UK Payroll & HR News

HMRC has published the RTI 46 starter checklist form for review.The form can be used to gather information about a new employee and will be used to help fill in the first Real Time Information Full Payment Submission (FPS) for an employee.

The form is only used to capture the required data for an employee to enable to sending of RTI information to HMRC, and HMRC asks that the RTI 46 is not sent in directly to the Revenue.

Employers must keep the information recorded on the starter checklist record for two years.

The form is available in a pdf format from HMRC’s site here

For more information regarding RTI, or for a no-obligation quote for our UK payroll services, please call us now on 0115 9853199 or e-mail info@pbs.uk.com

Every workplace has its own uniquely occurring events, and the HR function is perhaps most obvious to other departments within the company during the annual performance appraisal.  So why could this be? Perhaps it’s because employees dislike them. The traditional method of conducting appraisals is time-consuming and involves too much paperwork. With this in mind, it may come as no surprise that many employees feel appraisals are little more than a box-ticking exercise, and think that HR would be best dispensing with them altogether to find a better performance-management tool.

Does any of the above sound familiar? You’re not alone it seems. A recent US poll of 2,677 people (1,800 employees, 645 HR managers, and 232 CEOs) by San Francisco-based rewards-and-recognition consulting firm Achievers revealed 98% of staff find annual performance reviews unnecessary. One very important point to consider – among the 2,677 respondents, a quarter were HR professionals. Edward Lawler, professor of business at University of Southern California, reacted by declaring: "Performance appraisals are dead." But he also unveiled research showing that almost 93% of companies use some form of annual appraisals, with only 6% have considered dropping them.

It is a very similar landscape in the UK. 2009 research performed by the CIPD showed  that more than 80% of HR practitioners carry out performance appraisals. But alternative research by management consultancy Hay Group found half of public sector workers and one-third of business leaders describe appraisals as a box-ticking exercise. The Institute for Employment Studies (IES) published a report last year, warning that HR under-communicates the aims of performance management, and "too often talks about performance management as an administrative procedure". The Institute for Leadership and Management (ILM) reports 93% of UK workers are concerned low-level management skills are directly impacting on business. ILM’s research shows only 18% of UK employers expect managers to have received management training before their appointment.

Professional bodies such as ACAS recommend firms conduct appraisals to provide evidence of performance problems in case of unfair dismissal claims. But this is no way a legal requirement, and no mention is made of the positive performance management aspects of a quality appraisal system. The business case for a robust appraisal system linked to the organisation’s wider strategic objectives is strong. Good performance management can provide successful staff development, ensuring internal promotions and lower recruitment costs. ILM figures show that only 55% of managerial vacancies are filled internally.

It is important that organisations see the appraisal process as something more important than an annual process, as good performance management takes place on a day to day basis. Also importance is the use of alternative methods and technologies that ensure your appraisal process is viewed by staff as more than a long-winded box ticking exercise. Social media is one tool to consider, as it provides for the possibility of constant, short feedback, perhaps removing barriers and making the appraisal process more like how we react and communicate in our daily lives, whilst dispensing with the time-consuming paperwork that is much to the chagrin of many employees.

For more information on our HR Services, please call us on 0115 9853199, or e-mail info@pbs.uk.com

It is possible that an inability to work full-time could soon be considered  to be a disability, as the European Court will soon scrutinise the interpretation of disability under European law. The last review was in 2006, when the court clarified that sickness is not disability for the purposes of employment law.

However, a Danish case due to be heard by the court this week seems set to challenge many fundamental and long-held perceptions as to the meaning of disability, not to mention established case law.  The case concerns a Danish lady who has a slipped disc and consequential back problems. She asked to work part-time but this was not accommodated by her employer and her employment was eventually terminated on grounds of poor attendance and performance in accordance with Danish law. The case raises a number of questions, and could possibly re-define disability discrimination law as we know it.

UK law currently identifies a number of key indicators of disability, such as the duration of any incapacity, which, in most cases, must extend beyond a year. Temporary illness is not generally covered so any contrary view by the court could place the UK’s existing legislation in doubt. Either way, this case is worth monitoring, as the results could change UK employment law.

For more information on our HR services, and how PBS can help you comply with up to date UK HR legislation, contact us now on 0115 9853199. or e-mail info@pbs.uk.com

HMRC has confirmed that some Construction Industry Scheme (CIS) payrolls nominated for the Real Time Information (RTI) pilot are being retrospectively rejected.

Confusion has developed over recent months as to whether non-standard PAYE schemes are eligible for the RTI pilot or not. In some cases HMRC has accepted CIS payrolls onto the pilot but is now rejecting them retrospectively.

An HMRC spokesman said; “The RTI pilot is software developer-led with volunteer software providers nominating their customers to participate. We asked developers to nominate employers operating Standard PAYE schemes.

“When we have been completing our final checks for the next pilot stage, we have identified that some developers have nominated employers operating non-standard schemes, and CIS schemes in particular.

“Some CIS schemes will be piloted, to test these scenarios in a controlled manner, but  we are unable to accept all CIS schemes nominated”.

Government plans to introduce shared maternity and paternity leave could be delayed until October 2015, according to a national newspaper.
Changes that would enable mothers and fathers to share maternity leave more flexibly were announced in last year’s Modern Workplaces consultation, which suggested bringing in the new rules by April 2015. But a senior government source, quoted by the Telegraph newspaper on Friday has suggested that any introduction of new rules could be pushed back to October because of concerns about the impact on businesses. The new rules would entitle couples with a new baby to a total of 58 weeks of leave, with 22 weeks reserved for the mother, six reserved for the father and the remaining 30 weeks to be shared between the parents as they choose.
New parents could also decide to take their leave simultaneously and choose to request leave in blocks of any duration, although employers would also have the right to refuse. However, this latest media report suggests that plans have been pushed back after a row among Cabinet colleagues over the impact on business. Finalised plans are expected to be announced later this month.

For more guidance on our HR services please call us on 0115 9853199, or e-mail info@pbs.uk.com and one of our team of CIPD-qualified experts will call you back at your convenience.Finalised plans are expected to be announced later this month.

Auto-enrolment could mean high scheme charges and poor investment returns for some employees, a pensions research body has warned.
The Pension Institute has highlighted potential problems with the government scheme to enrol more people into company pensions, as its first phase targeting large employers began on the 1st of October. A report from the research body said that high charges on "legacy" defined benefit pension schemes must be abolished or new entrants would face poor returns on their investment. The institute published its report, called Caveat Venditor, at the Cass Business School. Under the government’s plan, as many as nine million people will be automatically enrolled into company-backed pension schemes by 2018.

For more guidance on our HR services please call us on 0115 9853199, or e-mail info@pbs.uk.com and one of our team of CIPD-qualified experts will call you back at your convenience.

New statistics released by the Ministry of Justice show that the number of claims accepted by employment tribunals fell 15 per cent to 186,300 this year, with the largest single category relating to unfair dismissal claims, breach of contract, and redundancy. This category showed a slight rise of 1% over last year’s figures, contributing to 31% of all claims.

The number of discrimination claims continued to fall – with the exception of disability claims, which rose by 6.5 per cent. Age discrimination claims dipped by almost half, but did see a near-doubling in the median award – rising to £6,065. The largest single compensation payout awarded by a tribunal over the past year was £4.5 million in a race discrimination case.

The statistics, which cover employment tribunal and Employment Appeal Tribunal activity between 1 April 2011 and 31 March 2012, showed a downward trend. This year’s total of 186,300 claims represented a 15 per cent fall on last year and a 21 per cent decline compared to 2009/10.

However, legal experts pointed out that changes in the number of class actions brought against single employers were potentially skewing the statistics. The number of multiple claims dropped by 19 per cent this year, but single tribunal claims only fell by 2 per cent. Whistleblowing cases were also excluded from the figures, perhaps suggesting a lack of protective measures to encourage whistleblowers to come forward.

The Ministry of Justice data also revealed that just over 500,000 employment tribunal cases were yet to be processed. The backlog was mainly comprised of complex multiple claims. The government is in the process of making reforms to the UK’s employment tribunal system, which will include introducing case fees and lowering awards for successful unfair dismissal cases.

For more guidance on our HR services please call us on 0115 9853199 or e-mail info@pbs.uk.com and one of our team of CIPD-qualified experts will call you back at your convenience.

It seems to start earlier each year (certainly in the shops), but the Christmas and New Year Period can be a difficult time for many payroll departments without proper and robust planning. Our guide and tips below will help you navigate this difficult time.

With many companies increasing their staff over this time, the Christmas period can see an increase of up to 60% for a 6-8 week period. Add in the logistical requirements of bank holidays, and the fact that many companies pay early in December, and it’s easy to see the potential pitfalls that may arise, leaving payroll staff stressed and employees potentially unpaid. Here are our top tips for a stress-free December payroll;

1. Payroll Outsourcing;
Find a reputable payroll outsourcing company. Outsourcing your payroll to fully qualified professionals means that you can be confident that your staff will be paid accurately and on time with the minimum amount of effort on your part.

2. Plan ahead;
Allow sufficient time to recruit and train the right people if needed. Ensure you have the right amount of stationery such as payslips available. Ensure you don’t repeat the previous year’s mistakes.

3. Ensure you have the right payroll team;
Temporary payroll staff are difficult to find and expensive at short notice, and will need to learn your specific operating procedures. One of the problems with payroll is that when things go wrong, the workload spirals upwards. If you are using an outsourced provider, they will have more resources available, but you should give them sufficient notice.

4. Gather information once;
Make sure you capture employee information at the earliest possible opportunity, not just on their first day at work. Examples include; tax forms, NI numbers, proof of student status, and bank details. Ensure that the amount of manual data input into your payroll system is minimal, this reduces errors, and makes the whole process quicker.

5. Test your systems;
With many seasonal employees being paid weekly, make sure your payroll software is up to the task. This is especially important if you have upgraded or have had new software installed recently. Most payroll systems have the ability to import payroll data via CSV (comma separated value) or excel template, so investigate whether input via this method would speed up the payroll process and reduce the risk of input errors.

6. Learn from your actions;
Don’t just sit back in the New Year, analyse what could have gone better, and implement changes for the next time.

With planning and foresight, even though the month is foreshortened by bank holidays and the pre-Christmas pay date there is no reason why the Christmas payroll should be any more trouble than the other eleven months of the year.

For flexible, confidential, and reliable payroll bureau services that ensure your staff get paid accurately and on time, contact us now on 0115 9853199 or e-mail info@pbs.uk.com, and we’ll get back to you at your convenience.

The cap for unfair dismissal awards could be reduced to one year’s salary under employment tribunal changes outlined by the government today. Business secretary Vince Cable said the proposal was going out to consultation, as part of changes that will also see the tribunal system streamlined and judges given more power to throw out weak cases.

The compensation limit for a successful unfair dismissal claim is currently £72,300.

The government has also given its backing to settlement agreements, under which staff agree to leave their employer with a pay-off and no threat of a tribunal case. Acas have agreed to provide a new code of practice in this area and businesses will be consulted on the move’s implementation, along with recommendations to change TUPE regulations.

But the government has confirmed that it will not be introducing laws to allow compensated no fault dismissal.

Cable said that the reforms would reduce bureaucracy for firms and increase their hiring confidence.

“We have been looking across the range of employment laws with a view to making it easier for firms to hire staff while protecting basic labour rights,” Cable explained.

For more information about HR outsourcing, or our HR consultancy services call us on 0115 9853199 or e-mailinfo@pbs.uk.com.

Hundreds of thousands of businesses are to be exempted from health and safety inspections under regulatory changes unveiled by the government today.

Shops, offices, pubs and clubs will no longer face the “burdensome” workplace checks from April 2013, ministers have announced. In future, companies will only be inspected if they are operating in high risk areas – such as construction – or if they have a poor safety record.

The law is also set to change next month so that employers will be liable for civil damages in health and safety cases only if they can be shown to have acted negligently.

The reforms are part of government plans to scrap or overhaul 3,000 regulations to ease the burden on UK firms. Business secretary Vince Cable said that the move would encourage economic growth.

“Removing unnecessary red tape and putting common sense back into areas like health and safety will reduce fears and costs for businesses,” he said. “We want to help give British business the confidence it needs to create more jobs and support the wider economy to grow.”

The reforms to health and safety procedures have the backing of business groups such as the British Chambers of Commerce and manufacturers’ organisation, the EEF.

But the plans have been criticised by trade unions and safety groups, with the TUC warning that the decision could put the health of UK employees at risk.

For more information about our HR Services, call us on 0115 9853199, or e-mail info@pbs.uk.com