This is the question asked by one of network partners, RfM Accountant. They not only provide family businesses accountancy advise and services, they also have specialise in offering business consultancy services, legal services and HR services.
Their latest advice comes from their HR lead consultant, Diane Johnson, who understands that keeping up with employment law and HR best practice is a challenge for every business.
Family businesses need to be aware of changes coming into effect from 6 April 2020. Not least, Diane advises, because a breach of these new rules could cost you a fine of up to £20,000. The reforms have been prompted by the far-reaching Taylor Review of Modern Working Practices which represent the largest upgrade in workers’ rights in over a generation.
Here’s the key reforms that the team at RfM HR Services want to draw your attention to:
IR35 – determining the status of off-payroll workers –The controversial IR35 tax rules will apply to any business that uses ‘off-payroll’ freelancers and contractors. This will lead to some contractors being classed as employees, meaning Tax and NI must be deducted from payments. Visit RfM’s website to learn more about IR35 and the private sector.
Increased protections for agency workers – Every agency worker will have the right to comparable pay after the 12th week of employment. Employers must also provide a Key Facts page with information about an employee’s contract, pay rates and arrangements, on their first day.
The right to a written statement of particulars (contract) – Workers and employees must be given a written statement of terms (including additional mandatory information) on their first day. Current employment contracts should be reviewed to check they meet the new requirements.
Increases in the period over which holiday pay is calculated – The holiday pay reference period will increase from 12 weeks to 52 weeks to make calculating holiday pay fairer for staff who work variable/irregular hours.
National Living Wage rise – Even if you don’t pay staff the National Living Wage, the recent increase will affect your business. Learn more about the potential impact of the rise and what you can do.
If you’re not sure whether your existing HR practices will meet the new rules, or what action to take, RfM HR Services can help. Their signature HR HEALTH CHECK and HR FACT FIND services are designed to give a clear assessment of compliance with defined next steps.
RfM HR Services offers a broad range of retained HR packages and specialist consulting services. To find out more and discuss the HR needs of your business, contact the Partner at your usual RfM office or email Diane Johnson.