Are you Ready for the New Shared Parental Leave and Pay Rules?

As an employer you will of course be well aware of the new shared parental leave and pay rules introduced in respect of children due on or after 5 April 2015.

The Shared Parental Leave Regulations 2014 permit employees to share up to a year’s leave between mother and father. This includes adoptive parents. Mothers are allowed to restrict their maternity leave and pay and share the remainder with their partner.

With the notice period being a minimum of eight weeks, requests are likely to start coming in this month. You will therefore need to put a process in place without delay to deal with such requests from expectant employees with babies due on or after 5 April.

It is reckoned by the Government that between two and six per cent of fathers will take advantage of their new rights, however this could be an underestimate according to some reports. Taking some time to speak with your bookkeepers and calculate the likely impact on your business is wise.

Be Mindful of Discrimination Claims

Aside from the direct financial impact, you also need to be mindful of the risk of discrimination claims. These can come about if you decide not to extend any enhanced maternity pay you offer to fathers as well as mothers. Whilst there is no legal requirement for you to do so, you will have to bear in mind the fact that fathers could cite you for sexual discrimination.

Acas has published a guide to the rules which will help you understand the finer detail of this latest employment law update. You should always seek legal advice when setting down new policies and procedures, or taking any action, so as to minimise your risk of facing a claim.

Plan Ahead for Financial Peace of Mind

It is also worth having a discussion with your bookkeepers as to the financial impact of changes to any employment legislation so that you can plan ahead. They will be able to help by running forecasts to show you how things may alter on the balance sheet, so that you can make any necessary changes within the business in advance.

Get Ready for Significant Changes to Business Insurance with the Insurance Bill

Back in July 2014 the Law Commission, a public advisory body sponsored by the Ministry of Justice, put a report forward to Government. It consisted of a set of recommendations for reforms to non-consumer insurance in the UK. It also included a draft bill called the Insurance Bill.

Reforms to commercial insurance have been long awaited. Currently, insurance law is based on the Marine Insurance Act of 1906. Naturally a law of this age can only be considered outdated and it is hard to imagine how it could possible reflect the expectations of businesses when arranging insurance. Precisely why insurance disputes are so common.

Duty of Disclosure

One of the areas of insurance that is due to undergo reform is known as duty of disclosure. Current insurance law requires that anyone arranging cover has a duty to disclose to the insurer ‘every material circumstance’ that could ‘influence the judgement of a prudent insurer’ in whether or not to accept a risk and in setting the premium. The Law Commission recognised a number of issues with this saying understanding of the system and how to comply with it was generally not good enough. They also identified that the penalties for non-disclosure – i.e. refusing a claim outright – were far too tough.

In response to these issues, the Law Commission has put forward a variety of recommendations. One of these is to replace duty of disclosure with a ‘duty of fair representation’ which will detail what needs to be disclosed and how. A system of balanced remedies in the event of a breach has also been suggested.

Insurance Warranties

A second aspect of insurance intended for reform is warranties. This is another area where great confusion lies. Warranties are promises you make to do or not do something as part of your insurance contract. They could be anything from installing a certain type of alarm or locks to employing a health and safety officer. Breaching warranties can have very serious consequences. Failing to comply can lead to the insurer being fully discharged from liability from the point where the breach occurs.

What this means is that even if a breach had been put right before a loss was suffered, a claim could be thrown out with the insurer not being liable. Even worse, the breach doesn’t have to be connected to the loss for the insurer to be discharged from liability. So for example, if you had agreed to a warranty that required you to install a burglar alarm but failed to do so, then your premises suffered a fire, your claim for losses would not be paid out, even though the fire could not have been prevented with the presence of a burglar alarm.

Good News for Businesses

Once these and other issues undergo reform, it can only spell good news for businesses where insurance is concerned. The Insurance Bill was introduced in the House of Lords on 17 July 2014 and has gone through a number of stages. A line by line examination of the Bill took place during report stage on 8 January 2015 and a third reading, offering a final chance to amend the Bill, is scheduled for 15 January. Only after this takes place can the Bill receive Royal Assent.

Here at Office Assistants your Essex bookkeepers will be keeping an eye on what happens so we can report back and let you know.

Why You Need to Keep a Check on Your Energy Contracts

If you have been fortunate enough to negotiate favourable rates for your electricity and gas supplies then you should pat yourself on the back. But don’t sit back and relax for too long, because you absolutely must keep an eye on the end-dates for your contracts. And if you are moving premises and think your special rates are going to relocate with you, think again.

So why do you need to keep a close eye on the contract end-dates? Well there’s a very good reason. If you find yourself outside of them on ‘out of contract rates’ (OOCR) you could find yourself paying up to double what you’ve been used to paying: something that could have a significant effect on your profits.

Important Note

Put a note in your diary for at least three months before each energy contract is due to end. As soon as the reminder flags up, start researching new deals. Scanning the market can take some time, as can negotiating with existing suppliers. Leave it to the last minute and you may be forced to accept rates that aren’t as beneficial as others you may have come across with time on your side.

Moving Premises?

If you are moving premises then it is important to realise that energy contracts do not move with you. Unlike other contracts they cannot be transferred from one location to another. Instead they cease without penalty under what is called Change of Tenancy. Many businesses don’t realise this, and find out a few months after their move when they receive bills that are much higher than expected. So what do you need to do?

Ahead of your move, contact your energy suppliers to see if you can negotiate new contracts at your new premises. Also spend some time comparing tariffs from other suppliers in case you can land something more favourable.

Sourcing the Best Rates

Whilst this may seem a time consuming business, it will be worth it when you realise how much you can save. It is also worth noting there are companies who provide a sourcing service and who will scan the whole market on your behalf for the best deals. Some of them can even lock you into favourable rates in anticipation of your switch over. Usually there won’t be a charge for the service, as they make their money on commission from the energy suppliers.

Your bookkeepers will usually be able to help in pointing you in the right direction when it comes to energy suppliers and tariffs and of course will be able to illustrate how you will fair financially with any new rates you are offered.