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New inspection powers on your premises
The Finance Act 2008 has now become law. The Act introduces new powers for the tax authority, including the right to enter business premises and inspect assets and documents on those premises.
Many of the powers do not include a right of appeal, and the right to enter premises can give HMRC access to those premises at any time and without warning if an “authorised officer” believes that is appropriate. The general right to inspect premises now comes with seven days notice.
There is also a right for HMRC to have access to a computer used in connection with a “relevant document” and for them to require a member of staff to log them on so that they can interrogate the computer.
HMRC are keen to reassure taxpayers and their representatives that these powers will be used reasonably and will be the subject of codes of conduct.
You should consider the use of computers for accounting systems that have no other data on them and no other “relevant documents”, so that if HMRC do have access to a machine it minimises business disruption and preserves the privacy of the individual who might otherwise store personal information on the computer.
More on the new inspection powers.
above: The Act includes the right to inspect the assets and documents of a business.
Silence is not always golden
The tenth anniversary of the Public Interest Disclosure Act has recently been marked by the launch of new guidance for organisations on whistleblowing arrangements.
Research suggests that only 40% of UK businesses provide a comfortable environment for staff wishing to report misconduct. PAS 1998:2008 seeks to change this as it guides organisations on how to run, promote and review effective whistleblowing arrangements.
Whistleblowing is now seen across private and public sectors as an essential element of risk management and can be used as a key tool in tackling fraud and crime.
Steve Bundred, Chief Executive of the Audit Commission, said:
“Our experience has shown repeatedly that good whistle blowing arrangements are a vital component of good internal control arrangements within well run organisations. Whatever the issue or concern may be, providing a framework through which staff can confidently raise concerns is fundamental to delivering good governance”
PAS 1998:2008 can be downloaded free of charge from Public Concern at Work or the British Standards Institution
More on the new guidance for organisations on whistleblowing arrangements.
UK firms face migrant work fees
The Home Office’s UK Border Agency (UKBA) today launched a new TV advert to alert firms to changes in the immigration system.
The advert, which depicts a man being forced to jump over hurdles before being considered for entry to the UK, is intended to signal to the business community that those who do not play by the rules will not get in. Furthermore, businesses that want to hire illegal workers face huge fines and being barred from hiring workers outside the European Economic Area (EEA).
Employers will be required to apply for new licences, which will cost from £300 per worker with sponsorship applications costing an additional £170.
The government’s new Australian-style points-based system will mean that prospective immigrants will need to prove they have the sufficient skills and qualifications to match gaps in the UK economy.
As part of the scheme businesses must register with the UKBA before they can bring foreign workers from outside the EEA into the UK to work. Sponsoring companies will also be awarded a supervisor role — if migrant workers in their charge fail to turn up for their job or course the UKBA must be informed immediately. More on the changes in the UK immigration system.
Workplace wellbeing schemes prove their worth in tests
A government-funded pilot scheme has found that employers can make significant improvements to the health of their staff.
The Well@Work programme tested initiatives such as pedometer challenges, health checks and fruit giveaways.
Key findings included:
- Those taking part in the pedometer challenges increased their weekly step counts by one-third
- People taking part in active travel schemes spent on average an extra 24 minutes walking or cycling to and from work
- Use of the workplace stairs increased by 28% following initiatives such as encouraging posters and redecorating stairwells
- Participants increased their intake of fruit and vegetables, with an extra 11% meeting their five-a-day requirement
Nicki Cooper, head of heart health at the BHF, said: “We spend 60% of our day with colleagues, so they can provide great support in getting us to swap that chocolate cake for a piece of fruit, or to walk home instead of driving.” More
Pay rise and living costs gap at widest point in 20 years
Employees are suffering from the largest gap between pay rises and increases in the cost of living in nearly 20 years, figures show.
Research by pay consultants Industrial Relations Services (IRS) found the average wage increase in both public and private sectors is 3.2%. But the retail prices index measure of inflation stands at 4.6% — the largest gap recorded since October 1990.
Phillip Hammond, shadow chief secretary to the Treasury, said: “This research shows exactly why life is getting tougher for Britain’s hard-pressed families.
“Living costs are outstripping people’s pay rises, leaving families’ incomes squeezed.”
Failing to tackle bullying costs employers £14bn
The Costs of Workplace Bullying, a research project by Unite union, estimated that 33.5 million days were lost by organisations last year alone because of bullying-related absenteeism. Combined with increased turnover statistics and costs to productivity, experts estimate employers are left out of pocket to the tune of £13.75bn.
Cath Speight, Unite acting head of equalities said: “Workers who suffer from bullying, and those who witness it, experience low morale and are more likely to take time off or leave their jobs.
“Employers need to recognise this and take action to combat it.”
Close to 200,000 employees considered quitting their job and almost 100 million days’ worth of productivity were loss as a result of workplace bullying and harassment. More Guide to your workplace rights Project on the costs of workplace bullying (DOC, 255kb)
Top executives ditch holidays due to job fears
A growing number of UK executives are scrapping summer holidays, with one in four not using their full holiday entitlement this year as the credit crunch takes its toll.
A recent survey by the Chartered Management Institute (CMI) shows many senior executives have postponed holiday plans and a large proportion of those that do go away continue to work. Redundancy fears, financial constraints and work overload are the main reasons why executives cancel holidays.
The survey reveals that 23% of senior executives use holiday time to develop skills designed to make them “recession-proof”, half say they do not want to let clients or colleagues down and 27% are focused on meeting project deadlines.
“Without a proper break individual performance can suffer,” said Jo Causon, CMI. “Individuals need to recognise this and use holiday time to recharge their batteries.” Source
Paternity leave for millions of fathers under union plans
Millions of new fathers would be given the option of taking some of their partner’s maternity leave under a deal expected to be made between trade unions and Government.
The move raises the prospect of fathers taking up to six months parental leave while their wives or girlfriends return to work, and is designed to help couples where the woman is the higher earner.
Business leaders have already raised concerns that the plans for “flexible” parental leave, which could come in when the amount of maternity leave a woman can take rises from 39 weeks to 52 weeks in 2010, could be harmful for small businesses.
New fathers may already take up to two weeks off following the birth of a new baby. More on the Equality and Human Rights Commission Guide to maternity, paternity and adoption rights
Firm pays after unfair alcohol sacking
The importance of employers fully implementing their alcohol and drugs policies has been highlighted in the recent case of an employee, a self confessed alcoholic, who was sacked for gross misconduct. The journalist had worked on the Hartlepool Mail for 14 years and had a clean disciplinary record.
Northeast Press has been ordered by an employment tribunal to pay an award of more than £20,000 for unfair dismissal.
The tribunal ruled that Northeast Press ignored its own policy on alcohol and drugs ‘in circumstances where there were clear procedures to follow’. The tribunal concluded that, on balance, had the alcohol and drugs policy been followed the employee would not have been dismissed. He would instead have had the opportunity for treatment for his alcoholism and to mitigate his behaviour. More Guide for employers on alcohol at work
14th October designated ‘Half-an-Hour Day’
Newly-established ‘Half-an-Hour Day’ centres on raising national awareness of the 30-minute career speaking volunteering opportunities with not-for-profit Growing Ambitions.
People from the workplace and business everywhere are being urged to sign up to give one half hour of their time once, to help young people near them make more informed career choices. This autumn, 14th October – a Tuesday – is a day devoted to getting working people to ‘sign up’ for this one-off commitment.
“I want to focus Britain’s workforce to really start making Corporate Social Responsibility a reality in their communities by signing up to speak in a local school or college. Every half-hour session will make a significant difference to young people when they are deciding about the job they may like to do.”
~ Sally Davis, MD, Growing Ambitions
Firms warned not to use credit crunch as excuse for job cuts
A stern warning has been issued to employers tempted to make mass redundancies during the credit crunch despite facing no financial pressure to do so.
A quarterly survey released by consultancy KPMG found 53% of executives were planning to reduce their staff headcount, up from 29% in March. But 84% of the 203 organisations polled also claimed not to be experiencing any financing difficulties, and more than half believed their rate of capital expenditure would continue throughout 2008.
A source close to the KPMG survey said she suspected companies were making job cuts now amid feared recession claims in the hope they would not be so intensely scrutinised by unions busy dealing with many redundancy cases. However, the TUC and Unite warned employers would face a fight if improper actions were taken. More
One Year On, 60% of businesses have done nothing to protect critical systems
One year on from the worst floods in living memory, six out of ten UK businesses still haven’t done anything to protect their business critical IT systems.
The floods affected more than 30,000 businesses and cost UK plc billions of pounds in lost sales, employee productivity and capital cost of goods.
Less than four in ten businesses surveyed had taken any steps to safeguard business critical IT systems in order to keep e-commerce sites up and running, protect mail servers, facilitate remote working, or ensure staff had access to critical applications in the event of another major incident.
“With the economic outlook looking more challenging over the next year, it is more crucial than ever that businesses take steps to protect their IT and Internet systems. SMBs need to be proactive not reactive by identifying the risks and developing Business Continuity plans to support business in the case of any unforeseen event.” Source
Research Reveals Businesses See Almost Half of Absences as Non-Genuine
UK business leaders believe that half of the lost working days due to sickness are not genuine, while some staff still look on a paid sick leave allowance as an extension of their annual holiday entitlement, reveals new independent research released today.
More than two-thirds of respondents (69%) say they think some people abuse sick leave, treating it as additional holiday. Even so, nearly a quarter of those questioned don’t seem particularly concerned because they see tracking absence as unimportant.
This research highlights a need for organisations to get their houses in order and start to properly track and assess absence levels, so that they can accurately ascertain the impact sickness is really having on their business.
Without these reports it is not possible to take a proactive approach to managing absence problem areas and it also makes calculating absence associated costs difficult. Source
Investing in people power is the top weapon in fighting recession, shows new research
Developing the skills and abilities of their workforce is the best way to reduce an organisation’s exposure to the risk of recession, according to an international survey of senior business executives.
Key findings emerged when business leaders were asked about the importance of tactical actions in reducing an organisation’s exposure to the risk of recession. An overwhelming 78% of respondents cited the development of their workforce as the key tool for this.
Conversely, reducing the number of employees (34%) and reducing marketing spend (23%) were classed as the least important tactics to pursue in safeguarding against recession.
Richard Watts of McKinney Rogers said, “A company’s workforce is an essential tool in the business armoury when the going gets tough. Making productivity a focal point and rewarding those who rise to the top accordingly, will help reduce an organisation’s exposure to the risk of recession.” More
September 2008
Tue 16th – Thu 18th — National Incentive Show — NEC, Birmingham
Mon 22nd — First Day of Autumn
Tue 23rd – Thu 25th — National Venue Show — Birmingham
October 2008
Self Assessment returns — New deadline of October 2008 for paper returns
Tue 7th — World Day for Decent Work
Wed 8th – Thu 9th — Total Workplace Management — London Olympia
Tue 14th — ‘Half-an-Hour Day’
Thu 16th — Boss’s Day
Tue 21st — Trafalgar Day
Sat 25th — New issue of Unlimited Magazine
Sun 26th — Summer Time Ends, clocks go back
Fri 31st — Halloween
November 2008
Mon 3rd — London to Brighton Veteran Car Run
Wed 5th — Bonfire Night
Sat 8th — Lord Mayor’s Show and Fireworks
Sun 9th — Remembrance Day
Sat 15th — Workplace bullying conference — Midlands
Wed 19th – Thu 20th — National Executive PA Conference — Brighton
Wed 26th – Thu 27th — Times Crème Show — Manchester
Thu 27th — Thanksgiving
Sun 30th — St Andrew’s Day
December 2008
Sun 21st — Winter Solstice
Wed 24th — Christmas Eve
Thu 25th — Christmas Day
Fri 26th — Boxing Day, St Stephen’s Day
Wed 31st — New Year’s Eve
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