NatWest staff ‘like to say yes’

Undercover reporters have allegedly found that NatWest staff members are urging customers to reclaim bank charges – at the same time as the bank’s lawyers are fighting tooth and nail to defend them.

The Times has revealed that financial guidance staff at the bank’s MoneySense unit told its secret investigators to write to their respective financial institutions to reclaim the penalties.

Reporters visited four different branches and only one did not recommend doing so.

A NatWest spokesperson has refuted all the allegations.

Royal Bank of Scotland (RBS) is the parent of NatWest, which itself is now majority-owned by the taxpayer after the recent bail-outs.

According to the newspaper, it is one of six high street banks that is battling the Office of Fair Trading (OFT) in the Court of Appeal to put the brakes on an investigation into the penalties.

Phil Jones, personal finance campaign at Which?, told The Times: “It is hypocritical and bizarre that while RBS is levying these unfair charges on customers its own advisers are encouraging customers of other banks to reclaim them.

“RBS should throw in the towel on the current court case along with the other high street banks and refund all the customers who have been hit by these unfair charges in the past.”

It was also reported that one staff member at the bank told an undercover journalist that she had applied for refunds herself and that template letters are available online.

Consumers who wish to get their money back can use the Small Claim Court’s Money Claim Online service – which has been in operation since 2002.

Net Lawman reports that one of the main reasons for the recent surge in the use of Money Claim Online is that “thousands of people have started suing their banks for levying unfair overdraft charges”.

“The Consumer Action Group, which has been behind this campaign, claims that 45,000 people have registered with its own website this year and that it knows of at least 750 claims which have been lodged with the county courts,” it adds.

The website states that the online process is simple and straightforward – taking around 15 minutes – and aggrieved consumers can sue for any amount below £100,000.

All that is needed is an email address in England or Wales, while the defendant must also live on these shores.

Following registration and submission of the money claim a small fee is required and at this stage no evidence is needed; consumers will just be required to state it in concise detail and be accurate.

“You must tell the truth; otherwise you could be prosecuted for contempt of court,” the site advises.

The Times reports that some banks have charged customers almost £40 for being overdrawn by a few pence and they make billion of pounds a year from this practice.

However, thanks to the Small Claim Court’s Money Claim Online service, if you wish to make a small claim it is now quick and easy to do so.

Written by Christopher Evans

  • Money and Tax News from Lawpack: tax saving tips, business loan agreements and expert small claims legal advice

 

An employer’s guide to different types of discrimination

by Nadine De Souza

Discrimination is illegal at all stages of the employment process (i.e. advertising, vacancies, engagement of employees, promotion, training, benefits, dismissal and retirement). This protection covers more than just employees and includes the self-employed and those with a contract of service or working under an apprenticeship.

If an employee thinks that they have been discriminated against, then they can bring a claim in an employment tribunal. There is no qualifying period of service to bring a discrimination claim and no maximum award, so you must try to avoid a discrimination situation.

How to avoid a discrimination claim

An employer is liable for anything done by its employees in the course of their employment, whether or not it was done with the employer’s knowledge or approval.

However, it’s a defence if the employer can prove that it took reasonable steps to prevent an employee from doing a certain act. If the employer wishes to rely on this defence, it must be shown that positive steps have been taken to address the possibility of discrimination occurring in the workplace.

The best way to avoid discrimination is to make sure that it doesn’t happen in the first place. Employers should have an equal opportunities policy. An equal opportunities policy is also part of Lawpack’s Staff Handbook.

Employees must be shown this policy and educated about different types of discrimination and warned of its consequences. Employees should be told that all acts of discrimination will be taken very seriously by the employer and will be considered gross misconduct.

Types of discrimination

It’s against the law to treat someone less favourably than someone else because of a personal characteristic, such as age, disability, gender reassignment, race, religion or belief, sex, sexual orientation, marriage and civil partnership, pregnancy and maternity.

There are different types of discrimination including direct discrimination, indirect discrimination, harassment and victimisation. Some examples of discrimination are introducing policies that discriminate against workers (e.g. a benefit for married employees but not for those in a civil partnership, or failing to make reasonable adjustments for a disabled employee).

Dealing with a discrimination claim

Complaints of discrimination can be very disruptive to the workplace and must be dealt with very carefully. If an employee complains of discrimination, consider whether an informal approach to the alleged discriminator would be appropriate; for example, if it’s a less serious complaint or the first instance of discrimination.

Consider whether the person complaining of discrimination wants an informal approach or would prefer more formal action to be taken. If an informal warning is appropriate, the alleged discriminator should be consulted to explain that the conduct is upsetting the employee, that it’s considered discrimination and must not continue.

The employee should also be warned that the matter will be kept under review. The employee must be shown the policy which is in place and warned that if matters don’t improve, disciplinary action will be taken.

The person who has complained should be kept informed of the warning given and told to inform the employer if they have any further complaints against the alleged discriminator.

Where an informal approach is inappropriate or if the complainant wants formal action to be taken, the disciplinary procedure should be followed in the following way:

  • Ask the victim for a full statement
  • Suspend the alleged discriminator pending an investigation
  • Take statements from all staff who can provide evidence about the alleged discrimination
  • Interview the alleged discriminator and ask them to provide a statement
  • If there is any substance to or doubt about the discrimination, then you will need to hold a disciplinary hearing to give the alleged discriminator the chance to answer the complaint or justify or excuse their conduct
  • If you decide that the discrimination did take place, you have to consider a penalty. If it’s a serious case, then the penalty could well be dismissal. If the discrimination is less serious, then a final written warning should be enough.

Exceptions to the law against discrimination

There are a number of areas where exceptions to the law against discrimination exist. The main ones are:

  • Positive action: Employers are entitled to take voluntary positive action if they think that employees or job applicants who share a particular characteristic suffer a disadvantage connected to that characteristic, or if their participation in an activity is disproportionately low.
  • Genuine occupational requirement: In limited circumstances it may be lawful for an employer to discriminate if it’s a genuine occupational requirement for the jobholder to have a particular characteristic (e.g. a charity that helps female victims of domestic violence is advertising for a counsellor and they consider it to be a genuine occupational requirement for the jobholder to be female).

Help from Lawpack

This article has been adapted from Lawpack’s Employment Law Made Easy. If you want more in-depth information – from an employment lawyer – about all aspects of employment law, then read our guide Employment Law Made Easy. Packed with tips and expert advice on complying with employment legislation.

Why not download our Equal Opportunities Policy, so you have a solicitor-approved company policy in place?

Other information

 

External links

Published on: June 30, 2014

How to make staff redundant

by Nadine De Souza

Unfortunately, during these difficult economic times you may have to make a member of staff redundant. Read our essential guide below for the steps to ensure that any redundancies you make don’t fall foul of the law.

Redundancy exists when an employee’s dismissal is attributable mainly to the fact that:

  • The employer has stopped, or intends to stop, carrying out the business that the employee is employed for or that the company intends to relocate;
  • The need for the employee’s work has stopped or diminished, or is expected to (i.e. a reduction in the number of employees is required).

As an employer, you need to show that an employee’s redundancy is genuine. Therefore, you have to show that the employee’s job no longer exists. It’s also important to try to avoid redundancies before dismissing staff.

Step 1: Find alternative employment

Firstly, you must try and find alternative employment for the redundant employee within your organisation. If you offer your employee alternative employment, then it must be offered in writing and should be unconditional.

It must start within four weeks of the old job ending and the employee should be given a four-week trial period in which to try out the job.

If the employee doesn’t like it, then they don’t have to accept the job and will still be entitled to redundancy pay.

If the job is suitable but the employee refuses to take it, then they won’t be able to claim redundancy pay.

Step 2: Ask for voluntary redundancies

If you can’t offer alternative employment, then you can avoid compulsory redundancies by, for example:

  • Asking staff to apply for voluntary redundancies;
  • Asking staff to work flexibly;
  • Short-time working or lay offs.

If you ask your employees to volunteer for redundancy, you have to have a fair process for redundancy and just because an employee has volunteered for redundancy, it doesn’t mean that they will be selected.

Step 3: Offer shorter hours

It’s possible to ask staff to do short-time working if their employment contract allows it. Short-time working is when staff have no paid hours for a number of days a week

Step 4: Lay off your employees

You could also lay off your staff, which means that you ask them to stay at home or take unpaid leave. It’s a way to avoid redundancies, but you need to agree it with your staff first.

Step 5: Select people fairly

If voluntary redundancy isn’t possible, then you should select people for compulsory redundancy and make sure that you follow a fair procedure. Fair reasons for making staff redundant are their:

  • Skills, qualifications, aptitude;
  • Standard of work/performance;
  • Attendance record;
  • Disciplinary record.

You can also select employees on the basis of length of service which is ‘last in, first out’. However, don’t make this the only reason for selection as you must be careful that this isn’t age discrimination.

If you use the reasons below as the reason for making someone redundant, then the redundancy will be unfair. The reasons that are unfair are:

  • Pregnancy;
  • Family reasons, including parental leave or adoption leave or time off for dependants;
  • Acting as a trade union representative;
  • Being a part-time worker;
  • Age, disability, gender reassignment, marriage, civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

Step 6: Consult your employees

It’s very important to consult your employees about redundancy. If you don’t, it will almost certainly be considered unfair. There are no set rules about the consultation process if you’re making less than 20 people redundant.

Step 7: Give notice

After you’ve consulted your staff about redundancies, you have to give those employees selected for redundancy the statutory amount of notice. The amount of notice depends on how long your staff have worked for you.

  • 1 month to 2 years: At least a week’s notice
  • 2 years to 12 years: A week’s notice for every year worked
  • 12 or more years: 12 weeks’ notice

If you want your staff to leave earlier than the end of the statutory notice period, then you should pay them in lieu of notice.

Step 8: Look into redundancy pay

Your employees may be entitled to redundancy pay. To qualify the employee must have been working under an employment contract; have two years’ continuous service; have been dismissed, laid off or put on short-time working. You should give your employee a written statement of how their redundancy pay was worked out.

There is a formula to work out redundancy pay:

  • 1.5 weeks’ pay for each year of employment after the employee’s 41st birthday;
  • A week’s pay for each year of employment after their 22nd birthday;
  • Half a week’s pay for each year of employment up to their 22nd birthday.

Length of service is capped at 20 years and a week’s pay is capped at £464. The maximum amount of statutory redundancy pay is £13,500.

If you do have to make some employees redundant, you can get practical help from JobCentre Plus and their Rapid Response Service.

How to handle staff absences due to travel disruption

With the UK having recently experienced one of the worst winters since records began, many employees have struggled to get into work due to travel disruption.

But what can you do as an employer if your staff can’t get into work? What efforts should you expect your staff to make to get in? And what happens if your employee’s child’s school is shut?

Here are our top tips on how to handle the problem and your rights as an employer:

1. Get it in writing

You have no legal right to pay your employees if they’re unable to get to work because of travel disruption, but there may be contractual or customary practices in place.

Include these practices in your employment contract or staff handbook.

2. Be flexible

Although there is no legal right to pay your employees for travel disruption, the way you handle it could enhance staff morale, so it’s advisable to be flexible. Consider whether your employees can work from home or make up the hours at a later time.

3. Use technology

Technology can help to keep your business going when bad weather hits. Your employees can use laptops and smart phones to continue their work, even if they are unable to physically get to work.

4. Turn the days into paid holiday

If there is travel disruption, you could ask your employees to take paid holiday if you give the correct notice. This must be at least double the time that they want the employee to take, so for one day’s leave there has to be two days’ notice.

If the company’s employment contract sets out a different notice period, then this will apply.

5. Follow procedure

Always make sure that you follow fair and proper procedures when dealing with employees who are absent because of travel disruption to minimise the risk of complaints being made to an employment tribunal by your staff.

6. Write a staff policy

It’s a good idea to put an ‘adverse weather’ or ‘travel disruption’ policy in place that deals with what will happen in the event of bad weather or travel disruption.

It can deal with what steps employees are supposed to take to get into work and what will happen with pay and how the business will continue with the employees’ absences.

Having a policy will make it easier for all employees to understand what is required. Lawpack’s solicitor-approved Staff Handbook template includes clauses on staff attendance and time off for dependants, so you can get a professional staff policy in writing easily and quickly.

7. Encourage your employees to have a back-up plan

Your employees can take measures to help themselves, such as planning extra commuting time when there are known problems with public transport. If their child’s school is closed, then they should consider having a back-up childcare plan.

Employees are entitled to time off to look after their children. if their children’s school is closed. If the school is closed because of adverse weather, then this could be considered an emergency situation. Your employees are entitled to a reasonable amount of time off to sort out alternative childcare.

Help from Lawpack

If you want more in-depth information – from an employment lawyer – about all aspects of employment law, then read our guide Employment Law Made Easy. Packed with tips and expert advice on complying with employment legislation.

Why not download our Staff Handbook, so you have a solicitor-approved company procedure in place?

What to do if your employee resigns

All employers will have to face an employee resigning, but it’s important that you handle it in the right way. Here are some crucial tips to follow.

1. Get confirmation

You can’t refuse an employee’s resignation, but do get the employee to confirm their resignation in writing.

2. Confirm the notice period

Tell your employee what their notice period is and decide whether your employee needs to work all of it.

3. Communicate

Agree with your employee what their last day will be.

4. Impart the news

Consider how you will tell your other staff about the resignation. Perhaps a short, upbeat meeting is a good way to maintain staff morale and deal directly with any questions.

5. Finish off all projects

On a practical level, get your employee to wrap up their projects and leave handover notes for any unfinished work. Make sure you get other employees to cover the work left by the departing employee.

6. Inform your clients

If your departing employee has clients, then you will need to get your employee to tell them about the resignation and to make any necessary introductions.

7. Get a replacement

Consider when and whether you will begin looking for a replacement due to the employee’s resignation.

If you want more in-depth information – from an employment lawyer – about all aspects of employment law, then read our guide Employment Law Made Easy. Packed with tips and expert advice on complying with employment legislation.

What to include in a staff handbook

Producing a staff handbook could be one of the best moves you ever make as a company boss, as the document will resolve numerous issues and appease staff personnel over the years to come.

At first, you might think: ‘Do I really need to write an handbook?’. Here are our reasons why it’s vital for you and your business.

Why you need an handbook

1. It prevents confusion

The handbook will set out the company’s policies and values, so employees never have to be confused about where they stand on a certain issue.

There are many examples of matters staff might be worried about bringing up in person, so kitting them out with an handbook will give them the chance to answer their own questions.

2. Use it as an induction tool

It will be invaluable when recruiting or inducting members of the workforce, as it can be used effectively as an introduction and guide to the business. This will enable new recruits to get up to speed quickly.

How to write a staff handbook

If you decide to write a staff handbook yourself, you should consider some of the practicalities of doing so:

1. Staff inclusion

Can you involve your employees in the process so that the information they want is included?

2. Format

What format should the handbook be published in? An electronic version may now be the best option.

3. Style

Think about the style in which you write, as it’s vital that you’re clear and concise. Stick to short and sharp sentences that leave no room for doubt.

4. Contents

Most importantly of all, you will need to include the right contents in your staff handbook, or risk it becoming relatively worthless. After all, if you produce a document but omit vital details, staff will still have to come to you for guidance and information, making the whole process pointless.

There should be details relating to the employees’ terms of employment, including their training, attendance and appearance at work.

Details of absence and time off for dependants should also be covered.

You must also explain what hours people are expected to work and whether there is any potential for flexible or remote working to occur.

Finally, it should include information on health and safety in the workplace, a redundancy policy and grievance procedure.

Professional template

If you don’t want to write an handbook yourself, Lawpack’s Staff Handbook template has been professionally written by an employment lawyer and includes all the clauses you need to protect your company legally. Available to download and use instantly.

Our stock transfer form template is changing

As of 6 April 2012 the design of the stock transfer form is changing, due to amends by HMRC. Find out more on the latest changes…

A new certificate is being added to the reverse of the stock transfer form, which must be completed when a share transfer is ‘otherwise’ exempt from stamp duty or no chargeable consideration is given for the transfer.

Why the change to the form

HMRC changed the form due to practical problems that the legal sector and Registrars were encountering. These problems were arising from when the form was changed in 2008, due to the abolition of stamp duty fixed charges.

HMRC also decided to update the form more generally to address a specific problem that the Registrars were facing.

The Registrars didn’t feel that the pre-April 2012 form provided enough information for them to fulfil their obligations under section 17 of the Stamp Act 1891 (which, in turn, led to a number of rejected forms and additional work for both Registrars and the legal sector).

HMRC worked with representatives of both groups to see how to reduce the number of rejected forms, which resulted in the addition of the new certificate.

Using the new form

The new stock transfer form should be used for all transfers on or after 6 April 2012, although old versions of the form will continue to be accepted by Registrars until 5 September 2012.

Where the old version of the form is being used for a transfer which is otherwise exempt from stamp duty or for which no chargeable consideration is given, HMRC recommend that you do the following:

  1. Add the certificate manually to the reverse of the form and complete and sign it, or
  2. Provide the Registrar with further details, including relevant supporting documentation, about the transfer and why it is exempt from stamp duty.

From 6 April Lawpack’s Stock Transfer Form template will be updated to include the latest changes so you can rely on us that you will comply with the latest HMRC rules in future.

Private sector businesses on the rise

The UK has seen an increase in the number of private sector businesses over recent years, government figures suggest.

Statistics from the Department for Business, Innovation and Skills show that between the start of 2009 and the beginning of 2010, there was a 1.1 per cent rise in such organisations.

Last year, it is estimated that there were 4.5 million enterprises in the private sector, which employed around 22.5 million people.

Business and enterprise minister Mark Prisk emphasised that the data suggests that business partnerships have remained strong in the UK even in light of the recession.

“I am determined that the government will do everything it can to create the right environment for these businesses to now expand and grow,” he commented.

Research from Clydesdale and Yorkshire Banks recently found that many companies find it difficult to keep up with regulation and legislation affecting their operations.

Company management News from Lawpack: legal forms for your business, company minutesshare certificates and business advice on managing a business.ADNFCR-1645-ID-800554901-ADNFCR

Unhappy workers ‘can have toll on workplace’

Unhappy workers can be damaging to wider company goals, according to one employment analyst.

Dilys Robinson, principal research fellow at the Institute for Employment Studies, believes that “structural commitment” among workers could be one of the biggest problems facing the workplace.

She argues that employees may have abandoned the blitz spirit bought on by the recession in favour of hanging on purely for financial security.

While workers may have been happy taking pay freezes and losing perks during the downturn, more have felt increasingly unhappy at the lack of rewards for their sacrifices.

“Discontented, disengaged employees are likely to withdraw discretionary effort and voice their discontent to their colleagues,” Ms Robinson argued.

A separate report published by Badenoch and Clark this week backed up her findings, that more workers are expressing dissatifaction with their jobs.

More than a quarter (27 per cent) would not recommend their employer to other people, while 22 per cent said they were unhappy with their workplace.

Share certificates and stock transfers: Q&As

When people start up a small business, they usually form a company limited by shares. The benefit of forming such a company is that the shareholders have limited liability, which means that if the company fails, creditors cannot seize their personal assets.

But what are shares? How do you go about issuing them? And what are share certificates? How do you make a stock transfer? Here is our guide to all you need to know about issuing shares in your business.

Why should I be issuing shares?

When you sell shares in your company, it’s a good way of raising long-term finance for your business, and you don’t have to repay the finance or pay interest on the investment as you would with an overdraft or bank loan.

An individual who buys shares in your company will become one of the owners of the company. Shareholders choose who runs a company and are involved in making key decisions about the running of the business.

People who run small businesses usually give out shares in their company in return for a lump sum investment. This may either be from friends and family, or from outside investors looking for a high yield.

How do you go about issuing shares?

When you first set up your company, whether it’s an unlimited or limited company, you can decide on the level of share capital – the company’s authorised capital – and its division into fixed priced shares.

To do this, you draw up a Memorandum of Association, which outlines the amount of share capital the company will have and the division of the share capital.

The founders of the company (e.g. you and your investors) must the sign the Memorandum of Association and state the number of issuing shares. These are then issued upon incorporation (i.e. forming the company legally). The money paid for the shares – which can be a nominal value of £1 or more – must be held by the company.

To provide shares to your investors, why not purchase our Share Certificate Form, or you can find two copies of share certificates, plus all the guidance you need on how to issue share certificates, in our Limited Company Kit.

But what is ‘issued capital’?

Your company doesn’t have to issue all of its capital at once. Issued capital is the nominal – rather than actual – value of the part of the authorised share capital which has been issued to the shareholders.

A company with an authorised capital of 1,000 shares at £1, for example, which issues 500 shares, has an issued share capital of £500.

If there are any unissued shares, the directors can issue shares later, as long as they abide with the rules outlined in the Articles of Association. This usually occurs through an ordinary resolution. The company sets the price of these shares. You must let Companies House know if you issue new shares.

Do I need to issue share certificates?

You must provide your shareholders with a title document to their shares, so you do need to issue share certificates to them.

Each certificate must include the following information:

  • A share certificate number
  • The number of issuing shares
  • The company’s name
  • The shareholder’s name
  • The shareholder’s address
  • The type of issuing shares
  • The shares’ nominal value
  • A statement of the extent to which the shares are paid up

Issue share certificates now with our Share Certificate Form, available for immediate download, or get two in our Limited Company Kit.

What are the types of shares?

There are four types of shares a company can issue:

  1. Ordinary shares. These shares don’t have any special rights or restrictions. They can possibly give the highest financial gains, but they are the most risky. If the company is wound up, ordinary shareholders will be paid last.
  2. Preference shares. A preference shareholder gets preferential treatment when the annual dividends are distributed to shareholders. These shares have a fixed value, so the shareholder won’t benefit if the company increases its profits, but they will usually receive their dividend ahead of ordinary shareholders if the company is in trouble.
  3. Cumulative preference shares. A cumulative preference shareholder’s dividend will be carried forward to successive years, if they cannot be paid one year. The shareholders will be paid, whatever the earning levels of the business.
  4. Redeemable shares. The company can buy these shares back at a later date, either at a fixed date or at the choice of the business. A company cannot issue only redeemable shares.

How do I make a stock transfer?

If you run a limited company, you can transfer shares through brokers using the Stock Exchange CREST network service. If it’s a private or unlimited company, you can usually make a stock transfer by private agreement between the vendor and buyer, subject to the company’s rules and the directors’ approval. If you want to make a stock transfer, our Stock Transfer Form can help. It’s an easy-to-use document, which can be downloaded immediately from our site, and is approved by legal experts.

You do have to pay tax when you sell or make a stock transfer. You normally pay stamp duty, and any gains you’ve made through selling shares can be liable for Capital Gains Tax.