Fines for employers who do not pay National Minimum Wage (NMW)

Did you know that if you fail to meet the National Minimum Wage that not only will you have to pay the employees affected compensation, you will also be subject to a fine under the tougher amended naming and shaming scheme that came into effect on 1 October 2013. 

As well as being publicly named and shamed, employers who fail to pay their workers the NMW face higher financial penalties of 100% of the unpaid wages owed to workers with a maximum penalty of £20,000 from 7 March 2014.

The NMW Regulations 2014 provides for a Notice of Underpayment issued by HMRC to require the employer to pay a financial penalty to the Secretary of State. The financial penalty is calculated as a percentage of the total underpayment of the NMW for all workers as set out in the Notice of Underpayment.  This percentage has been amended from 50% to 100% of the total underpayments, and also increases the figure for the maximum financial penalty from £5,000 to £20,000. 

So the advice here is make sure you meet the NMW as the absolute minimum and ideally make sure you are paying a living wage.  In the long run this will prove to be not only the legally right thing to be doing but will avoid negative publicity for you and your business and will show you to be an employer of integrity.

To get the latest NMW rates visit:
https://www.gov.uk/national-minimum-wage-rates

For more information about the 'living wage' visit:
http://www.livingwage.org.uk/what-living-wage

7 Tips on Employment Law Changes

I recently attended a really useful employment law update run by Employment Team from Capital Law and Smart Solutions so I wanted to share some tips from this update:

1. Maternity/Paternity Leave
Shared Parental leave is to be introduced through an Act of Parliament to commence in 2015. This means that the current 52 weeks available as Maternity leave will be open to being shared between both parents of the child.
Employers need to think about how they will manage this right both within their own business and between their business and the business that employers the other parent of the child. A range of requirements around giving notice of taking shared parental leave, number of periods of shared leave that can be requested and ability to change their mind about shared leave up to 6 weeks after the birth of their child will all need careful management.

In other European countries this is not a new concept - in Sweden they have operated shared parental leave since 1974. Incidentally, Sweden is one of the strongest economies in the world.

This legislation will also give the right from 2015 to unpaid parental leave for children up to the age of 18.

Employers are recommended to develop a separate Shared Parental Leave Policy to effectively introduce this right to their employees. You also need to consider that, if you provide enhanced maternity rights to your staff that if you do not apply this to a man requesting shared parental leave this could be considered as indirect discrimination so care and clarity of policy is imperative. It is worth considering the financial and operational impact of this change on your businesses well in advance of it's introduction to ensure you are well prepared for the change.

2. Flexible Working 
The right to request flexible working is extended to all employees with 26 weeks service as of (insert date). To help employers they will no longer have to follow the statutory procedure regarding flexible working requests. Requests will have to be given reasonable consideration within 3 months of receipt of the request.
The ACAS code on this is very helpful so as well as updating your flexible working policy I recommend you familiarise yourself with the ACAS code. You can download the guide via the link below:

http://www.acas.org.uk/index.aspx?articleid=803

3. Sickness Absence
In the UK 140 million working days are lost to sickness absence each year and the cost to employers of this is approximately £9 billion per year.
Following an independent review of sickness, the government has introduced s of April this year a free independent Occupational Health service for ALL employers and employees. Key elements are:

• There is no cost to the employer or employee,
• Referral will occur after 4 weeks absence
• Intention is to reduce the length someone is absent and/or enable robust management of absence.
• At 20 weeks absence there is a service provided to employees to help match them to an alternative job if appropriate.
• The service will be provided by GP's and hospital outpatients.
• Employers will need to be proactive in corresponding with GP's to ensure their employees are referred in a timely manner.

I recommend having a well structured proactive absence management process that provides support and guidance to both employees and line managers to enable staff who are unable to attend work due to sickness to regain their health and return to work as quickly as possible. This can include well-being activities in the workplace, flexible benefits and supportive and well trained management.

4. Equality & Diversity
Currently under consultation is the introduction of a new 'protected characteristic' under the Equality Act 2010. Once approved this will introduce 'caste' as a new protected characteristic and it is likely to be in place around April 2015. Watch our for more updates on its progress.

Also within Harassment & Bullying- the 3rd party harassment provisions have been repealed. However employers should not become complacent in light of this as if you as the employer are aware of bullying and harassment and do nothing and this inaction sustains the unwanted behaviour they would still potentially have liability. Be careful of standing by and doing nothing...

5. Whistle-blowing
Here as employers you need to be aware that individuals have protection from detriment if they have made protected disclosures under Whistle blowing and that these protections are far reaching - this means they can go beyond the end of the employment relationship.
There has also been a change in the nature of the information disclosed. It must be information and not just opinion and you do not have to know it is true - if you have a reasonable belief that the employer has breached one of the reasons for whistle-blowing (criminal offence; breach of any legal obligation; miscarriage of justice; endangered health & safety of individuals; damaged the environment or deliberately concealed information about any of the previous )  then you are protected.
Finally the requirements that the disclosure was 'made in good faith' hs been replaced with 'in the public interest'.  This means for example that a disclosure about your own contract of employment may not be covered unless it is in the 'public best interest'.
So what does this mean for you? Review your whistle blowing policy or implement one if you do not have one. Ensure employees know how to raise concerns in the workplace and offer regular communication to encourage this.

6. Discipline & Grievance
Employees have the right to be accompanied at a range of employment meetings such as disciplinary and grievance. Following a case in the Employment Appeal Tribunal’swho's ruling in the case of
Toal and anor v GB Oils (which concerned the refusal of GB Oils to allow Mr Toal and a colleague to be accompanied at a grievance hearing by a companion of their choice) it was suggested that Acas’ Code of Practice on Disciplinary and grievance procedures did not accurately reflect the law on the statutory right of
accompaniment.
In the EAT’s ruling in Toal, , it was stated that if a worker has been invited to a disciplinary or grievance hearing then, provided they have made a reasonable request to be accompanied at the hearing, they have the right to choose whoever they like as a companion - so long as the companion is from one of the categories set out in section 10 of the ERA 1999, (ie, a fellow worker, a person employed by a trade union or a trade union representative)
Given this ruling, Acas recognises that the current wording in its Code suggests an erroneous interpretation of the law and has therefore decided to amend the Code to take account of the EAT’s ruling. Watch out for updated guidance being published on their website.

You can download the current guide via the link below:
http://www.acas.org.uk/index.aspx?articleid=2179

Qualifying period for unfair dismissal:
For clarity I am including this.
Employees employed on or after the 6 April 2012 must have 2 years continuous service to qualify for unfair dismissal claims
Employees employed prior to the 6 April 2012 must have 1 years continuous service to qualify for unfair dismissal claims

7. Employment Tribunals
The ET process has seen a major overhaul and a number of changes have been made including:
- the introduction of tribunal fees - individuals wishing to apply to tribunal now have to pay a fee up front to submit their claim.
- the introduction of a sifting process of claims by judges to review the claims submitted and remove clearly erroneous claims or strike out parts of claims. There will be an appeal available at this stage.
- employers can now attach documents to their submission which will support their counter claim
-From the 5th may 2014 the ACAS early conciliation process will be mandatory beofre any claim can be submitted to tribunal. It is hoped that this will resolve a number of issues without the need for the tribunals involvement. Considerable process and guidance will be available from ACAS to support employers and individuals with this new requirement
- The upper limit for unfair dismissal compensatory awards will increase from the current £74,200 to £76,574 from the 6th April 2014 or a year's pay (gross) which ever is the lower.

If you are interested in attending employment law updates or other related events, have a look at the Capital Law website to see the up and coming events:

http://www.capitallaw.co.uk/site/events/

7 Top Tips to get the best from your communication

"I know you understand what you think I said, but I am not sure that you realise that what you heard is not what I meant"

RICHARD NIXON

1. Always begin by listening – it is said we have 2 ears and 1 mouth and should use them in that proportion!  By listening first we can ensure that what we then say is:

ü  on point

ü  relevant

ü  appropriate

ü  clear

Remember…We are distracted, preoccupied or forgetful about 75% of the time we should be listening.

We listen at 125-250 words per minute, but think at 1000-3000 words per minute.

Immediately after we listen to someone, we only recall about 50% of what they said.

Long-term, we only remember 20% of what we hear.

2. Less is more – Saying far more than you need to or over-communication, will have the effect that the person you are talking to stops listening e.g. we tell people in detail 'what we have to do to give them what they want'. But all they need is 'what can you do for me, by when'.

3. Pitch, pace and tone – it is not just the words that you say that matter – how you say them also has a significant impact on how your message is received. Think about what is the most appropriate pitch, pace of speech and tone of voice for what you are saying.

4. Avoid jargon – or at least explain it if it is necessary. Abbreviations or technical jargon if they are not familiar with it will create barriers to listening as they will spend time thinking what it means and so miss out on what is being said next or will feel awkward or irritated that they don’t know what you are talking about.

5. Think about the method of Communication. Do you write a letter, send an email, leave a voicemail or speak to them on the phone or in person. Experts say that written communication is good for information and confirmation but not good for emotion and discussion. Little wonder that if words are placed in bold or CAPITAL LETTERS or BOTH in emails, receivers understand it as shouting! Think about the appropriateness of the method you are using – do you leave a voicemail when it is something emotive or wait to speak in person?

6. Communicate in haste, repent … - it is never very successful if we communicate in the heat of the moment, it is fair to say we usual regret what we said and how we said it and wish we had waited a while to prepare what we were going to say and for any heightened emotions to subside a little.

How many times do we walk away from communication interactions thinking: "I wish I hadn't said that" or "I didn't mean it the way it came out"?

Think through the conversation beforehand:

·         What do I want to say?

·         How will I get a difficult message across?

·         How will I know they have understood what I am saying?

·         What reaction might I get?

·         How will I respond?

·         What outcome do I want from the conversation?

7. Body language – it is well know that communication is a 3-part thing:

The words you say (7%)

The way you say it (38%)

The body language that accompanies it (55%)

And the one that has the biggest impact is the body language accompanying it. So remember to use your body language to support what you are saying and not detract from the message.

·         Have good eye contact

·         Use open gestures

·         Stand or sit in an open and friendly manner – not closed up (folded arms, crossed legs etc) or turned away

·         Don’t get distracted by your mobile, what is going on out of the window etc

·         Use listening noises to show that you are listening

·         Ask questions to check understanding and summarise back what has been said to you so you are showing you are listening and interested.

If you are interested in training your managers or teams in effective communication then please get in touch – enquiries@7hr-training.co.uk 

7 Hints & Tips for Managing your Career

These 7 characteristics reflect career management competencies, which are things you can do to ensure that you have a healthy career.

Characteristic 1: Develop Career Purpose

Research tells us that individuals who identify goals and have a vision of their future are more successful in achieving what they want.  If you are not sure what you are aiming for, how can you know when you have got there?  You may argue that the works is changing so much it is better to wait and respond.  It is essential to be flexible, but having some purpose focuses out efforts.  There will be key career decisions you need to make along the way.  Establishing what is really important will help you make the right choices for you.  This includes your career motivators, values, lifestyle, aptitudes, preferred work style and aspirations. Know yourself and know what you want.

Characteristic 2: Transferrable Skills & Competencies

As organisations change, so does what is required.  You need an appreciation of what is needed in your current role, whilst learning and developing yourself for future opporutnities. Be honest with yourself.  Where do you perform well? Where are the development gaps?

Don’t be tempted to rest on your laurels – it doesn’t take long to become out of date.  Commit to life long learning to remain competitive.  Remember your portfolio of skills is what you can sell to others. It needs to be up to date, flexible and portable.

Characteristic 3: Become a Change Opportunist & Align with the needs of your organisation

Taking care of your career means managing change.  Chances are that your organisaion will continue to reshape itself, shifting and flexing to meet the threats and opporuntites in its fiercely competitive environment.  You can also expect flexible working, changing duties, short-term assignments and projects.  You may not like all the changes, but career opportunties come when you align immediately with new organisational needs and realities.  Be nimble and show a high capacity for adjustment.  Organistions want people who adapt, and anticipate change.

Characteristic 4: Be a High Performer

Committing fully to your current job is a prerequisite for career health.  Your employability will be enhanced by being known as a high performer.  You will be judged internally and externally by the results you achieve and the difference you make.  Take on more personal responsibility for the success of your organisation rather than focussing on the narrow confines of your job description.  You spend a great deal of time at work so make sure you are doing something that you enjoy, so that you can give your best. Continue to learn and develop to maintain your contribution.  Being a high performer does not necessarily mean working longer – working smarter is the key

Characteristic 5: Balance your Life

How do you want to be remembered after you are gone? In the space below draft, in no more than 20 words, your epitaph.

We all work hard and experience tension between work and home demands at times.  How can you juggle leisure interests, family commitments, self development activities and work challenges?

Working longer will not necessarily help you work more effectively. Enjoyment and balance are essential to avoid burnout.  No-one on their deathbed is likely to say that they wished they had spent more time at the office!  It is worth consdiering the life balance that suits you.

What are your life values? What do you hold dear?

Characteristic 6: Promote Yourself

Your career success will largely depend on the strength of your relationships with others – colleagues, line managers, customers, friends and professional contacts.  Networking is something we all do instinctively, to gather information, to identify resources, to raise our profile, to coordinate activties and to gain support.  Networking is essential to getting our job done.  In career terms it keeps you in touch with two vital things – people and information.

Make a note below of ways in which you ‘network? Where do you network? Who are your networking contacts?

Also, being able to relate what you have to offer to the needs of your organisation will enhance your employability.  Think of yourself as a service centre with a range of services that you are able to provide.  Be clear about what you can offer? Is it unique? Where is there a need?

Be clear about the value of what you bring, don’t be tempted to undersell yourself.  Maintaining an up to date personal profile or CV is part of the process.  The CV should not be seen as your route out of an organisation – it can be a very potent tool to promote yourself internally. You may be highly employable in your organisation but if people are unaware of your existence you will remain in the shadows, overlooked for interesting projects and development opportunities.  Worse still, you could be considered a poor performer if people are unaware of the contribution you are making! In todays flatter structures the need to raise your profile is even greater.  You need to find ways to communicate what you do and what your aspirations are. You may need to get involved in organisational politics but in a positve way that benefits both you and the organisation. Don’t let your career rest on the false assumptions made by others.

How do you create visibility of yourself at the moment? What else could you be doing?

Characteristic 7: Manage your own Morale

Think of a cross section of people you know and divide them into two groups – those that give you a headache and those that take it away.  What distinguishes them? The reality is that invariable we do not respond well to people who are negative and turn everything into a drama, unless we are that sort of person ourselves.

Optimism and positive attitudes are infectious; so be aware of the impression you make to others.  No one is saying that you should feel and act in a positive way all the time.  No doubt there will be good reasons for you not to do so.  Manage your morale by keeping things in perspective.  Seek support form others and ways of boosting your self esteem and confidence. Stay away from people and things that drain your energy.

What/Who drains your energy battery?

What /Who charges your energy battery?

If you would like to find out more about career development for yourself or for your team please get in touch – enquiries@7hr-training.co.uk

Welcome to the brand new look for 7's HR!

I am very happy to announce the new branding and website for 7’s HR – isn’t it lovely?

The process began with a logo design and brand guidelines from one of my clients, RLA. They usually specialise in automotive clients, but created a great professional looking logo for me.

I then gave the logo and brand guidelines to a local Monmouthshire-based company, Creating Media, to create the rest of my design. They started straight away on the website, and when I explained the multi-layered meaning behind the company name 7’s HR they picked up the idea of the ‘neutral pH’ and came up with some really great, creative ideas for giving my website an extra colourful edge and unique hook, with bold and colourful images in the header throughout.

Creating Media listened to what was important to me, and ensured that all of these aspects were included. They helped me with setting up accounts on LinkedIn and YouTube, and then ensured these were linked prominently from the website. They also built a blog (which you are reading now!) allowing me to share news, views and videos to the website.

They also designed fantastic postcards and flyers for me, and got them printed. These are great tools for my marketing, as I can send postcards out to valued client or prospects, and use them as appointment cards so that people remember when we are meeting. The flyers have a brief introduction to the business, and I can hand these out at networking, or even use them for mail drops as a great way to get new clients.

The brand launch was on a deadline, which was met comfortably. I am thrilled with my new professional branding and eager to get out and show it off at networking! I`d like to thank the team at RLA and Michelle, Haddon and Victoria at Creating Media for all their help in getting me sorted.