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Green is not my colour

As I was browsing for a new console this week, the shop assistant came up to me and asked if I was planning to make my purchase “eco-conscious”. 

 “I just want to play games on it!” was my response. As a consumer, am I all that bothered about the carbon footprint of my PS3? I’m far too busy deciding whether to buy FIFA 10 or PES. (Think I’m going with the latter). 

But it got me thinking about how small businesses manage the current drive to be ‘green’. With daily to-do-lists stretching longer than your average motorway tailback, do owner-managers really have time to commit to the environment, especially when customers need serving and cashflow looking after?  

I’m not against going green – who could be, really. Many companies see an upside from being environmentally friendly, and we all benefit from a spot of simple recycling. Increasing environmental regulation, however, adds yet more pressure to small firms who are already overrun with red tape.  

Is there a better way to help small businesses achieve environmental harmony without burdening them with yet more legislation?  

The Law Donut has some excellent (and simple) advice on how your business can meet environmental obligations.

Law Donut

Recently, an accident on a construction site in which a worker died has resulted in an £80,000 fine for the company involved, who admitted two breaches of the Health & Safety Act. The worker who died had been hit on the head while operating a digger he’d not been trained to use

While this is an extreme case, all businesses should be aware of their health and safety responsibilities both towards their employees and anyone working in, around or visiting their premises. 

A thorough risk assessment, including a fire risk assessment, is the most effective way of improving your firm’s health and safety. If you employ five or more people, you must have a written policy in place, of which all employees are aware, and you must display the poster ‘Health and safety law: what you should know’, available from HSE books, or distribute the leaflet. 

Find a guide to health and safety on the Law Donut as well as plenty of other useful health and safety information, including how to carry out a risk assessment and 27 health and safety FAQs.

The Health & Safety Executive website also has guidance and resources for small businesses.

Law Donut

Radio 4’s Today programme recently offered us the thought that our problem with the UK ’s workforce is that too many employment laws are driven by high-falutin’ ideology rather than evidence they achieve what we want.

I don’t care what each new bit of legislation says, or why it was dreamed up, as long as it actually delivers what we want it to. At the moment, some of our HR laws don’t.

Take maternity rights as an example. I’m a liberal, so I believe that (a) the best candidate should get the job and (b) for most jobs, sex is irrelevant. That’s better for business, better for women and better for society in general. So I agree with the Government that our laws should put women and men on an equal footing.

Maybe maternity rights that give mothers a significant period of leave, some of it paid, and then give them the right to their job back, are achieving that. If, as the Government proposes, increasing the mums’ period of paid leave will achieve more equality, three cheers – go for it!

But are these new policies really achieving that? I hear stories that employers sometimes reject a female applicant for a job, or fail to promote a woman when, on merit, she is the best person for the job. Bosses keep the reasons under wraps but actually it’s because she is young, in a relationship, and may go off and have babies.

I hear that, if we look at how women fare in the UK workplace compared to some other countries, many other places are more meritocratic than we are. I also hear that in some of those countries women have fewer maternity rights.

Does that mean that the fewer rights women have, the more likely they are to be treated better when it comes to recruitment and promotion? Or would we find that those countries are actually more meritocratic because social norms are different there, their country’s richer than ours, or because the demographics in that country mean women are bound to do better in the workplace? I, for one, don’t know.

My big worry is that our politicians don’t know either. My even bigger worry is that – policy evaluations notwithstanding – they don’t seem to want to find out. Instead, they seem hung up on the belief that to make people more equal, you just keep giving some of them more rights. Faced with possible evidence that this may be counter-productive – that, say, giving women more rights may not actually benefit them, or their employers – they don’t stop and reflect enough. They just plough on – and maybe move the goalposts so it doesn’t look so obvious that it isn’t working.

Maternity rights seem a ripe candidate for a proper, rigorous evidence-based approach. Ideas anyone?

Law Donut

One topic has dominated conversation in homes, workplaces and pubs recently – the snow.

It’s continued to fall and, while it’s beautiful to look at, it’s equally as disruptive.

Commuters on the roads and rails have suffered as accidents, closures and delays become a common occurrence. The biggest headache, though, is for small-business owners who have been left short-staffed by employees who have not been able to make it in to work.  

With the arctic conditions set to continue, it may be prudent for firms without any existing procedures to consider introducing contingency plans in the event of more extreme weather.  

After the blizzard that hit the UK last February, many employers did introduce plans, embracing technology to enable employees to work flexibly, from home, and on the move.

These firms will have reaped the benefit of their policies over the last few weeks. 

If you do allow your employees to work from home in extreme weather, or you are thinking about it, you must be aware of your responsibilities for the health and safety of the home working environment. The Law Donut also has a great collection of FAQs on home working which should answer any additional questions you may have. 

Right, that’s enough from me. I’m off to build a snowman.

Law Donut

Snow stopped play?

As the big freeze descends over the UK this week, managers must handle pay and working hours if bad weather stops staff turning up. 

Many individuals struggle bravely in to work when it snows, while others stay at home. Some work from home, whilst others have no option but to take care of their children as schools close. Some workplaces close due to bad weather, and others remain open, if not fully staffed.  

Who is entitled to be paid and for what? 

The UK has a remarkably flexible labour market, and the answer depends on what type of contract you have got with your staff, and whether you keep the workplace open. There is no general right for employees who don’t turn up for work to be paid, and if you open your workplace and they do not turn up, you may not be obliged to pay. Many employers do pay more than they are required to, but it is important to know when you are choosing to pay more, and when you have to pay. 

Workplace remained open (hourly paid workers) 

If the workplace remains open as usual, and the employees fail to make it in to work due to travel difficulties, they are not automatically entitled to be paid for their absence. If they turn up late and they decide to go home early, they are entitled to be paid for the hours they actually work.

If you send the employee home early, this has the same effect as closing the workplace for part of the day (see below).

Employees can ask you to allow them to take the day(s) as paid leave. You are not obliged to authorise paid leave retrospectively but if you do so, make sure the holiday records are kept properly up to date. You cannot decide to make this a day’s leave without the employee’s consent.

Employees who have to take the day off to take care of their children when local schools shut are entitled to dependants’ leave, which is unpaid. They are only entitled to be paid for the time off if their contract, or one of your firm’s policies, says they are.

Workplace shut 

You are only entitled to withhold pay for a lay-off period (when the workplace is closed) if your contract with the employee gives you that right. Check your contracts carefully.

If your contracts do provide for ”unpaid layoffs”, employees are still entitled to guaranteed pay at the appropriate rate for the first five days’ lay-off in any three-month period. For these purposes a day’s lay-off is a day when less than 50 per cent of ordinary work was provided. Employees are entitled to half their normal basic pay subject to a maximum of £21.50 per day. 

Working at home 

Many employers have working systems that mean employees could work from home – either as part of their normal working-from-home routine, or on an emergency basis. These individuals are working and should be paid for their time.   

Salaried staff 

There is an historic tradition in the UK (fading fast) that distinguishes between staff on annual or monthly salaries, and those on an hourly rate – the old “white collar-blue collar” divide. Traditionally, salaried staff are not paid by the hour, do not receive overtime when they work more hours, nor receive a deduction when they work less.

These staff are viewed as being paid for service, rather than for the particular work performed. This group of individuals is generally entitled to pay unless the contract provides otherwise. You should check your contracts carefully.   This applies even if no work is actually performed or where the employee is prevented from working due to factors beyond their control, as long as the employee remains ready and willing to serve the employer. Ready and willing would normally mean making an effort to get to work where it is safe to do so. Locally based staff who could have made it in would not be automatically entitled to pay if they did not turn up.

Many organisations no longer feel comfortable about having a two-tier contract system, and increasingly have one single status contract that applies to all. So it’s possible your hourly paid staff may be in the same contractual position as salaried staff. A lot depends on what your contracts say. 

Annual hours and flexi-hours contracts 

Check the terms of your contracts – it may be that time not worked does not count for payment, and missed work will have to be performed at another time.

Annabel Kaye is Managing Director of Irenicon Ltd, a specialist employment law consultancy.  

Tel: 08452 303050 
Fax: 08452 303060 
Website : www.irenicon.co.uk

You can follow Annabel on twitter – http://twitter.com/AnnabelKaye.

Law Donut

2009 has been a fantastic year for the Law Donut team. Before we take a festive break from giving you the best free legal advice, news and resources online, we’d like to wish you, our readers, a Happy Christmas and a particularly successful 2010.

As an ever-growing club, your questions, contributions and witty-but-wise comments make our jobs worthwhile. If you need us over Christmas, the Law Donut website will be fully active, but this is our last blog this year. We’ll be back with lots of new content on the blog and Twitter @LawDonut on Monday 4 January, 2010.

We’d also like to thank our sponsors, who have greatly contributed to the success of the Law Donut so far, and of course, our experts and bloggers, who keep us all enlightened and informed through many a legal dilemma – as well as providing us all with a great read.

Law Donut

Many small firms have a website nowadays, and those that don’t are probably thinking about one. But while we all know the benefits – increased sales, better market presence, satisfyingly glam company image – are you aware exactly how fast your website can get you into trouble?

A welter of court cases recently illustrates the pitfalls. Over 300 unwary firms and organisations have faced the perils of copyright infringement – using other people’s work improperly, such as pictures or words, online. It’s illegal, and as ‘improperly’ usually means not paying for the material, not crediting, or both, businesses are at risk of a nasty shock and a large bill.

One case came to the attention of The Guardian: “A church in Lichfield, Staffordshire, faced a [… ] fundraising problem: to pay a £6,000 bill demanded for photographs used on its website. […] In creating the church’s website, a volunteer had included a couple of images sourced from Getty, a large picture agency, without paying for them. A couple of months later, Getty sent the church a demand for £6,000.”

Great news for the new church steeple the villagers wanted. While the church finally reached a conclusion with Getty, firms nationwide are still at risk of the same tactics from picture agencies and copyright owners everywhere.

There may seem no immediate reason why a small-business owner or charity volunteer should know the ins and outs of copyright law; however, under the law a mistake is no excuse. These agencies are acting entirely legally. Anyway, most people don’t want to break the law, even if they don’t understand it.

So how do you avoid getting hit?

First, find out when you need permission. If material has been created by someone else, the maker owns copyright and you need a written license to use it. This applies to most artworks, photos, graphs, tools, words – even blog entries and tweets.

The material doesn’t need the © copyright sign on it – it belongs to the owner regardless. Neither does it matter where you got it from. Copyright applies to the Internet just as much as it does elsewhere. Ripping a picture off Google and popping it on your home page is almost certainly illegal.

Don’t assume you can get away with it. Your website is visible, after all. Even if the copyright holder doesn’t want to sue you – they probably won’t – you will usually have to pay them to go away. The rise of the web, too, has seen the establishment of firms whose business is monitoring publications and websites to spot copying.

Find the copyright owner of what you want to use. Try the publishers – i.e. the administrators of the website, or the address on the masthead of the mag. Write to them telling them how long you want to use their material for, why you want it and who it was by, if you can tell. Ask to use the extract for free – the owner can always come back asking for money. If you can’t find out who owns the material, abandon the idea of using it. Using anything without permission, even if permission is impossible to get, is a no-no. If in doubt, leave it out.

Visit the Law Donut for more great advice on copyright.

Law Donut

Almost a year to the day that Woolworths folded, the news broke that the bookshop chain Borders UK has also gone into administration.

Given the current economic climate, becoming insolvent – having debts that you are unable to pay – is a very real threat to many small-business owners. If you’re struggling to keep on top of paying your creditors, just ignoring the situation and hoping it will go away is probably the worst thing you can do.

You can reduce the risk of insolvency by keeping good control of your cashflow (see the section on ‘Keeping your cashflow healthy’ on the Start Up Donut). Building a good relationship with your creditors, such as your bank, can mean that they will be more supportive if you do run into financial difficulties. Choosing an appropriate structure for your business can also offer you an element of protection; for example, trading as a limited company offers the most protection against personal bankruptcy.

If your business is already in financial dire straits, a licensed insolvency practitioner can offer advice on the best course of action to take. Just blindly trading on in the hope that you will be able to turn the business round can prove very costly to you personally if it does not work, and you could actually make the situation worse.

Go to the Insolvency section on the Law Donut website for further information. The Government’s Insolvency Service website also offers advice on different aspects of bankruptcy, insolvency and compulsory liquidation.

Law Donut

Talking to my dad, who isn’t many years from retirement age, the other day, I was surprised to hear him say that he expects to work past 65.

Then my mum walked in smiling with brochures for a cruise and it all began to make sense!

In all seriousness, recent research from the Chartered Institute of Personnel and Development (CIPD) reveals 71 per cent of workers aged 55 and above have had to postpone their retirement plans. Up from 40 per cent two years ago, the figures come as no real shock thanks to the current economic environment.

Nearly three-quarters of over 55s admitted that money worries had forced them to keep working, with pension pots, savings and investments affected by the recession.

With more employees aiming to stay working for longer, employers must be aware they need to stick to age discrimination legislation, which makes it unlawful to treat people differently on grounds of age.

On a personal level, my dad is concerned that the default retirement age, which allows employers to force people to retire at 65, may mean the option to retire is taken out of his hands, even if he remains fit and healthy. I think that’s a shame, and I tend to agree with Age Concern’s head of public policy, Andrew Harrop who argues; “Employers need to start seeing beyond job applicants’ age and look at the skills‚ experience and commitment older workers have to offer.”

But for my family, it remains a problem a few years ahead. For now my dad really needs to work on his sea sickness.

Visit the Law Donut for more advice on age discrimination.

Law Donut

Xmas temps

As we enter the time of year when many people take on extra help for Christmas, use our top tips to help you get legal side of employing temps right:

1. Temps can be employed by an agency or directly by the organisation that uses them. If you are not sure who the employer is, it is usually the person who pays the temp their wages.

2. The end client can be liable for discrimination claims even if an agency is the employer, since temps can be an employee of the agency AND a worker for the client at the same time. These rights do not require any particular length of service.

3. Temps accrue rights in line with service, just like any other UK employee, which means they are building up rights to National Minimum Wage (NMW) and statutory holiday from day one.

4. Temps are entitled to statutory sick pay (SSP) provided they pay national insurance.

5. Temps with more than four weeks’ service are entitled to statutory notice of one week.

6. It is possible to contract with temps on a weekly basis, so that you give notice each Monday to terminate each Friday (and thus there is no need to give notice at the end of the temporary assignment). If you want to do this, take advice.

7. After one month’s service, temps have the right to a written statement of particulars of employment, and their temporary status should be set out clearly in that document. Theoretically that statement should be issued no later than two months after the start date, but it is always a good idea to get this document out as early as possible.

8. If you make a mini fixed-term contract and then change your mind, you may be liable to pay the balance of the term. Be careful when recruiting temps that you do not contract for more time than you mean to.

9. Continuous service has a complex set of rules. For example: if you recruit a temp for, say, four weeks, then another four weeks with a gap in between you can find that the week in between does not ‘count’ for continuity but does not break it either.

10. Temps with less than one year’s continuous service do not have unfair dismissal rights but they do have a full set of discrimination rights.

Whilst there is currently government consultation on giving temporary workers more rights, no changes have yet been made and temps have no specific right to benefit from the same terms and conditions as their permanent colleagues.

Annabel Kaye is Managing Director of Irenicon Ltd, a specialist employment law consultancy. 
Tel: 08452 303050 
Fax: 08452 303060 
Website : www.irenicon.co.uk
You can follow Annabel on twitter – http://twitter.com/AnnabelKaye and check our regular articles and news throughout the autumn on our blog site – http://irenicon.wordpress.com/

Law Donut

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