IR35 – April 2020

REC figures on the Economy!

In my profession it is important to be knowledgeable about employment law and the Conduct Regulations.  This week I attended a training session held by the REC on IR35 and the introduction to the Private Sector in the proposed month of April 2020.

Do you have contractors working for you?  If so and you are a company with over 50 employees, a turnover of over £10.2m and a balance sheet total of not more than £5.1m this new legislation will affect you!

It is suggested that if you have contractors after April 6th 2020, to end their contract and payroll payments before that date, say 3rd/4th April 2020 to make it simple if you are going to renew their contract and continue with their services.  You then need to make a decision on whether your contractors are in IR35 or outside of IR35? #rec or #ir35.

Using CEST in not a reliable way to determine status and has been challenged in the Courts, so best to contact an Umbrella company recommended by the REC to audit your situation.

REC figures on the Economy!

Avatar Recruitment is delighted to report the most ‘hot off the press’ information from the REC (Recruitment Employment Confederation), on the employment market. Could this affect your business?

For all those of you who are looking for new roles at present, there is some excellent news hot off the press from the REC on the current labour market and for those of you recruiting, some interesting statistics to consider when recruiting for new roles and what the information will mean for you!

GDP is currently slowing in growth and was at 2.0% for 2016 and for this year is forecast to be between 1.6% and 1.9%.

There is currently record employment with 31.95 million in employment – now showing as 74.8% the highest since 1971 when records began and juggling for position with Germany who are around 75%. Compare this to the US whose employment is 62% – 63%.

Unemployment is low at 4.6% which is down from 5.1% at the end of 2015.

There are 381,000 more people in work now than a year ago, with 777,000 vacancies advertised every month, resulting in 3.7 million more jobs since 2010!

Report on Jobs for June 2017 which is the REC research shows that permanent appointments have seen the sharpest increase for over two years.

For the employer, this demonstrates that you will find it harder to fill jobs and that starting salaries are already continuing to grow, along with temp rates. For more information and advice on any recruitment campaigns, please contact an REC member for further support! Avatar is a Corporate member.

The other news is that the REC is trying to influence Government, so that any new policies that affect the Employment Market is given the utmost consideration by Government before running them out, such as deep analysis, conducted on behalf of the REC regarding the Migration Policy, Data Protection and IR35 plus the effects on the Self Employed who life is getting more challenging for, but who take a great deal of risk, with few benefits now!

Now that you are probably in full time employment, you need to be watching what Mortgage advice you are getting and my friend and colleague Terry Humphreys has published some information below, although dated Autumn/Winter 2016 it is still very relevant and my other colleague Nigel Scrimshaw can find you the perfect holiday tailored to your needs both in the UK and abroad, whatever your desire is.

Insurance Scams

I network regularly over breakfast and lunch with other leaders in industry and recently one of my colleagues in the insurance industry Paul Farrell decided to keep us updated on what is happening in the world of insurance. You may not be aware of current scams, but this topic could provide a food for thought?

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How to spot car crash motoring fraud!

At a glance

  • New Association of British Insurers figures show an average of 350 frauds worth £3.6 million were detected every day in 2014
  • Dishonest motor insurance frauds were the most common, up 12% on 2013
  • Motoring scams cost UK insurers hundreds of millions of pounds every year.
  • The Association of British Insurers has released figures showing there were 67,000 fraudulent motor claims in 2014, up 12% on 2013. These claims were valued at £835 million.
  • In total, UK insurers detected 130,000 fraudulent claims last year, equivalent to 350 every day.
  • The most well known motoring scam is ‘crash for cash’, where criminals deliberately cause accidents, either amongst themselves or by targeting innocent motorists. An example of this is where a criminal brakes ahead of an unsuspecting motorist for no reason, causing the victim to drive into the back of the criminal’s car. Crash-for-cash is estimated to cost the insurance industry £392 million a year in fraud.
  • Red flag indicators in motor fraud cases
  • Third Party stopped for no reason or appeared to cause accident deliberately.
  • Three or more adult occupants in either vehicle
  • Accident occurred late at night or early in the morning 10pm-6am
  • Without prompting the p/h mentions they did not see the TP break lights prior to the accident.
  • Flash-for-cash
  • Ghost occupancy or ghost passengers (parties claim for whiplash who were not in the vehicle)
  • Bus crashes
  • Exaggeration – Vehicle Damage/Injuries
  • Third party provided a pre-written note & details to the p/h at the scene

So-called ‘flash-for-cash’ scams have been well publicised in the press. They operate along similar lines to induced accidents mentioned above, whereby criminals flash their car lights to let an innocent motorist out at a junction, before then crashing into them on purpose, This is the latest variation on a constantly evolving theme that is proving tricky to disprove in court as it can come down to one person’s word against another.

Advising customers to minimise motor fraud

  • Report all incidents promptly to your insurer/broker.
  • Write a detailed report of the incident as soon as possible while it is still fresh
  • Take photos of all the vehicles involved as damage can be exaggerated
  • Make a note of the registration numbers
  • Note down the names, age and sex of all passengers
  • If possible and safe to do so, take photos of all parties involved
  • Get statements from any witnesses present

 

If you want to get in touch with Paul, please get in touch:

Paul Farrell

Commercial Account Executive

Osbornes Insurances Oxford Limited

Tel :- 01844 213161

What is Shared Parental Leave

Michelle Morgan Photo 2Michelle Morgan

1. What is Shared Parental Leave?
Shared parental leave will be created where an eligible mother or adopter brings their maternity or adoption leave to an end early.  The untaken weeks of maternity or adoption leave can be taken as shared parental leave if the mother/adopter or their partner is eligible for this – up to a maximum of 50 weeks (as the mother is required by law to take the first 2 weeks off work after the birth of her child). Shared parental leave and statutory shared parental pay will be available for eligible employees whose baby is due on or after 5 April 2015 or who have a child placed with them for adoption on or after that date.

2. Who is eligible for shared maternity leave?

  • Employees only; agency workers, self-employed parents, or parents who are not employed, are not entitled.

3. Are there any other eligibility requirements?

Yes. To qualify for shared parental leave an employee must satisfy a number of conditions;

  • The mother of the child must be entitled to maternity leave or (if she is not entitled to maternity leave) to statutory maternity pay or maternity allowance;
  • She must have ended her maternity leave (or her maternity pay or maternity allowance period) before she has taken her full amount.;
  • The mother must be sharing the main responsibility for the care of the child with the child’s father or the mother’s partner;
  • The mother must have been continuously employed by the same employer for 26 weeks at the end of the 15th week before the expected week of childbirth and remain employed by that employer at the start of the week in which shared parental leave is to be taken;
  • The other parent – the father of the child, or the mother’s partner, must satisfy an “employment earnings test”. This test requires that in the 66 weeks leading up to the week in which the child is due/the date when the adopter is notified of a match, they have worked in Great Britain for at least 26 weeks and in 13 weeks in that 66 week period they have earned an average of £30 a week and in those weeks have paid NI contributions.

4. What if both parents are employees?

Both are entitled to shared parental leave (provided they meet the eligibility requirements) and they need to decide how they will share the available leave between them.

5. What happens if the mother changes her mind and wants to stay on maternity leave?

Once a mother has returned to work, she cannot restart her maternity leave even if there are weeks left on such leave, save for a few limited circumstances:

  • Where the notice was given before birth – she is only entitled to revoke the notice 6 weeks immediately following birth;
  • Where the other parent dies; and
  • Where it subsequently transpires that neither of the parents was entitled to shared parental leave or pay.

If you have any questions regarding shared parental leave/pay or any other employment law matters, please contact Michelle Morgan on 01865 781195 or michelle.morgan@henmansfreeth.co.uk

Redundancy

It has been a difficult time for many looking in the job market and whilst companies have used the economic downturn to slim their work force down and batten down the hatches, there has been genuine reasons for releasing staff other than getting rid of the less than productive workers.

So if you are in this position where your company has had to make redundancies and release you from their workforce, make sure that your application to a potential new employer makes sense in terms of your career aspirations and goals and development?  Clients are suspicious of taking on new staff that have gone through the redundancy process and decided on a sudden change of career offering no previous experience and skills?  Or it may be that you have held a senior role and decided that you would be happy in a role that was not quite at board level?  Questions that would go through a potential employers mind are that you may get board in the role, using it as a stepping stone until better prospects come along, losing their investment in both time and training you, let alone the agency costs involved.

So look at your key strengths and make sure your CV reflects those with details of your key responsibilities and achievements whilst in the role, but above all make it punchy by using a bullet-point format as the information needs to jump out of the paper at the client and reflect the skills needed in the role that you apply for.  I see so many CV’s that forget to mention the fact that you have travelled overseas on behalf of your employer or the soft skills where you are working in business partnership with other team managers, helping them to achieve their goals and targets.  It is almost worth tailoring your CV to each role that you apply for reflecting the key skills demanded by the role.

 

Employee Law

Some while ago I struck up a relationship with Michelle Morgan who is a qualified Solicitor and whose speciality is employment law. Michelle has kindly offered to assist each month with a Q & A session on aspects of employee law and here is this months.

The laws on maternity are complex and it is always worth seeking specialist legal advice about your particular situation. If you have any questions, please contact Michelle Morgan on 01865 781195 or michelle.morgan@henmansfreeth.co.uk.

Qualifying periods/Pregnancy at work/Maternity Leave

How do I qualify for maternity leave?

All pregnant employees are entitled to 52 weeks’ maternity leave, irrespective of how long you have worked for your employer or how many hours or days you work.

There are three periods of maternity leave:

  • Compulsory maternity leave – you cannot work for a period of 2 weeks immediately following date of childbirth.
  • Ordinary maternity leave (“OML”) – you are entitled to take 26 weeks’ of ordinary maternity leave (this includes the 2 weeks compulsory maternity leave). You can start your OML up to 11 weeks before your baby is due. If you have an illness which is connected to your pregnancy in the 4 weeks before your baby is due, then this will trigger the start of OML.Your employment continues throughout OML and AML, unless either party expressly ends it. During statutory maternity leave you are entitled to all your benefits (such as the accrual of contractual annual leave, health club membership, permanent health insurance or use of a company car).
  • Additional maternity leave (“AML”) – you are entitled to take a further 26 weeks’ leave at the end of your OML. If you’re taking AML, this must follow on directly after OML and there must be no gap between the two. During AML you are entitled to the same contractual benefits as during OML.

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