New measures are to be introduced by the Government to combat one-sided flexibility and support employees who work variable hours. The new legislation will require employers to put more planning into how they use variable working arrangements. It outlined that all employees will have the right to switch to more predictable working patterns.

The Government was also seeking the views from employers on the introduction of reasonable notice of work schedules and compensation when shifts are cancelled without such notice.

These new measures are designed to ensure employees have more stability in their working arrangements when working variable shift patterns.

Research carried out by the CIPD stated that 17% of employers with low paid employees with flexible hours, provided employees with no more than a day’s notice before their shifts. The CIPD also reported that their research on zero-hours contracts showed that most employees were satisfied with their working arrangements. Although 40% said, they received no notice when work was cancelled.
The consultation asks employers what they would define as reasonable notice of work schedules as well as the likely impact a right to a reasonable notice would have on their operations.

It also seeks opinions on if the right to reasonable notice of work schedules should be guaranteed from the start of employment. Or if a certain amount of time should be worked before someone is eligible.

Compensation for Cancelled Shifts

On the issue of compensation for cancelled shifts at short notice, the consultation wanted opinions on what would be viewed as a fair amount of compensation and put forward three suggestions:

• The value of the shift in question
• The ‘worker’s appropriate NMW rate multiplied by their scheduled number of hours that have been cancelled
• A multiple of the ‘worker’s appropriate NMW rate – and if so, what multiple?

One clear thing, employers with atypical employees, will need to put more planning into how they manage their schedules. They will also need proper communication tools to make employees aware of schedules and changes.

NOVA Smart workforce planning software will ensure your company achieves this.

Key Benefits of Workforce Scheduling Software:

• A robust and comprehensive tool that enables you to manage all your workforce planning requirements
• Complete coverage for your businesses rules, policies and regulations
• Help with compliance with employment laws
• Allocation of staff by floor, department or location
• Quick replacement of staff, due to absence
• No repetition of scheduling with automated processes
• Clear overview of staff holidays and absences
• Control of labour costs
• Seamless integration with your existing HR software
• User-friendly interface

We would love to tell you more, so please contact us at info@novative.com or call 0117 959 5311

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IR35 means if caught, they must pay income tax and National Insurance Contributions (NICs) as if they were employed. The financial impact of IR35 is significant. It can reduce the worker’s net income by up to 25%, costing the typical limited company contractor thousands of pounds in additional income tax and NICs.

There are 900,000 one man/women Limited Companies in the UK; the *Gobal Payrol Association predicts that by 2022/2023 around £1 Billion in taxes and NIC would be lost.

The IR35 was announced in 2000 but has been heavily criticised by tax experts and businesses as it has been seen to be poorly implemented and potentially cause stress on legitimate small businesses.

What is IR35?

IR35 is a tax law, correctly known as the Intermediaries Legislation and came into force in April 2000 as part of the Finance Act. IR35 is named after a press release published by the then Inland Revenue (now HMRC) announcing its creation.

The income tax element of the Intermediaries Legislation has subsequently been integrated into the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), and the NICs element into the Social Security Contributions (Intermediaries) Regulations 2000.

What to do if you feel your contractors might be affected

It is always best to seek expert advice, but there is a tool online that you can use to identify if your contractors will be affected – Check employment status for tax tool (CEST).

If you think that IR35 will apply it is essential, you communicate this with the contractor and discuss the next steps.

If IR35 does apply, then the legislation makes provision for paying that extra income tax and NICs.

For future contractors where IR35 applies it is highly advisable to have a company policy for them.

Novative offer expert HR and Payroll outsourcing for the UK. If you need to outsource any part of your processes to Novative then please contact us.

*GPA stated these figures during  ‘IR35 – Are you ready?’ webinar on 13th June.

The post Your Payroll and IR35 – Are You Prepared? appeared first on Novative.

Here is a round-up of some of the UK’s payroll legislation developments for 2019.

Itemised Pay Statements

From April 6th 2019, new legislation will change how employers in the UK provide payslips to their workforce. UK employers will be required to submit an itemised payslip for all workers on their payroll. In situations where an employee’s pay fluctuates by reference of time worked, employers must ensure that all employee payslips include the total number of hours they are being paid for. This can be displayed as a single combined amount or as an itemised list illustrating different rates of pay for different hours worked. All payslips must be delivered either on or before the employees pay date.

Find out more here.

Auto-Enrolment Contributions

From April 6th 2019, the minimum contribution for both employers and employees for auto-enrolment will increase. This will see minimum contributions increasing from 5% to 8%. The employer will be required to make a minimum contribution of 3% with the remainder of the balance being made by the employee

Find out more here.

Income Tax Threshold

The income tax threshold will change. The tax-free personal allowance will increase from £11,850 to £12,500.
The threshold for the higher rate of income tax will also increase to £50,000.

Gender Pay Gap Report

All private organisations with 250 or more employees will be required to publish and report on their specific gender gap pay figures.
Reports for public sector organisations must be published by March 31st 2019
Reports for businesses and charities must be published by April 4th 2019
Failure to provide these reports on time and supply accurate data will put employers at risk of facing legal action, leading to court orders and fines.

Find out more here.

Increase In National Minimum Wage

From April 2019 the UK will see an increase in both the National Living Wage and National Minimum Wage.
Increases to national minimum wage for workers will be as follows:

• Workers aged 25yrs and over will see a rise form £7.83 per hour to £8.21 per hour
• Workers aged 21 to 24yrs will see a rise from £7.38 to £7.70 per hour
• Workers aged 18 – 20yrs will see a rise form £5.90 to £6.15 per hour
• Workers under the age of 18yrs will see a rise from £4.20 to £4.35 per hour.

Apprentices that are under 19 will also see an increase in their hourly rate which will rise from £3.70 to £3.90. This will also apply to apprentices 19 and over, where they are still in the first year of their current apprenticeship.

Find out more here.

Student Loan Recovery

From April 2019 there will be changes to student loan repayments. Currently, the repayment threshold for Plan Type 1 sits at £18,330. This will increase to £18,935. Pan Type 2 will see an increase from £25,000 to £27,725. The percentage of earnings contributions will remain the same at 9%.

Find out more here.

Are you struggling to keep up with Payroll legislation? Maybe it’s time you thought about outsourcing your Payroll to experts. Find out how we can help you stay compliant.

Feeling Inspired? Learn More

The post UK Payroll Legislation Update appeared first on Novative.

1st April 2019: National Minimum Wage and National Living Wage

The Low Pay Commission (LPC) has recommended that the hourly rates should increase in April 2019:

• From £7.83 to £8.21 for workers aged 25 and over (the National Living Wage)
• From £7.38 to £7.70 for 21-24-year-olds
• From £5.90 to £6.15 for 18-20-year-olds
• From £4.20 to £4.35 for 16-17-year-olds
• From £3.70 to £3.90 for apprentices aged under 19 or in the first year of their apprenticeship.

For more information please go to the GOV.UK website.

6th April 2019: Payslip changes

Two important changes to the Employment Rights Act 1996, affecting pay slip information, will come into force on 6 April:

1. Employers must include the total number of hours worked where the pay varies according the hours worked, for example under variable hours or zero hours contracts.
2. Payslips must be given to ‘workers’ and not just employees.

Do You Need Help?

Ensure your business is compliant with the law and avoid big repercussions take advantage of our payroll system NOVA Smart and NOVATIVE payroll outsourcing service. Let our payroll experts take care of your payroll, ensuring you are up-to-date with new legislations, and running your payroll efficiently.

Learn more

The post Advent Calendar Window 13: New Legislation Minimum Wage and Payslips appeared first on Novative.

Congratulations you have opened window number two, today we are looking at new legislation. The first one to impact HR in 2019 is the Gender Pay Gap Report.

Annual Gender Pay Gap Reporting

From the of 1st January 2019 regulations made under the Companies Act 2006 require UK listed companies with more than 250 employees to report annually on the pay ratio between their CEO and average UK worker.

The first reports are due in 2020.

What is the Gender Pay Gap?

Do You Need Help?

Ensure your business is compliant with the law and avoid repercussions take advantage of our HR system NOVA Smart and NOVATIVE outsourcing service. Let our HR experts take care of these required reports.

If you are a smaller company, it is advisable to start looking at measures around this as many experts agree the threshold could widen in the future. NOVA Smart HR system has powerful reporting tools that will help prepare if the time comes.

Learn more

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