Employment Notes

Employers
Are you keeping abreast of all the changes?? As of April 2009 there has been an alteration of the rules relating to those in higher salaries. that is above £40,040 a year. Also from April 2009 the statutory holiday for a full time person is 28 days, that includes the 8 bank holidays. Make sure you deal with end of year forms for the Revenue by the due dates, otherwise penalties may be incurred. As each year passes the bureaucracy is increasing. It has long since passed the day when simply to fill in the PAYE papers was about all you had to do. Contracts of Employment are essential. Should you reach a situation when a member of staff has to be dismissed or disciplined then it is vital you follow the correct procedures and also talk to your solicitor. Not to do so could ultimately cost you a five figure penalty at a Tribunal, which will rarely find in favour of the employer, and which are incredibly costly in both time and fees. DON’T THINK IT WON’T HAPPEN TO YOU! Also do not forget that Holiday entitlement has and will increase further. Other changes. One is to do with illegal workers. From 29^th February 2008 you must have a copy of any new employee’s passport or similar document in order to prove that the individual is entitled to work in this country.

Holiday Entitlement
From 1st April 2009 it is 5.6 weeks (28 days). The purpose of this change is to include bank holidays as holiday. The increase entitlement is subject to a statutory maximum of 28 days. This means that workers who work a six-day week will not ultimately rise to 32 days due to cap. Employees will not be able to buy out these extra days and there will not be a right to carry forward into a subsequent holiday year the extra days. However, the extra days can be carried forward by agreement between the worker and the employer. Employers need to be aware of the timings of these changes. Where a worker’s holiday year begins before 1st October, the additional holiday entitlement will be calculated by multiplying the proportion of their holiday year that is left to run by the additional holiday entitlement that applies under the new rules. A worker working a five-day week where the holiday year runs from 1st January 2009 will be entitled to 27 days in 2009, i.e.6 days for the first 3 months and 21 days for the remaining 9 months. It will remain the position that workers do not have the automatic right to take holiday actually on the bank holiday. Employers will be able to require workers to take holiday leave on the bank holidays if they wish provided they have given the requisite notice.

Authorized Mileage Allowance
There is no change in the current rates of 40p for the first 10,000 miles and 25p thereafter.

National Minimum Wage
The rates change each October. Since October 2009, it has been £5.80 per hour. For 18 to 21 year olds the rate is £4.83, while for 16 to 17 year olds it is £3.57.
See also :- http://www.bis.gov.uk/policies/employment-matters/rights/nmw

Date of Birth
It is now Home Office Regulations under the Asylum and Immigration Act 1996 that an employee must provide their employer with a copy of either their passport or full birth certificate showing details of both parents or other approved documentation which confirms their right to work in the UK. If the employer is employing someone without having sight of these documents, they are breaching this Act.

You must be aware of these facts and review your contracts of employment and handbooks to ensure you are ready for the introduction of this enhanced right.

Forms to be filed.
Please bear in mind that the following information has to be completed by all Employers:-

P30 - Employers Paye Payslip - Due by the 19th of each month.

CIS Monthly Return - Due by 19th of each month if required.

P35 - Employers Annual Return - Due by the 19th May.

P11D - Benefits in Kind - Due by 6th July if required.

P60 - Yearly Summary - To be given to all Employees annually.

P45 & P46 - Employee Leaving and Starting Information - When arises.

Please contact us if you are not sure which forms you should be completing. Failure to process forms by the deadlines provided by the Revenue can lead to large penalties.

CIS
Anyone dealing with CIS need to keep abreast of the ever changing rules. Verification of subcontractors, monthly returns and NO late payment of Paye/CIS deductions to name but a few. If you are having to deal with CIS please contact us to discuss the best way for your business to deal with the procedures involved. Loss of status such as CIS Gross Exemption or large penalties can be the result of getting this wrong.

Employee Illness
An employee needs to produce an “Employee statement of sickness” form if absent from work for 7 days or less. If the Employee is absent for more than 7 days they will need to get a &dlquo;Statement of fitness to work&drquo; form from their GP or Doctor that has treated them in hospital.

Important Employment Notes