Hung parliament – what does it mean for HR and employment law?

We have a new government of sorts, after all the campaigning, the Conservative party didn’t get enough votes to form a majority government meaning they will be forming a minority government in alliance with the Democratic Unionist Party.

The main priority for the Government will be Brexit negotiations but the following points will be good to keep an eye out for:

  • There will be lots of attention to those working the in the “gig economy” and the introduction of legislation to make clear their worker/employed status.
  • There could be limited changes to National Insurance payments – they could rise but this has not be stated clearly yet.
  • It is likely there will be an increase in the personal tax allowance to £12.5k and £50k for higher tax payers.

Things for businesses to look out for

Brexit negotiations around the rights to work, both for UK and EU nationals and EU workers currently in the UK, should be kept under careful review for any developments.

With increased attention on the “gig economy”, it may result in the re-assessment of contracts between businesses and self-employed workers and will also require greater analysis of the status of an employee, worker or contractor.

If you need any HR advice give us a call, we are here to help +203 538 5311 or email: info@hrrevolution.co.uk

HR Revolution – www.hrrevolution.co.uk

 

Do you think Zero Hours Contracts are fair?

Zero Hours Contracts are all over the place at the moment. They have become widespread in recent years, possibly due to the, dare I say the R word? Single, double, triple dip recession! But what exactly do they mean for employers and employees?

The CIPD has recently published a fact sheet on Zero Hours Contracts following a report into their use in the UK, 2013. If you are wondering exactly what a Zero Hours Contract means, the official definition is as follows:-

‘an agreement between two parties that one may be asked to perform work for the other but there is no set minimum number of hours. The contract will provide what pay the individual will get if he or she does work and will deal with the circumstances in which work may be offered (and, possibly, turned down).’

Zero Hours Contracts are a great way of staffing in casual work environments, according to the CIPD, approximately 3% of the working population are employed under such contracts. In best practice, the contracts should offer the following:-

– Flexibility from both sides, in that there is no obligation for the employer to offer work, and neither does the employee have to accept the work offered.

– No exclusivity clauses within them – they should allow the employee to be employed for several companies under similar contracts as they wish, or maybe with “permission.”

– Should offer clarity on employee status – employee, worker or self-employed.

– Should offer clarity on the employees’ rights, benefits etc, although this would be decipherable by looking at the employee status, it IS best to make this apparent.

If you need any help with either recruiting for zero hours roles or with writing or defining zero hours contracts, don’t hesitate to let us know, we at HR Revolution can help you with both!

Resources –

http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/09/23/pickavance-zero-
hours-contracts-are-detrimental-to-health.aspx (Zero-hours contracts: myth and reality, CIPD, 2013)

HRREV Blogger, HR Revolution | HR Outsourcing UK