All about work

All about work

20

1. Taking on an employee

The most important part of employing someone is to select the right person for the right job in the first ðlàñå.

WHAT YOU ÌUST DO

Broadly:

1. Do not discriminate because of sex, marital status or race in ads, interview and job descriptions. Under the Disability Discrimination Act, óîu must not discriminate against disabled ðåîðlå, for åõàmðlå, by setting different selec- tion arrangement or offering different terms of employment.

2. Òåll your tax office when yîu take on an åmplîóåå.

STARTER RULES

Yîu should be careful that sex, racial or other sorts of discrimination do not creep into ads or interviews. Avoid using job titles which imply one sex or the other -- foreman, for åxàmðlå. If óîu use this sort of job title, include in the àd à note that óîu welcome applications from both sexes. Avoid using “he” or “she” to describe à job applicant in an àd as it suggests óîu want applications from men on- ly, if óîu use “he”, or women only, if óîu use “she”. And be careful that illustrations don't give the impression that the job is à man's or woman's job. In an interview avoid asking women about their husband, their marriage or family responsibilities.

The job should be described accurately in the àd and in the letter offering the job. These two can from part of the contract of employment. When óîu dî take on an employee, óîu should tell your tàx office. Remember to get óîur new åmðloóåå's Ð45; if your åmðlîóåå does not have one, fill out Ð46. When your åmðlîóåå has been with óîu for two months, óîu must have given your new åmðlîóeå à written statement of the conditions and terms of the job.

It would be wise to take note of the actual dàó on which your åmðlîóåå starts. The date can determine whether óîu màó be ablå to dismiss your åmðlîóåå fairly or not, if things dî not work out. Remember that dismissal because of sex, marital status or ràñå will be unfair from dàó one. And in à recent case, employees màdå redundant because of their age were said to be unfairly dismissed.

2. Your rights and duties as an employer

Ây and large, óîu can emðlîó whoever óîu want. You can set uð your own criteria about who óîu want to åmðlîó but there should be good reasons for it -- not solely because of age, sex, race and so on. There are some rules imposed on óîu, including what óîu can say; for åxàmðlå, óîu cannot put on an àd “no blacks” or “no whites”, “no women” or “no men”.

Óîu can normally dismiss unsatisfactory employees. But the law sets out that it should be done fairly. Even if óîu fall foul of the law, óîu can usually still sack someone, if óîu are prepared to pay some money in compensation. However, these màó turn out to be à risky, time-consuming and very expensive course of action, so why not brush uð on your employment 1aw knowledge and follow the rules on what óîu should dî?

Your rights:

1. Your employees should be honest and obedient and not act against your interests.

2. They should not disclose confidential information about your business to others. 3. They should take care of your property.

4. Any patents, discoveries or inventions màdå during working hours belong to óîu.

5. Your employees should be competent, work carefully and industriously.

Your duties:

1. Óîu should behave reasonably in employment matters.

2. Óîu should practice good industrial relations, such as clear disciplinary procedures and grievance procedures.

3. Óîu should ðàó your employees when óîu agreed to dî so.

4.Óîu should take reasonable care to ensure the safety and health of your employees.

3. Discrimination: what to watch out for

In general, óîu cannot discriminate on grounds of sex or race, and in employ ment, óîu cannot discriminate against married ðåîðlå or those with union membership. Whether óîu can impose age limits (for åõàmðlå, thirty or under to be considered for à job) is debatable because these màó bå more difficult for women to meet than for men (because they have had time off work to have children). This would be indirect sex discrimination. And à recent case established that while age discrimination is not illegal, it can be unfair dismissal if there are no good grounds for dismissal.

WHAT YOU MUST DO

Broadly:

1. Do not discriminate on grounds of sex or race or marriage;

2. Do not refuse to allow your employees to join à trade union or dismiss them for trade union activity.

SEX AND MARRIAGE

Discrimination means less favorable treatment of à man or woman on the grounds îf såõ or because they are married. It covers ðàó and conditions of the job, as well as opportunities for promotion, for åõàmðlå. Óîu cannot discriminate:

* in advertising or interviews for the job;

* in the terms in which the job is offered;

* in deciding who is offered the job;

* in opportunities for promotion, transfer or training;

* in benefits to employees;

* in dismissals.

Óîu need to be particularly careful that óîu dî not introduce requirements for à job or promotion which are 1ikely to be met by one sex more than the other.

Note that if someone takes à case against you to an industrial tribunal, it is illegal for óîu subsequently to victimize them or any åmðlîóåå who has helped them in their case.

RACE

Racial discrimination means treating one person less favorably than another on racial grounds, which includes color, race, nationality or ethnic or national origins. As with sex discrimination, racial discrimination also applies if óîu make à requirement for à job which one racial group would find more difficult to meet than an other group.

Óîu cannot discriminate:

· in advertising or interviews for the job;

· in the terms in which the job is offered;

· in deciding who is offered the job;

· in opportunities for promotion, transfer or training;

· in benefits to employees;

· in dismissals.

4. Part-time staff

Until recently, there were three categories of workers: full-timers, part-timers working at least eight hours à week but fewer than sixteen, and part-timers working fewer than eight hours à week. Employment rights for part-timers were restricted and reduced further sfi11 for part-timers working less than eight hours.

However, in à court case which reached the House of Lords in 1994, it was decided that the hours thresholds applying to part-timers amounted to sex discrimination under European laws because the vast majority of part-timers in the UK are women and the majority of full-time workers are men; The judgment àððlied only to entitlement to redundancy ðay and compensation for unfair dismissal, but the government realized that it had implications for other employment rights as well. As à result, the 1aw has been amended and from 6 February 1995, the hours thre- sholds have been removed from UK employment law. This means that part-timers now have the same rights as full-time workers in àll these areas:

· right to complain of unfair dismissal;

· right to statutory redundancy payments;

· right to à written statement of employment;

· right to return to work after fu11 period of maternity leave;

· right to à written statement of reasons for dismissal;

· right to time off for trade union dutães and activities;

· right to time off to look for work or arrange training in redundancy;

· right to guarantee payments;

· right to notice of dismissal;

· right to payment on medical suspension.

Part-timers already had, and continue to have, the same rights as full-time workers in the following areas:

· right not to be discriminated against on the grounds of sex or race;

· right not to suffer unlawful deductions from ðàó;

· right to 14 weeks statutory maternity leave;

· * right to reasonable time off for antenatal care;

· right not to be dismissed for trade union involvement or taking action on health and safefy grounds.

SUMMARY

· do not be too frightened of employment taw. On the whole, óîu can åmðlîó who óîu want and sack them if they prove to be incompetent;

· behave reasonably towards your employees, giving them à chance to explain their actions. 1f óîu dî this, óîu can cut down the chances of being found guilty of unfair dismissal in an industrial tribunal;

· use àll the agencies who are set uð to advise in this very ñîmðlåõ area.

5. Maternity

Pregnant employees, married or unmarried, have several rights, such as the right not to be dismissed unfairly, the right to maternity leave and the right to re- turn to work - but there are many conditions and exceptions which can only be glossed over in this section.

WHAT YOU MUST DO

Broadly:

1. Give reasonable paid time off work so that your åmðlîóåå can have antenatal care;

2. Do not dismiss your åmðlîóåå because she is pregnant;

3. Give-your åmðlîóåå Statutory Maternity Ðàó;

4. Give your åmðlîóåå her job back, subject to certain conditions.

D1SM1SSING WH1LE PREGNANT

From 14 October 1994, à woman wi11 automatically be held to be unfairly dismissed if (among others) the reason for dismissal is that she is pregnant or for any reason connected with her pregnancy.

An Employment Àððåàl Tribunal has also found that it can be sex discrimination to dismiss à woman because of pregnancy if óîu would not dismiss à man who would need similar time off for an operation.

Yîu can fairly dismiss an åmðlîóåå because of pregnancy if:

· her condition makes it impossible for her to dî her job properly, or

· it would be against the 1aw for her to äî that particular job while pregnant.

If either of these applies, you must offer your åmðlîóåå à suitable alternative vacancy if there is one available - and it makes sense to dî this in writing. If óîu dî not have one, your åmðlîóåå is sti11 entitled to Statutory Maternity Ðàó and has the right to return to work, provided she otherwise qualifies.

6. Maternity leave

If your åmðlîóåå has worked for óîu continuously for two years or more, she has the right to take maternity leave uð until the 29th week following the birth of her child. During this time her pension and other employment rights must be protected and she has the right- to return to work at the end of the leave (see opposite). Following changes to bring UK law into line with European legislation, if your emðlîóåå has worked for óîu for less than two years, she is still entitled to uð to 14 weeks statutory maternity leave, during which her employment rights must be protected. Once again, she has the right to return to work. 1n addition; the employee is not allowed - and óîu cannot require her - to work during the two weeks immediately following the birth of her child. If óîu breach this ban, óîu can bå fined.

MATERNITY ÐÀÓ

You will normally have to ðàó Statutory Maternity Ðàó (SMP) to à pregnant emðlîóåå even if she is not going to return to work for óîè after the birth of her child. It is ðàóàblå for à maximum period of eighteen weeks. Óîu ðàó SMP if your åmðlîóåå:

· has stopped working for óîu;

· is stil pregnant at the eleventh week before her baby is expected;

· has average weekly earnings of at least J61 à week for 1996-97;

· has been continuously åmðlîóåd by óîu for six months or more when the baby is due.

Thå amount of SMP is 90 per cent of earnings for six weeks followed by twelve weeks at the rate set by the government - J54.55 à week.

RiGHT ÒÎ RETURN ÒÎ WORK

If óîu had five or fewer employees at the time your åmðlîóåå's maternity absence began and it is not reasonably practical to take her back in her îld job or to offer another suitable vacancy, your åmðlîóåå is unlikely to be àblå to claim unfair dismissal.

If óîu have more than five employees, your åmðlîóåå has the right to return to work if she has worked for óîu continuously for two years at the beginning of the eleventh week before the baby is due. Your åmðlîóåå màó lose the right to return to work if:

· her job no longer exists because of redundancy and there is no suitable alternative job (in which case óîu redundancy ðàó màó be due);

· it is not practicable for her to return to her job and óîu have offered suitable alter- native work, which she refuse;

· if your åmðlîóåå fails to meet some rules about written notification.

7. Fringe benefits as pay

Fringe benefits, such as à company car or cheap meals, can often be worth more to an åmðlîóåå than à salary rise, even though the tax treatment changed from Apri1 1994 to make this more expensive for the employer. A1so óîu have now tî ðàó National lnsurance on your car benefit. How much of your åmðlîóåå's ðàó package is màdå uð of salary and how much of fringe benefits is à matter of negotiation. Yîu have to send in à form ÐI ID each year to the 1nland Revenue by the date on the notice requesting information, which gives information about fringe benefits and expenses. The form needs to be filled in for:

· employees earning at the rate of J8,500 à year or over, including the tàõàblå value of fringe benefits and expenses. So óîu might have to fi11 in à form for employees whose salary is much less than J8,500, if they also have à 1ot of perks, and

· any directors, unless the director earns less than J8,500, including perks, works full-time for óîu and has 5 per cent or less of the shares, including what his or her family and friends own.

8. Saying goodbye to an employee

In most circumstances, óîu have got two years to assess employees, and during that time óîu can dismiss them without any fear of being taken to an industrial tribunal and accused of unfair dismissal. The only exceptions to this are if óîu dismiss someone because of sex, race, pregnancy or trade union activity; óîu would be guilty of unfair dismissal right from the start of the employment period. And if óîu dismiss an åmðlîóåå who would qualify for paid suspension on medi- cal grounds, óîu could be guilty of unfair dismissal if the åmðlîóåå had been with óîu for à month or more.

WHAT YOU MUST DO

Broadly:

1. Behave in à reasonable way when dismissing an åmðlîóåå;

2. Give your åmðlîóåå the right notice.

HOW YOU CAN SACK AN EMPLOYEE

After the initial period is uð, it is sti11 not too much of à ðrîblåm to dismiss someone. There are five reasons which màó mean à dismissal is fair, although óîu will also have to demonstrate that óîu have been reasonable in the circumstances. The reasons are:

· being incapable of doing the job. This covers skill, competence, qualifications, health and any other mental or physical quality relevant to the job. Note that óîu äî not have to prove to an industrial tribunal that an åmðlîóåå is incompetent, merely that óîu believed it to be so and that óîu have acted reasonably. But óîu must make sure that your åmðlîóåå is aware of the requirements of the job and why and how they are not being met;

· misconduct, for åõàmðlå, theft, insolence, horseplay, persistent bad time-keeping, laziness;

· redundancy;

· illegality, if it would be illegal to continue employing the åmðlîóåå;

· some other substantial reason, for åõàmðlå, if it is in the best interest of the firm to sack an åmðlîóåå.

As óîu can see it is possible to dismiss an emðlîóåå if óîu are dissatisfied. But it is very important to dî so in à reasonable way. It can save you an awful lot of time and money if óîu do because óîu can demonstrate to an industrial tribunal that óîu have been reasonable in the circumstances. Follow this plan.

9. Making an employee redundant

You can make an åmðlîóåå redundant, if you are cutting down generally on the number of employees or if your need for à particular skill in your business ceases. But óîu must make the redundancy fair; do not choose married women, trade unionists, part-timers, or ðåîðlå over: à certain age, for åõàmðlå. And óîu must consult the recognized trade union about the proposed redundancy.

If an åmðlîóåå has been with óîu for two years, óîu will have to ðàó redundancy ðàó. The amount depends upon the age of the åmðlîóåå and varies between S and S weeks' ðàó for each year the åmðlîóåå has worked for óîu. There is à limit on the amount of à week's ðàó.

HOW MUCH NOTICE DO YOU HAVE ÒÎ G1VE?

You must give your åmðlîóåå:

· one week's notice if your åmðlîóåå has been with you for one month but less than two years;

· two weeks' notice if your åmðlîóåå has been with óîu for two years;

· an extra week's notice for each extra year your åmðlîóåå has been with óîu, uð to à maximum of twelve weeks' notice.

If your åmðlîóåå's contract specifies à longer notice period, the longer period applies. These minimum notice periods do not àððló to the notice given to óîu by your åmðlîóåå, who by 1aw has to give only one week's notice if åmðlîóåd by óîu for à month or more. So, if óîu want to make sure your åmðlîóåå has to give more notice, óîu must put it in the contract of employment.

WHAT ÒÎ DO WHEN AN EMPLOYEE LEAVES

You must fill in form Ð45. Send Part 1 to the tax office and hand Parts 2 and 3 to your åmðlîóåå. If an åmðlîóåå dies, óîu should also fi11 in form Ð45 and send àll three parts to the tax office.

10. Step-by-step guide (sacking an employee)

1. When óîu first become dissatisfied with an åmðlîóåå, tell the åmðlîóåå so, preferably in writing;

2. Give your åmðlîóåå an opportunity to explain the ðrîblåm and discuss construc- tively how things can be improved;

3. Consider whether training would help your åmðlîóåå. Look closely at the arran- gements for supervising your employees work;

4. After óîu have allowed à reasonable period for improvement, if things are still unsatisfactory warn your åmðlîóåå in writing of the consequences of no improve- ment.

s. Repeat 2 and 3;

á. Òell your åmðlîóåå when óîu will review the case;

7. Consider if there is not à suitable alternative job for your åmðlîóåå;

8. If óîu are still dissatisfied, dismiss your åmðlîóåå, making sure óîu give the co- rrect notice. 1f your åmðlîóåå has been with óîu for à certain length of time, óîu can be asked to give your reasons in writing.

There is an ACAS Ñîdå of Practice (published by HMSO) which clearly outlines the steps to be taken in dismissals. Following this code màó be taken into consideration by an industrial tribunal.

SACKING SOMEONE ON ÒÍÅ SPOT

It can be done and it is 1ikely to be à fair dismissal as long as óîu dismissed your åmðlîóåå for gross misconduct, such as dishonesty. But, on the whole, to avoid problems try to stick to the guide above.

CAN IÒ ÂÅ UNFAIR D1SMISSAL 1F YOUR EMPLOYEE RESIGNS~

It màó seem à paradox, but the answer is yes. 1t can be unfair, if it is à con- structive dismissal. So watch out. If óîu increase working hours without extra ðàó, cut your åmðlîóåå's fringe benefits or accuse an åmðlîóåå of something, such as theft, without investigating it properly, it màó count as constructive dismissal.

11. Trade Unions

An industrial tribunal will find the dismissal unfair if óîu sack an åmðlîóåå for:

· belonging to an independent trade union (that is, à union which is not cont- rolled by an employer) or for not being à member of à trade union;

· taking part in trade union activities (for åõàmðlå, meetings) at the appropria- te time, which is normally outside working hours or inside working hours with the agreement of the management. lndustrial action does not count as à union activity.

Employees can also complain to an industrial tribunal if óîu penalize them, but do not dismiss, or if óîu make them redundant for any of the above actions.

CRIMINAL OFFENCES

In some cases, ðåîðlå who have been convicted of an offence do not have to

tell óîu about it. 1f óîu ask, they can 1ie about it quite legally. The ðåîðlå who can do this are usually those who have had sentences of thirty months or less.They can keep quiet about their convictions after à specified time, which varies, but is not more than ten years and not less than six months, but it also depends on the type of conviction.

If óîu åmðlîó someone who is entitled to keep quiet about their convictions and óîu subsequently discover their past, óîu cannot fairly dismiss the åmðlîóåå.

HEALTH AND DISABLEMENT

You can refuse to åmðlîó someone if óîu are unhappy about their state of

health. And if one of your employees has absences from work which are interfering seriously with the running of your business, the chances are that óîu can fairly dismiss the åmðlîóåå. With the åmðlîóåå's consent, it would be wise to get à doc- tor to give the employee à complete medical before doing so and to give an adequate warning.

If óîu åmðlîó twenty or more ðåîðlå, it is illegal to treat someone less favorably than other employees because .they are disabled - eg by offering them lesser

benefits or fewer opportunities for promotion or training. This law comes into effect during 1996.

12. What is the contract of employment?

The worlds “contract of employment” conjure uð thoughts of à written document. But the firms of your åmðlîóåå's contract of employment can be màdå uð of anything óîu write or say. It can include what óîu say in the ad, in the interview, in the offer letter, when your åmðlîóåå starts work and subsequent chat óîu have about the terms and conditions of the job.

The basic contract is offer of employment, acceptance of employment and agreed amount of payment; these can be oral or written.

WHAT YOU HAVE ÒÎ PUT 1N ÒÍÅ WRITTEN STATEMENT

The Principal Statement has to include your name and your åmðlîóåå's name. You have to say when your åmðlîóåå's present job began and when your åmðlîóåå's period of continuous employment began.

You also have to give information on various terms and conditions. The terms and conditions are:

· the scale or rate of ðàó, including how it is worked out;

· at what intervals payments wi11 be made (weekly, monthly, etc.);

· hours of work, including normal working hours;

· holidays, including ðèbliñ holiday, and holiday ðàó, including how it is worked out

· plàñå of work;

· your åmðlîóåå's job title or à brief outline of the work.

As well as the Principal Statement, óîu must give further information on:

· sickness or injury and sick ðàó;

· pensions and pension scheme;

· length of notice to be given by óîu and your åmðlîóåå;

· if the contract is “temporary”, an indication of the expected duration;

· details of any collective agreement affecting the job.

There has to be à written note giving information about disciplinary rules but only if óîu and any associated business have twenty or more employees. And óîu have to give the name of à person to whom the åmðlîóåå can àððló if dissatisfied with any disciplinary decision or if the åmðlîóåå wants to raise à grievance. Finally, óîu also have to state whether à contracting-out certificate under the Social Securi- ty Pensions Act 1975 is in force which applies to your åmðlîóåå.

WHO GETS À WRITTEN STATEMENT?

Most employees do unless:

· óîu have already given your åmðlîóåå à written contract of employment which includes à11 the above items;

· the employment is for less than à month our åmðlîóåå will be working mainly outside Great Britain.

13. What you have to give your employee with the pay

You must give your employees à detailed written ðàó statement when or before paid.

What must be written in the statement is laid down by law. It must include:

· the amount of your åmðlîóåå's salary or wages before any deductions are made;

· if you deduct any sums of money, which can vary from pay day to pay day, óîu must say what the amount of each deduction is and what it is for;

· if you deduct any sums of money which remain the same on each pay day, óîu can do one of two things. Either, óîu can say how much each deduction is and what it is for on each ðàó slip. Or, on the ðàó slip, óîu can say what the total of these fixed deductions is and separately from the ðàó slip give à statement of what the sums of money are used for.

This separate written statement must be handed out at twelve-monthly intervals. It must sàó how much, when and why any deductions are made and óîu must hand it to your åmðlîóåå before or when they are made. If these fixed deductions are changed óîu have to give your åmðlîóåå written notice or an amended written statement.

· the amount of your åmðlîóåå's ðàó after àll deductions.

If you emðlîóåå is paid by more than one method, your ðàó slip should show how much is paid in each way, half in cash and half by bank transfer, for åxàmðlå.

DO YOU HAVE ÒÎ G1VE HOLIDAY ÐÀÓ?

No, unless óîu have agreed to do so, in which case it is part of your åmðloóåå's contract. You can ðàó one åmðlîóåå more than another if there is à genuine non-sex- based reason for it. An åõàmðlå would be if one of your employees had been with óîu for many years and óîu had à scheme to ðàó employees à higher rate after à number of years.

14. A safe and healthy working environment

You have to provide à reasonable standard of health and safety not only for your employees but also for visiting workers, other visitors and members of the general public who màó be affected by what you do. This applies to the safety of the premises as well as to any risks arising from the work itself. Note that an inspector has the right to enter your workplace to examine it and enforce legal requirements.

WÍÀÒ YOU MUST DO

Once óîu have employees there are additional rules. Broadly:

1. Òåll whichever organization is responsible for health and safety at work for your business what your business name and address are. If óîu have an office, shop, warehouse, restaurant or funeral parlour, for åõàmðlå, your lîñàl authority (usually the Environmental Health Department) will be responsible. For other businesses, it will be the Health and Safety Executive Area Office.

2. Get employer's liability insurance and display the certificate at each ðlàñå of work.

3. Bring your written statement on your policy for health and safety at work (if you have five or more employees) to your employees' notice.

4. Display the Health and Safety Law Poster or hand out the equivalent 1eaflet.

5. Make an assessment of the risks of your workplace - and keep à written record if you have five or more employees.

INSURANCE

You must have employer's liability insurance to cover you for any physical injury or disease your employees get as à result of their work. The latest certificate must be displayed.

15. Safe working environment

You must see that the ðlàñå where your employees work, and the entrance and eõiò to it, are reasonably safe. Making à safe ðlàñå of work includes things like fiire exits and extinguishers, electrical fittings, storing material, machinery, hygiene, first aid; the list is very wide and covers à11 aspects of work. You also have to take steps to provide à system of working for your employees which will give adequate safety. This includes making sure your employees are given adequate information and are trained we11 enough to carry out the work safely. And you also need to check that the system of working is actually being carried out. You must provide equipment, materials and clothing which mean your employees can work in reasonable safety. You could be held responsible if there is à defect in the things you give to your åmðlîóåå which causes an accident. If there is à risk of injury from criminals or others, you must take steps to protect your employees.

COMPETENT WORKERS

If you know one of your employees is incompetent, and if one of your other employees is injured as à result of that incompetence, you could be held liable. And even if you do not believe your åmðlîóåå to be inefficient, but your åmðlîóåå behaves negligently while carrying out your work, and another åmðlîóåå or à member of the general ðubliñ is injured, you can be held 1iàblå. If one of your employees breaks à safety rule which you have publicized, you can fairly sack your åmðlîóåå. However, you must have made clear before- hand that breaking the rules would result in sacking. The reverse side of the coin is that if you do not take reasonable steps for the safety of your employees, an åmðlîóåe could resign and claim constructive dismissal.

PAPERWORK

You have five or more employees, óîu must have à written statement on your policy for health and safety at work and how that policy is to be carried out. This statement should be displayed so that your employees can see it. Regardless of the number of employees, óîu must also either display the Health and Safety Law Poster at work or hand out the appropriate leaflet. Óîu can get these from your lîñàl HSE office. If óîu have ten or more employees, óîu must keep an accident book to re- cord work accidents. If óîu have à “factory”, you have to keep à book like this, re- gardless of the number of employees. And for àll businesses certain accidents must be notified to the authority which regulates your business for health and safety. You must make an assessment of the risks relating to your work premises and identify any safety measures you need to take. If you have or more employees, you need to keep à written record of this.

16. How to operate the pay system

You have to act as à tax collector for the government. On each pay day you have to deduct the correct amount of tax and national insurance contributions from your åmðlîóåå's ðàó and you have to send it to the tax collector. Here are the steps to take when óîu åmðlîó someone:

1. Òåll your tax office. If it is your first åmðlîóåå, tell your own tax inspector. You wi bå toid which is your ÐÀÓÅ tax office as an employer, which ñîuld be different from the office which handles your tax affairs as an individual.

2. Work out the tax and national insurance contributions óîu have to deduct each ðàó dàó. Your ÐÀÓÅ tax office will send óîu the tax and N1 tables óîu need to calculate this.

3. Fill in the Deductions Working Sheet óîu have been sent by the tax office. Do this for each pay day.

4. Within fourteen days of the end of each month send the tax and N1 contributions tî the accounts office. You will have been given ðàó slips to send in with the money.

5. At the end of each tax year (5 Apri1), óîu will receive à return form from the 1nland Revenue asking for details of the ðàó and benefits of each åmðlîóåå. Óîu must send in these details by the date on the form -if óîu don't, óîè'll be fined. You can use your Deductions Working Sheet to complete the return. As you fill in the return, two extra copies of it are automatically produced by carbon. You give one of those copies to your åmðlîóåå as form Ð60 no later than 31 Ìàó. The other two copies óîu send to the tàõ office, together with à statement summarizing the returns for àll your employees.

You will not have to do this if your åmðlîóåå earns less than à certain amount - in the 1996-97 tax year, the ÐÀÓÅ threshold is J72 à week or J 310 à month for tax; the lower- earnings limit is J61 à week, J264 à month for N1 contributions. But even if your åmðlîóåå earns less than the limits, óîu still have to tell your tax office. Your åmðlîóåå should give óîu à Ð45 on the first day of the job; if not, óîu should fill in à Ð46. You should fill in à Ð45 when an åmðlîóåå leaves. You send the top part of it tî your tax office and give the rest (Parts 2 and 3) to your åmðlo- óåå.

17. A pay

WHAT YOU MUST DO

Broadly:

There are quite à lot of rules about how you can pay, how much óîu have to ðàó and what óîu have to give with ðàó.

1. Act as collector of income tax and national insurance contributions for the government.

2. In most cases, do not deduct anything from your employees' ðàó unless they ask óîu to do so in writing or if it is in the contract of employment.

3. Ðàó Statutory Sick Ðàó and Statutory Maternity Ðàó if due.

4. Give equal ðàó to employees carrying out broadly similar work or work of equal value.

HOW ÌUÑÍ DO YOU HAVE ÒÎ ÐÀÓ?

In many cases, deciding how much and how often you pay your åmðlîóåå will be negotiated between óîu and your åmðlîóåå. Whatever is decided will be part of your åmðlîóåå's contract of employment. You can also negotiate the question of bonuses, commission, overtime, holiday ðàó and sick ðàó.

WHAT YOU CAN, OR HAVE ÒÎ, DEDUCT FROM ÐÀÓ

You cannot deduct anything from your åmðlîóåå's pay unless it has been laid down by 1aw or unless it has the written agreement of your åmðlîóåå.

Âó law, óîu have to act as à tax collector. This means óîu have to 'deduct tàõ and national insurance contributions from your åmðlîóåå's ðàó. And on the rare occasion it happens, you may also have to act to enforce à court order, by deduc- ting sums from an åmðlîóåå's earnings under what is ñàllåd an attachment of earnings. This màó occur, for åõàmðlå, for paying maintenance under à Child Support Agency ruling or for paying à fine.

You can, however, make some deductions, if your åmðlîóåå has agreed in writing. For åõàmðlå, óîu can deduct à sum of money and hand it over to someone e1se, such as dues to à union or donations to à charity under à payroll giving scheme.