Overview

In

employment

law

a

person

’s

employment

status

helps

determine

their

rights

their

employer

’s

responsibilities

A

person

may

have

a

different

employment

status

in

tax

law

The

main

types

of

employment

status

are

worker

employee

self

employed

and

contractor

director

office

holder

Contact

Acas

or

the

Labour

Relations

Agency

in

Northern

Ireland

for

advice

about

employment

status

employee

rights

or

employer

responsibilities

Courts

and

tribunals

can

make

final

decisions

on

employment

status

Worker

A

person

is

generally

classed

as

a

worker

if

they

have

a

contract

or

other

arrangement

to

do

work

or

services

personally

for

a

reward

your

contract

does

n’t

have

to

be

written

their

reward

is

for

money

or

a

benefit

in

kind

for

example

the

promise

of

a

contract

or

future

work

they

only

have

a

limited

right

to

send

someone

else

to

do

the

work

subcontract

they

have

to

turn

up

for

work

even

if

they

do

n’t

want

to

their

employer

has

to

have

work

for

them

to

do

as

long

as

the

contract

or

arrangement

lasts

they

are

n’t

doing

the

work

as

part

of

their

own

limited

company

in

an

arrangement

where

the

employer

is

actually

a

customer

or

client

Employment

rights

Workers

are

entitled

to

certain

employment

rights

including

getting

the

National

Minimum

Wage

protection

against

unlawful

deductions

from

wages

the

statutory

minimum

level

of

paid

holiday

the

statutory

minimum

length

of

rest

breaks

to

not

work

more

than

hours

on

average

per

week

or

to

opt

out

of

this

right

if

they

choose

protection

against

unlawful

discrimination

protection

for

whistleblowing

reporting

wrongdoing

in

the

workplace

to

not

be

treated

less

favourably

if

they

work

part

time

They

may

also

be

entitled

to

Statutory

Sick

Pay

Statutory

Maternity

Pay

Statutory

Paternity

Pay

Statutory

Adoption

Pay

Shared

Parental

Pay

Agency

workers

have

specific

rights

from

the

first

day

at

work

Workers

usually

are

n’t

entitled

to

minimum

notice

periods

if

their

employment

will

be

ending

for

example

if

an

employer

is

dismissing

them

protection

against

unfair

dismissal

the

right

to

request

flexible

working

time

off

for

emergencies

Statutory

Redundancy

Pay

Casual

or

irregular

work

Someone

is

likely

to

be

a

worker

if

most

of

these

apply

they

occasionally

do

work

for

a

specific

business

the

business

does

n’t

have

to

offer

them

work

and

they

do

n’t

have

to

accept

it

they

only

work

when

they

want

to

their

contract

with

the

business

uses

terms

like

casual

freelance

zero

hours

as

required

or

something

similar

they

had

to

agree

with

the

business

’s

terms

and

conditions

to

get

work

either

verbally

or

in

writing

they

are

under

the

supervision

or

control

of

a

manager

or

director

they

ca

n’t

send

someone

else

to

do

their

work

the

business

deducts

tax

and

National

Insurance

contributions

from

their

wages

the

business

provides

materials

tools

or

equipment

they

need

to

do

the

work

Employee

An

employee

is

someone

who

works

under

an

employment

contract

A

person

may

be

an

employee

in

employment

law

but

have

a

different

status

for

tax

purposes

Employers

must

work

out

each

worker

’s

status

in

both

employment

law

and

tax

law

Employment

rights

All

employees

are

workers

but

an

employee

has

extra

employment

rights

and

responsibilities

that

do

n’t

apply

to

workers

who

are

n’t

employees

These

rights

include

all

of

the

rights

workers

have

and

Statutory

Sick

Pay

statutory

maternity

paternity

adoption

and

shared

parental

leave

and

pay

workers

only

get

pay

not

leave

minimum

notice

periods

if

their

employment

will

be

ending

for

example

if

an

employer

is

dismissing

them

protection

against

unfair

dismissal

the

right

to

request

flexible

working

time

off

for

emergencies

Statutory

Redundancy

Pay

Some

of

these

rights

require

a

minimum

length

of

continuous

employment

before

an

employee

qualifies

for

them

An

employment

contract

may

state

how

long

this

qualification

period

is

Working

out

employment

status

for

an

employee

Someone

who

works

for

a

business

is

probably

an

employee

if

most

of

the

following

are

true

they

’re

required

to

work

regularly

unless

they

’re

on

leave

for

example

holiday

sick

leave

or

maternity

leave

they

’re

required

to

do

a

minimum

number

of

hours

and

expect

to

be

paid

for

time

worked

a

manager

or

supervisor

is

responsible

for

their

workload

saying

when

a

piece

of

work

should

be

finished

and

how

it

should

be

done

they

ca

n’t

send

someone

else

to

do

their

work

they

get

paid

holiday

they

’re

entitled

to

contractual

or

Statutory

Sick

Pay

and

maternity

or

paternity

pay

they

can

join

the

business

’s

pension

scheme

the

business

’s

disciplinary

and

grievance

procedures

apply

to

them

they

work

at

the

business

’s

premises

or

at

an

address

specified

by

the

business

their

contract

sets

out

redundancy

procedures

the

business

provides

the

materials

tools

and

equipment

for

their

work

they

only

work

for

the

business

or

if

they

do

have

another

job

it

’s

completely

different

from

their

work

for

the

business

their

contract

statement

of

terms

and

conditions

or

offer

letter

which

can

be

described

as

an

employment

contract

uses

terms

like

employer

and

employee

If

most

of

these

do

n’t

apply

you

should

work

out

if

the

person

is

self

employed

Individuals

and

their

employers

may

have

to

pay

unpaid

tax

and

penalties

or

lose

entitlement

to

benefits

if

their

employment

status

is

wrong

Employee

shareholders

An

employee

shareholder

is

someone

who

works

under

an

employment

contract

and

owns

at

least

worth

of

shares

in

the

employer

’s

company

or

parent

company

Employment

rights

Employee

shareholders

have

most

of

the

same

employment

rights

as

workers

and

employees

They

also

have

the

right

to

collective

redundancy

consultation

and

transfer

of

undertakings

TUPE

this

protects

the

employee

’s

terms

and

conditions

when

the

business

is

transferred

to

a

new

owner

Employee

shareholders

do

n’t

have

these

rights

protection

against

unfair

dismissal

apart

from

dismissal

on

grounds

of

discrimination

and

in

relation

to

health

and

safety

statutory

redundancy

pay

the

right

to

request

flexible

working

except

in

the

weeks

after

returning

from

parental

leave

certain

statutory

rights

to

request

time

off

for

training

Employee

shareholders

must

give

weeks

notice

if

they

want

to

come

back

early

from

maternity

leave

additional

paternity

leave

and

adoption

leave

Employers

can

choose

more

generous

employment

rights

than

the

statutory

ones

Tax

relief

and

obligations

Employee

shareholders

can

get

tax

relief

on

the

first

of

shares

they

get

before

December

Employee

shareholders

must

pay

tax

on

buying

and

selling

shares

HM

Revenue

and

Customs

HMRC

has

further

guidance

on

tax

relief

for

employee

shareholders

Applying

for

employment

shareholder

jobs

Anyone

can

apply

for

an

employee

shareholder

job

People

claiming

Jobseeker

’s

Allowance

do

n’t

have

to

apply

for

an

employee

shareholder

job

that

Jobcentre

Plus

have

told

them

about

Existing

employees

do

n’t

have

to

accept

a

change

to

an

employment

contract

to

become

an

employee

shareholder

if

they

do

n’t

want

to

Offering

employment

shareholder

status

Employers

must

following

certain

rules

when

offering

employment

shareholder

status

to

their

employees

Self

employed

and

contractor

A

person

is

self

employed

if

they

run

their

business

for

themselves

and

take

responsibility

for

its

success

or

failure

Self

employed

workers

are

n’t

paid

through

PAYE

and

they

do

n’t

have

the

employment

rights

and

responsibilities

of

employees

Someone

can

be

both

employed

and

self

employed

at

the

same

time

for

example

if

they

work

for

an

employer

during

the

day

and

run

their

own

business

in

the

evenings

Employment

rights

Employment

law

does

n’t

cover

self

employed

people

in

most

cases

because

they

are

their

own

boss

However

if

a

person

is

self

employed

they

still

have

protection

for

their

health

and

safety

and

in

some

cases

protection

against

discrimination

their

rights

and

responsibilities

are

set

out

by

the

terms

of

the

contract

they

have

with

their

client

Working

out

if

someone

is

self

employed

HM

Revenue

and

Customs

HMRC

may

regard

someone

as

self

employed

for

tax

purposes

even

if

they

have

a

different

status

in

employment

law

Employers

should

check

if

a

worker

is

self

employed

in

tax

law

whether

they

’re

exempt

from

PAYE

employment

law

whether

they

have

an

employee

’s

rights

Individuals

and

their

employers

may

have

to

pay

unpaid

tax

and

penalties

or

lose

entitlement

to

benefits

if

their

employment

status

is

wrong

Checking

if

they

’re

exempt

from

PAYE

Someone

is

probably

self

employed

and

should

n’t

be

paid

through

PAYE

if

most

of

the

following

are

true

they

’re

in

business

for

themselves

are

responsible

for

the

success

or

failure

of

their

business

and

can

make

a

loss

or

a

profit

they

can

decide

what

work

they

do

and

when

where

or

how

to

do

it

they

can

hire

someone

else

to

do

the

work

they

’re

responsible

for

fixing

any

unsatisfactory

work

in

their

own

time

their

employer

agrees

a

fixed

price

for

their

work

it

does

n’t

depend

on

how

long

the

job

takes

to

finish

they

use

their

own

money

to

buy

business

assets

cover

running

costs

and

provide

tools

and

equipment

for

their

work

they

can

work

for

more

than

one

client

You

can

check

someone

’s

employment

status

online

by

phone

There

are

special

rules

for

businesses

supplying

workers

for

example

an

employment

agency

Checking

their

employment

rights

Someone

is

probably

self

employed

and

does

n’t

have

the

rights

of

an

employee

if

they

’re

exempt

from

PAYE

and

most

of

the

following

are

also

true

they

put

in

bids

or

give

quotes

to

get

work

they

’re

not

under

direct

supervision

when

working

they

submit

invoices

for

the

work

they

’ve

done

they

’re

responsible

for

paying

their

own

National

Insurance

and

tax

they

do

n’t

get

holiday

or

sick

pay

when

they

’re

not

working

they

operate

under

a

contract

sometimes

known

as

a

contract

for

services

or

consultancy

agreement

that

uses

terms

like

self

employed

consultant

or

an

independent

contractor

Contractors

A

contractor

can

be

self

employed

a

worker

or

an

employee

if

they

work

for

a

client

and

are

employed

by

an

agency

There

’s

a

special

scheme

for

self

employed

contractors

and

sub

contractors

working

in

the

construction

industry

called

the

Construction

Industry

Scheme

CIS

If

someone

becomes

self

employed

A

worker

must

tell

HMRC

if

they

become

self

employed

Director

Company

directors

run

limited

companies

on

behalf

of

shareholders

Directors

have

different

rights

and

responsibilities

from

employees

and

are

classed

as

office

holders

for

tax

and

National

Insurance

contribution

purposes

If

a

person

does

other

work

that

’s

not

related

to

being

a

director

they

may

have

an

employment

contract

and

get

employment

rights

Office

holder

A

person

who

’s

been

appointed

to

a

position

by

a

company

or

organisation

but

does

n’t

have

a

contract

or

receive

regular

payment

may

be

an

office

holder

This

includes

statutory

appointments

such

as

registered

company

directors

or

secretaries

board

members

of

statutory

bodies

or

crown

appointments

appointments

under

the

internal

constitution

of

an

organisation

such

as

club

treasurers

or

trade

union

secretaries

appointments

under

a

trust

deed

such

as

trustees

ecclesiastical

appointment

such

as

members

of

the

clergy

Office

holders

are

neither

employees

nor

workers

However

it

’s

possible

for

someone

to

be

an

office

holder

and

an

employee

if

they

have

an

employment

contract

with

the

same

company

or

organisation

that

meets

the

criteria

for

employees

Working

out

employment

status

for

an

office

holder

Someone

is

likely

to

be

an

office

holder

if

most

of

these

statements

apply

to

them

there

is

no

contract

or

service

agreement

relating

to

their

appointment

their

duties

are

minimal

and

are

only

those

required

under

the

relevant

statute

constitution

or

trust

deed

they

do

n’t

get

a

salary

or

any

other

form

of

regular

payment

for

their

services

the

only

payment

they

get

is

a

voluntary

payment

honorarium

regardless

of

the

work

they

do

tax

and

National

Insurance

are

deducted

by

the

appointing

body

they

’re

effectively

working

as

an

independent

office

and

are

not

under

the

close

supervision

or

control

of

the

appointing

body

Legal

decisions

on

employment

status

A

court

or

employment

tribunal

known

as

an

industrial

tribunal

in

Northern

Ireland

can

make

a

final

decision

on

employment

status

for

employment

rights

purposes

They

’ll

look

at

how

the

employment

relationship

between

the

person

and

the

business

works

in

practice

HM

Revenue

and

Customs

HMRC

may

separately

argue

that

someone

is

self

employed

for

tax

purposes

This

may

be

confirmed

by

the

tax

tribunal

and

the

courts

An

employment

tribunal

or

court

may

still

make

a

decision

that

someone

is

a

worker

or

employee

for

employment

rights

purposes


Overview

You

ca

n’t

work

more

than

hours

a

week

on

average

normally

averaged

over

weeks

This

law

is

sometimes

called

the

working

time

directive

or

working

time

regulations

You

can

choose

to

work

more

by

opting

out

of

the

hour

week

If

you

’re

under

you

ca

n’t

work

more

than

hours

a

day

or

hours

a

week

Exceptions

You

may

have

to

work

more

than

hours

a

week

on

average

if

you

work

in

a

job

where

hour

staffing

is

required

in

the

armed

forces

emergency

services

or

police

in

security

and

surveillance

as

a

domestic

servant

in

a

private

household

as

a

seafarer

sea

fisherman

or

worker

on

vessels

on

inland

waterways

where

working

time

is

not

measured

and

you

’re

in

control

eg

you

’re

a

managing

executive

with

control

over

your

decisions

Contact

the

Acas

helpline

or

use

the

Acas

Helpline

Online

to

get

further

advice

on

working

hours

Calculating

your

working

hours

Average

working

hours

are

calculated

over

a

reference

period

normally

weeks

This

means

you

can

work

more

than

hours

one

week

as

long

as

the

average

over

weeks

is

less

than

hours

a

week

Your

working

hours

ca

n’t

be

averaged

out

if

you

’re

under

You

ca

n’t

work

more

than

hours

in

any

one

week

Exceptions

Some

jobs

have

different

reference

periods

eg

trainee

doctors

have

a

week

reference

period

the

offshore

oil

and

gas

sector

has

a

week

reference

period

What

counts

as

work

A

working

week

includes

job

related

training

time

spent

travelling

if

you

travel

as

part

of

your

job

eg

sales

rep

working

lunches

eg

business

lunches

time

spent

working

abroad

paid

overtime

unpaid

overtime

you

’re

asked

to

do

time

spent

on

call

at

the

workplace

any

time

that

is

treated

as

working

time

under

a

contract

travel

between

home

and

work

at

the

start

and

end

of

the

working

day

if

you

do

n’t

have

a

fixed

place

of

work

What

does

n’t

count

as

work

A

working

week

does

n’t

include

time

you

spend

on

call

away

from

the

workplace

breaks

when

no

work

is

done

eg

lunch

breaks

travelling

outside

of

normal

working

hours

unpaid

overtime

you

’ve

volunteered

for

eg

staying

late

to

finish

something

off

paid

or

unpaid

holiday

travel

to

and

from

work

if

you

have

a

fixed

place

of

work

You

have

more

than

one

job

Your

combined

working

hours

should

n’t

be

more

than

hours

a

week

on

average

If

you

work

more

than

hours

on

average

you

can

either

sign

an

opt

out

agreement

reduce

your

hours

to

meet

the

hour

limit

Opting

out

of

the

hour

week

You

can

choose

to

work

more

than

hours

a

week

on

average

if

you

’re

over

This

is

called

opting

out

Your

employer

can

ask

you

to

opt

out

but

you

ca

n’t

be

sacked

or

treated

unfairly

for

refusing

to

do

so

You

can

opt

out

for

a

certain

period

or

indefinitely

It

must

be

voluntary

and

in

writing

Workers

who

ca

n’t

opt

out

You

ca

n’t

opt

out

of

the

hour

week

if

you

’re

airline

staff

a

worker

on

ships

or

boats

a

worker

in

the

road

transport

industry

eg

delivery

drivers

except

for

drivers

of

vehicles

under

tonnes

using

GB

Domestic

drivers

hours

rules

other

staff

who

travel

in

and

operate

vehicles

covered

by

EU

rules

on

drivers

hours

eg

bus

conductors

a

security

guard

on

a

vehicle

carrying

high

value

goods

Cancelling

an

opt

out

agreement

You

can

cancel

your

opt

out

agreement

whenever

you

want

even

if

it

’s

part

of

your

employment

contract

You

must

give

your

employer

at

least

days

notice

You

may

have

to

give

more

notice

up

to

months

if

you

have

a

written

opt

out

agreement

Your

employer

ca

n’t

force

you

to

cancel

your

opt

out

agreement


Overview

Dismissal

is

when

you

end

an

employee

’s

contract

When

dismissing

staff

you

must

do

it

fairly

There

are

different

types

of

dismissal

fair

dismissal

unfair

dismissal

constructive

dismissal

wrongful

dismissal

If

you

’ve

had

to

dismiss

staff

because

of

coronavirus

you

might

be

able

to

re

employ

them

and

pay

their

wages

through

the

Coronavirus

Job

Retention

Scheme

Fair

and

unfair

dismissal

A

dismissal

is

fair

or

unfair

depending

on

your

reason

for

it

how

you

act

during

the

dismissal

process

Constructive

dismissal

This

is

when

an

employee

resigns

because

you

’ve

breached

their

employment

contract

This

could

be

a

single

serious

event

or

a

series

of

less

serious

events

An

employee

could

claim

constructive

dismissal

if

you

cut

their

wages

without

agreement

unlawfully

demote

them

allow

them

to

be

harassed

bullied

or

discriminated

against

unfairly

increase

their

workload

change

the

location

of

their

workplace

at

short

notice

make

them

work

in

dangerous

conditions

A

constructive

dismissal

is

not

necessarily

unfair

but

it

would

be

difficult

for

you

to

show

that

a

breach

of

contract

was

fair

A

constructive

dismissal

might

lead

to

a

claim

for

wrongful

dismissal

Wrongful

dismissal

This

is

where

you

break

the

terms

of

an

employee

’s

contract

in

the

dismissal

process

for

example

dismissing

someone

without

giving

them

proper

notice

Wrongful

dismissal

is

not

the

same

as

unfair

dismissal

If

an

employee

thinks

you

’ve

dismissed

them

unfairly

constructively

or

wrongfully

they

might

take

you

to

an

employment

tribunal

Fair

dismissals

You

must

have

a

valid

reason

for

dismissing

an

employee

Valid

reasons

include

their

capability

or

conduct

redundancy

something

that

prevents

them

from

legally

being

able

to

do

their

job

for

example

a

driver

losing

their

driving

licence

There

could

be

other

fair

reasons

too

these

are

sometimes

called

other

substantial

reasons

Acting

reasonably

Even

if

you

have

a

fair

reason

the

dismissal

is

only

fair

if

you

also

act

reasonably

during

the

dismissal

and

disciplinary

process

There

’s

no

legal

definition

of

reasonableness

but

if

you

’re

taken

to

an

employment

or

industrial

tribunal

they

would

consider

whether

you

genuinely

believed

that

the

reason

was

fair

carried

out

proper

investigations

where

appropriate

followed

the

relevant

procedures

told

the

employee

why

they

were

being

considered

for

dismissal

and

listened

to

their

views

in

Northern

Ireland

the

employer

must

do

this

in

writing

allowed

the

employee

to

be

accompanied

at

disciplinary

dismissal

hearings

gave

the

employee

the

chance

to

appeal

Reasonableness

might

also

depend

on

whether

the

employee

could

be

expected

to

understand

the

consequences

of

their

behaviour

Dismissal

and

disciplinary

procedures

You

must

set

out

your

dismissal

and

disciplinary

rules

and

procedures

in

writing

if

you

do

not

a

tribunal

can

order

you

to

pay

an

employee

compensation

Summary

dismissal

This

is

when

you

dismiss

someone

instantly

without

notice

or

pay

in

lieu

of

notice

usually

because

of

gross

misconduct

for

example

theft

fraud

violence

Tribunals

may

rule

a

summary

dismissal

as

procedurally

unfair

you

can

only

suspend

someone

without

pay

if

their

contract

says

you

can

do

this

If

it

does

not

you

should

suspend

the

employee

on

full

pay

and

investigate

the

circumstances

If

you

feel

summary

dismissal

’s

your

only

choice

you

must

still

follow

a

fair

procedure

as

you

would

do

for

any

other

disciplinary

matter

Unfair

dismissals

Even

if

you

think

you

’ve

dismissed

someone

fairly

they

could

still

claim

unfair

dismissal

against

you

if

they

think

that

the

reason

you

gave

for

the

dismissal

was

not

the

real

one

the

reason

was

unfair

you

acted

unreasonably

for

example

by

failing

to

give

them

plenty

of

warning

about

their

dismissal

Automatically

unfair

reasons

for

dismissal

Even

if

you

’ve

acted

reasonably

some

reasons

for

dismissal

are

classed

automatically

unfair

These

are

to

do

with

the

following

areas

pregnancy

including

all

reasons

relating

to

maternity

family

including

parental

leave

paternity

leave

birth

and

adoption

adoption

leave

or

time

off

for

dependants

acting

as

an

employee

representative

acting

as

a

trade

union

representative

acting

as

an

occupational

pension

scheme

trustee

joining

or

not

joining

a

trade

union

being

a

part

time

or

fixed

term

employee

pay

and

working

hours

including

the

Working

Time

Regulations

annual

leave

and

the

National

Minimum

Wage

whistleblowing

Compulsory

retirement

on

the

grounds

of

age

is

unlawful

unfair

dismissal

unless

you

can

objectively

justify

it

but

you

could

be

challenged

at

a

tribunal

Industrial

action

It

’s

automatically

unfair

to

dismiss

someone

for

taking

part

in

official

lawful

industrial

action

in

the

week

period

from

the

day

the

industrial

action

starts

if

the

action

lasts

longer

than

weeks

and

you

have

not

taken

reasonable

steps

to

resolve

the

dispute

Only

an

employment

or

industrial

tribunal

can

decide

whether

or

not

you

’ve

taken

reasonable

steps

to

resolve

a

dispute

If

you

lock

out

employees

taking

industrial

action

the

days

of

the

lock

out

are

not

included

in

the

calculation

of

the

week

protected

period

A

lock

out

is

where

you

prevent

employees

from

getting

to

their

workplace

for

example

by

locking

the

doors

Disability

If

a

disabled

employee

can

not

do

their

job

because

there

are

no

reasonable

adjustments

that

can

be

made

it

may

be

fair

for

you

to

dismiss

them

Political

beliefs

and

groups

It

is

not

automatically

unfair

to

dismiss

someone

because

of

their

political

beliefs

or

political

groups

they

belong

to

but

a

tribunal

might

find

this

unfair

There

’s

no

longer

a

qualifying

period

for

someone

going

to

an

employment

tribunal

if

they

’ve

been

dismissed

because

of

political

opinions

or

affiliation

This

applies

to

anyone

dismissed

from

June

Penalties

for

unfair

dismissals

If

a

tribunal

finds

that

an

employee

has

been

unfairly

dismissed

you

might

be

ordered

to

reinstate

them

give

them

their

job

back

re

engage

them

re

employ

them

in

a

different

job

You

might

also

have

to

pay

compensation

which

depends

on

the

employee

’s

age

gross

weekly

pay

length

of

service

You

might

have

to

pay

extra

compensation

if

you

do

not

follow

a

tribunal

’s

order

to

reinstate

someone

There

’s

a

limit

on

the

amount

a

tribunal

can

award

for

unfair

dismissal

apart

from

in

cases

relating

to

health

and

safety

for

example

where

you

unfairly

dismiss

someone

for

taking

action

on

health

and

safety

grounds

whistleblowing

Eligibility

to

claim

unfair

dismissal

Employees

can

only

claim

unfair

dismissal

if

they

’ve

worked

for

a

qualifying

period

unless

they

’re

claiming

for

an

automatically

unfair

reason

Date

employment

started

When

the

employee

can

claim

Before

April

After

first

year

of

employment

After

April

After

years

of

employment

Who

can

not

claim

unfair

dismissal

The

right

to

complain

to

a

tribunal

about

unfair

dismissal

is

not

available

to

self

employed

people

independent

contractors

members

of

the

armed

forces

employees

who

have

reached

a

settlement

with

their

employer

through

Acas

Advisory

Conciliation

and

Arbitration

Service

or

the

Labour

Relations

Agency

LRA

in

Northern

Ireland

employees

who

have

reached

a

settlement

with

their

employer

through

a

settlement

agreement

or

compromise

agreement

after

taking

legal

advice

employees

employed

under

an

illegal

contract

for

example

a

barman

under

the

age

of

employees

covered

by

a

dismissal

procedure

agreement

that

’s

been

legally

exempted

from

the

unfair

dismissal

rules

employees

taking

part

in

unofficial

industrial

action

unless

the

dismissal

is

for

an

automatically

unfair

reason

police

officers

unless

the

dismissal

relates

to

health

and

safety

or

whistleblowing

those

working

on

a

fishing

vessel

and

paid

by

a

share

in

the

profits

or

gross

earnings

of

the

vessel

Dismissals

for

conduct

or

performance

reasons

You

can

dismiss

an

employee

if

they

’re

incapable

of

doing

their

job

to

the

required

standard

they

’re

capable

but

unwilling

to

do

their

job

properly

they

’ve

committed

some

form

of

misconduct

If

you

want

to

dismiss

someone

there

’s

no

specific

process

you

must

go

through

by

law

as

long

as

you

do

it

fairly

If

a

capability

issue

is

linked

to

someone

’s

health

you

should

try

as

many

ways

as

possible

to

help

them

do

their

job

before

dismissing

them

Disciplinary

procedures

You

should

include

examples

of

what

you

consider

to

be

misconduct

in

your

disciplinary

rules

Different

disciplinary

procedures

are

appropriate

for

different

circumstances

Employees

have

the

right

to

be

accompanied

to

all

disciplinary

meetings

and

to

appeal

to

a

manager

Keep

notes

of

all

meetings

and

give

copies

to

the

employee

Misconduct

Misconduct

can

include

things

like

persistent

lateness

or

unauthorised

absence

from

work

To

make

sure

the

dismissal

is

fair

when

misconduct

is

not

serious

or

gross

Arrange

a

meeting

with

the

employee

telling

them

the

reason

for

it

At

the

meeting

give

them

a

chance

to

explain

and

issue

a

first

written

warning

if

you

’re

not

satisfied

with

their

reasons

In

the

warning

tell

them

how

you

expect

them

to

improve

and

over

what

period

warn

them

that

if

they

do

not

improve

enough

you

’ll

give

them

a

final

written

warning

Hold

a

second

meeting

if

their

performance

or

behaviour

has

not

improved

enough

by

the

deadline

give

them

a

chance

to

explain

and

issue

a

final

written

warning

if

you

’re

not

satisfied

with

their

reasons

Revise

the

action

plan

with

timescales

for

improvement

and

warn

them

that

you

’ll

consider

dismissal

if

there

’s

no

improvement

Hold

a

third

meeting

if

their

performance

or

behaviour

is

still

not

up

to

standard

by

these

new

deadlines

Warn

them

that

dismissal

is

now

possible

After

the

meeting

or

appeal

if

there

is

one

decide

whether

to

give

the

employee

a

further

chance

to

improve

or

dismiss

them

You

must

tell

the

employee

of

your

final

decision

whatever

it

is

Serious

misconduct

You

can

issue

a

single

first

and

final

written

warning

if

the

misconduct

or

underperformance

is

serious

enough

Explain

that

not

improving

could

lead

to

dismissal

Serious

enough

includes

if

it

’s

likely

to

or

has

caused

serious

harm

to

the

organisation

itself

Gross

misconduct

Gross

misconduct

can

include

things

like

theft

physical

violence

gross

negligence

or

serious

insubordination

With

gross

misconduct

you

can

dismiss

the

employee

immediately

as

long

as

you

follow

a

fair

procedure

You

should

investigate

the

incident

and

give

the

employee

a

chance

to

respond

before

deciding

to

dismiss

them

One

off

incidents

An

informal

discussion

may

be

enough

to

resolve

the

issue

if

the

misconduct

or

underperformance

was

a

one

off

and

the

employee

has

a

good

disciplinary

record

Dismissals

due

to

illness

Sometimes

an

employee

may

have

to

stop

working

because

of

long

term

ill

health

They

may

resign

or

you

may

have

to

consider

dismissing

them

Considering

dismissing

an

employee

Dismissal

is

a

last

resort

and

you

should

consider

as

many

ways

as

possible

to

help

the

employee

back

to

work

including

getting

a

medical

report

from

their

GP

with

the

employee

’s

permission

they

have

the

right

to

see

the

report

before

you

do

arranging

an

occupational

health

assessment

work

out

whether

or

not

they

’re

disabled

and

make

any

reasonable

adjustments

to

help

them

do

their

job

If

the

employee

can

not

do

their

job

because

there

are

no

reasonable

adjustments

that

can

be

made

it

may

be

fair

for

you

to

dismiss

them

even

if

they

’re

disabled

How

to

dismiss

someone

During

the

dismissal

procedure

make

sure

you

act

fairly

and

reasonably

You

must

treat

the

employee

with

sensitivity

Your

procedure

should

follow

the

advice

set

out

in

the

Acas

Advisory

Conciliation

and

Arbitration

Service

code

of

practice

or

the

Labour

Relations

Agency

LRA

code

of

practice

for

Northern

Ireland

If

you

do

not

follow

the

code

and

are

taken

to

an

employment

or

industrial

tribunal

you

may

have

to

pay

compensation


Overview

You

should

have

written

disciplinary

rules

and

procedures

to

deal

with

employee

performance

and

conduct

and

you

must

tell

your

staff

about

them

Your

rules

must

say

what

is

acceptable

and

unacceptable

behaviour

in

the

workplace

and

what

action

you

will

take

if

the

rules

are

broken

The

rules

should

follow

the

Acas

code

of

practice

on

disciplinary

and

grievance

procedures

Not

following

the

code

is

not

illegal

However

if

someone

wins

an

employment

tribunal

against

you

and

you

did

not

follow

the

code

then

their

award

could

be

up

to

more

Acas

guide

to

discipline

and

grievances

The

Acas

guide

to

discipline

and

grievances

at

work

gives

more

information

for

employers

about

taking

disciplinary

action

Acas

Helpline

The

Acas

Helpline

has

further

advice

on

disciplinary

issues

Practical

training

courses

Acas

also

runs

practical

training

courses

on

workplace

discipline

Writing

disciplinary

proceedings

Your

disciplinary

procedures

should

follow

the

Acas

code

of

practice

Not

following

the

code

is

not

illegal

However

if

someone

wins

an

employment

tribunal

against

you

and

you

did

not

follow

the

code

then

their

award

could

be

up

to

more

The

exact

rules

will

depend

on

your

organisation

but

could

cover

things

like

acceptable

and

unacceptable

behaviour

absence

and

timekeeping

health

and

safety

use

of

phones

and

the

internet

You

can

not

normally

discipline

or

dismiss

an

employee

for

whistleblowing

Gross

misconduct

Your

disciplinary

rules

should

give

examples

of

what

will

be

treated

as

gross

misconduct

This

is

misconduct

judged

so

serious

that

it

’s

likely

to

lead

to

dismissal

without

notice

for

example

fraud

theft

and

physical

violence

Telling

employees

about

disciplinary

rules

Your

disciplinary

rules

must

be

in

your

statement

of

employment

or

clearly

written

elsewhere

such

as

in

a

staff

handbook

The

rules

should

clearly

say

when

someone

might

face

disciplinary

action

and

what

that

action

could

be

You

must

also

give

the

name

of

someone

they

should

appeal

to

if

they

’re

unhappy

about

a

disciplinary

decision

If

you

do

not

provide

this

information

and

an

employee

then

wins

an

employment

tribunal

claim

against

you

they

could

be

awarded

to

weeks

pay

Disciplinary

procedures

and

contracts

If

you

make

your

disciplinary

procedures

part

of

an

employment

contract

then

the

employee

could

make

a

breach

of

contract

claim

against

you

if

you

do

not

follow

your

procedures

Example

letters

and

forms

Acas

has

a

number

of

sample

letters

and

forms

for

disciplinary

proceedings

on

its

website

Disciplinary

investigations

and

hearings

The

law

does

not

say

exactly

how

you

should

investigate

disciplinary

issues

or

hold

disciplinary

meetings

However

the

Acas

guide

to

discipline

and

grievances

at

work

has

lots

of

practical

advice

about

running

disciplinary

proceedings

professionally

and

fairly

The

suggested

disciplinary

process

The

Acas

guidance

suggests

that

your

disciplinary

process

should

follow

the

following

format

A

letter

telling

your

employee

the

issue

and

inviting

them

to

a

disciplinary

hearing

A

meeting

with

your

employee

to

discuss

the

issue

they

should

have

the

right

to

be

accompanied

A

letter

to

your

employee

saying

what

action

you

are

going

to

take

This

should

be

sent

as

soon

as

practically

possible

Your

employee

should

than

have

a

chance

to

appeal

your

decision

Disciplinary

decisions

Disciplinary

decisions

could

be

anything

that

could

resolve

the

problem

This

could

include

no

action

written

warning

final

warning

demotion

dismissal

mediation

with

a

co

worker

Appeals

An

employee

has

the

right

to

appeal

against

a

decision

made

after

a

disciplinary

hearing

You

should

tell

them

about

this

when

you

give

them

written

notice

of

your

decision

and

should

give

them

a

deadline

to

tell

you

they

want

to

appeal

Your

employee

’s

statement

of

terms

and

conditions

of

employment

must

legally

include

the

person

they

can

apply

to

if

they

want

to

appeal

a

disciplinary

decision

It

must

also

explain

how

to

do

this

If

the

employee

does

decide

to

appeal

you

should

try

to

hold

the

appeal

hearing

as

soon

as

possible

You

should

follow

the

Acas

code

of

practice

on

disciplinary

and

grievance

procedures

when

dealing

with

appeals

Otherwise

if

someone

wins

an

employment

tribunal

against

you

their

award

could

be

higher


Overview

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working

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calculating

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mobile

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If

you

change

software

Some

payroll

software

will

not

let

you

continue

with

the

same

employee

Payroll

IDs

if

you

’ve

already

used

them

in

other

software

If

your

payroll

software

does

not

let

you

do

this

put

Yes

in

the

Payroll

ID

changed

indicator

for

each

employee

in

your

Full

Payment

Submission

FPS

Your

PAYE

bill

may

be

calculated

incorrectly

and

payroll

records

duplicated

if

you

do

not


When

you

have

to

deduct

from

pay

You

have

to

make

deductions

from

your

employee

’s

wages

if

a

court

orders

you

to

This

could

be

to

pay

off

unpaid

maintenance

payments

a

county

court

judgment

There

’s

a

different

process

if

you

have

to

make

deductions

to

pay

off

a

benefit

debt

or

child

maintenance

How

it

works

You

’ll

get

a

document

from

the

court

telling

you

to

make

deductions

from

your

employee

’s

pay

Work

out

how

much

you

have

to

deduct

each

time

your

employee

is

paid

Start

making

deductions

the

next

time

you

pay

your

employee

Pay

them

their

reduced

wages

on

their

normal

payday

Make

the

payment

to

the

court

Stop

making

deductions

when

the

debt

has

been

paid

off

You

and

your

employee

can

be

fined

if

you

do

not

deduct

their

wages

or

if

you

deliberately

give

false

information

about

their

earnings

Getting

an

order

You

and

your

employee

will

each

get

an

attachment

of

earnings

order

AEO

from

the

court

You

must

start

making

deductions

from

your

employee

’s

pay

from

the

next

time

you

pay

them

unless

it

’s

within

the

next

days

Write

to

the

court

within

days

if

you

get

an

order

for

someone

you

do

not

employ

What

the

order

tells

you

The

court

order

will

tell

you

how

much

your

employee

owes

if

it

’s

a

priority

order

if

it

does

not

say

what

it

is

it

’s

a

non

priority

order

how

much

you

have

to

take

from

their

wages

called

the

normal

deduction

rate

NDR

the

minimum

amount

they

still

have

to

take

home

called

the

protected

earnings

rate

PER

how

often

the

payments

have

to

be

made

weekly

or

monthly

You

can

be

fined

if

you

do

not

start

making

the

deductions

Change

how

often

the

deductions

are

made

If

a

county

court

made

the

order

you

can

ask

them

to

change

it

for

example

from

weekly

to

monthly

if

that

’s

how

you

pay

your

employee

If

a

magistrate

’s

court

made

the

order

your

employee

has

to

ask

the

court

to

change

it

Deductions

and

minimum

take

home

pay

You

can

not

make

the

normal

deduction

if

it

would

take

the

employee

below

the

protected

earnings

rate

Protected

earnings

rate

is

too

high

If

the

protected

earnings

rate

is

so

high

that

you

’ll

never

be

able

to

make

deductions

write

to

both

the

Centralised

Attachment

of

Earning

Payments

CAPS

office

the

court

who

issued

the

order

Include

the

court

case

number

attachment

of

earnings

order

number

name

of

the

employee

Priority

and

non

priority

orders

There

are

types

of

orders

priority

orders

and

non

priority

orders

The

way

you

calculate

deductions

for

them

is

different

Type

of

order

What

it

’s

used

for

If

you

can

not

make

the

full

deduction

Priority

Maintenance

or

fines

Carry

the

unpaid

difference

over

to

the

next

payday

Non

priority

Civil

debts

Do

not

carry

the

unpaid

difference

over

to

the

next

payday

If

your

employee

has

more

than

one

order

Deduct

any

priority

orders

first

in

the

order

the

employee

got

them

Then

deduct

the

non

priority

orders

in

the

order

the

employee

got

them

You

can

apply

to

the

court

to

combine

or

more

non

priority

orders

into

a

single

order

This

is

called

a

consolidated

attachment

of

earnings

order

Deductions

for

a

priority

order

Priority

orders

are

used

for

unpaid

maintenance

or

fines

Calculate

your

employee

’s

earnings

Take

off

the

normal

deduction

rate

from

their

earnings

Take

off

an

extra

towards

your

administrative

costs

if

you

want

to

Pay

your

employee

the

remainder

of

their

earnings

You

must

pay

them

at

least

their

protected

earnings

rate

this

is

given

in

the

order

If

you

can

not

deduct

the

full

amount

carry

the

difference

over

and

deduct

it

on

the

next

payday

Send

the

deduction

to

the

court

You

can

still

deduct

the

if

it

takes

your

employee

’s

income

below

their

protected

earnings

rate

but

not

if

it

takes

their

income

below

the

National

Minimum

Wage

Making

a

full

deduction

Deduct

the

full

amount

from

your

employee

’s

earnings

if

it

does

not

take

them

below

their

protected

earnings

rates

When

you

can

not

make

a

full

deduction

If

the

full

deduction

would

take

the

employee

below

their

protected

earnings

rate

carry

the

difference

over

to

their

next

payday

When

you

can

not

make

any

deduction

There

’s

a

different

process

if

you

can

not

make

any

deduction

because

the

employee

’s

earnings

are

below

their

protected

earnings

rate

You

have

to

tell

the

Centralised

Attachment

of

Earning

Payments

CAPS

office

you

could

not

make

a

deduction

Send

an

email

to

caps@justice.gov.uk

with

the

court

case

number

attachment

of

earnings

order

number

name

of

the

employee

reason

you

could

not

make

any

deduction

Paying

your

employee

for

a

different

pay

period

Recalculate

the

protected

earnings

rate

and

normal

deduction

rate

if

you

pay

your

employee

for

a

different

period

than

usual

Holiday

pay

in

advance

Use

the

same

process

if

you

’re

paying

your

employee

holiday

pay

in

advance

You

’ll

need

to

work

out

the

different

rates

for

the

month

when

you

give

pay

in

advance

the

following

month

when

you

pay

them

less

than

normal

Deductions

for

a

non

priority

order

Non

priority

orders

are

used

for

debts

from

a

county

court

judgment

CCJ

Calculate

your

employee

’s

earnings

Take

off

the

normal

deduction

rate

from

their

earnings

Take

off

an

extra

towards

your

administrative

costs

if

you

want

to

Pay

your

employee

the

remainder

of

their

earnings

You

must

pay

them

at

least

their

protected

earnings

rate

Send

the

deduction

to

the

court

You

can

still

deduct

the

if

it

takes

your

employee

’s

income

below

their

protected

earnings

rate

but

not

if

it

takes

their

income

below

the

National

Minimum

Wage

Making

a

full

deduction

Deduct

the

full

amount

from

your

employee

’s

earnings

if

it

does

not

take

them

below

their

protected

earnings

rates

When

you

can

not

make

a

full

deduction

Do

not

carry

any

unpaid

difference

over

to

the

next

payday

if

the

full

deduction

would

take

the

employee

below

their

protected

earnings

rate

When

you

can

not

make

any

deduction

Do

not

carry

the

deduction

over

to

the

next

payday

if

the

employee

’s

earnings

are

below

their

protected

earnings

rate

You

have

to

tell

the

Centralised

Attachment

of

Earning

Payments

CAPS

office

you

could

not

make

a

deduction

Send

an

email

to

caps@justice.gov.uk

with

the

court

case

number

attachment

of

earnings

order

number

name

of

the

employee

reason

you

could

not

make

any

deduction

Paying

your

employee

for

a

different

pay

period

Recalculate

the

protected

earnings

rate

and

normal

deduction

rate

if

you

pay

your

employee

for

a

different

period

than

usual

Holiday

pay

in

advance

Use

the

same

process

if

you

’re

paying

your

employee

holiday

pay

in

advance

You

’ll

need

to

work

out

the

different

rates

for

the

month

when

you

give

pay

in

advance

the

following

month

when

you

’d

pay

them

less

than

normal

What

counts

as

earnings

You

can

only

make

a

deduction

from

the

following

earnings

wages

fees

bonuses

commissions

overtime

pay

or

any

payments

on

top

of

wages

private

or

occupational

pensions

and

compensation

payments

Statutory

Sick

Pay

contractual

sick

pay

contractual

maternity

pay

contractual

paternity

pay

contractual

adoption

pay

contractual

redundancy

pay

Statutory

pay

is

money

that

your

employees

are

entitled

to

by

law

Contractual

pay

is

what

you

agree

with

your

employees

in

addition

to

statutory

pay

What

does

not

count

as

earnings

You

can

not

make

a

deduction

from

any

of

the

following

amounts

paid

by

a

department

of

the

government

of

Northern

Ireland

or

any

country

outside

the

UK

any

social

security

pension

allowance

or

benefit

tax

credits

any

pension

or

allowance

paid

for

disability

guaranteed

minimum

pension

within

the

Social

Security

Pensions

Act

Statutory

Maternity

Pay

Statutory

Paternity

Pay

Statutory

Adoption

Pay

Statutory

Redundancy

Pay

Making

payments

The

order

that

you

get

for

the

employee

will

tell

you

whether

you

have

to

pay

the

magistrates

court

the

Centralised

Attachment

of

Earnings

Payments

CAPS

office

Tell

your

employee

each

time

You

must

tell

your

employee

in

writing

about

each

deduction

Do

this

when

you

give

them

their

payslip

Paying

the

magistrates

court

Send

a

cheque

made

payable

to

HM

Courts

Tribunals

Service

You

can

pay

with

a

single

cheque

if

you

’re

paying

or

more

orders

issued

by

the

same

court

Some

courts

let

you

pay

by

Bacs

transfer

Contact

the

court

for

their

account

details

if

you

want

to

pay

this

way

When

you

send

the

payment

you

must

include

a

note

of

the

employer

name

the

employee

’s

name

the

case

number

from

the

order

how

much

money

you

’re

sending

Paying

the

CAPS

office

You

can

only

pay

by

cheque

Bacs

transfer

You

can

not

pay

by

standing

order

or

Direct

Debit

Pay

CAPS

by

cheque

Send

a

cheque

made

payable

to

HM

Courts

Tribunals

Service

to

CAPS

Pay

CAPS

by

Bacs

You

must

register

before

you

can

pay

by

Bacs

Download

and

fill

in

the

registration

form

and

email

it

to

ntonbacs@justice.gov.uk

To

make

a

Bacs

payment

send

a

bank

payment

request

form

to

your

bank

the

Bacs

payment

schedule

form

to

ntonbacs@justice.gov.uk

The

payment

will

be

sent

back

if

you

do

not

fill

in

the

schedule

correctly

You

can

be

fined

if

you

do

not

send

the

schedule

Contact

CAPS

about

a

payment

You

need

to

give

these

details

when

you

contact

CAPS

about

a

payment

case

number

your

name

as

stated

on

your

bank

statement

your

bank

account

number

your

sort

code

amount

of

payment

Change

of

circumstances

Write

to

the

Centralised

Attachment

of

Earning

Payments

CAPS

office

within

days

if

the

employee

stops

working

for

you

Include

the

court

case

number

attachment

of

earnings

order

number

name

of

the

employee

date

they

stopped

working

for

you

name

of

their

new

employer

if

you

know

it

The

court

changes

the

order

The

County

Court

Money

Claims

Centre

will

tell

you

in

writing

if

the

normal

deduction

rate

or

protected

earnings

rate

changes

They

can

change

it

for

weeks

When

the

weeks

is

over

you

have

to

go

back

to

the

original

rates

in

the

order

The

court

cancels

the

order

The

County

Court

Money

Claims

Centre

will

tell

you

in

writing

if

the

order

has

been

discharged

cancelled

You

can

still

make

the

deduction

if

you

’re

due

to

pay

your

employee

within

the

next

days

Your

employee

will

get

a

refund

from

CAPS

You

must

stop

making

deductions

if

you

’re

due

to

pay

your

employee

days

after

you

got

the

cancellation

notice


Introduction

to

PAYE

As

an

employer

you

normally

have

to

operate

PAYE

as

part

of

your

payroll

PAYE

is

HM

Revenue

and

Customs

HMRC

system

to

collect

Income

Tax

and

National

Insurance

from

employment

You

do

not

need

to

register

for

PAYE

if

of

your

employees

are

paid

or

more

a

week

get

expenses

and

benefits

have

another

job

or

get

a

pension

However

you

must

keep

payroll

records

Payments

and

deductions

When

paying

your

employees

through

payroll

you

also

need

to

make

deductions

for

PAYE

Payments

to

your

employees

Payments

to

your

employees

include

their

salary

or

wages

as

well

as

things

like

any

tips

or

bonuses

or

statutory

sick

or

maternity

pay

Deductions

from

their

pay

From

these

payments

you

’ll

need

to

deduct

tax

and

National

Insurance

for

most

employees

Other

deductions

you

may

need

to

make

include

student

loan

repayments

or

pension

contributions

Reporting

to

and

paying

HMRC

Reporting

pay

and

deductions

If

you

run

payroll

yourself

you

’ll

need

to

report

your

employees

payments

and

deductions

to

HMRC

on

or

before

each

payday

Your

payroll

software

will

work

out

how

much

tax

and

National

Insurance

you

owe

including

an

employer

’s

National

Insurance

contribution

on

each

employee

’s

earnings

above

a

week

You

’ll

need

to

send

another

report

to

claim

any

reduction

on

what

you

owe

HMRC

for

example

for

statutory

pay

Paying

HMRC

You

’ll

be

able

to

view

what

you

owe

HMRC

based

on

your

reports

You

then

have

to

pay

HMRC

usually

every

month

If

you

’re

a

small

employer

that

expects

to

pay

less

than

a

month

you

can

arrange

to

pay

quarterly

contact

HMRC

’s

payment

enquiry

helpline

Other

things

to

report

As

part

of

your

regular

reports

you

should

tell

HMRC

when

a

new

employee

joins

and

if

an

employee

’s

circumstances

change

for

example

they

reach

State

Pension

age

or

become

a

director

You

have

to

run

annual

reports

at

the

end

of

the

tax

year

including

telling

HMRC

about

any

expenses

or

benefits

Choose

how

to

run

payroll

If

you

have

to

operate

PAYE

you

can

choose

how

to

run

your

payroll

Choose

how

to

run

payroll

You

can

operate

PAYE

by

either

paying

a

payroll

provider

to

do

it

for

you

doing

it

yourself

using

payroll

software

Paying

a

payroll

provider

If

you

decide

to

pay

a

payroll

provider

for

example

a

bureau

or

accountant

to

run

your

payroll

you

’ll

need

to

consider

how

much

support

you

’ll

need

You

’re

responsible

for

collecting

and

keeping

records

of

your

employee

’s

details

Your

payroll

provider

will

need

these

to

run

payroll

for

you

Some

payroll

providers

can

offer

you

more

support

if

you

need

it

for

example

keeping

employee

records

providing

payslips

and

making

payments

to

HM

Revenue

and

Customs

HMRC

As

an

employer

you

’re

legally

responsible

for

completing

all

PAYE

tasks

even

if

you

pay

someone

else

to

do

them

Running

payroll

yourself

You

need

to

complete

certain

tasks

to

set

up

payroll

and

pay

your

employees

for

the

first

time

This

includes

registering

as

an

employer

with

HMRC

and

telling

them

about

your

employees

Exemptions

to

online

reporting

You

may

be

exempt

from

reporting

payroll

online

if

you

’re

prevented

from

using

a

computer

on

religious

grounds

you

’re

getting

care

or

support

services

for

yourself

or

a

member

of

your

family

you

’re

unable

to

send

reports

electronically

because

you

’re

disabled

elderly

or

can

not

access

the

internet

HMRC

has

guidance

if

you

believe

you

’re

exempt

and

would

prefer

to

report

on

paper

Setting

up

payroll

If

you

decide

to

run

payroll

yourself

you

need

to

complete

certain

tasks

to

pay

your

employees

for

the

first

time

You

can

choose

when

and

how

often

to

pay

your

employees

Register

as

an

employer

with

HM

Revenue

and

Customs

HMRC

and

get

a

login

for

PAYE

Online

Choose

payroll

software

to

record

employee

’s

details

calculate

pay

and

deductions

and

report

to

HMRC

Collect

and

keep

records

Tell

HMRC

about

your

employees

Record

pay

make

deductions

and

report

to

HMRC

on

or

before

the

first

payday

Pay

HMRC

the

tax

and

National

Insurance

you

owe

You

’ll

also

need

to

complete

certain

annual

reports

and

tasks

to

prepare

for

the

next

tax

year

which

starts

on

April

Keeping

records

You

must

collect

and

keep

records

of

what

you

pay

your

employees

and

the

deductions

you

make

reports

you

make

to

HM

Revenue

and

Customs

HMRC

payments

you

make

to

HMRC

employee

leave

and

sickness

absences

tax

code

notices

taxable

expenses

or

benefits

Payroll

Giving

Scheme

documents

including

the

agency

contract

and

employee

authorisation

forms

Your

records

must

show

you

’ve

reported

accurately

and

you

need

to

keep

them

for

years

from

the

end

of

the

tax

year

they

relate

to

HMRC

may

check

your

records

to

make

sure

you

’re

paying

the

right

amount

of

tax

There

are

different

rules

for

keeping

records

to

prove

you

have

paid

the

correct

minimum

wage

If

you

do

not

keep

full

records

HMRC

may

estimate

what

you

have

to

pay

and

charge

you

a

penalty

of

up

to

If

your

records

are

lost

stolen

or

destroyed

Tell

HMRC

as

soon

as

possible

if

you

do

not

have

records

and

can

not

replace

them

You

must

also

do

your

best

to

recreate

them

HMRC

may

be

able

to

help

if

you

’re

not

sure

how

much

you

paid

your

employees

You

must

tell

HMRC

if

your

final

payroll

report

of

the

tax

year

includes

figures

that

are

estimated

that

you

want

HMRC

to

accept

as

final

provisional

that

you

’ll

update

later

with

actual

figures

Data

protection

You

must

follow

rules

on

data

protection

if

your

business

stores

or

uses

personal

information


Overview

You

must

pay

your

PAYE

bill

to

HM

Revenue

and

Customs

HMRC

by

the

of

the

next

tax

month

if

you

pay

monthly

the

after

the

end

of

the

quarter

if

you

pay

quarterly

for

example

July

for

the

April

to

July

quarter

Pay

now

If

you

pay

by

cheque

through

the

post

the

deadline

is

the

of

the

month

What

you

’re

paying

Your

PAYE

bill

may

include

employee

Income

Tax

deductions

Class

and

National

Insurance

Class

National

Insurance

on

termination

awards

and

sporting

testimonials

Student

Loan

repayments

Construction

Industry

Scheme

CIS

deductions

your

Apprenticeship

Levy

payments

starting

from

April

if

you

or

employers

you

’re

connected

to

have

an

annual

pay

bill

of

more

than

million

You

pay

your

Class

National

Insurance

on

work

benefits

that

you

give

to

your

employees

separately

PAYE

Settlement

Agreements

are

also

paid

separately

Ways

to

pay

Make

sure

you

pay

HMRC

by

the

deadline

You

may

have

to

pay

interest

and

penalties

if

your

payment

is

late

The

time

you

need

to

allow

depends

on

how

you

pay

You

can

no

longer

pay

at

the

Post

Office

Same

or

next

day

online

or

telephone

banking

Faster

Payments

CHAPS

through

your

online

bank

account

working

days

by

debit

or

corporate

credit

card

online

Bacs

at

your

bank

or

building

society

cash

or

cheque

Direct

Debit

if

you

’ve

already

set

one

up

by

cheque

through

the

post

working

days

Direct

Debit

if

you

have

not

set

up

one

before

If

the

deadline

falls

on

a

weekend

or

bank

holiday

make

sure

your

payment

reaches

HMRC

on

the

last

working

day

before

it

unless

you

’re

paying

by

Faster

Payments

Payment

booklets

You

’ll

need

a

payment

booklet

from

HMRC

to

pay

at

your

bank

or

building

society

or

by

post

If

you

do

not

have

one

ask

HMRC

to

send

it

to

you

If

you

’re

no

longer

using

your

payment

booklet

you

can

ask

HMRC

to

stop

sending

it

HMRC

will

automatically

stop

sending

your

payment

booklet

if

you

make

or

more

electronic

payments

in

a

year

Direct

Debit

Set

up

a

Direct

Debit

through

your

business

’s

HM

Revenue

and

Customs

HMRC

online

account

to

make

a

single

payment

This

means

you

’ll

need

to

set

up

a

payment

each

time

you

pay

HMRC

through

Direct

Debit

Reference

number

You

’ll

need

your

character

accounts

office

reference

number

to

make

a

payment

You

can

find

this

on

the

letter

HMRC

sent

you

when

you

first

registered

as

an

employer

How

long

it

takes

Allow

working

days

to

process

a

Direct

Debit

the

first

time

you

set

one

up

It

should

take

working

days

the

next

time

if

you

’re

using

the

same

bank

details

The

payments

will

show

on

your

bank

statement

as

HMRC

NDDS

Early

or

late

payments

Make

sure

you

also

enter

the

correct

year

and

month

the

payment

is

for

in

the

separate

boxes

provided

Make

an

online

or

telephone

bank

transfer

You

can

make

a

transfer

from

your

bank

account

by

Faster

Payments

CHAPS

or

Bacs

Sort

code

Account

number

Account

name

HMRC

Cumbernauld

If

your

account

is

overseas

Account

number

IBAN

Bank

identifier

code

BIC

Account

name

HMRC

Cumbernauld

Reference

number

You

’ll

need

to

use

your

character

accounts

office

reference

number

as

the

payment

reference

You

can

find

this

on

either

the

letter

HMRC

sent

you

when

you

first

registered

as

an

employer

the

front

of

your

payment

booklet

or

the

letter

from

HMRC

that

replaced

it

Your

payment

may

be

delayed

if

you

use

the

wrong

reference

number

How

long

it

takes

Payments

made

by

Faster

Payments

online

or

telephone

banking

will

usually

reach

HMRC

on

the

same

or

next

day

CHAPS

payments

usually

reach

HMRC

the

same

working

day

if

you

pay

within

your

bank

’s

processing

times

Bacs

payments

usually

take

working

days

Check

your

bank

’s

transaction

limits

and

processing

times

before

making

a

payment

Early

payments

If

you

pay

monthly

You

need

to

add

extra

numbers

to

your

reference

number

if

you

pay

before

the

of

the

tax

month

that

payment

is

due

Work

out

the

number

you

need

to

use

If

you

pay

quarterly

You

need

to

add

extra

numbers

to

your

reference

number

if

you

pay

before

the

of

the

second

month

in

the

quarter

Work

out

the

number

you

need

to

use

Late

payments

You

need

to

add

extra

numbers

to

your

reference

number

if

you

pay

on

or

after

the

of

the

tax

month

after

payment

was

due

Do

this

whether

you

pay

monthly

or

quarterly

Work

out

the

number

you

need

to

use

You

use

a

different

tool

if

the

payment

was

for

a

previous

tax

year

Multiple

PAYE

schemes

Send

an

online

CHAPS

enquiry

form

if

you

want

to

make

a

single

payment

via

CHAPS

for

multiple

PAYE

schemes

HMRC

’s

banking

address

is

Approve

a

payment

through

your

online

bank

account

You

can

pay

your

PAYE

bill

directly

using

your

online

or

mobile

bank

account

Once

you

’ve

signed

into

your

HMRC

account

select

start

a

payment

and

then

pay

by

bank

account

You

’ll

then

be

directed

to

sign

in

to

your

online

or

mobile

banking

account

to

approve

your

PAYE

payment

The

payment

is

usually

instant

but

sometimes

it

takes

up

to

hours

to

show

in

your

account

You

’ll

need

to

have

your

online

banking

details

ready

to

pay

this

way

By

debit

or

corporate

credit

card

online

You

can

pay

online

There

’s

a

fee

if

you

pay

by

corporate

credit

card

or

corporate

debit

card

The

fee

is

not

refundable

There

’s

no

fee

if

you

pay

by

personal

debit

card

You

can

not

pay

by

personal

credit

card

If

you

’re

unable

to

pay

your

employers

PAYE

bill

in

full

by

card

you

should

use

another

payment

method

like

a

bank

transfer

Reference

number

You

’ll

need

to

use

your

character

accounts

office

reference

number

as

the

payment

reference

You

can

find

this

on

the

letter

HM

Revenue

and

Customs

HMRC

sent

you

when

you

first

registered

as

an

employer

How

long

it

takes

Allow

working

days

for

your

payment

to

reach

HMRC

’s

bank

account

Early

or

late

payments

Make

sure

you

enter

the

correct

year

and

month

the

payment

is

for

in

the

separate

boxes

provided

Pay

for

the

previous

tax

year

Select

the

previous

tax

year

and

month

for

the

last

tax

year

If

you

do

not

do

this

your

payment

will

go

to

the

current

tax

year

instead

At

your

bank

or

building

society

Make

your

cheque

payable

to

HM

Revenue

and

Customs

only

Write

your

character

accounts

office

reference

number

on

the

back

of

the

cheque

You

will

find

the

reference

number

on

the

letter

HM

Revenue

and

Customs

HMRC

sent

to

you

when

you

first

registered

as

an

employer

You

’ll

need

to

pay

in

using

the

payslip

for

the

correct

period

If

you

do

not

have

one

of

these

ask

HMRC

to

send

you

a

payment

booklet

Allow

working

days

for

your

payment

to

reach

HMRC

’s

bank

account

By

cheque

through

the

post

You

can

send

a

cheque

by

post

to

HM

Revenue

and

Customs

HMRC

if

you

have

fewer

than

employees

You

do

not

need

to

include

a

street

name

city

name

or

PO

box

with

this

address

Allow

working

days

for

your

payment

to

reach

HMRC

What

to

include

Make

your

cheque

payable

to

HM

Revenue

and

Customs

only

Write

your

character

Accounts

Office

reference

number

on

the

back

of

the

cheque

You

can

find

this

number

on

the

letter

HMRC

sent

you

when

you

first

registered

as

an

employer

Your

payment

may

be

delayed

if

you

do

not

fill

in

your

cheque

properly

Include

the

payslip

for

the

correct

period

If

you

do

not

have

this

you

can

either

ask

HMRC

to

send

you

a

payment

booklet

print

off

a

replacement

payment

slip

You

can

only

use

a

replacement

payslip

to

pay

by

post

You

can

not

use

this

at

a

bank

Do

not

fold

the

payslip

or

cheque

or

fasten

them

together

You

can

include

a

letter

with

your

payment

to

ask

HMRC

for

a

receipt

Check

your

payment

has

been

received

Check

your

HM

Revenue

and

Customs

HMRC

online

account

it

should

update

within

working

days

of

making

payment

If

you

’re

paying

by

post

you

can

include

a

letter

with

your

payment

to

request

a

receipt

from

HMRC

Tell

HMRC

no

payment

is

due

You

must

tell

HM

Revenue

and

Customs

HMRC

if

you

have

not

paid

any

employees

for

at

least

one

tax

month

You

can

tell

HMRC

by

filling

in

an

Employer

Payment

Summary

EPS

You

must

send

it

by

the

of

the

month

following

the

tax

month

when

no

employees

were

paid

If

you

do

not

send

an

EPS

HMRC

will

send

you

a

notice

estimating

how

much

you

owe

You

may

have

to

pay

a

penalty

Telling

HMRC

in

advance

You

can

tell

HMRC

that

you

will

not

pay

any

employees

up

to

months

in

advance

Contractors

in

the

Construction

Industry

Scheme

CIS

who

have

no

payments

to

make

need

to

tell

HMRC

through

a

CIS

return

and

a

EPS

CIS

contractors

with

payments

to

make

only

need

to

file

a

CIS

return


Overview

You

put

an

employee

’s

tax

code

into

your

payroll

software

to

work

out

how

much

tax

to

deduct

from

their

pay

throughout

the

year

This

guide

is

also

available

in

Welsh

Cymraeg

There

’s

a

separate

guide

on

tax

codes

if

you

’re

an

employee

What

you

need

to

do

When

you

take

on

a

new

employee

you

normally

work

out

their

tax

code

by

using

their

The

code

will

usually

be

made

up

of

several

numbers

and

a

letter

such

as

You

usually

need

to

update

your

employee

’s

tax

code

at

the

start

of

a

new

tax

year

If

the

tax

code

changes

during

the

year

HM

Revenue

and

Customs

HMRC

will

email

you

you

should

update

your

payroll

records

as

soon

as

possible

Tax

code

The

most

common

tax

code

for

tax

year

to

is

It

’s

used

for

most

people

with

one

job

and

no

untaxed

income

unpaid

tax

or

taxable

benefits

for

example

a

company

car

is

an

emergency

tax

code

only

if

followed

by

or

X

Emergency

codes

can

be

used

if

a

new

employee

does

n’t

have

a

What

the

numbers

mean

The

numbers

in

an

employee

’s

tax

code

show

how

much

tax

free

income

they

get

in

that

tax

year

You

usually

multiply

the

number

in

the

tax

code

by

to

get

the

total

amount

of

income

they

can

earn

before

being

taxed

For

example

an

employee

with

the

tax

code

can

earn

before

being

taxed

If

they

earn

per

year

their

taxable

income

is

The

process

is

different

if

the

employee

has

the

letter

K

in

their

tax

code

What

the

letters

mean

Letters

in

an

employee

’s

tax

code

refer

to

their

situation

and

how

it

affects

their

Personal

Allowance

Code

How

tax

is

deducted

When

this

code

is

usually

used

T

From

all

income

there

is

no

Personal

Allowance

When

an

employee

has

n’t

given

you

a

or

enough

details

to

work

out

their

tax

code

or

when

their

Personal

Allowance

has

been

used

up

BR

From

all

income

at

the

basic

rate

For

a

second

job

or

pension

C

From

income

in

the

Welsh

tax

bands

For

an

employee

whose

main

home

is

in

Wales

T

From

all

income

there

is

no

Personal

Allowance

When

an

employee

whose

main

home

is

in

Wales

has

n’t

given

you

a

or

enough

details

to

work

out

their

tax

code

or

when

their

Personal

Allowance

has

been

used

up

CBR

From

all

income

at

the

basic

rate

in

Wales

For

a

second

job

or

pension

From

all

income

at

the

higher

rate

in

Wales

For

a

second

job

or

pension

From

all

income

at

the

additional

rate

in

Wales

For

a

second

job

or

pension

From

all

income

at

the

higher

rate

For

a

second

job

or

pension

From

all

income

at

the

additional

rate

For

a

second

job

or

pension

L

At

basic

higher

and

additional

rates

depending

on

the

amount

of

taxable

income

For

an

employee

entitled

to

the

standard

tax

free

Personal

Allowance

M

At

basic

higher

and

additional

rates

depending

on

the

amount

of

taxable

income

For

an

employee

whose

spouse

or

civil

partner

has

transferred

some

of

their

Personal

Allowance

N

At

basic

higher

and

additional

rates

depending

on

the

amount

of

taxable

income

For

an

employee

who

has

transferred

some

of

their

Personal

Allowance

to

their

spouse

or

civil

partner

NT

No

tax

is

deducted

Very

specific

cases

for

example

musicians

who

are

regarded

as

self

employed

and

not

subject

to

PAYE

S

From

income

in

the

Scottish

tax

bands

For

an

employee

whose

main

home

is

in

Scotland

T

From

all

income

there

is

no

Personal

Allowance

When

an

employee

whose

main

home

is

in

Scotland

has

n’t

given

you

a

or

enough

details

to

work

out

their

tax

code

or

when

their

Personal

Allowance

has

been

used

up

SBR

From

all

income

at

the

basic

rate

in

Scotland

For

a

second

job

or

pension

From

all

income

at

the

intermediate

rate

in

Scotland

For

a

second

job

or

pension

From

all

income

at

the

higher

rate

in

Scotland

For

a

second

job

or

pension

From

all

income

at

the

top

rate

in

Scotland

For

a

second

job

or

pension

T

At

basic

higher

and

additional

rates

depending

on

the

amount

of

taxable

income

When

HMRC

needs

to

review

some

items

with

the

employee

If

your

employee

’s

tax

code

has

or

at

the

end

week

and

month

are

emergency

tax

codes

and

appear

at

the

end

of

an

employee

’s

tax

code

for

example

or

Calculate

your

employee

’s

tax

only

on

what

they

are

paid

in

the

current

pay

period

not

the

whole

year

Tax

codes

with

the

letter

K

The

letter

K

is

used

in

an

employee

’s

tax

code

when

deductions

due

for

company

benefits

state

pension

or

tax

owed

from

previous

years

are

greater

than

their

Personal

Allowance

Multiply

the

number

in

their

tax

code

by

to

show

how

much

should

be

added

to

their

taxable

income

before

deductions

are

calculated

The

tax

deduction

for

each

pay

period

ca

n’t

be

more

than

half

an

employee

’s

pre

tax

pay

or

pension

Changes

during

the

tax

year

Usually

someone

’s

tax

code

changes

if

their

tax

free

income

Personal

Allowance

goes

up

or

down

for

example

they

start

or

stop

receiving

a

taxable

benefit

like

a

company

car

HM

Revenue

and

Customs

HMRC

will

send

you

an

email

alert

if

one

of

your

employees

tax

codes

changes

Access

the

new

tax

code

in

PAYE

Online

in

tax

code

notices

the

PAYE

Desktop

Viewer

application

or

in

your

payroll

software

if

it

has

this

feature

Check

if

your

employee

’s

previous

pay

and

tax

are

included

with

the

new

tax

code

If

they

are

note

these

figures

As

soon

as

possible

and

before

you

next

pay

your

employee

update

their

payroll

record

with

their

new

tax

code

Add

their

previous

pay

and

tax

if

you

received

these

figures

with

the

new

tax

code

A

tax

code

notice

is

sometimes

called

a

form

If

you

receive

an

employee

’s

new

tax

code

too

late

to

use

in

the

tax

year

you

should

use

it

in

the

new

tax

year

Updating

for

the

new

tax

year

HM

Revenue

and

Customs

HMRC

will

tell

you

between

January

and

March

about

any

new

tax

codes

to

use

for

employees

in

the

new

tax

year

This

starts

on

April

If

an

employee

’s

tax

code

is

n’t

changing

HMRC

wo

n’t

contact

you

and

you

should

carry

forward

the

employee

’s

tax

code

to

the

new

tax

year

If

your

employee

’s

tax

code

ends

with

or

month

or

week

do

n’t

carry

this

part

of

the

code

into

the

new

tax

year


Overview

Jobcentre

Plus

has

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services

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You

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potential

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support

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Access

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You

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Universal

Jobmatch

This

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Recruitment

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Contact

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Work

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A

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It

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both

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If

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Jobseekers

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They

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Eligibility

The

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You

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It

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than

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The

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Jobcentre

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How

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You

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Call

the

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Work

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Work

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Work

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If

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young

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the

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Call

the

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Apprenticeships

These

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the

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Service

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They

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Apprenticeships

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Other

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Jobcentre

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New

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This

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in

your

area

if

you

want

to

become

a

mentor

Sector

based

work

academy

programme

The

sector

based

work

academy

programme

provides

training

work

experience

and

a

guaranteed

job

interview

It

can

help

you

fill

your

vacancies

more

effectively

The

sector

based

work

academy

programme

is

only

available

in

England

and

Scotland


Entitlement

Statutory

Maternity

Leave

Eligible

employees

can

take

up

to

weeks

maternity

leave

The

first

weeks

is

known

as

Ordinary

Maternity

Leave

the

last

weeks

as

Additional

Maternity

Leave

The

earliest

that

leave

can

be

taken

is

weeks

before

the

expected

week

of

childbirth

unless

the

baby

is

born

early

Employees

must

take

at

least

weeks

after

the

birth

or

weeks

if

they

’re

a

factory

worker

Statutory

Maternity

Pay

SMP

SMP

for

eligible

employees

can

be

paid

for

up

to

weeks

usually

as

follows

the

first

weeks

of

their

average

weekly

earnings

AWE

before

tax

the

remaining

weeks

or

of

their

AWE

whichever

is

lower

Tax

and

National

Insurance

need

to

be

deducted

Use

the

SMP

calculator

to

work

out

an

employee

’s

maternity

leave

and

pay

Some

employment

types

like

agency

workers

directors

and

educational

workers

have

different

rules

for

entitlement

Extra

leave

or

pay

You

can

offer

more

than

the

statutory

amounts

if

you

have

a

company

maternity

scheme

You

must

make

sure

your

maternity

leave

and

pay

policies

are

clear

and

available

to

staff

If

the

baby

is

born

early

Leave

starts

the

day

after

the

birth

if

the

baby

is

born

early

The

employee

must

give

you

the

child

’s

birth

certificate

or

a

document

signed

by

a

doctor

or

midwife

that

confirms

the

actual

date

of

birth

You

must

write

to

them

confirming

the

new

end

date

for

their

leave

For

very

premature

births

where

the

child

is

born

weeks

or

more

before

the

due

date

you

’ll

need

to

calculate

SMP

using

your

payroll

software

if

it

has

this

feature

or

work

it

out

manually

If

the

baby

dies

Employees

still

qualify

for

leave

or

pay

if

the

baby

is

stillborn

after

the

start

of

the

week

of

pregnancy

dies

after

being

born

Employment

rights

An

employee

’s

employment

rights

like

the

right

to

pay

holidays

and

returning

to

a

job

are

protected

during

maternity

leave

You

still

have

to

pay

SMP

even

if

you

stop

trading

Eligibility

and

proof

of

pregnancy

Some

employees

will

not

qualify

for

both

leave

and

pay

Statutory

Maternity

Leave

Employees

must

have

an

employment

contract

it

does

not

matter

how

long

they

’ve

worked

for

you

give

you

the

correct

notice

Statutory

Maternity

Pay

SMP

Employees

must

be

on

your

payroll

in

the

qualifying

week

the

week

before

the

expected

week

of

childbirth

give

you

the

correct

notice

give

you

proof

they

’re

pregnant

have

been

continuously

employed

by

you

for

at

least

weeks

up

to

any

day

in

the

qualifying

week

earn

at

least

a

week

gross

in

an

week

relevant

period

If

your

employee

usually

earns

an

average

of

or

more

a

week

and

they

only

earned

less

in

some

weeks

because

they

were

paid

but

not

working

on

furlough

under

the

Coronavirus

Job

Retention

Scheme

they

may

still

be

eligible

Use

the

maternity

pay

calculator

to

check

an

employee

’s

eligibility

and

work

out

their

relevant

period

notice

period

and

statutory

maternity

pay

There

are

special

rules

for

some

employee

situations

for

example

if

they

leave

become

sick

or

their

baby

is

born

before

the

qualifying

week

Proof

of

pregnancy

You

must

get

proof

of

the

pregnancy

before

you

pay

SMP

This

is

usually

a

doctor

’s

letter

or

a

maternity

certificate

known

as

an

certificate

Midwives

and

doctors

usually

issue

these

weeks

before

the

due

date

The

employee

should

give

you

proof

within

days

of

the

SMP

start

date

You

can

agree

to

accept

it

later

if

you

want

You

do

not

have

to

pay

SMP

if

you

have

not

received

proof

of

the

due

date

weeks

after

the

SMP

start

date

You

must

keep

records

of

the

proof

of

pregnancy

Employees

not

entitled

to

SMP

may

be

able

to

get

Maternity

Allowance

instead

Notice

period

Notice

does

not

have

to

be

in

writing

unless

you

request

it

Statutory

Maternity

Leave

At

least

weeks

before

the

baby

is

expected

your

employees

must

tell

you

the

date

that

the

baby

is

due

they

want

to

start

their

maternity

leave

they

can

change

this

with

days

notice

You

must

then

confirm

their

leave

start

and

end

dates

in

writing

within

days

Employees

can

change

their

return

to

work

date

if

they

give

weeks

notice

You

can

not

refuse

maternity

leave

or

change

the

amount

of

leave

your

employees

want

to

take

Statutory

Maternity

Pay

SMP

Your

employees

must

give

you

days

notice

of

the

date

they

want

to

start

their

SMP

This

is

usually

the

same

date

they

want

to

start

their

leave

You

can

refuse

to

pay

SMP

if

your

employee

does

not

give

you

this

notice

and

they

do

not

give

you

a

reasonable

excuse

Refuse

pay

form

You

can

refuse

Statutory

Maternity

Pay

SMP

if

the

employee

does

not

qualify

They

may

be

able

to

get

Maternity

Allowance

instead

To

refuse

it

give

the

employee

the

form

within

days

of

your

decision

They

must

get

this

form

within

days

of

their

request

for

Statutory

Maternity

Pay

or

the

birth

whichever

is

earlier

Record

keeping

You

must

keep

records

for

HM

Revenue

and

Customs

HMRC

including

proof

of

pregnancy

usually

a

doctor

’s

note

or

a

certificate

a

photocopy

is

fine

the

date

SMP

began

your

SMP

payments

including

dates

the

SMP

you

’ve

reclaimed

any

weeks

you

did

not

pay

and

why

You

must

keep

records

for

years

from

the

end

of

the

tax

year

they

relate

to

for

example

by

using

form

or

keeping

your

own

records

Help

with

statutory

pay

For

financial

help

with

statutory

pay

you

can

reclaim

payments

usually

apply

for

an

advance

if

you

can

not

afford

payments


Your

rights

As

an

employee

you

’re

allowed

time

off

to

deal

with

an

emergency

involving

a

dependant

A

dependant

could

be

a

spouse

partner

child

grandchild

parent

or

someone

who

depends

on

you

for

care

How

much

you

get

You

’re

allowed

a

reasonable

amount

of

time

off

to

deal

with

the

emergency

but

there

’s

no

set

amount

of

time

as

it

depends

on

the

situation

Tell

your

employer

as

soon

as

possible

how

much

time

you

’ll

need

so

it

can

be

agreed

Limits

on

time

off

There

are

no

limits

on

how

many

times

you

can

take

time

off

for

dependants

Your

employer

may

want

to

talk

to

you

if

they

think

time

off

is

affecting

your

work

Pay

Your

employer

may

pay

you

for

time

off

to

look

after

dependants

but

they

do

n’t

have

to

Check

your

contract

company

handbook

or

intranet

site

to

see

if

there

are

rules

about

this

Exceptions

You

ca

n’t

have

time

off

if

you

knew

about

a

situation

beforehand

For

example

you

would

n’t

be

covered

if

you

wanted

to

take

your

child

to

hospital

for

an

appointment

You

might

get

parental

leave

instead

Check

your

employment

status

to

see

if

you

’re

classed

as

an

employee

Compassionate

leave

If

you

are

n’t

given

time

off

for

dependants

your

employer

may

allow

you

compassionate

leave

this

can

be

paid

or

unpaid

leave

for

emergency

situations

Check

your

employment

contract

company

handbook

or

intranet

for

details

about

compassionate

leave

What

's

an

emergency

You

could

get

time

off

when

a

dependant

is

involved

in

the

following

emergencies

Illness

injury

or

assault

This

includes

mental

or

physical

illnesses

that

do

n’t

have

to

be

life

threatening

or

need

full

time

care

it

could

be

an

existing

condition

that

has

worsened

For

example

if

a

dependant

is

mugged

without

being

physically

hurt

you

could

take

time

off

to

comfort

or

help

them

You

can

also

take

time

off

to

arrange

longer

term

care

for

a

dependant

Having

a

baby

You

could

take

time

off

if

a

dependant

goes

into

labour

unexpectedly

and

they

rely

on

you

to

take

them

to

the

hospital

You

ca

n’t

take

time

off

for

dependants

after

the

birth

to

care

for

the

child

unless

it

’s

an

emergency

However

if

you

’re

the

child

’s

parent

you

could

be

entitled

to

paternity

or

parental

leave

Disruption

of

care

arrangements

You

could

get

time

off

if

a

child

minder

or

carer

does

n’t

turn

up

to

look

after

a

dependant

a

nursing

home

or

nursery

closes

unexpectedly

If

your

child

is

involved

in

an

incident

during

school

time

You

could

get

time

off

if

your

child

has

been

involved

in

a

fight

injured

on

a

school

trip

suspended

from

school

Taking

time

off

Tell

your

employer

as

soon

as

possible

if

you

need

time

off

If

it

’s

an

emergency

you

may

not

be

able

to

do

this

before

you

leave

work

but

you

should

let

your

employer

know

as

soon

as

possible

You

do

n’t

have

to

do

this

in

writing

or

give

written

proof

Problems

when

you

take

time

off

Your

employer

musn’t

treat

you

unfairly

for

taking

time

off

for

example

refusing

you

training

or

promotion

dismiss

you

or

choose

you

for

redundancy

because

you

asked

for

time

off

for

a

dependant

refuse

you

reasonable

time

off

If

you

think

you

’ve

been

unfairly

treated

for

taking

time

off

for

dependants

get

advice

from

your

staff

or

trade

union

representative

or

Acas

You

may

be

able

to

take

a

case

to

an

Employment

Tribunal