GUEST BLOG: ‘Are you starting to supply or do you supply temporary workers?’

For many years, it was an accepted industry practice that recruiters would supply labour to hirers using their own terms and conditions. These terms were generally based on the TEAM “model” standard terms and conditions and in it, from an insurance perspective, the recruiter tells the hirer that he doesn't accept responsibility for negligent acts, errors and omissions of the worker supplied.

Providing the recruiter has sourced and supplied the right person for the job, then it is up to the hirer to make sure that the agency worker is doing his job to the hirers satisfaction.

Where the hirer insists his terms and conditions are used rather than the recruiter then the hirer may be looking to be “indemnified” or “covered” in simple English, should the agency worker cause injury or property damage, or make a mistake that costs the hirer money. In these circumstances, the hirer will make a claim against the recruiter and the policy, if set up correctly will protect the recruiter against legal costs or damage claims made against them, where they become legally liable. Therefore it is important that they let insurers know at the start of the policy or at renewal what percentage of turnover is done on standard TEAM terms or hirers non-standard terms. The premium will be calculated based on the percentage mix.

Some policies still insist that cover only applies where standard TEAM terms have been agreed. Be careful to notify insurers, if this changes.

Our Recruiters Choice policy doesn't need you to refer every contract but you must discuss the fact that you do sign or agree non-standard contracts either at the start of the policy or at renewal, or at the first opportunity when you agree to work under clients terms.

Phrases to be aware of that may need you to refer contracts to insurers:-

• Where the hirer wants to be noted as an additional insured or co-insured on the policy
• Where the hirer wants Consequential Loss to be covered
• Where the phrase – unlimited indemnity appears in the contract
• Where the phrase wilful and malicious acts appears in the contact
• Where the legal jurisdiction is other than UK or EU (ie where a claim may be brought against the recruiter)
• Where the business services you are supplying are anything else but labour supply
• Where the contract requires a higher limit of indemnity
• Where the client wants you to cover the error and omission of the worker – this may require Vicarious cover on Professional Indemnity if supplying workers who are providing professional services

If you are starting to supply temporary workers as opposed to permanent workers, there could be many other issues that need reviewing apart from Liability and Professional Indemnity such as Legal Expenses, Employment Disputes and AWR.

It is important to discuss these issues with the broker to ensure the right cover is in place.
Don't rely on the umbrella company or single person Ltd company insurance policy - your name is on the contract.

The golden rule is that if you are unsure, then contact the broker and get a confirmation in writing to state that cover is in place for that contract.

Jelf Manson carries out contract vetting (from an insurance perspective) for all its clients which can assist in a contract tender situation – do not wait until the day before a contract commences as there may be a premium to pay for the higher contract risk, which will eat into your margin.

For more information please contact Cathi Boult at Jelf Manson

0161 245 1274

07818 035 305

Cathi.boult@jelfgroup.com

Jelf Insurance Brokers Ltd* (Reg No. 0837227) is part of Jelf Group plc (Reg No. 2975376) and are registered in England and Wales at Hillside Court, Bowling Hill, Chipping Sodbury, BS37 6JX. *Authorised and regulated by the Financial Services Authority (FSA). Not all products and services offered are regulated by the FSA.

GUEST BLOG - "The day of the Online Brochure is well and truly over" Julia Doherty at Green Umbrella

"The day of the Online Brochure is well and truly over. No longer is it acceptable to have a basic website that just explains what you do and where you are…. that’s very boring and Google agree! Blogs are the new websites. In the words of Paul Chaney they are living, breathing sites, upscale chatrooms and constantly growing newsletters. In essence blogs create vital energy and can help your business to develop and grow.

So, I thought I would put together a list of key tips and tricks to enhance your own blog, so that Google will love it!

1. A business blog should be within your website.

If you are serious about your business, then you need to incorporate your blog within your website rather than on a separate platform. Don’t get me wrong, if you want to have a personal blog to reflect your thoughts and opinions, then feel free to go with blogger or wordpress.com site.

2. WordPress.com V WordPress.org.

Let me explain the difference between these two sites. The main difference is the domain names. ie: if you want a freebie site then go with a wordpress.com site. Your blog address will then look something like this www.joeblogs.wordpress.com, however if you spend a little bit extra then you can download the software for WordPress.org and create a completely unique URL. (like the Green Umbrella site – which is a wordpress.org site).

3. Be consistent in your postings

Tempting as it may be, but please try and be constant in your content. Ie: just because you are interested in Wimbledon, do not write a blog about it on your business site. Think about your target market and why have they subscribed to your site?

4. Mix the style of content

What do I mean by style? People learn in different ways. Therefore on a regular basis I often embed a visual “how to video” into the Green Umbrella Blog, and weekly I will also embed an audioboo (audio podcast) with written show notes. Having a guest blogger on your site will also add variety and a different dimension to your site.

5. No sales pitch allowed.

Ok, this is not completely true as I always recommend a call to action at the end of every blog – but please do not post regular sales pitches into your blog. This is what email marketing is for… not a blog!

6. Remember keywords and backlinks.

A backlink (otherwise known as link-bait or hyperlinks) are an excellent way to help with that all important Google juice. To turn a word into a hyperlink, simply highlight the word then click the cntrl K buttons – then post the URL. It’s highly effective.

7. Maximum of 500 words (in my opinion)

A good blog article should be from 300 - 500 words (give or take). It is quite acceptable to write very short articles (such as two paragraphs). I subscribe to Seth Godins blog (author of The Purple Cow and many others!) and his are often very short.

8. Quality is better than Quantity.

If you are looking for a quality blog then subscribe to Sunil Bali’s blog (click here). I enjoy the humour in his blogs and I look forward to receiving it every Sunday morning (the blog that it is!!!!).

9. Lists, lists and more lists.

List articles like this one, are very popular and easy to read as you can skim through the headers. List and tips are a great way to blog!

10. Import your blog into LinkedIn and Facebook.

If you are going to the trouble of writing a blog article on a regular basis, then you are wasting a valuable opportunity if you have not linked your profile to Facebook, Twitter and LinkedIn! LinkedIn has some great apps – so use them!

11. The title of your blog is important

The title of your blog is the most important part of the article. Make sure that you are using excellent keywords and that you are maximising any Google opportunities.

12. Tip for Article Directories.

If you are uploading your article to any directories (and of course the 4N website as its FREE for members) – what?? you are not putting your articles anywhere else???? Oh no! Well, if you have taken the time to write a fabulous article, then make sure that you also upload to these places to maximise your opportunities for exposure. ezine, go articles,articlebase, 4networking.
Big tip is to make sure that your article is indexed on your own site by Google before you upload anywhere else.

13. Regurgitating other peoples content is a big NO NO

Please do not take credit for others efforts. If you feel the need to share another persons work on your own website then please backlink the original article and give credit to the person who wrote it. The best articles are the unique and original ones that offer some authenticity.

14. Always add a visual

As people like to see something visual, then always try and add a photo (original) or a picture of some kind to draw in the crowd.

For more specialist social media help and assistance you can contact Julia via an array of different marketing channels - namely twitter, facebook, LinkedIn, You Tube, Google Plus, Wordpress etc. Or if you are feeling a little nostalgic, then there is nothing wrong with just calling her on 01604 726758 or 07855 522027 or emailing  julia.doherty@green-umbrella.biz.

Have you heard about our new benefits?

At TEAM, we recognise that employers often spend significant amounts on their staff, but rarely is the true value fully appreciated. In light of this, we have designed a new benefits scheme for both you and your employees, with the aim of enhancing morale and loyalty within your organisation.

In collaboration with TEAM Service Provider EAS, we've spent the last few months producing an exclusive benefits plan for TEAM Member employees and agency workers. The final products are branded under The Employee Benefits Bureau, and our Members will have access to special discounted rates. This is something that we've wanted to do for a long time, and we’re thrilled that we’re now able to offer you even more privileges as part of TEAM.

So what does our Benefits Club mean for you? Well, it provides access to special and exclusive benefits for you, your employees and your agency workers, all for only £40 per month (plus VAT). It offers financial non-salary advantages, gives you access to the best financial advice, and allows you to secure valuable savings on a wide range of products and services.  

Here are just some of the things on offer:

• A free annual benefits audit review to ensure that you continue to get the best possible value for money from your budget
• Access to special facilities and terms so you can gain from goods and services on a cost effective basis
• Access to a full range of compliance services including Jargon Free Benefits (JFB) so that you can be fully compliant with all the new regulations and be up and running in time for your staging date
• A full flexible benefits package via Jargon Free Benefits (JFB) at a fraction of the traditional costs
• Access to the full marketplace of leading product providers via our sister company Executive Advisory Services (EAS), including all of the traditional household names such as Aviva, Axa, Prudential, Scottish Life, as well as some specialist players
• Completely independent advice as EAS is an Independent Financial Advisor
• Discounted implementation rates on a wide range of products and services, such as; 
• Death in service benefits, which is designed to pay out a multiple of salary to the surviving spouse/partner/dependents in the event of death
• Income protection cover/permanent health insurance, which provides an income in the event of long term illness or disability so that you can keep paying your employee until they return to work or reach retirement age
• Critical illness cover which pays out on diagnosis of a wide range of critical illnesses, such as heart attacks, strokes, and cancer
• Pensions
• Keyman insurance and shareholder protection, which provides a lump sum to cushion your business from the full impact of losing someone valuable. Shareholder protection also helps to facilitate the purchase of shares from a deceased shareholder or partners estate/surviving spouse/dependents
• Private medical insurance.

In addition, significant savings can be made on a whole range of online and high street goods including your weekly shop. You can also have personal accident cover, healthcare cash-backs with family options available, individual private medical insurance with AXA, and discounts on financial products and services.
You can find out more information online, where you can also find an application form. You've already joined TEAM, so why not join the Benefits Club and really take advantage of everything that we have to offer. 

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ

Guest Blog: Is the recession really over?

October is the month we heard that the UK is officially now coming out of recession but what does this really mean for supply chain and logistics?
Recent surveys show differences between various sectors.

• Retail employment is growing at its fastest rate in two years but all growth in jobs and shop numbers is coming from the food sector.
• Online grocery is currently just 3% of the overall grocery market but is the fastest-growing sector, estimated to double in value to £11 bn by 2017, in spite of a large number of on line customers regularly experiencing late deliveries and not being informed if the delivery is running late.
• In non food retailing the number of outlets and full-time jobs fell.
• Retail chains shut 30 shops a day in July and August and Argos has announced the closure of 75 stores, with Optical Express closing 40 stores and Comet filing for administration. 
• And yet John Lewis goes from strength to strength, Screwfix has opened its 250th store and Marks & Spencer are seeking to fill 100 graduate roles in logistics.
• In the auto industry, Land Rover and Toyota are performing well but other companies are having problems. Japanese carmakers Nissan and Toyota are cutting production of vehicles in China because of lack of demand and Ford are cutting back on inventory and costs, announcing 1400 redundancies at Dagenham and Southampton, with the closure of the Transit assembly line.

We have seen the collapse of companies such Waverly TBS but there does seem to be a mood of optimism in 3PL, warehousing and distribution. Jack Richards and Potter Group report increased profit. Royal Mail is  to create 1,000 jobs in its parcels business and Marks and Spencer is recruiting 1,000 staff for its new 900,000 sq ft distribution centre at Castle Donington.

Looking across the Job Boards and the increasing number of jobs in supply chain and logistics industry, there is clear evidence that overall the sector is looking forward with confidence to the future.

Terry Abra

JLC Solutions
www.jlc-solutions.co.uk

Self-employed doesn't have to mean you’re on your own

Recent reports that we’re out of recession show that there’s light at the end of the tunnel for many businesses that have been struggling in a difficult market. There has also been a fall in unemployment, which is further good news for the UK’s economy. Interestingly though, it seems that the rise in the number of employed individuals has much to do with them taking control and setting up alone rather than waiting for a full-time permanent job to come up.

This has been helped by the New Enterprise Allowance scheme, whereby 33,000 extra job-seekers are given expert coaching and financial support to set up their own business. Individuals have instant access to support when they claim Jobseekers Allowance, rather than having to spend six months on benefits before they qualify for start up money. Also, job-seekers interested in setting up their own business are teamed up with a mentor, giving them invaluable guidance in drawing up a business plan.

It’s clear that this scheme will be of huge benefit to many budding entrepreneurs, as setting up your own business can be a fantastic alternative to traditional employment. But it can also be extremely daunting, so the support element provided by the Government is invaluable.

And this is something that we really recognise at TEAM – advice and guidance from others is fundamental for your business. Many of our recruiters are boutique and specialist, often with only a few employees. Therefore, it can be extremely difficult when it comes to keeping up with changes in legislation, for example.

We know that the support element of TEAM is actually one of the main reasons for becoming a member. In fact, we recently spoke to an independent recruiter who had come back into the industry after a long break. She told us that all of the new changes were extremely overwhelming, creating extra stress and anxiety. Since joining TEAM in September though, she doesn't feel on her own anymore, and has found allies in our other members that are going through exactly the same experiences.

Our meetings allow recruiters to discuss problems and offer advice amongst each other, because sometimes you just want to talk to people going through the same things as you. We also host presentations from experts on complex topics such as Umbrella companies, which always create brilliant discussions that everyone can benefit from.

So, if you’re just starting out on your own in recruitment, don’t struggle in silence. Even though you’re self-employed, it doesn't mean you have to go it alone, and the right support will put you in a much greater position.

Liz Longman
www.jobsatteam.com

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ

Guest Blog from Hewett Recruitment: Warning regarding some recruitment agencies using travel and subsistence schemes for low paid workers.

A recent investigation on Radio 5 live exposed some employment businesses using Travel and Subsistence schemes as a tax loop hole.

Travel and subsistence payments can be made perfectly legitimately were the worker is genuinely incurring costs for travelling to different temporary places of work and receipts are produced as evidence. The problem lies where the scheme is not used for the purposes it was originally intended.  The main concerns are where low paid temporary workers are encouraged to join a scheme that is not relevant to them and doesn’t benefit them in any way, in fact they could be faced with a huge tax bill at the end of the day.  According to the report, these agencies are playing roulette with temps taxes to either increase their own margins or drive down costs to compete for business.  Payment is made through an umbrella or payroll company which in some cases is also owned by the employment business.  Low paid workers who live round the corner from their workplace and take sandwiches to work should not be included in this kind of scheme and are unlikely to be able to produce the relevant receipts required by the HMRC.

Most employers are trying to drive down costs and some of these deals may seem too good to be true, but on closer investigation they could be potentially dangerous both from an HMRC point of view,  if they consider the agency worker has been misled and damaging to an employer’s desire to be seen as an ‘employer of choice’.

Kevin Green from the Recruitment & Employment Confederation -the recruitment industry’s  governing body - was also interviewed on the 5 live programme and explained that they are in contact with the HMRC and have told them that they are very unhappy with the way schemes are being operated and pointed out that it is up to the HMRC to resolve and enforce this issue.

The Low Income Tax Reform Group also commented in a recent article, "We have little doubt that schemes which misrepresent the nature of the employment, or exaggerate the travel expenses incurred, exploit workers by putting them at serious risk of investigative action not only by HMRC but also the DWP."

For further information contact Louise Hewett – louise@hewett-recruitment.co.uk

Louise Hewett

www.hewett-recruitment.co.uk

Guest Blog: J1 CONSULTING & EX MILITARY HIRES What we can do for other TEAM members

J1 Consulting is relatively new to TEAM, and our membership is proving very productive.  However, it has become apparent that there is a lot of misunderstanding amongst other members about ex-military, and thus how we can help fill your roles.  That’s certainly no criticism in a country where an estimated 70% have never met a member of the Armed Forces, and the purpose of this short article is to dispel such misunderstanding.

What springs to mind when you think of the Armed Forces? 

Probably that sweating, overloaded Infantryman in Afghanistan.  But......

• How did he get there?   Someone organises the rotation of everybody within the 9500 strong force at their 6 month point, arranges transportation and ensures the availability of trained replacements.
• How is he fed and watered?  He (also of course in many roles she – though not the Infantry) must have fuel, food, ammunition and water to survive.  That’s a critical Supply Chain commitment, with local Procurement / Purchasing of some needs. 
• What about Vehicles, Weapons & Aircraft?  They lead a tough life – spares must be held, issued and accounted for, whilst Preventive & Repair Maintenance is ongoing. 
• Who tells him what to do?  Planners and Project Managers assist senior Officers in devising operational plans and ensuring these are resourced, with direction flowing down through a hierarchy of highly trained Team Leaders.
• How does he Communicate?  Via state of the art IT / Telecoms Systems that need to function 24 / 7. 
• Where is he based?  Possibly at Camp Bastion, which can accommodate up to 28000 people and handles 600 flights a week.  All the necessary infrastructure was constructed by the military, including roads, bridges, runways and water facilities.
• How is he looked after?  The necessary HR, Pay and Administrative functions are conducted in country – plus there are first class medical facilities should he be injured.
• The overlap of many of these specific skills with parallel civilian roles is obvious.
• At J1 Consulting, whilst we can source Operatives we tend to focus on Executives, Managers and Supervisors.  There’s a good reason: from Learn Direct’s ‘Work Ready’ report of May 2012, explaining £270m of wasted UK recruitment costs. ‘Advertisements are often too job specific, focusing too much on qualifications and experience rather than transferable skills such as time management, people skills and problem solving’ 

These are exactly the attributes that experienced, professionally vetted ex military offer – and it takes TIME to evolve them: much longer than to acquire sufficient experience to begin functioning effectively in a new sector.  We can also access candidates who have established successful commercial careers since leaving the military.

The Armed Forces are a much misunderstood (and thus under-utilised) Talent Pool – and real Talent is scarce.  At J1 we have both the military and the business experience to help Clients (and TEAM members) find a genuine Candidate fit from amongst what is also a very deserving community.  We operate on a purely Contingent basis.

Let us try and help you with your next problematic role – you might be very surprised!   Russ Tudge has specific responsibility within J1 for liaising with TEAM members, so do get in contact if you feel he can help or advise.  Russ is on 07412 542019 or r.tudge@j1consulting.co.uk.  

Nick Everard is Managing Director of J1 Consulting Ltd.  He is a former Army Lieutenant Colonel, Managing Director within the FTSE 100 Capita Group and member of the Board which sold the well known Adventure Travel business ‘World Challenge’ to the TUI Group in 2008.

n.everard@j1consulting.co.uk                                                                                  

Guest Blog: The Top 10 Irritating Things We See on CVs

Let’s face it, recruiters get a hard time.  The industry battles with bad press, a perception that it’s all about fees and we’re in the pub by lunchtime on a Friday. If only! It’s more like a plate-spinning marathon, juggling the client’s wish list against the deluge of candidate applications.  Some of these CVs and applications can range from entertaining to frustrating to downright baffling.

ISV Software asked the Recruitment and HR industry* to share the most irritating things you see on CVs. Here are the Top 10 howlers (now can someone just tell the candidates!) 

•  Spelling and Grammar Errors – far and away the most popular gripe. It shows lack of attention and time spent on the document. Favourites include a candidate who had worked at ‘Goldman Sucks’ and, from a TEAM discussion on LinkedIn earlier this year, a candidate who interacted well with ‘steakholders’.
• Photos – anyone for candidate’s holiday snaps, their wedding photo or adopting the ‘Hire me- I’m very professional’ pose?

• Cheesy phrases that add nothing of value – how many candidates have “excellent interpersonal skills” or “work well on their own and as part of a team”? What does this really tell you?
• Dear Sir - or Mr when you’re a woman and vice versa, this was even more contentious when the candidate has access to your name. Although one contributor was addressed as ‘Lady’ which they thought put a new spin on the introduction.
• Obscure formatting – different fonts, line spacing, random capitalisation… Not only does this make the CV look like a ‘cut and paste’ job, it makes it difficult to extract the relevant information.
• Lack of quantifiable achievements - candidates who simply churn out their job spec rather than outlining contributions make the job so much harder.
• Irrelevant information or experience – a waitress applying for a procurement role, a credit controller going for a PR job… why? If there are relevant skills, the CV should be tailored to highlight these. If not, then don’t waste our time!
• Generic cover notes – a template cover letter or email taken from the internet. You’ve seen them before and they get pretty tiresome. Plus they sometimes make you wonder if the candidate has read the job spec at all!
• Gaps in employment – you’ll spot them a mile away and are going to ask the question. It would be handy if the candidate could just address this from the outset.
• Too much or incorrect personal information – date of birth, marital status, religious beliefs; it’s all information that needs deleting before the CV can be submitted to the client. Worse still, out of service phone numbers or old emails so you can’t make contact.

*information gained from social media polls and discussion groups including the TEAM LinkedIn Group.

Amanda Davies

Sales & Marketing Director

ISV Group

Guest Blog: ‘Are you starting to supply or do you supply temporary workers ?’

For many years, it was an accepted industry practice that recruiters would supply labour to hirers using their own terms and conditions. These terms were generally based on the REC “model” standard terms and conditions and in it, from an insurance perspective, the recruiter tells the hirer that he doesn’t accept responsibility for negligent acts, errors and omissions of the worker supplied.

Providing the recruiter has sourced and supplied the right person for the job, then it is up to the hirer to make sure that the agency worker is doing his job to the hirers satisfaction.

Where the hirer insists his terms and conditions are used rather than the recruiter then the hirer may be looking to be “indemnified” or “covered” in simple English, should the agency worker cause injury or property damage, or make a mistake that costs the hirer money. In these circumstances, the hirer will make a claim against the recruiter and the policy, if set up correctly will protect the recruiter against legal costs or damage claims made against them, where they become legally liable. Therefore it is important that they let insurers know at the start of the policy or at renewal what percentage of turnover is done on standard REC terms or hirers non-standard terms. The premium will be calculated based on the percentage mix.

Some policies still insist that cover only applies where standard REC terms have been agreed. Be careful to notify insurers, if this changes.

Our Recruiters Choice policy doesn’t need you to refer every contract but you must discuss the fact that you do sign or agree non-standard contracts either at the start of the policy or at renewal, or at the first opportunity when you agree to work under clients terms.

Phrases to be aware of that may need you to refer contracts to insurers:-

• Where the hirer wants to be noted as an additional insured or co-insured on the policy
• Where the hirer wants Consequential Loss to be covered
• Where the phrase – unlimited indemnity appears in the contract
• Where the phrase wilful and malicious acts appears in the contact
• Where the legal jurisdiction is other than UK or EU (ie where a claim may be brought against the recruiter)
• Where the business services you are supplying are anything else but labour supply
• Where the contract requires a higher limit of indemnity
• Where the client wants you to cover the error and omission of the worker – this may require Vicarious cover on Professional Indemnity if supplying workers who are providing professional services

If you are starting to supply temporary workers as opposed to permanent workers, there could be many other issues that need reviewing apart from Liability and Professional Indemnity such as Legal Expenses, Employment Disputes and AWR.

It is important to discuss these issues with the broker to ensure the right cover is in place.
Don't rely on the umbrella company or single person Ltd company insurance policy - your name is on the contract.

The golden rule is that if you are unsure, then contact the broker and get a confirmation in writing to state that cover is in place for that contract.

Jelf Manson carries out contract vetting (from an insurance perspective) for all its clients which can assist in a contract tender situation – do not wait until the day before a contract commences as there may be a premium to pay for the higher contract risk, which will eat into your margin.

For more information please contact

Cathi Boult

0161 245 1274

07818 035 305

Cathi.boult@jelfgroup.com

Jelf Insurance Brokers Ltd* (Reg No. 0837227) is part of Jelf Group plc (Reg No. 2975376) and are registered in England and Wales at Hillside Court, Bowling Hill, Chipping Sodbury, BS37 6JX. *Authorised and regulated by the Financial Services Authority (FSA). Not all products and services offered are regulated by the FSA.

How much do you know about RTI?

You might be aware of changes that are being introduced regarding HMRC. In fact, even though the new system won’t be implemented until April 2013, some organisations are already involved in pilot schemes. But, if you aren’t familiar with the changes, you’re not alone. And it’s not too late to get to grips with it to ensure that your business is prepared.

So, next year, the introduction of Real-Time Information (RTI) will mean that employers tell HMRC about the tax, National Insurance contributions (NICs) and any other deductions when or before payment is made to employees, rather than waiting until the end of the tax year. This will mean that an electronic PAYE return must be filed every time employees are paid, but it won’t affect self-employed workers, such as contractors.

The idea behind this is to improve the way the PAYE system operates and make it more accurate for both employees and employers. Although potentially daunting, the whole process will become less of a burden. It removes the need for the end of year return (forms P35 and P14) and will also simplify the employee starting and leaving process.

And there are other benefits. PAYE will become more accurate for individuals, there will be a reduction in the number of bills and repayments sent after the end of the tax year, it will be easier for HMRC to pursue late payments effectively, and we’ll see a reduction in Tax Credits errors and fraud.

However, as with any new legislation, we can’t pretend that it’s going to be easy for business owners to adapt to the changes. Payroll can be a complex process and RTI will undoubtedly add to its challenges. At first, it’s likely to bring in extra admin work, and it will take some time to get used to, particularly for smaller organisations.

Other potential issues for you to be aware of are possible cashflow problems if immediate payment is needed, particularly if there is a ‘pay when paid’ contract. There’s also the worry of facing financial penalties and inspections if it isn’t implemented correctly, which puts greater pressure on businesses.

Over time though, RTI reporting will become an integral part of an employer’s normal payroll activity – it will just take some getting used to. And, if you start preparing sooner rather than later, it won’t be as much as a shock for you. You should start by looking closely at your payroll processes and systems. Are they able to cope with RTI?

If you currently process payroll in-house, your software will probably need to be upgraded to meet the new requirements, but speak to your software providers about this for some advice. It may also be worth you considering outsourcing, which would take the pressure off of you.

Unfortunately, changes such as this can’t be avoided, but if you start thinking about it now, you’ve got time to weigh up the options – don’t leave it until it’s too late. Over time you’ll see the benefits, but it just takes a little bit of adjustment and planning. And remember that you’re not on your own. You may be a boutique recruiter, but by being part of TEAM you have that support network, so make sure to share any concerns with fellow members. Chances are, they’ll be feeling the same as you!

Liz Longman
www.jobsatteam.com

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ

Guest Blog: Is giving up your employment rights for a share in the business really the way ahead?

It’s that time of year again when media headlines are buzzing with proposals from the recent political Party Conferences. One proposal that has attracted column inches and is very likely to interest those working in the Employment Agency sector are George Osbourne’s plans to introduce new owner-employee contracts of employment. Indeed, if implemented, it could impact you directly as an employer but it will almost certainly also affect the way your end user clients engage with individuals.

Under the radical new plans, employees will effectively give up certain rights in return for shares in the business (of between £2,000 and £50,000). It is intended that the rights to be sacrificed will include the ability to claim unfair dismissal, to be entitled to a redundancy payment, to make a request for flexible working and also to request time off for training. In addition, women will be required to provide more notice of their intention to return from maternity leave.  

At first glance the concept and the stated reasoning behind it appear attractive, particularly the argument that employees would feel more engaged in a business (as they would have a personal interest in how well it performs).  A point further boosted by the indications that there will be associated tax incentives. In addition, giving up certain rights surely means a more flexible relationship with less expensive and time consuming claims which has to be a good thing surely?

Unfortunately, digging slightly deeper I think it is clear that the proposals will actually be unworkable both practically and legally and will also end up costing many employers more in the long run. All this without even going down the road the Unions have as to whether it is ‘morally right’ to allow employers to get round basic rights or how you increase flexibility by removing an employee’s right to seek flexible working!

For starters, employers will need to consider the cost benefit in offering shareholdings against the cost of implementing such a scheme.  Recent statistics have indicated that the average unfair dismissal award is £9,000 and so it is arguable whether employers will actually save money by preventing employees from bringing claims (particularly where they are granting shareholdings towards the £50,000 mark).

Another real concern centres on whether employees will be required to take advice before signing away their rights.  Currently, the law requires employees to seek independent legal advice before they can agree to waive their employment rights.  It is not clear if this will continue to be the case and if so who will pay for the advice (although it is likely this will fall to the employer).  Alternatively the law may be changed which will no doubt leave employees in a vulnerable position particularly in light of current the desperation in the job market. Another point the Unions are worried about.

The preparation of the owner-employee contracts is also likely to increase red tape as opposed to cutting it, as employers will not only need to deal with the employment relationship in the contract but also the shareholder relationship. This leads on to questions as to whether owner-employees will be able to sell their shares if they leave the business and if so at what price.  This point will particularly problematic where the parting of ways is acrimonious as the employer and employee will almost certainly have very different ideas as to what the shares are worth. Valuations generally cost money and it is likely to be just one more point to argue over. All good business for lawyers but not for the parties involved.

The biggest issue may however be the fact that employees will still be able to bring claims in respect of discrimination and automatically unfair dismissals (for example for blowing the whistle). In practice it is difficult to see an employee who is particularly aggrieved at the manner of parting not seeking to exploit any other route for redress open to them. As anyone who has ever been involved in a discrimination or automatically unfair dismissal claims knows, they tend to be more costly and difficult to deal with. Accordingly we could just be swapping a more straight forward dispute for a more difficult and costly one.

So whilst I think credit should be given to the Government for at least trying to find a solution to the red tape faced by businesses and a way out of the current economic difficulties I think they may need to go back to the drawing board on this one.   

Leon Deakin

Associate

for and on behalf of Thomas Eggar LLP

www.thomaseggar.com

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ

What to remember when working with other agencies

TEAM Members represent a powerful UK wide network and we are very proud of our ever-growing community of independent recruiters. We feel that as a collaborative group, our Members have far more to offer when compared to some of  the larger Plc’s which often resort to ridiculously low fees in order to win business, quantity over quality!  We have had some fantastic examples of successful split-fee campaigns, but to make sure all our Members really get the most out of working together, here are a few things to remember when fee-sharing.

Agree everything up front

In order to ensure there is complete transparency between all involved, make sure you agree everything up front and confirm the same in writing, including the percentage fee split, the terms agreed with the client, the role each side will take, and what you both  deem a successful outcome. TEAM does supply a co-operation agreement which we would highly recommend using. 

Be open

The network, although guided by the TEAM Constitution and Code, is about honesty and trust. All our Members have joined for similar reasons and they are all striving for the same end goal: to be successful independent recruiters. So make sure you are honest with each other when it comes to fee-sharing. Voice any concerns before making any formal agreement to make sure all parties will benefit and are happy with any arrangements.

Seek advice if needed

Finally, but perhaps most importantly, seek advice from other Members, our dedicated legal teams and of course the TEAM Head Office. If you are unsure how fee sharing works just ask any of us or come along to any of our events and speak to others to find out how you can benefit. And of course, don’t forget to share your success with us in our quarterly TEAM Xchange competition to be in for a chance of winning a fantastic prize!

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ

Managing fee disputes – keep a paper trail

We had another successful TEAM meeting in London last week with the Executive and Specialist Recruitment  group coming together to share ideas and network. The conversations were extremely energetic and we were all very encouraged by the vast number of split fee opportunities shared at the beginning.

However, one new theme which went down a treat was sharing best practice when it comes to working better and smarter as recruiters. It was from these discussions that the issue of how to manage fee disputes cropped up. With the economic situation leading to businesses tightening budgets and looking to reduce costs in every possible aspect, it’s safe to say that we've all faced tough negotiations for work.

What we all seem to be facing, though, are even further challenges once placements have been made. There was a lot of talk about clients challenging or refusing to pay invoices which have been submitted – something which can have a huge impact on independent recruiters. 

At TEAM we understand that when it comes to fee disputes it’s often difficult and expensive to seek legal advice. As such, we have a free legal advice line available to all members, so if you are in the situation where you need legal help, do contact the helpline.

Obviously, though, prevention is the best solution and this situation is something which we all wish to avoid. And whilst you can’t stop clients from being difficult, you can make sure you have the documentation you need to ensure you get paid. Make sure that any agreement is written down in an email or letter so when clients challenge you, you’re able to present them with the original agreement. If any conversations happen over the phone, make sure you follow up with an email outlining the main points. This note only gives you a record for the future, but provides an opportunity to clarify the conversation and ensure noting was misconstrued.

I would advise anyone to do this regardless of the relationship they have with their client. There have been cases of long standing clients suddenly challenging invoices so never rely solely on previous experiences – you never know what can happen in this turbulent climate!  

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ