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 It doesn’t take a rocket scientist to know that the last eighteen months is one of the toughest economic periods we’ve faced in almost twenty years. Despite the Government pledging to do all they can to help small businesses by, amongst other things, cutting red tape, the Federation of Small Businesses (FSB) said in December 2008 that bureaucracy is one of the main roadblocks in preventing companies from hiring more staff.
Every SME owner knows that they have to comply with rules and regulations, and here, we’ve outlined the important changes that will affect your business in 2009 and beyond, how they’ll affect you and what you can do about them.
1. On January 16th, the Health & Safety Offences Act stiffened penalties for managers who turn a blind eye to H&S failings.
What does it mean? Cases heard in the lower courts have had their maximum fines increased from £5,000 to £20,000. A particular issue for employers who allow staff to use their own vehicles for work purposes but don’t ensure they are properly taxed, insured and maintained.
What you should do. The new law doesn’t change your existing legal duties so you should review your H&S policy to cover the changes in the new legislation.
2. Businesses are encouraged to choose cleaner vehicles. Those emitting more than 140g/km of CO2 will incur higher taxes.
What does it mean? Firms who buy greener cars will see either no change, or rates going down by up to £15/vehicle by 2010 and will be able to offset twice as much of the depreciation cost against their corporation tax bill.
What you should do. Gauge whether or not it will make financial sense to change your fleet of cars to the more environmentally friendly options available.
3. In early 2010, The Business Rates Supplement Bill will enable local authorities to levy a supplement of up to 2p in the pound (on top of non-domestic rates) on business properties with a rateable value of over £50,000.
What does it mean? The local authorities have to consult businesses about any supplements being introduced. The Forum of Private Business has branded the change a ‘stealth tax’ that will stifle small firms’ growth.
What you should do. Consider moving to cheaper premises or simply keep an eye on when your local authority will go down this route.
4. On April 6th, statutory procedures for dealing with dismissals and workplace grievances were abolished and replaced with a new code issued by ACAS.
What does it mean? It’s now no longer necessary for employees to raise grievance issues with their employer before making tribunal claims, creating the risk that employers won’t have the opportunity to sort things out informally.
What you should do. Have your discipline and grievance handling policies thoroughly reviewed.
5. The European Court of Justice has ruled that employees on long-term sick leave will now be entitled to holiday pay.
What does it mean? Any employee off sick will be able to take their stored holiday entitlement (up to 20 days/year) when they return to work. Also, a worker who loses their job or quits while on sick leave will be entitled to a lump sum payment in lieu of holiday accrued.
What you should do. Revisit and amend where necessary your holiday policy immediately to make sure you’re within the law and make sure all line managers know the new rules.
6. The right to request flexible working from an employer has been extended to parents of children aged 16 or under from 6th April.
What does it mean? This flexible working extension could costs SMEs £69m a year for extra administration and covering and sharing roles, however it will make staff more loyal and feel valued.
What you should do. The new right is only a right to ask. An employer can refuse, but will need a good business case for doing so. Also, the employer has 14 weeks in which to make his or her mind up.
7. From October 12th, the Safeguarding Vulnerable Groups Act will found a central vetting system for anyone who employs people who work with children or vulnerable adults.
What does it mean? Employers can make checks online, however they face a £5,000 fine if they knowingly employ someone on the two lists of barred indiv
iduals, or indeed fail to make the relevant checks.
What you should do. Review your hiring policies to ensure the right checks are being made (and recorded) and those who recruit staff know the ramifications of not doing this correctly.
8. The Equality Bill will streamline nine major laws and a multitude of regulations into a single bill designed to strengthen discrimination laws and address the gender pay gap.
What does it mean? Employers now have the right to positively discriminate in favour of equally qualified, under-represented candidates, and will effectively ban wage ‘secrecy clauses’.
What you should do. Make sure your recruitment and pay policies are watertight because discrimination cases can be extremely costly.
For more information and advice on these issues and for your upcoming summer recruitment needs, please call the specialists at Forties People on 020 7329 4044, or visit us online at www.fortiespeople.com.
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