their manager has adapted very well to the effects of the downturn.
"Increased stress in the workplace is associated with reduced productivity. Our research suggests that management has so far not addressed the current increase in workplace stress," said Simon Jones, chief executive of Investors in People.
www.ukba.co.uk
Saturday, 2 May 2009
Almost half of small firms in the UK have faced difficulties coping with the mass of UK employment law
The findings are released the day before Equalities Minister, Harriet Harman, publishes the new Single Equalities Bill. The British Chamber of Commerce (BCC) have warned that the new legislation will increase the pressure on small firms that are already struggling with the amount of red tape in the UK.
"Too often the government sees the answer to a problem as being more legislation. Not least in the area of employment law. The result of this will mean that it will take longer to get out of recession and companies will be loathe to take on more employees," said David Frost of the BCC.
"If we are really serious about helping businesses, about creating jobs, why not have a complete moratorium on new employment legislation for the next three years?"
Source: British Chamber of Commerce
www.ukba.co.uk
"Too often the government sees the answer to a problem as being more legislation. Not least in the area of employment law. The result of this will mean that it will take longer to get out of recession and companies will be loathe to take on more employees," said David Frost of the BCC.
"If we are really serious about helping businesses, about creating jobs, why not have a complete moratorium on new employment legislation for the next three years?"
Source: British Chamber of Commerce
www.ukba.co.uk
Wednesday, 15 April 2009
UK companies are trying to fight the credit crunch by cutting staff and freezing pay, according to a survey by the Hay Group consultancy.
Around 37% of the UK businesses surveyed reported that last month they had cut back on staff - almost double the figure from November - and 38% have implemented a pay freeze.
UK companies also reported a much small average base salary increase, an average of 1% compared to 2.8% worldwide.
Despite these figures, British companies are more optimistic about the future then many other nations - possibly reflecting the fact that many UK firms have already taken the action they feel they need to survive the recession, such as salary and wage cuts.
www.ukba.co.uk
UK companies also reported a much small average base salary increase, an average of 1% compared to 2.8% worldwide.
Despite these figures, British companies are more optimistic about the future then many other nations - possibly reflecting the fact that many UK firms have already taken the action they feel they need to survive the recession, such as salary and wage cuts.
www.ukba.co.uk
Monday, 23 March 2009
Why you must communicate more with your staff
Research by the CMI found that 62% of employees felt their MD/CEO was out of touch with staff feelings.
In an economic downturn it is more important then ever that small business owners lead their companies and do not simply hope that things get better. Business leaders must plan and prepare to make sure that they address and manage the specific challenges that are currently being faced by their companies.
All small business owners must ensure that they are communicating effectively with staff. This is a major issue, and can have a significant effect on the morale and productivity of your workforce.
Read more - click here.
Source: http://www.newbusiness.co.uk
www.ukba.co.uk
In an economic downturn it is more important then ever that small business owners lead their companies and do not simply hope that things get better. Business leaders must plan and prepare to make sure that they address and manage the specific challenges that are currently being faced by their companies.
All small business owners must ensure that they are communicating effectively with staff. This is a major issue, and can have a significant effect on the morale and productivity of your workforce.
Read more - click here.
Source: http://www.newbusiness.co.uk
www.ukba.co.uk
Sunday, 22 March 2009
Discipline and grievance: the new Acas Code of Practice explained
The new legislation should provide an easy to use and efficient system for dispute resolution, enabling disputes to be resolved in the workplace before they escalate to employment tribunals.
In theory, this should save you time, money and stress.
Sections 1 to 7 of the Employment Act 2008 makes the following changes:
- Existing statutory procedures for dealing with discipline, dismissal and grievance issues will be repealed.
- A revised Acas Code of Practice will be introduced.
- Tribunals will have discretionary powers to adjust awards by up to 25% if employers or employees fail unreasonably to comply with the Acas Code.
- Acas' to provide a free early conciliation service.
- Tribunals will be allowed to award compensation for financial loss in certain types of claims.
Read more - click here.
Source: Forum for Private Business
Wednesday, 25 February 2009
Business Owners Urged Not To Cut Staff
Small business owners have been urged to explore different options rather than cutting staff by the Chartered Institute of Personal and Development and the arbitration and conciliation service (Acas).
With cash flow tight for many small firms cutting costs by loosing staff can seem like the best option, but businesses that cut too many staff have been warned that they will damage staff morale and could leave themselves worse off in the long run.
"Many of those organisations that were quick to lay off people in the last recession struggled to meet renewed business demand when the economy picked up again," said John Taylor, chief executive of Acas.
Employers are being advised to offer voluntary redundancy rather than sacking staff, consider pay freezes and look to re-train workers in different areas of their business rather then laying them off.
Source: http://www.newbusiness.co.uk
With cash flow tight for many small firms cutting costs by loosing staff can seem like the best option, but businesses that cut too many staff have been warned that they will damage staff morale and could leave themselves worse off in the long run.
"Many of those organisations that were quick to lay off people in the last recession struggled to meet renewed business demand when the economy picked up again," said John Taylor, chief executive of Acas.
Employers are being advised to offer voluntary redundancy rather than sacking staff, consider pay freezes and look to re-train workers in different areas of their business rather then laying them off.
Source: http://www.newbusiness.co.uk
Saturday, 21 February 2009
Almost half of staff believe they work better away from the office
Almost half of employees believe that they work more effectively remotely but only 8% of managers trust their staff to work out of the office, according to research conducted by YouGov.
The research, commissioned by BT Business and Nortel, revealed that 42% of staff feel that they could work better remotely but, despite a raft of new technology, business owners are reluctant to allow their staff to work away from the office.
With many small businesses currently struggling in the current crisis SME owners are being advised that being flexible and allowing staff to work remotely could provide their firm with a boost.
"This boils down to a matter of trust. In the current climate, small firms need to be operating at full stretch," said John Wright, national chairman of the Federation of Small Businesses.
"Last week's bad weather demonstrated the need for British businesses to enable their employees to be productive, wherever they are."
The research, commissioned by BT Business and Nortel, revealed that 42% of staff feel that they could work better remotely but, despite a raft of new technology, business owners are reluctant to allow their staff to work away from the office.
With many small businesses currently struggling in the current crisis SME owners are being advised that being flexible and allowing staff to work remotely could provide their firm with a boost.
"This boils down to a matter of trust. In the current climate, small firms need to be operating at full stretch," said John Wright, national chairman of the Federation of Small Businesses.
"Last week's bad weather demonstrated the need for British businesses to enable their employees to be productive, wherever they are."
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