News Archive - June 2014
Flexible working rights extended to all employees – key points for employers - 30.6.2014
Flexible working rights extended to all employees – key points for employers
As from today (30 June 2014), all employees will be able to request flexible working hours, as new legislation extends to all the same rights previously restricted to carers and those looking after children.
The Department for Business, Innovation and Skills has said that 20 million people now have the right to ask to work flexibly. The move has been widely welcomed by unions, but some business groups have expressed concerns about the additional administrative burden.
Lisle Brown of the Federation of Small Businesses (FSB) told the BBC: "We know from our own membership that more than three quarters of our members offer flexible working but there will be a small number of small businesses who just will not be able to do that, whether it's through cost or just from balancing their teams."
Key points for employers
From 30 June 2014 every employee has the statutory right to request flexible working after 26 weeks employment service. Employees can only make one request in any 12 month period.
Requests should be in writing stating the date of the request and whether any previous application has been made and the date of that application. Requests and appeals must be considered and decided upon within three months of the receipt of the request.
Employers should consider requests in 'a reasonable manner' and can only refuse them if there is a business reasons for doing so. Permissible reasons are:
As from today (30 June 2014), all employees will be able to request flexible working hours, as new legislation extends to all the same rights previously restricted to carers and those looking after children.
The Department for Business, Innovation and Skills has said that 20 million people now have the right to ask to work flexibly. The move has been widely welcomed by unions, but some business groups have expressed concerns about the additional administrative burden.
Lisle Brown of the Federation of Small Businesses (FSB) told the BBC: "We know from our own membership that more than three quarters of our members offer flexible working but there will be a small number of small businesses who just will not be able to do that, whether it's through cost or just from balancing their teams."
Key points for employers
From 30 June 2014 every employee has the statutory right to request flexible working after 26 weeks employment service. Employees can only make one request in any 12 month period.
Requests should be in writing stating the date of the request and whether any previous application has been made and the date of that application. Requests and appeals must be considered and decided upon within three months of the receipt of the request.
Employers should consider requests in 'a reasonable manner' and can only refuse them if there is a business reasons for doing so. Permissible reasons are:
- the burden of additional costs
- an inability to reorganise work amongst existing staff
- an inability to recruit additional staff
- a detrimental impact on quality
- a detrimental impact on performance
- detrimental effect on ability to meet customer demand
- insufficient work for the periods the employee proposes to work
- a planned structural changes to the business.
Smartphone cheque pay-in system gets Government approval - 27.6.2014
Legislation is being planned to enable people to pay in cheques via their smartphones, rather than having to go in person to a bank.
Under a new system currently being trialled, customers will be able to photograph a cheque using a smartphone and then send it electronically. The new technology will allow cheques to be cleared in two days, rather than the current six, and banks believe that the system could actually be more secure than paying in physically.
During consultation the idea has been ‘broadly welcomed’ and will now be included in planned new legislation.
Barclays – who have run a successful trial of the system - claim that up to £300m of cheques in the UK are never paid in each year, in part due to the inconvenience for people of having to get to a bank during opening hours. Spokesman Steven Roberts said: "This is an opportunity to move cheques into the 21st Century, to reduce costs and make banking easier and more convenient for customers.
"We look forward to working closely with other banks, industry groups and the Treasury to make this a universal nationwide service as quickly as possible, so that all customers with a cheque to deposit can do so through their phone, tablet, branch or self-service device, regardless of who they bank with."
Bank customers will still have the option of paying in paper cheques at bank branches, cash machines, post offices and by post.
Details of when the new imaging system will be available are yet to be finalised.
Under a new system currently being trialled, customers will be able to photograph a cheque using a smartphone and then send it electronically. The new technology will allow cheques to be cleared in two days, rather than the current six, and banks believe that the system could actually be more secure than paying in physically.
During consultation the idea has been ‘broadly welcomed’ and will now be included in planned new legislation.
Barclays – who have run a successful trial of the system - claim that up to £300m of cheques in the UK are never paid in each year, in part due to the inconvenience for people of having to get to a bank during opening hours. Spokesman Steven Roberts said: "This is an opportunity to move cheques into the 21st Century, to reduce costs and make banking easier and more convenient for customers.
"We look forward to working closely with other banks, industry groups and the Treasury to make this a universal nationwide service as quickly as possible, so that all customers with a cheque to deposit can do so through their phone, tablet, branch or self-service device, regardless of who they bank with."
Bank customers will still have the option of paying in paper cheques at bank branches, cash machines, post offices and by post.
Details of when the new imaging system will be available are yet to be finalised.
Businesses raise concerns over new flexible working rules - 25.6.2014
From 30 June, new rules come into effect meaning that all employees will be entitled to ask their employer for flexible working, regardless of the reason. Employers in turn will then have a legal obligation to answer that request and though they are not obliged to agree to the request, they must provide a valid written reason if they decide to decline it.
This is an extension of the current regulations whereby the right to request flexible working is reserved for parents and carers.
The Government has predicted that the changes will generate £475m of economic benefits through increased efficiency and employee satisfaction in its first 10 years.
However, a survey by Citrix suggests that just one in 10 small and medium businesses see the changes as positive for their business. Only 43% of decision makers in SMEs support the rules, and only 11% think it will have a positive impact on their business, compared with 21% who predict it will have a negative effect. Almost half of respondents said they currently have no flexible working policy in place.
Commenting on the results, Citrix suggests there might be a “perception problem”, referring to a previous Regus study which found that 76% of those who do allow flexible working saw it as having a benefit to their business.
This is an extension of the current regulations whereby the right to request flexible working is reserved for parents and carers.
The Government has predicted that the changes will generate £475m of economic benefits through increased efficiency and employee satisfaction in its first 10 years.
However, a survey by Citrix suggests that just one in 10 small and medium businesses see the changes as positive for their business. Only 43% of decision makers in SMEs support the rules, and only 11% think it will have a positive impact on their business, compared with 21% who predict it will have a negative effect. Almost half of respondents said they currently have no flexible working policy in place.
Commenting on the results, Citrix suggests there might be a “perception problem”, referring to a previous Regus study which found that 76% of those who do allow flexible working saw it as having a benefit to their business.
Four-fifths of employers 'plan to take on more staff' - 23.6.2014
Some 81% of employers plan to increase permanent hiring within the next four to 12 months, according to a survey by the Recruitment and Employment Confederation (REC). At the same time last year the figure was just 28%.
Of the 600 employers surveyed, 48% plan to increase the use of agency staff in the next four months to 12 months, up two percentage points from the previous quarter.
In the past month, 61% of employers say that they have not decreased their workforce at all, whether in the form of redundancies, headcount reduction or even reduced pay or hours.
REC chief executive Kevin Green said that while temporary hiring is often high when coming out of a recession, the high level of permanent recruitment intentions suggests that there is “real confidence” among businesses about the economic outlook.
“While I wouldn’t say this is a change of direction for employers, as permanent hiring has been relatively strong for a while, it is very encouraging to see our members looking to build towards the future,” he said.
We can assist with all your payroll needs. Please contact us for more information.
Of the 600 employers surveyed, 48% plan to increase the use of agency staff in the next four months to 12 months, up two percentage points from the previous quarter.
In the past month, 61% of employers say that they have not decreased their workforce at all, whether in the form of redundancies, headcount reduction or even reduced pay or hours.
REC chief executive Kevin Green said that while temporary hiring is often high when coming out of a recession, the high level of permanent recruitment intentions suggests that there is “real confidence” among businesses about the economic outlook.
“While I wouldn’t say this is a change of direction for employers, as permanent hiring has been relatively strong for a while, it is very encouraging to see our members looking to build towards the future,” he said.
We can assist with all your payroll needs. Please contact us for more information.
High street transformation affecting cities - 13.6.2014
2013 saw a vast overhaul in shopfront usage across the UK, according to the industry journal Estates Gazette. Traditional shop space equalling 1.7 million square feet has been replaced with leisure facilities, such as gyms, bars, restaurants and betting shops.
The report shows that betting shops have the biggest increase in number, with 106 being licensed to open last year. Gyms and health clubs took the most amount of space, however, with over 1 million square feet.
This information coincides with predictions by the Centre for Retail Research, which indicate falling shop numbers in the next five years. The forecast says that total store numbers will fall by 22%, with job losses of around 316,000.
According to the Centre, consumer spending has increased by just 12% since 2006 compared with a 20% increase in retail operating costs. A major boom in online shopping – the UK now has the highest proportion of online retail sales in the world – has also led to the decline.
The change in usage and disappearance of retail space are issues which are likely to have a dramatic effect on cities throughout the UK in coming months and years.
The report shows that betting shops have the biggest increase in number, with 106 being licensed to open last year. Gyms and health clubs took the most amount of space, however, with over 1 million square feet.
This information coincides with predictions by the Centre for Retail Research, which indicate falling shop numbers in the next five years. The forecast says that total store numbers will fall by 22%, with job losses of around 316,000.
According to the Centre, consumer spending has increased by just 12% since 2006 compared with a 20% increase in retail operating costs. A major boom in online shopping – the UK now has the highest proportion of online retail sales in the world – has also led to the decline.
The change in usage and disappearance of retail space are issues which are likely to have a dramatic effect on cities throughout the UK in coming months and years.
Government proposes greater transparency to tackle late payment culture - 4.6.2014
Business Secretary Vince Cable has outlined measures to increase transparency in a bid to tackle the problem of late payment and help small firms to get paid on time.
In a recent consultation on the issue of late payment, a clear majority of businesses called for measures to improve disclosure, and the Government has announced that it will be compulsory for large firms to publish information regarding their payment practices.
The Government also plans to take steps to remove the legal barriers which can prevent businesses from accessing invoice finance.
In addition, the Government aims to work with the Institute of Credit Management to strengthen the Prompt Payment Code and increase the accountability of signatories.
Commenting on the consultation, Matthew Fell of the Confederation of British Industry said, ‘The Government is rightly looking to build a prompt payment culture, and greater disclosure of payment practices can help with this. However, it must be implemented flexibly, on a ‘comply or explain’ basis’.
‘The most effective supply chains are collaborative, rather than confrontational, so heavy-handed regulatory interventions must be avoided at all costs.’
In a recent consultation on the issue of late payment, a clear majority of businesses called for measures to improve disclosure, and the Government has announced that it will be compulsory for large firms to publish information regarding their payment practices.
The Government also plans to take steps to remove the legal barriers which can prevent businesses from accessing invoice finance.
In addition, the Government aims to work with the Institute of Credit Management to strengthen the Prompt Payment Code and increase the accountability of signatories.
Commenting on the consultation, Matthew Fell of the Confederation of British Industry said, ‘The Government is rightly looking to build a prompt payment culture, and greater disclosure of payment practices can help with this. However, it must be implemented flexibly, on a ‘comply or explain’ basis’.
‘The most effective supply chains are collaborative, rather than confrontational, so heavy-handed regulatory interventions must be avoided at all costs.’
