Latest News
An invitation to talk to us
Do you have any issues (particularly local ones) you think need airing? Do you want to contribute? Do you want to make suggestions of what you would like to see? We want to create a vibrant community between members. Nothing really beats the traditional letters page and we would be delighted if we could encourage thought provoking through a members’ forum.
Below there are articles and information on the following:
The Phasing Out of the Default Retirement Age
Internships
Trading online and e-commerce
Changes to Paternity Leave The Equality Act and pre-employment health questions Legal implications of social networking How to find information to help your business succeed The new Fit Note Commonly asked questions about Terms & Conditions Workforce Skills Knowledge Transfer Clampdown on Claims Payment
We hope you find them informative and we really look forward to hearing from you.
The Editor
The Phasing out of the Default Retirement Age
“Retirement should be a matter of choice rather than compulsion – people deserve the freedom to work for as long as they want, and are able, to do so........... Older workers can play an incredibly important role in the workplace, and it is high time we ended this outdated form of age discrimination”. These were the words of Employment Relations Minister Edward Davey when confirming the government’s decision to abolish the default retirement age (DRA) with the aim of giving employees more choice about when to stop working and boosting the economy by giving people the freedom to work for longer.
The change means that since 6th April 2011, employers have been unable to issue any notifications for compulsory retirement using the DRA procedure and that between 6th April and 1st October 2011, only those who were notified before 6th April, and whose retirement date is before 1st October 2011, can be retired compulsorily using the DRA procedure – this is known as the ‘transitional period’.
Although the DRA has been removed, it will still be possible for employers to operate a compulsory retirement age provided that they can justify it as being a “proportionate means of achieving a legitimate aim”. If they can’t – and this will be the case for the majority of employers – then retirement is now a matter of individual choice and will now take the form of a resignation.
Going forward, employers must now rely on one of the designated fair reasons for dismissal, as set out in section 98 of the Employment Rights Act 1996 (capability; conduct; redundancy; illegality; some other substantial reason), and follow a fair procedure in order to achieve a fair dismissal. Retirement ceases to be a potentially fair reason for dismissal and employers will not be able to rely on generalised assumptions that lack any factual foundation as sufficient evidence of justification. As most employers have previously had a compulsory retirement age of 65 that they have not had to justify, case law exploring how employers can objectively justify retirement has been rare. Employment tribunal claims in relation to retirement are likely to be common once these changes are implemented. Employers will also face the double threat of age discrimination and unfair dismissal claims for employees who have been compulsorily retired.
Whilst it is unlawful to discriminate due to age, it will not be unlawful to discriminate on the grounds of age when providing group risk insured benefits, such a medical insurance. Whilst we await further guidance in this regard, in broad terms, employers will still have to prove that they have ‘shopped around’ before withdrawing such benefits as being too costly due to their ageing workforce.
According to figures from the Chartered Institute of Personnel and Development, 42% of individuals intend to work beyond the age of 65, with 72% citing financial necessity as the main reason for doing so. Whilst this is good news for the economy, the employee who now has a choice, and those employers wishing to retain certain skill-sets and talents, it could be problematic for employers who have historically used the DRA as an easy get-out clause. As such, employers will now need to deal with employee performance issues as they arise, rather than allow them to continue until an imminent retirement becomes effective and the problem simply goes away! However, age is not a key determinant of capability and poor performance should be tackled regardless of the employee’s age.
With the abolition of the DRA there are likely to be situations whereby employees will want to continue in employment but, by virtue of their age in relation to their job, whose performance may progressively deteriorate. Whilst under the ‘old system’ of retirement, these employees could ‘bow out gracefully’ having provided a number of successful years service, the only option open to them now is to resign and to a large extent miss out on the ‘retirement party’, or for employers to deal with them as a capability issue.
To a large extent, this issue has been overshadowed by all of the positive spin that has been connected with the announcement of the abolition of the DRA. It is likely therefore that it will probably only become an issue for employers as and when they are faced with a specific performance or capability issue. Similarly, many employees appear to be blissfully unaware of the implications of the changes and may only appreciate the stark realisation of the situation when their own ‘retirement’ is imminent!
Lorraine Swain – Su Allen HR
Internships: the ultimate ‘try before you buy’
“An internship is a time limited work experience placement, which usually includes an element of training (Graduate Talent Pool).” Mutually beneficial they enhance a student’s skills and employability, open up career paths and provide employers with sharp minded individuals to work on specific, time limited projects. The University of Hertfordshire has recently advertised a variety of internships, from Junior HTML web designer roles to Business Development Co-ordinators. Advertising vacancies on behalf of employers from a variety of sectors, such as financial, construction and food manufacturing has resulted in University of Hertfordshire graduates being placed in positions and making a real contribution within companies. For many employers hiring an intern will be a completely new way of working but one that can bring fresh new opportunities. You can tailor an intern’s work to your company need, such as designing websites or looking into the services of competitors. This is an effective way for any sized enterprise to tap into the graduate talent market. However, two questions tend to stand out for employers who are considering running internship programmes:
Do I have to pay an intern? The Chartered Institute of Personnel and Development (CIPD) 2010 Learning and Talent Development Survey found that 63% of employers paid interns over and above the National Minimum Wage whereas 4% did not pay either the NMW or travel expenses. This illustrates that pay is still a diverse issue. The National Association of Student Employment Services (NASES) states “you can advertise unpaid internships but if the actual working arrangements are such that the person is a “worker” then you will have to pay them, at least, national minimum wage by law.” The Guardian recently reported that “the government is aiming to reverse the growing culture of unpaid internships.”
How long should an internship last? The contract nature of an internship lends itself to effective results being delivered quickly. On average internships last between three to six months, however, successful internships are based on specific aims and objectives from the start, helping both parties to stay focused on agreed goals. Impressed? Internships can be the ultimate ‘try before you buy’ in your recruitment procedure. The PricewaterhouseCoopers internship scheme, for example, is used as a hiring tool. Richard Irwin, Senior Recruitment Manager (PwC), commented in People Management, “We have a 95 per cent conversion rate to full time employment from summer interns” (27 Aug 2009).
Interested in finding out more? The CIPD have made a number of useful contributions to support those starting new internship programmes or improving existing ones. Their comprehensive guide “Internships that work: a guide for employers” being one reference tool. Advice on how to advertise an internship and the types of tasks that interns can complete are just a few elements covered. Included in this guide is a draft ‘internship agreement’ to be signed by both the employer and the intern. This outlines the responsibilities you both agree to undertake.
For more information and to see links to the references made in this article please visit: http://www.delicious.com/graduate.futures/Internship-Education
Trading online and e-commerce
With UK online sales totalling about £40bn last year, it is clear that small businesses cannot afford to ignore the potential of e-commerce. However, you should consider all the implications before starting to trade online. As well as setting up, running and attracting people to your website, you will need to manage the order and supply process.
Bear in mind that the best opportunities are with niche or specialist products and services. Research the competition by doing online searches to see what is already available, what comes at the top of the search lists and to check prices. Once you’ve decided to go ahead, use the following checklist to make sure you have covered all the essentials.
1. Your website
The key stages are the specification, design, hosting and maintenance of your website. Unless you are very confident and experienced in website design you should use a website design agency.
Choose a domain name which is easy to remember and spell and which shows what your business is about.
Use the right keywords so people find your website when searching online. Keyword popularity tools will help you identify what words or phrases people might use when searching for the sort of products that you are selling.
Search engine optimisation - using keywords in all the best locations on your website – will ensure that they are picked up by search engines. Many of the main search engines provide tips, advice and tools to help you improve your website’s search engine rankings.
Page layout is critical to persuade people to delve further to find what they are looking for. The subjects should stand out clearly and it should be easy for browsers to see where they are on the site and what to do next.
2. The distance selling act
Selling online imposes some additional requirements for e-commerce site owners. There is an online guide to distance selling and online trading on the Business Link website.
3. The purchase process
Existing businesses may be able to get an Internet Merchant Account from their banks, but new small businesses are likely to need to use Payment Service Providers, i.e. specialists who undertake card transactions on their behalf. Costs and the ease of setting up the service vary greatly, so you should look at all the options before making a decision.
4. Fulfilling orders
Your planning should include:
· Packing and labelling
· Despatch
· Carriers
· Maintaining customer service levels
· Handling enquiries and complaints
· Internal processes like stock control and integration with accounts
5. The ongoing commitment
Having an online presence requires regular work to keep things up to date. Changes in product ranges, specifications, prices and special offers all need to be maintained on your website. You may also need to consider a re-design periodically to encourage customers to come back to see what’s new.
6. Marketing and selling tactics
Don’t forget to plan your website promotion in the same way as any other marketing campaign. Use up-selling tactics to encourage purchasers to buy other products from your site, such as:
· A checkout message saying ‘people who bought this product also bought …’
· Offers
· Incentive codes from elsewhere
· Volume discounts
· Featured products
In conclusion
With proper planning an e-commerce website can be an important component of your business activity. However, it is essential to set targets to help you measure the success of your site and you can then make improvements if necessary. Always seek expert advice and make sure that you have tested your site and put the right procedures in place before going live.
For further information and advice on trading online visit the websitewww.businesslink.gov.uk/east or phone 08457 17 16 15. One-to-one meetings with specialist advisers in IT and e-commerce can be arranged for established businesses.
Business Link also runs IT and e-commerce briefings:to see what is available visit www.bookevents.org
Who’s holding the baby? Changes to Paternity Leave in April 2011
Having a new baby is a joy, but it also carries responsibilities, and in employment terms these are undergoing significant changes. This article aims to put you in the picture with how the law is changing.
Here are the basics:
To qualify for Paternity Leave, employees must have 26 weeks’ continuous service by the end of the 15th week before the expected birth date (or notified of having been matched with the child in the case of adoption). The employee must have, or expect to have, responsibility for the child’s upbringing and be taking the leave to care for the child. It is therefore not available to biological fathers who are not likely to have parental responsibility for their child. For Additional Paternity Leave, the employee must remain in continuous employment until the week before the first week of the Leave.
Ordinary Paternity Leave is one or two weeks’ taken as a single block within eight weeks of the child’s birth or adoption, or if the baby is born prematurely the first day of the employee’s partner’s expected week of childbirth. This is in addition to their annual holiday entitlement. If the employee is eligible to receive it, payment for this period is the Statutory Paternity Pay amount of £124.88 per week or at a rate equivalent to 90% of their average weekly earnings if this is less than £124.88 per week. (This is increasing to £128.73 from 3rd April 2011).
The right to Additional Paternity Leave is available to parents of children due on or after 3rd April 2011 or adoptive parents who are notified of having been matched with the child on or after 3rd April 2011. The provisions enable eligible employees to take up to 26 weeks’ Additional Paternity Leave within the first year of their child’s life or the first year after the child’s placement for adoption, provided always that the mother or primary adopter has returned to work before using their full entitlement to Maternity Leave or Adoption Leave.
In normal circumstances, Additional Paternity Leave is available during the second six months of the child’s life or adoption placement, as the first six months are preserved for the mother/primary adopter to take their Maternity/Adoption Leave. The earliest Additional Paternity Leave may commence is 20 weeks after the date on which the child is born or 20 weeks after the date of placement of the child for adoption and it must end no later than 12 months after that date. It must be taken as a single block in multiples of complete weeks, with a minimum period of two consecutive weeks and a maximum period of 26 weeks.
To request Additional Paternity Leave, employees must provide eight weeks’ written notice of the date on which they wish the Leave to commence. They must also specify the date the child was expected to be born and the actual date of birth, or the date on which they were notified of having been matched with a child and the date of placement for adoption. In addition, and not less than eight weeks before their proposed start date, they must submit a written and signed self-certification form stating that the purpose of the period of Leave is to care for the child and that they satisfy the relationship eligibility conditions for Additional Paternity Leave. Within the same timeframe, the mother/primary adopter must submit a written and signed declaration to the employee’s employer stating their name, address and national insurance number, the date they intend to return to work, that the employee satisfies the relationship eligibility conditions, that they consent to the employer processing the information contained in the declaration and, in the case of a birth child, the employee is to their knowledge the only person exercising the entitlement to Additional Paternity Leave in respect of the child.
If you need help in drawing up these forms ask your HR representative. The employee must also, if asked by the employer, produce a copy of the child’s birth certificate or, in the case of an adopted child, documents issued by the adoption agency providing its name and address and details of the dates of being matched with the child and expected placement. In either case, they must also provide the name and business address of the mother/primary adopter’s employer. Once an employee has provided proper notification of their intention to take Additional Paternity Leave, the employer must respond in writing within 28 days confirming the relevant start and end dates. If an employee subsequently wishes to change the timing they must give six weeks’ written notice.
All terms and conditions of the employee’s contract of employment, except remuneration, continue during Additional Paternity Leave. Instead of normal pay, the employee will usually be entitled to Additional Statutory Paternity Pay during some of the Additional Paternity Leave period, i.e. if taken during what would have been the mother’s/primary adopter’s Maternity or Adoption Pay period. The remaining period of Additional Paternity Leave will be unpaid. An employee on Additional Paternity Leave is able to agree with their employer that they will work for up to 10 days during the period without that work bringing the period of Paternity Leave to an end and without loss of a week’s Statutory Paternity Pay. The employer can also make reasonable contact to help plan their return to work. If an employee wants to return early from Additional Paternity Leave, they must give the employer at least six weeks’ notice of the date of early return. If they fail to do so, the employer may postpone the return to such a date that will give them six weeks’ notice provided that this date is not later than the end of Additional Paternity Leave.
The Government is also looking to review shared Parental Leave to see how family-friendly rights can be made more flexible and it is likely that these changes to Paternity Leave are the just first step in this process.
Lorraine Swain – Su Allen HR
The Equality Act and Pre-employment health questions
The Equality Act came into force on 1st October 2010 with the aim of bringing together and harmonising the various different strands of discrimination law. It covers the same groups that were protected by previous equality legislation – age, disability, gender reassignment, race, religion or belief, sex, sexual orientation, marriage and civil partnership, pregnancy and maternity (these are now called protected characteristics) – but extends some protections to groups not previously covered, and also strengthens particular aspects of equality law. One of the most important of these is the use of pre-employment health questionnaires.
Currently, it is common practice for candidates to be asked health-related questions, with many employers also requiring them to complete health questionnaires before a formal job offer is made. With many employers asking generic questions and only some asking those that are job or role-specific, a tightening of practices and procedures is paramount to ensure compliance with the new law. Certainly, employers who routinely use a pre-employment health questionnaire in their recruitment process will now need to dispense with this following The Equality Act coming into force. Under the Act, it will only be lawful for employers to ask questions on health before a job has been offered in a very small number of exceptional circumstances, these being:
when those questions are necessary in order to establish whether the candidate will be able to carry out an “intrinsic function” of the job for which they are applying. An example of this would be a candidate with a severe visual impairment where the job is driving a fork-lift truck. In this situation, the employer would not be able to ask however, how the impairment would affect them getting to the workplace as this is not intrinsic to the job;
for diversity monitoring;
when deciding whether any reasonable adjustments are required to be made in the recruitment process;taking positive action to assist disabled people; and
when seeking assurance that a candidate has the disability where the job genuinely requires the jobholder to have that disability. An example of this would be asking a candidate at interview to confirm they have a condition, and therefore personal experience, of mental health for a post as a counsellor at a counselling service for people with mental health issues.
Once a candidate has been interviewed and has received an offer of employment (either conditional or unconditional), further health questions can then be asked. It is not acceptable to ask questions of a pool of applicants, one of whom will then be offered the job.
Employers therefore need to think very carefully about the questions they ask. They should ensure that they focus on the current health of the candidate rather than previous health conditions, with questions such as “Have you ever suffered from.....?” falling foul of the Act.
Employers need to be aware that a job applicant can bring a claim against them if they ask health or disability-related questions contrary to the Act and if they believe there has been unlawful discrimination as a result of the information that they gave, or failed to give, when answering such questions. Unless the employer can demonstrate without difficulty that the job in question has specific requirements necessitating the asking of such questions, then the safest and most sensible option will be to avoid asking any questions concerning health at the pre-offer stage of recruitment.
Lorraine Swain – Su Allen HR
Tweets and Pokes: Courts and businesses must keep pace with the social networking phenomenon
In these difficult economic times, innovative businesses are clamouring to exploit the potential of social networking media such as Twitter and Facebook in order to promote their products and services. Similarly the courts have shown a willingness to embrace such technologies, where their use does not interfere with the proper administration of justice. This article examines the opportunities and challenges which face both the court system and the business world in the information age.
In November 2009, a high court judge permitted an injunction to be served via Twitter in a case involving on-line bullying. This may have been a ground-breaking and pragmatic solution to a modern problem, but also raised concerns regarding proof of service.
More recently, the Lord Chief Justice has issued guidance to the effect that, in certain circumstances, journalists observing court proceedings may use Twitter to “tweet” progress updates to the outside world. Such reporting was permitted during the bail hearing of WikiLeaks founder Julian Assange on the grounds that it would minimise the disruption of journalists trekking into and out of court in order to file their reports.
The recording of court proceedings is generally governed by the Contempt of Court Act 1981 and using a tape recorder is prohibited. Whilst the Act predates the invention of social networking, any reporting of an on-going case will still be prohibited where it creates a substantial risk that “the course of justice … will be seriously impeded or prejudiced”
The concept of tweeting from court raises interesting questions regarding the conflict between the rights of free speech and the need to ensure that justice is done. The Attorney General has made particular reference to the Baby P case. The public’s horror at the facts of that case led to widespread discussions on the internet, during which the identities of the defendants were revealed which could have prevented justice from being done, as the defendants were due to stand trial for further offences and this might not have been able to go ahead.
Businesses walk a similar tightrope between effective marketing and the use of social media. For example not keeping your Twitter account is like having a shop-front which is rarely cleaned or refreshed.
Equally, several high profile individuals have courted controversy after hastily posting messages which they have later been forced to retract. Liverpool striker Ryan Babel was recently fined £10,000 by the FA after posting a link to a mocked-up picture of referee Howard Webb, in a Manchester United shirt. Similarly, a defamation claim was brought against singer Courtney Love after she allegedly derogatory comments about a fashion designer.
Social networking sites are easy to use and can effectively promote a brand. However, wrongly used the resulting publicity can ruin a carefully crafted brand image, particularly when ill-judged humour or irony is used.
In the HR field there have been cases of bullying and defamation involving evidence adduced from social networking sites.
In order to protect themselves, businesses should ensure that there are written policies in place to control the use social media. Policies should cover such matters as:
This is naturally not an exhaustive list.
If you would like to learn more about how Pictons can support you or your business please call Commercial Partner Mr Alec Brall on 01582 870860.
Finally, we would like to hear your views on Pictons’ use of social media. Why not visit our Facebook page at www.facebook.com/pictons; we look forward to receiving your comments!
This article provides general information only. Nothing in this article constitutes legal advice or seeks to be an exhaustive statement of the law. You should take legal advice on any particular matter which concerns you. If you do require advice, please call 01582 870860.
Pictons Solicitors LLP accepts no liability for any loss or damage incurred due to actions taken based on anything written in this article.
Finding the information you need to help your business succeed
Information service
When you are running your own business, getting the right information at the right time can help you make informed decisions about the best way forward. Whether you are just starting out or have been trading for some time, speaking to one of Business Link’s experienced information advisers can help you pinpoint what you need quickly and easily and ensure you have all the support you need as you progress.
As well as answering your business questions and providing advice, the information service can directyou to other agencies and support organisations if necessary: one phone call can save you the time and effort involved in tracking down information from several different sources.
This year alone the information team have answered more than 30,000 enquiries. The team can deal with any business questions and issues covering a vast range of topics from business planning, sales and marketing and cash flow, to credit reports, help with accessing finance, patent and trademark services and information on trading abroad. No question is too trivial or too complex; our advisers are experienced professionals, with expertise in a wide range of areas and sectors.
One-to-one advice
If you need ongoing support, you can benefit from our extended specialist advice service and speak to a telephone-based adviser who will be available for one-to-one contact as and when you need help. Aimed at small businesses that employ up to five staff, the phone-based service will provide busy, time constrained owners and managers with business advice and support during weekdays, weekday evenings and Saturdays.
This team of 11 advisers are highly experienced; each have run their own business, been in the driving seat operating businesses for others, or in senior positions with major commercial operations. Specialisms within the business advice team include sales; marketing (including social media); technology; operations; financial and business planning; product development; HR and training.
For answers to all your business questions or to make an appointment with a Business Link Adviser call 08457 17 16 15 between Monday and Friday, 9am to 5pm, or email info@businesslinkeast.org.uk. Or visit us at
Five Common Questions on Terms & Conditions
A recent survey of businesses with under 10 employees suggested that 47% had agreed to accept goods or services in the last year without reading the terms and conditions, much less taking legal advice on them.
If you fall into that category, this is a quick guide to the five most common questions that arise when things go wrong:
1. Is there a difference between “reasonable endeavours” and “best endeavours”?
Yes! As a matter of business common sense, the terms “best” and “reasonable” endeavours cannot mean the same thing.
A party using its “reasonable” endeavours will not generally be expected to sacrifice its own commercial interests. Where the contract actually specifies that certain steps have to be taken as part of the “reasonable endeavours” then those steps will have to be taken (even if that could involve the sacrificing of a party’s commercial interests). For example, a commitment from SmallCo to BetaServe to use “reasonable endeavours” to secure the consent of a third party “including, if necessary, offering a company or directors guarantee” would require SmallCo to offer such a guarantee.
A commitment to use “best” endeavours is a promise not to be given lightly. The courts will treat this as a most stringent obligation which will involve SmallCo being expected to sacrifice its own commercial interests to achieve a result. To continue the example above, SmallCo might be expected to offer a guarantee to the third party even if this was not specified in the contract.
2. What does “time is of the essence” mean?
A contract where, for example, “time for delivery of the services is of the essence” requires performance strictly in accordance with the dates or timeframes set out in the contract. For example, if SmallCo fails to deliver services to BetaServe on the date they are specified as due, and “time for delivery of the services is of the essence” then SmallCo is in breach of the contract.
3. I don’t have a contract with my customer. Can I still claim late payment interest?
Yes. The Late Payment of Commercial Debts (Interest) Act 1998 gives businesses the statutory right to claim interest on late payments from other businesses. Unless otherwise specified between the parties, the Act gives a default period of 30 days after which interest will accumulate. The 30 day period runs from either:
The delivery of the goods or the performance of the services, or
The date SmallCo serves notice of the debt to BetaServe.
The interest rate under the Act is the Bank of England base rate that applies during the period in which the debt falls due plus 8%.
4. The price for additional services is to be “mutually agreed by the parties at the time”?
As a general rule the courts will not enforce ‘agreements to agree’ or ‘arrangements to negotiate’. Therefore, if SmallCo and BetaServe agree that additional services will be supplied “at a price to be agreed” then the court will probably decide that a binding agreement was not reached. Had the price for additional services not been dealt with at all, then there is a presumption that a reasonable price should be paid.
5. The terms and conditions were printed on the back of the invoice?
Terms that are printed on a document sent out after conclusion of the contract cannot become part of the contract.
For example, SmallCo receives an order over the telephone from BetaServe. SmallCo performs the services three days later as agreed and sends BetaServe its invoice which has SmallCo’s standard terms and conditions printed on the back, including a term that payment must be received within 7 days.
Unfortunately for SmallCo its standard terms will not be incorporated into the contract. Many companies have been caught out by printing their terms on the back of their invoices sent long after the contract has been concluded, or faxing confirmations of order and not also faxing the terms on the back. The only exception to this is if SmallCo can establish a previous course of dealing with BetaServe where the terms applied.
David Hughes
David is a solicitor specialising in Company and Contract Law at Pictons Solicitors
The new Fit Note: Fit for Purpose? From April 6th 2010 the GP’s sick note became a ‘Fit Note’ or, to give it its proper name, a Statement of Fitness for Work, Its aim is to encourage those off sick to return to work sooner, with the GP being able to advise whether a patient is ‘unfit for work’ or ‘may be fit for work’ where they believe the patient can return providing they receive suitable support from their employer.
Whilst there were high hopes of the new Fit Note reducing sickness absence and thus benefitting both employees and businesses alike, three months in, how it is working in practice?
Some early feedback reveals confusion about the practicality of the process and predictions of possible workplace conflict. For example, if an employee refuses to return to work even after adjustments are made, the employer must decide whether or not to agree to them continuing on sickness absence, stop paying statutory sick pay or dismiss. To retain an employee’s cooperation once they are beginning to make a recovery and thus prevent such conflict, it is critical for employers to reassure them that appropriate support will be given during the transitional period.
The ongoing challenge for employers is that the Fit Note will only ever be as good as the information it provides. A potential barrier to its overall effectiveness could be the conflicting advice being given to GPs. Guidance issued by The Medical and Dental Defence Union of Scotland advised GPs to exercise a degree of caution, to not give opinions and only work within the limits of their clinical competence. The Department for Works and Pensions (DWP) however, advises that whilst GPs are not experts in occupational health, they are experts in their patient’s health. Their advice should therefore help employers to work with employees to support them back to work. Indeed, even Dame Carol Black, the creator of the Fit Note, warned that the initiative would amount to little more than a sick note if GPs failed to volunteer information about the activities workers could carry out.
With this degree of pressure, GPs have the added burden that they are largely reliant on the subjective reporting of the employee about what their actual job entails. The obvious risk to this is the GP recommending a course of action that is costly or not feasible from the employer’s perspective.
Another drawback of the new system, as highlighted by Dr. Bill Gunnyeon, DWP’s chief medical adviser, is the “eligibility of doctors’ handwriting”. He added that whilst he wanted the new Fit Note to become computerised by the end of 2010, thus eliminating the potential for confusing doctors’ scribbles, this timescale was now unlikely.
It may also be a while before the actual effectiveness of the new Fit Note can be quantified. Its introduction coincided with a recession and a recent sickness absence survey shows that workers are already taking fewer sick days. This suggests that the drop in sickness absence could be because employees are scared of losing their jobs in the current economic climate thus camouflaging actual statistics regarding the Fit Note.
Fit Note supporters acknowledge that while it may take years to bring about the cultural shift in attitudes required for it to achieve its overall aims, with more people returning to work than under the previous system, employers should at least see positive trends. Further time -particularly outside of a recession - will provide a more robust indication as to the long term effectiveness of the Fit Note.
Lorraine Swain – Su Allen HR
Give your workforce the skills to build a better business
Good people are the lifeblood of any business. In a competitive market making sure that you and your employees have the skills that you need to keep your business growing and developing is key to your success.
For established businesses, a Business Link Adviser can not only provide an external perspective and an in-depth analysis of your business needs, but also give you advice on skills needs, training and workforce development.
To help identify what you need your Adviser will work with you, or a key manager within your business, to complete an Organisation Needs Analysis (ONA). The ONA acts as a guide to the strengths and weaknesses of your business and starts to give a picture of your workforce development requirements. Your Adviser will then discuss the needs within each area of your business and prepare a Training Needs Analysis.
From there they will concentrate on individual needs, including those of the management, and look at ideal pathways for training. The initial focus may be on Government funded opportunities such as Apprenticeships and Train to Gain, as well as Leadership and Management funding and initiatives.
Apprenticeships are fully funded for 16 to 18 year olds and partially funded for 19 to 24 year olds and generally require some college attendance. The Train to Gain initiative is for anyone over 19 years old. It offers full funding for those either taking a first National Vocational Qualification (NVQ) Level 2 or “jumping” straight to an NVQ Level 3. It is also possible to get funding for a second NVQ Level 2 qualification. There are over 1300 NVQs covering the vast majority of business sectors from healthcare, food and leisure services to manufacturing and construction.
Government funded training is not always the only solution and in some cases is not suitable for all the needs of a business. There are many specialist industry qualifications and your Adviser may signpost you to an industry body or Sector Skills Council for further advice.
You may even have a simple need for something like IT training in a programme such as Excel or Sage, used regularly by your business, which is not funded but is available from a local training provider.
Whatever your situation, your Adviser will produce a recommendation identifying your training needs together with pathways and suppliers who can deliver the training you need. The aim is to provide you with a practical plan which will result in your organisation achieving a measurable improvement in business performance by improving the skills of your employees at all levels.
For further information on all Business Link services visit the website www.businesslink.gov.uk/east or telephone 08457 171615
Knowledge Transfer Partnerships - meeting today’s challenges with confidence
What is it?
The Knowledge Transfer Partnership is a government funded scheme to accelerate business innovation; it is a flagship programme and one that continues to deliver value now as it did thirty years ago when it was first launched. It is a partnership between a business, a university and a graduate recruit; the partnership helps deliver strategic change to your business. These partnerships are designed to provide the important skills and expertise needed to help businesses develop and deliver innovative solutions to help grow and address current or future challenges.
Why do it? What’s in it for your business?
The KTP is a Partnership between your business and an academic institution (such as a university, further education college or research and technology organisation). It enables businesses to access skills and expertise to help them develop. It takes the form of a project, or projects, undertaken by a recently qualified person recruited specifically to work on that project. KTPs can vary in length from 1 to 3 years (classic KTP) and from 10-40 weeks (shorter KTP), depending on the needs of the business and the desired outcomes.
KTP enables new capability to be embedded into the business and has benefited and continues to benefit a wide range of businesses across many sectors, including micro sized, small and large businesses,
or public.
The obvious draw is the part-funding from the government for your project, for Small- to Medium-sized Enterprises this amounts to nearly 67% of the full costs.
The Knowledge Transfer Partnership scheme is a strategic initiative by the government to particularly help businesses to take that next step to growing and expanding their businesses into new and high-growth margin markets. In each of the examples given below, the partnership has resulted in the businesses significantly increasing their revenue and their future market opportunities.
For more information go to www.ktponline.org.uk/business/business.aspx
Claims Payment Clampdown
The last year or so has seen an alleged trend for insurers to scale down claims payments. An alternative way of looking at this is clients and brokers now have to fight harder to get fairer claims payments. The issue is being addressed by British Insurance Brokers Association (BIBA) with new research suggesting that the economic downturn and anti fraud systems implemented by insurers are driving stricter policy interpretations. Around 67% of brokers questioned in a recent survey advised that they had to get tough with insurers to get claims paid and 93% say they regularly negotiate up to a 20% uplift on claims settlements. The situation has deteriorated since 2009, with an almost 10% increase in brokers who say they had to fight harder for customers’ payouts. BIBA chief executive, Eric Galbraith, says this research is strong evidence to demonstrate the value of the broker. "We plan to use this in every way that we can to promote brokers in the wider world. We recognize that with insurance fraud being a major issue, there is a need for insurers to validate claims, however, these statistics seem to suggest a too frequent reduction in the amount offered in claim settlements. Research provides the following examples: § Water Damage to a kitchen - Offer made £ 4,500 eventually settled at £ 20,000 § Flood Damage - Initial offer £ 9,500, final payment £ 17,500 § Fire Damage and Business Interruption - payment increased from £ 170,000 to £ 400,000 § Damaged machinery - offer increased and settled at € 1.4m higher § Lost laptop - claim initially repudiated - payment received at £ 1,800 § Damaged floor to dental practice - initial offer made at £ 900, eventually settled at £ 3,100 so that works could be done during "out of office" hours and so that no business interruption claim occurred. |
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