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Archive for April 2011

Record Checks - are you ready?

In December 2010 HMRC published a consultation document on Business Record Checks. The deadline for responding was 28 February 2011.

HMRC believe that some 2 million SME’s have records that fall below the standard. Beginning in the second half of 2011, HMRC plan to check up to 50,000 cases annually. There will be penalties for “significant” record keeping failures. The aim is to improve the records keeping of SME’s to reduce tax losses from poor record keeping.It is expected that HMRC will risk assess business sectors, and put cash businesses at the top of the list.

The Business Records Check will consist of a visit to the business premises by one or more tax officers and will last for approximately four hours. If significant record keeping failures are identified it is likely that a penalty of up to £3000 will be levied.

Motivation - money isn’t always the answer

On many occasions businesses try to motivate their employees with money. Even if this was always the answer (it’s not) in these hard times it’s probably not affordable.

Motivating your most valuable asset, your emplyees, is key to success therefore you need to understand the “m” word.

At EMS we offer motivational maps which identifies what motivates an individual. It’s also possible to apply this tool to a team identifying routes to improved performance. There are nine motivators so if you go the money route you have a 1 in 9 possibility of motivating a member of your team. Motivators include:

  • Money and material reward
  • Power, influence and control
  • Expertise, mastery and specialisation
  • Belonging and friendship - relationships
  • Security and predictability
  • Recognition, respect and social esteem
  • Meaning, making a difference and providing worthwhile things
  • Innovation and change
  • Freedom and independence

If this all sounds a bit complicated then ensure your incentive includes the following:

  • Include everyone
  • Foster teamwork and togetherness
  • Ensure the goal is achievable
  • Focus on giving control, flexibility and recognition
  • Explain why you are doing it

If you want to know more about motivation then contact EMS on enquiries@emseff.co.uk  

IMMIGRATION CHANGES

On 6th April 2011, new measures to control the number of migrants that come in to the UK from outside Europe came into force.  This includes an annual limit of 20,700 under Tier 2 (general), the abolishment of Tier 1 (general) category and the new Tier 1 (exceptional talent) which is limited to 1,000 people. Written by – Simone Greasley – HR & Recruitment Specialist

POSITIVE ACTION

From 6th April 2011, under the Equality Act 2010, employers will be able to take positive action on recruitment and promotion, choosing employees because of their sex, race etc. if they are “as qualified as” other candidates.  This must be done on a case-by-case basis.

Written by – Simone Greasley – HR & Recruitment Specialist

LONGER PATERNITY LEAVE

Mothers of children due on or after 3rd April 2011, can transfer up to six months of their maternity leave to eligible employees (normally fathers) when they return to work.  Depending on the amount of SMP already received by the mother, this may or may not be paid leave. 

 Written by – Simone Greasley – HR & Recruitment Specialist

EMPLOYMENT GUIDANCE: Statutory Rate Increase

As we reported a while ago, from 6th April 2011, the weekly rate for statutory maternity, paternity and adoption leave pay will rise from £124.88 to £128.73.Statutory sick pay will increase from £79.15 to £81.60.

Written by – Simone Greasley – HR & Recruitment Specialist

Tribunal Input

Early in February, the Department of Business, Innovation and Skills (BIS) acknowledged that serious concerns have been raised that it is too easy for employees to bring unmerited or vexatious claims under the current employment tribunal system, with the system being costly and time-consuming. According to BIS, defending an employment tribunal claim costs a business on average around £4,000. The Government’s consultation on its proposals to tackle these problems is a great opportunity to make a difference to the current employment tribunal system Link to Tribunals Service Consultation Paper 

The consultation will last until 20 April 2011 and it includes proposals such as: 


  • Increasing the qualifying period of service employees must generally have to bring an unfair dismissal claim from one year to two years.
  • Introducing a compulsory first-stage mediation process for employment tribunal claims delivered via ACAS (Advisory, Conciliation and Arbitration Service).
  • Widening the scope of cases where judges may sit alone.
  • Refraining from asking witnesses to read out their written witness statements in the Tribunal.
  • Introducing an employer’s charter, which clarifies what employers are able to do to manage staff effectively with the business in mind.

The Government is also considering introducing fees for claimants wishing to bring an employment tribunal claim and you will get a chance to put forward your views on that issue in a separate consultation in spring 2011.

Wriiten by Sue Gott - HR Consultant

Space Cost Savings

A major cost small businesses have to live with is the cost of their premises. In most cases this is rent covered by a lease.

With the property market in a parlous state and changes to business rates landlords have to pay from April, there has never been a better time to re-negotiate your lease. You might be sceptical but the biggest mistake is not asking your landlord. Negotiate from a position of strength and knowledge. Be aware that landlords prefer to give rent-free periods than lower rent they charge per square foot.

Things to ask for are:

  • A break clause halfway through the lease
  • Temporary short lease if suitable
  • Refurbishment help
  • Have an alternative in order to force the landlords hand
  • Look arround the area
  • Get information on the rental market in your area

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