Late payment - big problem!

With late bill payment topping the list of woes for businesses of all sizes, faster than expected implementation of new late payment legislation could offer some relief.

Originally planned for introduction across European Union member states in 2013, the European Commission has urged member states to implement the directive much earlier.

The new rules will require both private and public entities to pay invoices within 30 days.  Whilst parties can agree to extend this to 60 days, any longer payment period may be rejected as “grossly unfair”.

The UK has already shown a willingness to speed up adopting the legislation after business minister Ed Davey indicated that legislation could be adopted as soon as the first half of 2012.

But businesses need not wait until the new rules are implemented to tighten up recovery of their payments. Well drafted standard trading terms and conditions can establish payment periods and late payment penalties so it is clear from the outset when payment is expected.  Terms and conditions can cover a wide spectrum of the contractual arrangement and are something no business can afford to ignore.

To be or not to be an employee - that is the question!

I am regularly approached by clients who want to know who actually constitutes an “employee” and who is, for example, a self-employed contractor.  A word of warning: just because an individual pays their own tax/national insurance does not automatically mean they are self-employed.  The message is to be aware and have in place proper contractual documentation governing your relationship (whatever that may be). A Employment Tribunal will look at what the true arrangement was between the parties and written evidence will certainly assist. The cost of getting it wrong can be substantial.

Maternity and paternity rights

We often hear about the high cost of having and bringing up children - tell me about it as the father of daughters aged 22 and 18!! However the decision to start a family can also have a major effect of the employer of both parents.

Employers are often unaware of the so-called “family friendly” provisions in employment law, perhaps because it has simply not been an issue before.  I have even had employers telephoning us to ask if it is acceptable to dismiss an employee because she has just notified them she is pregnant and that is not very convenient for the business.  That may be the case, but employees who are pregnant are heavily protected by the law and a dismissal will be automatically unfair if it is for a reason to do with such matters as pregnancy, childbirth, maternity or parental leave.  The dismissal will also be discriminatory. 

A pregnant employee has the right to a total of 52 weeks Statutory Maternity Leave.  Statutory Maternity Pay is payable for a total of 39 weeks.  The employee is usually entitled to return to the job in which she was employed in before her absence. There are also various laws relating to notification requirements/health and safety/keeping in touch days, which we can advise you on where required.

Employers and employees should also be aware that the father of a child can now take up to 26 weeks Additional Paternity Leave in place of the mother. 

I suggest that employers have policies governing not only Maternity and Paternity Leave but also Flexible Working, Time off for Dependants and Parental Leave.

The challenge of social media in employment

The use of social media by employees is becoming an ever more contentious area. I am

regularly asked by employers if they can take disciplinary action against employees for comments put on social media such as facebook.

There is as yet a shortage of useful authority but what is clear is that any employer must consider a number of issues, such as whether it is appropriate for them effectively to be eavesdropping on private conversations.  At the very least there must be a legitimate business interest capable of protection for an employer to be able to allege misconduct.  It can be done, but the employer must look realistically at the facts of each case.

This also applies to using social media to check up on people at the recruitment stage.  It is becoming more common but employers must ensure that it does not lead to an inference of discrimination against the prospective employee.

My strong suggestion is that employers should have a clear policy on use of social media and then act in accordance with that policy. As for employees if you are going to be active in social media then bear in mind that unless you are very careful much of what you publish about yourself and your activities may be accessible by your employer/prospective employer or customers. What may seem like a good joke may have more serious ramifications. Proceed with caution!!