What to avoid when managing holiday for employees
Holiday management for employees can seem simple at first. For example, many employers may take the “use it or lose it approach” leaving the leave, as it were, up to employees. Statutory holiday cannot be carried over and can only be paid in lieu on termination. However, it would be best practice to encourage employees to use their holiday.
Calculating holiday pay can be where some employers get stumped, especially for employees working variable hours.
We wanted to highlight a couple of cases that show just how complex holiday management and pay can get, as well as the financial risks of getting it wrong.
The case of Brazel v The Harper Trust shows how complicated it has become. Music teacher Mrs Brazel worked variable hours and was paid for the hours worked. The Trust paid her in line with Acas 12.07% guidance for casual workers over the holiday year. They argued it was fair to pro rata the holiday pay for term time workers but the Courts disagreed.
The ruling was that a permanent part-year worker must be paid the full 5.6 weeks holiday averaged out over the previous 12 weeks. Since then, employers have to average out over 52 weeks. This case is awaiting judgement from the Supreme Court.
Another factor influencing holiday calculations is employment status, as seen in recent cases concerning Smith v Pimlico Plumbers. In this example, the employer fell at the first hurdle by incorrectly classifying Mr Smith as self-employed when his working relationship meant that he was a worker with rights.
This fuelled a further claim from Mr Smith that he had missed out on his holiday entitlement during his contract. The Supreme Court ruled earlier this year that he be paid the back-dated holiday pay.
What’s significant about this case is that it was outside of the usual time frame allowed for back-dated holiday pay claims. Typically, a claim must be brought within three months, but it had been years in Mr Smith’s case. Why the exception?
Due to Mr Smith’s incorrect employment status, he was not made aware of his holiday entitlement and therefore not given the opportunity, or been encouraged, to take his paid annual leave. His right was not lost at the end of each year but carried over, meaning his holiday accrued. The Court found that the usual three-month cap did not apply. This case shows how a claim for historical back-dated holiday pay can carry a hefty financial risk for employers.
Holiday calculations and management need not be so troublesome. Professional HR advice will keep your processes in line with employment legislation, whilst HR software like The HR Dept Toolkit can help with important record-keeping. With an extra bank holiday this year for the Queen’s Jubilee year, now is as good a time as any to get confident with holiday management for employees.
Will the four-day work week, work?
Just when work appears to be returning to some sort of pre-pandemic normalcy, UK trials of a four-day work week have hit the headlines. Understandably, it may not be the news you wanted to hear.
A four-day work week won’t be suitable for every type of business, and for any four-day work week trial to be reliable, it needs to consider all types of work, and not just the office based 9-5.
The UK is not the first country to test these waters, with New Zealand, Iceland, and Spain all previously taking part. Belgium has gone one step further and become the first European country to allow requests from employees for a four-day week.
Can the four-day work week work for your business?
We should not assume that a four-day work week automatically equals a three-day weekend. It is likely that some businesses would need to introduce a rota so that operational hours remain the same.
Logistically, there are a few options as to how it might work. It could mean that employees work fewer days with reduced pay, work four days with the same pay, or work longer hours over fewer days. Good time management would be the key for output to remain the same.
Alternatively, there are other approaches to flexible working you may be able to implement. The pandemic has highlighted the importance and benefits of flexible working, so adopting more flexibility can be a positive move to future-proof your business.
If you’d like assistance with reviewing the working week in your business, give us a call.
Women in work: Break the bias
Tuesday 8th March is International Women’s Day and the theme this year is #BreakTheBias.
Why is this year’s theme so important and how can employers get involved to break the bias at work?
Gender bias comes in many forms, but common examples include women experiencing barriers to work or promotion due to pregnancy, maternity and childcare. In fact, some managers will actively avoid hiring women of a certain age to avoid dealing with maternity leave.
Not only is this illegal and discriminatory, potentially leading to much bigger problems, but it reduces the talent pool by half.
A business that encourages women to apply can benefit from new ideas and perspectives as well as a diverse culture.
From improving recruitment to be more gender-neutral to implementing inclusive behaviours in your business, there are many ways in which SMEs can help to break the bias. For next steps, visit the International Women’s Day website for 50 ways to fight bias or contact your local HR Dept.
Ding! You have been invited to another meeting
As a busy employer you won’t need us to remind you that time is precious. From morning meetings to lunchtime Zooms, PM pow-wows and end-of-day reviews, some days it can feel like you have barely made a dent in your to-do list. Wait, is that another meeting request in your inbox?
If your days are filling up with meetings, your team may also be adopting similar habits, especially if they are the ones demanding your time to provide updates on projects or seek sign-off.
Meetings can be hugely beneficial to improve communication but can sometimes become a “go-to” reflex rather than a necessity. Ever had the feeling that a meeting could have been an email?
Then there’s reoccurring meetings. Are they still fulfilling the same need six months on? Reviews of reoccurring meetings are recommended to make sure that time, and subsequently money, is put to best use.
To save time so that meaningful work can get done, why not trial a week or two with reduced meetings? Encourage other forms of communication in the meantime, such as emails or shared planners for project updates. When your next meeting does come around, kick off with a brief reason as to why it was scheduled and share an aim for the outcome. This will help make the meetings that you do have be meaningful and productive.
Will you be asked for a pay rise this year?
It’s no secret that the cost of living is set to rise this year. As such, employees concerned about this news may be prompted to ask for a pay rise.
If your pay reviews happen annually, this might come as a surprise and something that you had not prepared for, especially if you feel that your salaries are fair and reflect work undertaken.
It is, however, a good idea to have a plan of action as to how you will deal with such requests, to avoid being caught off guard.
Give yourself time to formulate a response by acknowledging and considering the request. During the pause, a job evaluation can help you to clarify if your pay scales are appropriate and fair in the current market.
If your evaluation shows that a raise would be appropriate but your financial situation means it is not currently possible, be open and honest with the employee and explain your business goals, e.g. hitting a target, to make a percentage raise possible.
Whilst it may be a difficult conversation, transparency helps to build trust in the long run and can be a motivator for the team to see the business succeed.
If it’s something you are currently facing and need help with next steps, call us.
Dog in the office
From dog in the playground to dog in the office, four legged furry friends are causing a stir as employees head back to the workplace.
The pandemic pup craze, which saw more than three million people welcome a new dog to the family whilst saying at home, has left some employees seeking doggy day care or flexible working to continue caring for their beloved pet post lockdown.
If you’re considering allowing dogs in the office, which when managed well can increase morale, keep in mind any team members with allergies first; whilst perhaps circulating a friendly reminder that a dog is for life, not just a pandemic.