Archive for June, 2010

Caps on for UK immigration

Wednesday, June 30th, 2010

 

Immigration law is being hotly debated at the moment. This has been an ever changing area of law in recent times and has caused headaches for many employers. The news is full of reports on the proposals by the coalition government to cap immigration, reports of raids on companies who have been fined for employing illegal workers, checks on visitors to businesses to ensure they are sticking to the rules, and of course, the numerous adjustments to the Points Based System over the last year.

Quoted in the Financial Times, Theresa May, the Home Secretary, has confirmed that restrictions may be implemented as early as next month on the number of workers entering the UK from outside the EU and she stressed that the government was determined to introduce a “tough, new limit”.

The temporary restrictions, which will be implemented quickly in order to prevent a glut of applications ahead of the more permanent restrictions in April 2011, will limit the number of non-European workers to 24,100; a fall of 5% on last year.

The immigration cap has been a major election pledge of the Conservative party during the election campaign, but has had strong opposition from UK businesses who are worried that a cap on skilled migration to the UK could damage the UK’s competitiveness and prevent companies recruiting the best global talent.

Details on how the cap will be implemented have yet to emerge, although the government has stated that the changes will only apply to highly skilled migrants and skilled workers in certain categories of job. It is therefore likely to have most impact on Tier 1 and 2 migrants.

In the interim, Ms May has announced a temporary cap on work permits for people migrating from outside the EU and that the number of work permits for “highly skilled” people without a job offer – i.e. Tier 1 applicants – will be maintained at 5,400 this financial year. This will be implemented by increasing the number of points these workers need to achieve, for example, through having to have a higher level of education, though their previous earnings or general funds.

The number of permits for “skilled” Tier 2 workers from outside the EU with a job offer will also be reduced by 1,300 to 18,700.

If you have any questions or would like to discuss any immigration issues further, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/ or call a member of the team on 0845 644 8955.

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

By Andrea Hughes

You should get your eyes checked!

Monday, June 28th, 2010

 

As you get older, your eyes tend to deteriorate… this often leaves us in middle-age, sending text messages at arms length and asking those with keener eyesight to “…just read that for me and tell me what it says, so that I don’t make a mistake”. We don’t, however, expect our optician to not be able to see what they are doing and make any mistakes as a result (that is in physical and metaphorical terms).

 

Benjamin Gains, who owns two opticians in Merseyside, became the first employer in North-West England to be successfully prosecuted for failing to pay national minimum wages to a number of his employees. According to a recent article, Mr Gains underpaid his staff, remunerating them at a level 40% less than they were entitled to by law, and then proceeded to hide any evidence of this by tampering with employee files (Personnel Today, 2010).

 

After further investigations by HM Revenue and Customs, Mr Gains was ordered to pay a fine of £3,696 and that was that!

 

In 1998, The National Minimum Wage Act was passed and later introduced in 1999. The current levels of National Minimum Wage in the UK stand at: £5.80 for workers 22 years and over; £4.83 for workers between the ages of 18-to-21 (inclusive); and £3.57 for those employed under the age of 18, who are no longer of the age for compulsory schooling (HMRC, 2010).

 

Under this legislation, employers are legally obligated to pay their workers at least the statutory level of National Minimum Wage (NMW) for each hour worked for their employer.

 

With regards to an employee’s remuneration, there are other elements, besides his basic pay, which may count towards NMW. These include things such as performance-related pay and rewards, such as bonuses. However, any additional money above basic pay – including overtime, benefits in kind, any extra work carried out etc – do not count towards this.

 

If an employee is being paid less than the NMW, he has the right to make a formal complaint to HMRC and / or bring their employer before an Employment Tribunal, if the employer fails to show, when requested, information regarding salary or remuneration records.

 

Don’t find yourself standing in front of your local Employment Tribunal… keep on top of the constant changes in employment law and keep up-to-date with your business records. If you require support in these issues, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at www.russellhrconsulting.co.uk.

 

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

 

By Darry Khajephour

Stand back, it’s an emergency… budget!

Friday, June 25th, 2010

 

The emergency budget has met with a mixed response. The Chancellor George Osborne called it the “unavoidable budget” and pointed out that it was “tough but fair”. Business groups have given a largely positive reaction. Predictably, the unions were somewhat less positive. 

 

Dave Prentis, general secretary of Unison said, “This budget signals that the battle for Britain’s public services has begun with the Government declaring war. Public sector workers will be shocked and angry that they are the innocent victims of job cuts and pay freezes. Freezing public sector pay when inflation is running at 5.1% and VAT is going up, will mean a real cut in living standards for millions of ordinary workers and their families - already struggling to pay rising bills.”

 

Experts suggest that the increase in VAT from 17.5% to 20%, may cost around 200,000 to 235,000 UK jobs over the next eight to 10 years. One of these is David Smith, Chairman of the Shadow Monetary Policy Committee, part of the Institute of Economic Affairs, who has said the VAT rise would increase unemployment by 235,000 over the next decade. The calculations are based partly on the assumption that a rise in the cost of VAT-related goods and services will lead to higher pay claims by workers, raising costs for employers and depressing demand for labour.

 

The Government has wasted no time. Immediately following the budget it announced it is considering closing 103 magistrates courts and 54 county courts to cut costs. Closing the courts would save around £15.3m a year in running costs, with a further £21.5m in maintenance. A consultation will be launched on whether to keep the courts running.

 

The Police are also facing cuts. Nick Herbert, the Policing Minister, said some police should be based in community centres or even high-street shops rather than “under-visited” police stations.

 

Professor of Public Policy at Manchester Business School, Colin Talbot, said a 25% cut in the £5bn police budget would be the equivalent of losing 35,000 police officers, 20,000 civilian staff and 4,000 community support officers.

 

Figures provided by 12 of the 43 forces in England and Wales have shown that 35 stations closed between 2006-07 and 2008-09 – the equivalent of one a month – while just 12 new ones opened.

 

The wrangling has already begun. The Royal College of Nursing (RCN) has asked to meet with the Government for urgent talks about the two-year pay freeze for public sector workers.

 

The RCN’s Head of Employment Relations, Josie Irwin, said substantial savings can be made by spending less on management consultants and by avoiding initiatives, such as re-branding hospitals.  She also said that nurses can advise managers on improvements in working practices, citing the example of Blackpool, Fylde and Wyre Hospitals NHS Foundation Trust, which saved about £20m in 2007 without any job cuts, thanks to an efficiency programme agreed between HR managers and unions and staff.

 

If you find yourself in such a situation, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/ or call a member of the team on 0845 644 8955.

 

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

Team Talk

Thursday, June 24th, 2010

 

Yesterday, a considerable part of the nation held its breath as the English football team played Slovenia. I wasn’t one of them, but the roars of jubilant football fans from the pub along the street told me that England had scored a goal. So England have limped inelegantly into the last 16 and live to fight another day.

 

The last couple of games have been disappointing in football terms and the ensuing arguments and divisions have been apparent. Teamwork is extremely important to the success of any team. A productive team shares common goals, a common vision and has some level of interdependence requiring verbal and physical interaction. In the French world cup squad, we have seen a good example of how an unsuccessful team works. Nicolas Anelka was sent home from South Africa after a disagreement with coach Raymond Domenach. President Sarkozy wants the French football fiasco to result in changes and has recently announced there will be an official investigation following a player boycott.

 

Many teams have high profile superstars, but these individuals can’t carry the team – and it’s unfair to ask them to do so. If the entire teams doesn’t work well as one unit, the chances are, it is not going to perform to its optimum. Wayne Rooney has only one scored goal and one assist in his last 10 England appearances. If England are going to get any further, we’ll need to see the team working as a cohesive unit.

 

Part of our work in HR services deals with helping people to manage their teams. To work well as a team takes a great deal of hard work. There are a number of factors influencing the success of the team; this includes good leadership and clear communication. It is also vital for team members to understand what their role on the team is, and to be able to manage conflicts in an appropriate fashion. As well as the problems in the French team, John Terry’s ill judged remarks in the press come to mind at this stage…

 

A team can be so much more than the sum of its parts. Knowing how to effectively work on and with a team is crucial to the success of an organisation.

 

We hope that the England football squad learn these lessons in time and wish them all the best in their next game with Germany.

 

If you have any concerns about team work within you or wish to find out more, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/.

 

Russell HR Consulting offers HR services and employment law training to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

Good service = survival

Monday, June 21st, 2010

 

Why is the UK so bad at service?  I’ve had more hissy fits over inadequate service (ranging from the merely poor to absolutely dire) than I care to mention and it was interesting reading Mary Portas’ account of the appalling service she received at HSBC recently.  Since I started the business in 1998, I have sacked at least three banks for chronic incompetence and poor service.  So the story was disappointing, but not especially surprising.  Large institutions seem to be too cumbersome to be able to deliver genuine good and competent service.  Ms Portas is another Headmistress type who votes with her feet and in this instance she went to NatWest. 

 

The whole service issue extends into the field of HR.  If I had a fiver for every time I’ve heard operations managers and business owners say “my HR manager/ provider (as the case may be) will only tell me what I can’t do.  They’re not giving me a clear business range of options”, I could have retired a wealthy woman.  In 2009 David Smith, the former people director at Asda, warned the “bad guys” in the HR profession are hampering the reputation and success of the function.

 

Speaking at an HR Forum, he said: “A lot of people in HR are completely inappropriate and they give the profession a very bad name.  They talk ‘HR speak’ and it’s meaningless.  They are not well regarded by their line managers and they are a laughing stock in many companies.  I suspect there are fewer good guys and more bad guys.  The HR directors at the forum agreed with Mr Smith.

 

There are four themes running though our employment law training seminars and HR services.  These are that the HR solutions we deliver, and that we teach our clients to deliver, must be lawful, ethical, tactical and timely.  In doing so the business receives practical guidance, conducts itself appropriately and resolves its problems.  Since nearly 90% of our work is repeat and referred, we must be doing something right!

 

With the emergency budget looming, and George Osbourne clearly preparing us for shocks, the next few months are likely to be very tough.  One lesson that UK business must take on board is that if it’s going to be here this time next year it needs to do everything it can to optimise business opportunities.  That means consistently giving the very best service possible. 

 

Russell HR Consulting provides excellent service and expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/ or call 0845 644 8955.

 

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

 

Health, wealth and happiness!

Friday, June 18th, 2010

 

Health and safety is a serious matter and rightly so. Statistics published by the Health and Safety Executive suggest that between 2008 and 2009, 24.6 million days were lost due to work-related illnesses and 4.7 million days due to injuries acquired in the workplace (HSE, 2010).

 

But earlier this week, the new coalition government began the process of reviewing health and safety legislation, assigning Lord Young to the proceedings. This is good news for employers (we could sure do with some!) as over the last few years, many

employers and business owners have expressed their concerns that over-cautious implementation of UK health and safety legislation has stifled businesses.

 

According to Personnel Today, many employers are fearful that they will be taken to tribunal and held liable for breaching health and safety laws, without even being aware of their breach.

 

Employers have a responsibility to take steps to ensure that their employees, and indeed visitors and even trespassers, are safe on their company premises.

 

The HSE, set up to create and maintain safe working environments in the UK, states that in general, employers must “make the workplace safe and eliminate or control risks to health” and at the same time “give workers the information, instruction, training and supervision necessary for their health and safety” (see http://www.hse.gov.uk/).

 

Every business in the UK must assess the risks in its workplace and write a detailed health and safety policy, as well as displaying the Health and Safety Law poster where it is accessible to all employees. Employers are required to provide basic welfare facilities (such as toilets, drinking water and a comfortable environment in which to work). Of course, different industries and roles have different risks and the idea or “comfortable” can differ greatly depending on the individual and their work environment. For example, an office worker will expect to have a warm, dry place to work with a desk and good lighting; a park warden on the other hand won’t expect to be dry and well-lit, but will need to be kept warm and given appropriate footwear to carry out his job.

 

If you have any concerns or wish to find out more, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/.

 

Russell HR Consulting offers HR services and employment law training to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

 

By Darry Khajehpour and The HR Headmistress

Employers’ Right to Manage

Thursday, June 17th, 2010

 

There is no denying or getting away from it… the current economic climate has hit most businesses hard and it will be some time before the previous pattern of exponential growth in profits and stability in business becomes the norm again.

 

You may be familiar with the old story of the Americans and their anti-gravity pen for NASA space missions. According to the tale, the Americans spent a substantial sum of money – allegedly millions of dollars – developing a pen that could be used in space, whereas the Russians saved on time, huge financial costs and considerable embarrassment by opting to use the simple pencil instead. The story has since been refuted but it still makes us laugh nonetheless!

 

Problem solving is a question of creative thinking and flexibility of approach. There’s more than one way of skinning a cat. Instead of asking, ‘how can we invent a pen that writes in space?’ the Americans could simply have asked ‘how do we write in space?’

 

When thinking about the best way to manage businesses in tough times, we asked ‘how can I best solve my business challenges?’

 

The answer is Employers’ Right to Manage, a business club where like-minded employers come and freely discuss any issues they may have in their workplace; whether it be issues with implementing employment law changes, discussions of how to deal with difficult employees or advice on effective business management. Through their quarterly meetings, the club allows members to identify alternative and effective solutions to their business problems and find ways in which others could improve businesses performance.

 

Whereas many organisations are trying to combat their employment and business administration problems on their own, we see coming together to talk things over and reach solutions with the help of other business owners as the way forward.

 

We also think that acquiring and sharing of useful knowledge can be very important. For this reason, we have set up a business library for club members to use and share resources with one another.

 

If you have any ideas or opinions on the Employers’ Right to Manage club or the associated business library, we are open to suggestions and would love to hear what you think.

Dropping the ball

Monday, June 14th, 2010

 

To the horror of thousands of England football supporters, Robert Green let in a goal in England’s first world cup game on Saturday.  The result was a one-all draw, meaning that England go forward with just one point, rather than the hoped-for three. Fabio Capello has refused to comment on whether Green will be selected for the next game, against Algeria, on Friday.

As we have seen, poor work performance affects morale and productivity.  It is the subject of complaint far more often than misconduct. It’s far less well addressed too, and for all sorts of reasons.  We often discuss the trials and tactics of tackling a lack of capability in our employment law training seminars.

If you don’t manage poor performance it can cause resentment and have a negative impact on those employees who are performing satisfactorily, resulting in decreased workforce productivity (sometimes an entire team works at the pace of the slowest member).  In severe cases could lead to an increase of workplace accidents.  Alternatively, you could end up doing the work, or it may be that the work just doesn’t get done.  Either way, it’s not very satisfactory.

Employers have to tackle poor work performance before it becomes a way of life.  Fabio Capello is a tough uncompromising manager with high standards. Let’s hope he and the England team achieve a better level of performance on Friday.

Our new book “How to Get Top Marks In …… Managing Poor Work Performance” will be published on 30th September price £5.  To place an order visit our website at http://www.russellhrconsulting.co.uk/ or call 0845 644 8955.

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

Britain’s Got Tribunal

Friday, June 11th, 2010

 

Britain’s Got Talent; a televised competition watched by millions and featuring thousands of contestants, all hoping to fulfil their dreams of being a star and perform in front of Her Royal Highness at the Royal Variety Show.

 

Unlike talent shows in the past, which mainly focus on finding the ultimate pop singer or band, Britain’s Got Talent is aimed at anybody and everybody who feels that they have a gift in music, dance, gymnastics, dog training, knife-swallowing or various other unsavoury abilities. However, the show and its creator, Simon Cowell, have also been criticised for putting vulnerable people in the spot-light and often ridiculing those who lack the experience of showbiz that enables them to cope with mass-media attention.

 

You may remember Susan Boyle back in 2009, who allegedly suffered a breakdown backstage during the show’s finals; or 11-year-old Hollie Steel, who was so overwhelmed by the experience and nervousness that she was left in tears during her performance.

 

More recently, a former contestant has put forward a case to an employment tribunal against Simon Cowell, after claiming that she suffered unlawful discrimination. According to an article published earlier this week by the BBC (2010), Ms Emma Amelia Pearl Czikai, who suffers from cervical spine neuritis, says that the environment the producers put her in made her feel unfairly treated and aggravated her condition. Ms Czikai claims that she was left to wait in the cold backstage and felt so aggrieved, that she asked producers of the show to not show her footage. They ignored her request.

 

Under the Disability Discrimination Act (DDA) 1995, “a person has a disability if he has a physical or mental impairment which has a substantial or long-term effect on his ability to carry out normal day-to-day activities”. Some examples of impairment include: sensory impairments; progressive illnesses (such as MS); developmental conditions (such as dyslexia and dyspraxia) and learning difficulties.

 

Disability discrimination can occur in two ways:

 

  1. If you treat a disabled person less favourably than you would treat others for a reason related to that person’s disability, without justification.
  2. If you fail to comply with your duty to make all, reasonable adjustments to accommodate the disabled person.

 

Our employment law training seminars provide guidance to employers on how to avoid being taken to tribunal. These include a discussion of the reasonable adjustments you can take to accommodate a disabled employee. Examples of reasonable adjustments include: allocation of duties that may exacerbate the employee’s condition to someone else; alteration of working hours; putting specialised equipment in place to assist a disabled employee and allowing time off for treatment (this includes counselling).

 

If you find yourself in a situation whereby you want to accommodate an employee who is less-able, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/.

 

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

 

By Darry Khajehpour and The HR Headmistress

Brown’s downer on Downing Street

Thursday, June 10th, 2010

 

A new Prime Minister, a new coalition government and a new Britain; or so we thought…

 

Gordon Brown – although giving clear indications that he would like to step-back from the world of politics – is back on our screens with his old ways. It has recently been brought to the public’s attention that, before leaving office at Number 10, ex-PM Brown decided to make some cuts… to the income of next parliamentary leader!

 

Prime Minister David Cameron’s remuneration was cut from £194,000 to £150,000, with no formal or mutual agreement, according to a report in the Telegraph earlier this week. This has left Mr Cameron with an income that is only marginally higher than what he was previously earning before he came into power; with a decrease in salary during his time in office of hundreds-of-thousands of pounds (Telegraph, 2010).

 

During these difficult and challenging economic times, some employers are left with either the option of making redundancies, or the unfortunate reduction in employee salaries. An employee’s salary forms part of the contractual element of his employment; therefore, any variations to his salary constitutes a variation in contract. As an employer, you are legally required to mutually agree any changes to an employee’s salary with said employee. If you fail to follow correct procedures by unilaterally imposing a change in contract without an employee’s prior knowledge and consent, this could lead to a claim against you for constructive dismissal.

 

Contractual variations, for the most part, take place by mutual consent and you are strongly advised to obtain written evidence that the employee has agreed to these changes for future reference. In a handful of cases, an agreement can be implied if the employee continues to carry out his job under the changed terms and conditions without complaint or opposition. However, obtaining a written agreement is always the better option.

 

If you do have concerns or would like some guidance on changes to employee contracts, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/ or speak to a member of our team on 0845 644 8955.

 

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

 

By Darry Khajehpour