EMPLOYERS’ RESPONSIBILITIES

When employing people the first thing to do is to call the New Employers’ Helpline on 0845 607 0143. The advisor will set up an employment record and send an Employer’s Starter Pack with all information you need. Or you can arrange help from a business advisor from a local Business Support Team.

All services are free and you can also attend one of the local workshops on payroll. Phone them or via www.inlandrevenue.gov.uk/bst/index.htm.

As an employer you are responsible for these areas:

• Working out the tax and National Insurance contributions due each pay day.
• Keeping accurate and up-to-date records to back up any deduction in your accounts for wages, payments, benefits and such like relating to your employees.
• Making payments of Statutory Sick and Maternity pay to your employees as appropriate.
• Making Student Loan deductions from an employee’s earnings when directed by the Inland Revenue.
• Paying Tax Credits to employees when directed by the Inland Revenue.
• Paying deductions made over to the Inland Revenue Accounts Office each month – or quarterly if your average monthly payments are below £1,500 – after offsetting any tax credit payments.
• At the end of the tax year (April 5) telling the Inland Revenue how much each of your employees has earned and how much tax and NIC (National Insurance Contributions) deductions you have made. You must also give details of any expenses paid or benefits provided to your employees.

The law on pay and hours of work

Legislation is based on British labour law and European social policy for working hours and minimum pay levels, the focus being on:

• limiting working hours;
• protection from pressure to work excessive hours;
• guaranteed holiday pay;
• guaranteed rest periods;
• guaranteed minimum pay.

National minimum wage

An employer must pay a general minimum rate of at least:

• £5.05 an hour for workers over 22 years old;
• £4.25 an hour for workers aged 18–21 and for workers aged 22 or over for six months after starting a new job with a new employer and receiving accredited training;
• £3 an hour for youth workers: 16–17 years of age.

These rates took effect on 1 October 2005. For more information look at www.tiger.gov.uk.

Working time and pay regulations

An employer must not:

• require workers or employees to work more than an average of 48 hours a week, though workers and employees may choose to work longer;
• make unauthorised deductions from wages including complete nonpayment.

An employer must:

• limit the normal working hours of night workers to an average of eight hours in any 24-hour period;
• provide all employees with an individual written pay statement at or before the time of payment (under the Employment Rights Act 1996). It must show gross pay and take-home pay with amounts and reasons for variable and fixed deductions. Or, fixed deductions can be shown as a total sum, provided a written statement of these items is given in advance to each employee at least once a year.

In addition, employees have an entitlement to daily, weekly and in-work rest and four weeks’ paid annual leave.

Part-time workers’ regulations

This is very relevant to the catering business where many staff members are part-timers. Unfortunately, the regulations are poorly adhered to, but they say that part-time employees are not to be treated less favourably than full-time employees, their contractual terms and conditions equal in pay, pensions, annual holidays and training. For further information go to www.dti.gov.uk/er/ptime.htm.

Employing foreign nationals

Nationals of the following new member states of the European Economic Area (EEA) have been free to come to the UK to work from 1 May 2004: Poland, Lithuania, Estonia, Latvia, Slovenia, Slovakia, Hungary and the Czech Republic. Nationals who find a job are required to register with the Home Office under the new Worker Registration Scheme as soon as they find work.

If they plan to work for more than one month for a UK employer they need to register. Once they have been working legally in the UK for 12 months without a break, they will have full rights of free movement.

Those from Austria, Belgium, Cyprus, Italy, Liechtenstein, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Malta, Netherlands, Norway, Spain and Sweden have been able to work freely in the UK since membership of the EEA.

Nationals from Cyprus and Malta have full free movement rights and are not required to obtain a workers registration certificate.

Many Australians, New Zealanders, Canadians and other Commonwealth nationals come to Britain to work, with a good number of them working in the restaurant trade. Under the Working Holidaymakers Scheme, 17–30 year olds may work in Britain for two years. They may work full- or part-time and can apply once only. They must have the stamp or endorsement clearly marked on their passport for the employer to check.

If you have employed a foreign national, the way to obtain a National Insurance number is for them to attend an ‘evidence of identity’ interview at the nearest job centre, taking with them their passport or proof of identity as well as evidence that they are working. For further details contact www. workingintheuk.gov.uk.

Maternity rights

Many stories are carried by the media on the flouting of the laws concerning pregnant employees. Avoid causing a legal hassle by following the points below.

• Employers are required to protect the health and safety of employees who are pregnant, have recently given birth or are breast-feeding. (These protections start as soon as the employee is pregnant.)
• The contract of employment throughout the 18 weeks’ ordinary maternity leave or any additional leave must be continued unless either party to the contract ends it or it expires.
• During maternity leave the employee should continue to receive all her contractual benefits except wages.
• An employer must not dismiss an employee or select her for redundancy in preference to other comparable employees during her pregnancy or maternity leave just because she is pregnant.

For further information: www.dti.gov.uk/er/maternity.htm.

Redundancy payment

An employer who dismisses an employee by reason of redundancy is required to make a lump sum payment to the employee based on his or her age, length of service and rate of pay at the time of dismissal.

For further information contact 0870 1502 500 or the Department of Trade and Industry’s website: www.dti.gov.uk/regs.

Unfair dismissal

Employees who believe they have been unfairly dismissed can complain to an employment tribunal, generally subject to a qualifying period of one year’s continuous service. Complaints can be made regardless of length of service if the dismissal is for certain specified reasons, e.g. pregnancy or maternity leave.

Trade union membership

All employees have a right to belong, or not belong, to a trade union. It is unlawful to refuse a person employment because he or she either is or is not a member of a trade union. It is also unlawful for employees to be dismissed or discriminated against because of their membership or non-membership of a trade union.