To quote the title of a famous Sam Cooke song, one of the many consequences of the lockdown is that we have all had plenty of time to think, ruminate and ponder about our lives. For us business owners, this time of reflection has extended to include our businesses.
As a result, many may well be facing the prospect of changing their business to adapt to the changing times – be it out of necessity or because you have finally had the time required to get your house and business in order and consider the future.
In short, whether we like it or not ‘A change is gonna come’.
Restructuring Your Business
Whether a restructure is a choice or your only option, it can feel like a pretty overwhelming task to approach alone… So, where should you begin?
Below, we share some of the common questions we get asked about restructures and provide clarity to help you on your way.
“Can I just ‘do it’?”
Yes, you can. However, we recommend getting a restructure plan in place first.
This doesn’t have to be anything fancy or a scary task. Just write out your rationale for doing it, the consequences it will have, the timeline for carrying it out and the process that you will follow.
Doing so will help you gather your thoughts and put some structure around it, so that you can communicate it to your staff.
“What is consultation?”
Consultation is borne out of Information and Consultation Directive, where employers are obliged to consult with employees on any aspect that will affect their employment.
Before you moan, you really should do it!
However, be sure not to confuse consultation with negotiation. Whilst you should take on board your employees’ views about the restructure, you are under no obligation to actually implement those views.
“Do I have to consult?”
Yes, because failure to consult can cost you.
An employment tribunal can award a penalty for failure to consult. And, in the case of TUPE (Transfer of Undertakings – Protection of Employment Regulations), that award is 13 week’s salary.
“How long should consultation last?”
There are no hard and fast rules if your business has less than 20 employees. However, it should be no less than a week and as much time as possible.
“Can I use Last In, First Out?”
We’re telling you now – no you can’t. We’re not sure where the LIFO philosophy came from but forget you ever heard of it.
“Does furlough cover redundancy?”
The short answer is no.
If you are looking to end furlough to make your employees redundant, seek further support or contact us.
“What is selection criteria?”
Selection criteria is the basis by which you will select employees for redundancy.
The criteria can be based on attendance, performance, disciplinary, experience and qualifications to name but a few. Some businesses choose to base this on a competitive recruitment process.
Helping You Restructure
We decided, as part of the Coming back from Covid series, to give you a quick guide to restructuring.
Whether you are just moving the chairs around the room or making people redundant, our Restructuring Toolkit should provide you a great place to make a start.
As we are a generous lot here at CrosseHR, we’ve also included a few templates to help you along – helping you make the most out of your limited time and budget at this difficult time.
And remember, if you need any further help with your restructure or any HR concerns, we are just a phone call away: 0330 555 139.
We are living in very strange times and it is not the first time I have said that…
Who would ever have thought 3 months ago that we would all be cooped up in our own homes for days at a time, let out for an hour, having to queue for our shopping, fretting about toilet roll and tinned tomatoes, baking banana bread and relying on a thing called Zoom we had barely even heard of? Some days, I feel like we’re trapped in some weird apocalyptic Netflix drama – but maybe that’s just because I’ve spent a while watching that too – Tiger King and White Lines anyone?
Moving Forward – HR in a Post-Lockdown World
However, lockdown didn’t keep us down for long. We adapted surprisingly quickly, kept going and it’s starting to feel like we’re finally coming out on the other side.
That’s the reason for this blog to be honest…
My raison d’etre is to help small businesses navigate the intricacies and plain madness that comes from employing staff, so I decided to make things easier for you all and put together a pack with all the common questions I am being asked by you about the ‘BIG RETURN’ – along with some guidance, information and resources that should help ease your concerns.
The amazing Helen Fleet will also be contributing from a financial standpoint (we are all in this together).
So, you want to open up and start the BIG RETURN, what should you do?
Firstly, you need to think about what your organisation needs to look like; i.e. will it be the same or will you need to pivot and change?
Do you need to bring people back into the office or keep them working from home for a while or for the foreseeable future?
Have you furloughed staff you need to bring back or are you keeping them on furlough or a bit of both?
Will some staff be returning at all?
Bringing People Back
What should you be considering before you bring people back? Making these considerations is a great place to start…
1. The big first tranche of returnees will occur in July where the furlough rules are changing to allow employees to be furloughed on a part-time basis. If you need to take employees off furlough, it is advisable to write to them to have it confirmed. In our COVID support kit, we’ve crafted a brief returning from furlough letter template to make this an easy task.
2. You need to do a Risk Assessment for each returning employee. Unfortunately, the only COVID specific risk assessment I could find is from the Northern Ireland HSE but its great and I highly recommend you use this as a basis for your risk assessments. You can view it within the risk assessment pack of our toolkit here.
3. You need to get your offices ready so that the appropriate level of social distancing can occur. It’s also a good idea to deep clean the office if you can and provide plenty of hand sanitiser, soap and notices from the HSE around hygiene and safe practice. Encouraging good hygiene practice will help to keep to kill the virus.
4. You also need to think about your employees’ journeys to work. Does this put them at risk?
5. It may be worth considering staggering and extending hours, and whether working more flexibly could help your business get back quicker. Check out our Flexible Working Policy within our pack for more information on this.
6. Do you even want your employees in the office at all – or would you prefer they worked from home? If so, we’ve also created a Working from Home Policy to help you formalise and control this agreement.
7. You may want to restructure.
8. You may need to consider redundancies.
These are just some of the considerations you may want to make before rushing back to work.
When They Return
Mental health, divorce, feelings of anxiety and displacement, pure joy and relief – these are just some of the things you must prepare to face on your return.
But don’t worry, CrosseHR are here to help and we have you covered. Our comprehensive Return to Work Toolkit has been drawn up by experts and our team. It’s designed to help provide you with everything you need to get started, including:
Information on Ending Furlough
Return to Work Letter Template
Information for Directors
Health and Wellbeing Policy
Sickness and Isolation Support
Health and Safety Guidance
Changing Terms and Conditions
Childcare and Returning to Work
Conducting Return to Work Interviews
Flexible Working Policy
Flexible Working Request Form
Flexible Working Methods
Stress Awareness Template
Supporting Employees – Debt
Energise – Tackle Business Finances with Helen Fleet
Supporting Employees – Divorce
So feel free to download it, it’s on us! And, if you want to chat further, we are always delighted to help.
It can be hard to keep on top of the latest advice and regulations at the best of times when you’re spread thin and busy with deadlines – let alonein the middle of a global pandemic.
Understandably, many of our clients feel overwhelmed by all the information outthere. Especially with so many opinion pieces and inaccurate assumptions, it can be hard to know what to trust.
To help you cut through all of this noise, we’ve collated some useful resources to help address your most pressing concerns.
This article outlines some of the key changes that you should be aware of and points you in the right direction for more information and support should you need it.
We hope it helps in this stressful time.
Coronavirus Job Retention Scheme
It is well reported that HMRC will reimburse 80% of furloughed workers’ wage costs up to a cap of £2,500pm. This is part of their plan to support businesses during the coronavirus outbreak.
Who counts as a furloughed worker?
A furloughed worker is someone who is still employed but not working, perhaps due to a lack of work. The purpose of this scheme is to help businesses to continue paying employees that would have otherwise been laid off by putting them on temporary leave.
Furloughed employees must have been on your PAYE payroll on 28 February 2020, and can be on any type of contract, including:
Employees on agency contracts
Employees on flexible or zero-hour contracts
If you have made employees redundant since 28 February 2020, you can rehire and cover these employees under the scheme too.
What will it cost the employer?
The Coronavirus Job Retention Scheme is open to all UK employersfor at least three months starting from 1 March 2020. In addition to the 80% grant covered by the government, businesses must also pay:
Employer National Insurance contribution
Minimum enrolment employer pension contribution
Where a company is being taken under the management of an administrator, the administrator will be able to access the Job Retention Scheme.
If you’re self-isolating because of COVID-19, you are entitled to receive Statutory Sick Pay (SSP) of £94.25 per week.
When can I claim SSP?
New legislation has been brought forward to give you access to SSP from the first day you’re self-isolating and cannot work. This new legislation came into action on 13.03.20 and overrides the previous 4-day caveat.
In light of the coronavirus creating business uncertainty and high levels of stress, the Treasury confirmed that they would postpone IR35 for another year.
This means that businesses now have until April 2021 to address the reforms necessary. These changes will drive major change in the contracting industry.
What is IR35?
IR35 is designed to combat tax avoidance by “disguised employees”. Under new rules, every medium and large private sector business in the UK will become liable for setting the tax status of any employee that they hire – including contract and temporary workers.
The new rules will apply to businesses with either:
An annual turnover of over £10.2 million
With many companies already reviewing their policies and contracts in response to the COVID-19 outbreak, now is a great time to address IR35 so that you’re prepared when the changes come in next April.
As of April 2020, The Good Work Plan comes into place. This is a plan that sets out the government’s vision for the future of the UK labour market. It seeks to “reward people for hard work” in a bid to boost productivity and earnings in the UK.
The new plan details how to address issues in our labour market, such as:
The implications of new forms of work
The rise of digital platforms
Impacts of new working models
The Good Work Plan also draws on recommendations about:
Typically, your employee’s largest financial outgoing will be their monthly mortgage payment.
Taking a break from their mortgage – with a mortgage holiday of up to three months – can act as welcome financial relief. In this unsettling time, if you are having to cut or reduce hours, it may be worth providing some resources for your employees to access this aid.
Am I Eligible?
Whether you are eligible to take a payment holiday, for how long, and the conditions you must meet depends on:
Your mortgage contract
Your financial circumstance
It is best to advice that your employee contacts their bank directly to discuss a mortgage payment holiday. However, please do make them aware that this will make their payments go up afterwards.
What About Those Who Rent?
The government has announced a package of measures to protect renters that may be affected by Coronavirus and a subsequent loss of earnings. The emergency legislation means:
You cannot be evicted from social or private rented accommodation while this national emergency is taking place
Landlords can take out a mortgage holiday on their Buy to Let mortgage
If you are still unsure about how you should be responding to the COVID-19 outbreak, please refer to GOV.UK platform here. It is frequently updated with the latest information and advice.
For further guidance for employees, employers and businesses, please visit the government websitehere.
It is well recognised that isolation and the stress of the outbreak may be triggering for many, leading to a decline in mental health.
In order to help you address this, we’ve attached some useful resources that help you become aware of your own mental state and some handy tips that may help you look after yourself during this difficult time.
Discover how you should be looking after your mental health during the Coronavirus outbreak here.
The mental health charity, MIND, have also released some support and resources to help you during this time. You can access this here.
Working from Home
If you’ve recently transitioned from office to home, the resources below may help you settle into your new work environment more seamlessly!
Tips for creating a positive environment to work from are available here.
Top tips for working from home are also availablehere.
We also appreciate that it is especially hard for those who are working from home whilst simultaneously juggling homeschooling. If you’re looking for some advice about working from home with children, you can find some tips here.
If you have any concerns or questions about the latest changes in legislation or how they may affect you, please do not hesitate tocontact us online or email firstname.lastname@example.org and we will try our best to point you in the right direction.
Thrive and Survive is a community created by a collective of business people who are coming together to help you overcome the current financial crisis and come out of this with a stronger business.
I recently shared my thoughts on the HR implications of COVID-19 in a webinar that covered:
How to deal with 3 scenarios of people ‘out of the business’ with COVID-19 related reasons
Furloughing workers – who’re eligible, what are the rules and how to do it
Common questions on partial furloughing
Advice on keeping in touch with staff, engagement, and productivity
Lots of chat on the positives arising for business and the opportunity when this is all over
Please excuse the noise in the background – we can thank the joys of remote working in a busy city for that!
Hopefully, it’s not too distracting and you find it useful.
[PLEASE SCROLL DOWN FOR LATEST UPDATE]
Since recording this webinar, a lot has changed. It seems that every day new data comes to light, so we just wanted to drop in a little more information to support you with the HR implications of COVID-19.
Since the government briefing on 10.05.20, lockdown restrictions are beginning to lift for certain businesses – but this doesn’t mean you should be too hasty in heading back to work. Let’s take a little look at why…
Health and Safety:
It is important at this point to remind you that it is your moral responsibility to protect the health and safety of your colleagues. Before rushing back to work, ensure you address some primary concerns, including:
Personal Protective Equipment (PPE)
Cleaning, including providing ample hand-washing facilities
Before inviting your employees back into the workplace, ensure you follow the guidance of the Health and Safety Executive (HSE). As well as directing you towards some useful resources, including industry-specific support for certain work settings, they are regularly updating their website with guidance to help your safe transition back to work.
Talking to Your Employees:
In this stressful time, we must not neglect our duty to check in on our employees.
This high-stress environment is unsettling for everyone, especially those with vulnerable or shielded loved ones. Ensure you communicate with empathy as you seek to return to normal and make reasonable adjustments where possible.
Return to Work Interviews
If you have had members of staff on furlough for a number of months, it may also be worth considering whether a return to work interview would be of use. This short, informal meeting may help you address your workforce’s concerns and facilitate a successful transition back to the office. If you need a little guidance, why not lean on our slick and consistent process here?
Involving Employees in the Process:
By consulting and involving your employees in the steps you are taking to manage the risk of coronavirus in your workplace you can:
Explain the changes
Illustrate the safety practices in place
Make sure changes will work – their operational input may be vital
Hear their ideas and address their concerns
Continue to operate your business safely during the outbreak
It is also recommended that you share the results of your risk assessment with your workforce. Where possible, publish the results on your website (note: the government expects all employers with over 50 workers to do so).
If you are unsure where to start with this, HSENI has released an example COVID-19 risk assessment to help you on your way. You can download via their website.
Need some advice?
If you have any questions about the HR implications of COVID-19 or you’d like to discuss how to run return to work interviews, please do get in contact. We hope this has been of use during this stressful time.
Mr Daniel Kessler who heads up the UCLA’s Bedari Kindness Institute (funded (to the tune of $20 million) by very kind people Jennifer and Matthew C Harris) says
‘Kindness, is “the thoughts, feelings and beliefs associated with actions intending to benefit others, where benefiting others is an end in itself, not a means to an end”.
And unkindness, on the other hand, is “intolerant beliefs, the lack of valuation of others’ welfare”.
It got me thinking, if I am to live a long life I must consciously try to be kinder, then companies could last longer if they were kinder too, after all a company is made up of its people right!
So, how better to be kind folks, than to look after your people and genuinely care about them. That’s why I am providing you with a Wellbeing policy for free (how kind is that) to show your people that you genuinely care.
UK employees work some of the longest hours in Europe. Yet the UK’s productivity is lagging behind other G7 countries causing businesses and the economy reduced growth. Long hours also contribute to stress, depression and anxiety which, in 2018/19, accounted for 44% of all work-related ill health cases. In short, a long hours culture isn’t any good for anyone.
Now a ruling from the European Court of Justice has mandated that businesses record all the hours employees work using timekeeping systems. We take a look at what this means for your business. And how you can get the best return from your timekeeping system investment.
Why Is This Happening?
The EU has previously attempted to limit a long hours’ culture in the shape of the Working Time Directive. This law, established in 2003, stated that, unless employees choose to opt out, they should not work longer than 48 hours a week and they are entitled to an 11-hour break every 24 hours.
However, some trade unions have questioned the law’s efficacy, particularly when it comes to the accurate recording of employees’ hours.
According to a Spanish trade union, 53.7% of overtime hours worked in Spain are not recorded.
This results in an action being brought before the European Court of Justice (ECJ) seeking to force Deutsche Bank to set up a timekeeping system.
In making its judgement the court noted:
the importance of workers’ fundamental rights to a limit on the maximum number of working hours and to daily and weekly rest periods in line with the Working Time Directive
that Member States are required to ensure workers benefit from the rights conferred on them
without a system to record the duration of time worked each day by each worker it’s not possible to determine, objectively and reliably, the number of hours worked and when, or the number of hours of overtime worked.
This has resulted in the ECJ mandating that businesses must introduce new timekeeping systems to ensure workers’ rights are complied with.
What Kind of System Do You Need?
The ECJ did not define the type of system you need to use leaving it to Member States to define their own arrangements. However, the system must determine the number of normal and overtime hours worked and when in a way that’s objective and reliable.
TImekeeping systems typically consist of a combination of hardware and software. The physical system can take the form of a biometric scanner, swipe card system or a clocking in machine. Supported by software that captures the data, these systems can be customised to provide the exact reporting your business needs.
There are lots of different solutions available with price points starting at several hundred pounds and running into thousands or tens of thousands of pounds. The exact cost will depend on the number of employees and sites you operate and your business requirements.
The Business Benefits
Let’s be honest – the law says you need to have a timekeeping system so you’ll have to set aside some budget. However, introducing a new timekeeping system can do much more than help you meet your legal obligations.
More information, more insight
With more reliable data, you’ll have a better understanding of your workforce’s habits which will empower you to make decisions based on facts rather than guesswork.
Timekeeping system reports can flag issues like:
recurrent absences which might indicate a disengaged colleague, a potential leaver or someone struggling with ill health
dips in performance from one of your best people that directly correlate to long hours
recurrent lateness and no evidence that the hours are being made up at the end of the day
With this kind of information you can assess workforce challenges and take action to correct them. Which could mean keeping hold of top performers, retaining someone with illness or ensuring every team member is fulfilling their contractual hours.
Help with holiday pay calculations
The information gathered in a timekeeping system can also help you calculate holiday pay which must now include regular overtime and commission payments. Depending on the system you already use for this process, you may be able to adapt it to meet the new timekeeping requirements. Or you could kill two birds with one stone with your new software.
Fair treatment and employee engagement
This new requirement isn’t just good for you as a business owner but for your employees too. They’ll feel that they’re being fairly compensated for the time they work leading to engaged employees and an even more harmonious workplace.
Using a timekeeping system to visualise your business’ time and attendance, you’ll have the insight to help your people and your business achieve peak performance. And you’ll be one step ahead of legislation too.
Find out more about Crosse HR’s services or get in touch for support with any people problems on 0330 555 1139 or at email@example.com.