Are You Up To Date with Recent Legal Changes in HR?

The law is always changing around people issues. To help you keep up to date, here are a few of the recent and forthcoming changes that you need to be aware of.

1. Statutory benefit increases – standard rates for statutory maternity pay, paternity pay and adoption pay will increase with effect from 7 April 2013 to £136.78. Statutory sick pay will increase with effect from 6 April 2013 to £86.70.

2. Compensation limits – annual rises for compensation limits have been announced for all dismissals which take effect from 1 February 2013. The cap on a week’s pay rises to £450 and the maximum unfair dismissal basic award rises to £13,500. The maximum compensatory award rises to £74,200.

3. Sickness benefits – from December 2012, people on sickness benefits are being offered work experience to help them back into a job. Short periods of work experience at an appropriate employer will help people with limited employment history get a flavour of the workplace environment, gain new skills and boost their confidence. People who fail to carry out any agreed work related activity without good reason may face sanctions.

4. Fuel rates and car allowances – HMRC has published new advisory fuel rates for company cars with effect from 1 December 2012. The rates are to be used only where employers either reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel. The next review will be 1 March 2013.

5. Criminal record checks – the Home Office has announced a new service whereby employees and volunteers requiring criminal records checks will be able to make one application and have access to an online certificate check rather than have to make new applications for each job they apply for.  The service will be free for volunteers.  The new system will be launched by the disclosure and barring services on 1 March 2013.

If you need to know more about any of these changes and how they affect your particular business, leave a comment here, email me your question or pick up the phone and we can talk about it.

Absence Management

It is estimated that unauthorised absence costs the UK economy around £10bn-£12bn every year with employees failing to come to work for no good reason an average of 8 days each.   With the Olympics just a few short weeks away, and an expected rise is unauthorised absence predicted it important that you plan ahead to avoid unauthorised absence.

To stay on top of unauthorised absence you must put in place thorough absence policy that includes how absence will be managed; states clearly what absence is and is not permitted; details of how absence will be recorded and monitored; reporting lines and disciplinary procedures.

When you suspect an employee is taking an unauthorised day off you should:

  • Make contact on day 1 to establish the reason for the absence
  • If you are not satisfied that the reason for absence is genuine follow up with a letter on day 2
  • If the employee does not make contact and remains absent from work without notice you may have cause to assume resignation and formalise the appropriate procedures
  • If the employee returns to work you should always conduct further investigation in order to prevent a similar absence from occurring in the future and where necessary invoke a formal disciplinary process
  • If an employee takes annual leave despite being previously refused you must contact them immediately in writing and again invoke a formal disciplinary process.

Having in place a robust absence management policy will reap long term rewards by: –

  • Identifying the causes of poor attendance.
  • Providing support.
  • Increasing loyalty and motivation.
  • Deterring casual absence.
  • Identifying problems at work.
  • Improving morale and motivation.
  • Leading to reduction in absence.
  • Improving productivity.

Implications of the Bribery Act 2010

Are you aware that it is an offence to offer, promise or give a bribe as well as to request, or accept one with the intention to obtain or retain business, or commercial advantage in the conduct of business?

Facilitation payments such as those made to Government officials for carrying out or speeding up routine procedures such as planning permission; gifts given to secure advantage during a tender process or to encourage customers to buy products or services; and any payment/gift given by an employee to obtain new contracts can all be considered acts of criminal bribery.  You will be pleased to hear that corporate hospitality is permitted but it is important you take a common sense approach.  If it looks too good to be allowed it probably is!  Ensure the hospitality is offered in good faith with the sole intention of establishing or maintaining good business relations and not to secure an advantage for your business or influence the impartiality of the recipient.

What prevention measures can you put in place?  Firstly, undertake a risk assessment and draft a zero tolerance anti-bribery policy, with top level commitment, that is relevant to your business operations and your employees.  Secondly, ensure your employees are trained and understand the implications of the Bribery Act 2010 and that contracts of employment are updated to include acts of bribery in the context of gross misconduct.  Finally, put in place a stringent  approval processes for any payments, gifts or hospitality requests and keep an audit trail that includes a record of any incidents where ethical standards may have been breached and how they have been dealt with.

With prison sentences of up to 10 years and confiscation proceedings the likely outcomes for getting it wrong, you really cannot afford not to be aware of the risks.