When an employee returns to work following a sickness absence, it’s your duty as an employer to ensure their transition back to work is smooth. Conduct a return to work after sickness interview with your employee to ensure they are fit to be back. The details of this sickness interview should be outlined in your sickness absence policy so your employees know what to expect.

Ensuring your business has a track record for conducting return to work interviews is important as it allows employees returning from sickness to know what to expect following a period of sickness. This is especially important if your employee has an ongoing or recurring condition and further absences are expected, as it allows both you as the employer, and them, to prepare accordingly.

In this article, we’ll tell you everything you need to know about return to work interviews, as well as providing you with some return to work after sickness interview question examples. How you’ll conduct this interview will depend on the circumstances for the absence and your employee’s absence record, so it’s crucial that you’re fully prepared as an employer.

What Is A Return To Work Interview?

First, let’s start with the basics. What exactly is a return to work interview?

Employers hold a return to work interview when an employee returns to work following an absence due to sickness. At the meeting you’ll usually find HR professionals and/or a line manager, as well as the employee who is returning to work following their sickness absence. It’s a key aspect of an organisation’s absence management programme and occupational health protection as it supports employees with their return and sets a routine in motion that every employee can expect following a period of absence due to illness.

Most businesses in the UK will have a standardised return to work form which can be completed during the interview, usually based off templates online. Despite misconceptions, return to work meetings aren’t actually a legal requirement in the UK, so there is no set of interview questions an employer has to ask – so long as its standardised for your business and you treat all employees equally, then you’re fine.

The Equality Act 2010 makes very clear that employers should treat all employees equally regardless of age, sex, religion, disability etc. The Equality Act is key to keep in mind when dealing with employee absences due to sickness.

Why Hold A Return To Work Interview After Sickness?

If a return to work interview isn’t a legal requirement in the UK, then why do so many businesses choose to do so? Well, in most cases it’s for one of three reasons:

1. To ensure the employee is actually fit to return to work – i.e. to ensure the employee’s role can still be met following sickness
2. To reduce future absences – if the initial absence was due to mental health issues, for example, you might be able to support your employee more effectively by discussing their needs
3. To address any ongoing concerns – if your employee is likely to have future absences, then you might be able to support them effectively with flexible working options to ensure they’re having all their needs met and stand a better chance of recovery

Benefits To The Employer Of A Return To Work Interview

As an employer, you’re probably wondering what conducting a return to work interview can do for you. Well, there are a few key benefits.

First, it protects your business from false sickness absence. It is statistically proven that staff members are far less likely to take unnecessary sick days when a return to work after sickness interview is conducted upon their return.

Another benefit is employee productivity. By taking the time to carry out a return to work meeting, your employee often feels welcomed back and supported and you’ll be able to pass on key handover information during the meeting to ensure they are ready to dive back in to their role.

It also protects your employee and shows that you’re living up to your duty of care. It’s always good to look for ways to support your employee during a return to work and to see if any reasonable adjustments can be made to better improve attendance during their phased return. Making reasonable adjustments is your duty to ensure your employee can maintain productivity. A note from your employee’s doctor or medical statement could help you determine which adjustments are necessary here.

Finally, it’s also a great way to ensure no absence is missed so you can keep an accurate absence record for all of your employees. Employees with frequent absence trends may have issues at home, for example. By keeping accurate records this can be raised and proper support put in place. And, if necessary down the line, can serve as evidence during a disciplinary process.

Benefits To Employee Of A Return To Work Interview

Of course, your employees will benefit from a return to work interview too, so let’s explore some of those benefits below.

The whole point of a return to work interview is to support your employees, not condemn them. It shows them that their work is appreciated and their presence is an integral part of the working day, helping them feel more valued.

It also helps them feel ready to return to their team. Things may have changed during their absence, so keeping them up to date during an official handover at a return to work meeting can make them feel more ready to return to work too.

Finally, employees benefit from a return to work interview because they get the opportunity to raise any concerns they may have. They may be battling a long term condition and so may have some ideas about how you, as their employer, can make things easier for them to ensure they can complete their job to the best of their ability.

Do You Need A Return To Work Policy?

Having a return to work policy in your company policy handbook is certainly best practice – even if not legally required. Here you can standardise the process across all staff members and ensure that every employee is treated in a consistent and fair way upon their return to work.

Most businesses have a form or questionnaire to be filled in during this interview, which can help keep all questions from line managers and HR representatives on track. Ensuring return to work interviews follow the same format for all employees means they have the same opportunities to make requests and raise any concerns, too.

When To Conduct A Return To Work Interview

You don’t have to conduct a return to work interview which means there’s no set time you have to do so either. With that said, it’s usually best to include in your policy a timeframe in which a return to work interview is likely to take place so your employee can be prepared appropriately for their return.

Reasons for a return to work interview can be varied also:

• Following longer sickness absence (most common)
• After a single day of sick leave
• At the end of maternity leave or paternity leave

Make sure the reasons an employee may be called to a return to work meeting is set out in the employee handbook so they know what to expect. It’s also a good idea to include a realistic timeframe. Typically a return to work interview will be carried out within a few hours of your employees return. That way, if they have any concerns about whether they’re truly fit to return to work this can be raised quickly.

Questions To Ask At A Return To Work Interview

Since the return to work interview isn’t standardised, we thought we’d provide you with some examples of good questions that other businesses typically choose to ask during this meeting.

Examples of effective questions to ask during the return to work interview could include:

• How do you feel now?
• Do you feel well enough to be back at work?
• During your absence, did you see a GP or pharmacist?
• Are you taking any medication, and are there any side effects that we should know about?
• Is this a recurring or ongoing condition?
• Has anything related to work contributed to your absence?
• Can we make any adjustments to make it easier for you to attend work?
• Do you have any questions?

Return To Work Interview Structure

Although there is no set structure for a return to work interview, the government recommends that businesses follow six steps during the interview:

1. Welcome
2. Update the employee
3. Identify required adjustments
4. Create a plan
5. Record absence
6. Questions

Let’s take a look at these six steps in more detail.

1. Welcome

No matter how you set up the meeting, it’s always important that you remember that the point of this interview is not to condemn or belittle, but to encourage and welcome your employee back positively. Simply let them know you’re glad to have them back and ask if there’s anything they would like to say at the start. Perhaps they’ll explain their absence in greater depth and you’ll be able to ask if they’re 100% sure they’re ok to return to work and remind them that they can go home if they’re still suffering from an illness, pain, or condition.

2. Update The Employee

Next, take the time to let your employee know everything that’s relevant to their role that they’ve missed during their absence. Update them on key project progression or any procedural changes so they can be as productive as possible when they return to work.

3. Identify Required Adjustments

This is one of the most fundamental parts of the interview. Make sure you ask your employee if there’s anything that can be done to make their return to work easier for them, or to prevent future absences. If an employee has a fit note from their GP, there may be some recommendations pertaining to their work and what can and can’t be done. Adjustments to make their return easier is vital.

4. Make A Plan

Now it’s time to work with your employee to make a plan for their transition back to work. Plan any adjustments that must be made to support your employee. This could be anything from shorter working hours, to work from home opportunities, or even adjusted duties depending on their capabilities and wellness.

5. Record absence

You will need to keep a record of absence of all employees, but it’s always good to share that information with your employee so they know exactly what dates are being recorded as an absence and the reason being put down for that absence too, to see if they agree. Any discrepancies can be discussed and explained. It’s also important here to remind employees with regular absences that further absences could lead to disciplinary action later down the line.

6. Questions

To end the interview you should always provide your employee with the opportunity to ask any questions they may have about their return to work. If concerns are raised then listen to them and ask for more details to understand them better where appropriate. Any concerns raised should then be acted upon and reassurances offered to ensure a smooth return to work for your employee.

Tips For Conducting A Return To Work Interview

Conducting a return to work interview can feel daunting, especially if it’s the first time you’ve conducted one. Here are a few useful tips to help you along the way.

• Hold the return to work interview in a private room. This will help to ensure that the employee feels comfortable discussing their absence and demonstrates sensitivity.
• Try to remain objective and avoid bringing your personal feelings into the interview. Try to keep the tone neutral and be as supportive as possible, without judgement.
• Ask the returning employee open-ended questions, encouraging them to share information about their absence and their emotions when it comes to their return to work.
• Avoid putting any pressure on the employee. There is no legal obligation for them to reveal details of their absence should they choose to keep the information private.
• Use the same format for every return to work interview, ensuring fairness and consistency for all employees.
• Return to work interviews don’t need to be formal – a five minute informal meeting in a quiet room is often sufficient. This can help the employee feel at ease, making it easier for them to reveal information that may enable you to support their return to work.
• You should always make notes of the return to work interview and ensure they are signed by both yourself and the returning employee. This will help to avoid any disputes later down the line.

Related questions

What does phase back to work mean?

After a long period of absence, a GP may state that an employee should return to work on a gradual basis, often referred to as a phased return to work. This means that the employee will return to their duties gradually, slowly increasing the amount of time they spend at work and the tasks they carry out over a defined period of time.

Return To Work Interview Questions: Final Thoughts

Return to work interviews offer benefits for both employers and employees. Although they are not a legal requirement, it is highly recommended that employers conduct return to work interviews with employees returning from an extended period of absence.

A return to work interview doesn’t need to be formal – a casual chat is often far more effective than a formal interview. However, it’s important to remember that you will be discussing confidential information, so it’s important to conduct the interview in a private space and store notes from the meeting securely.

The post Return To Work Interview Questions: Examples And Advice For Sickness Interviews appeared first on Real Business.

There is some confusion surrounding the term “reselling”. Whereas many would simply describe it as buying and selling items, it’s more specific than that. It’s a systematised business model that revolves around buying items for a set price in one place and then selling them for a higher price elsewhere. Whether a business or a sole trader making a side income, reselling is an expansive enough craft that nearly anybody can find their niche within it.

But what are the laws that govern reselling items, and how do you navigate them? In this article, RealBusiness will outline these specific laws across multiple platforms.

Is reselling illegal?

No, reselling is not illegal. Of course, the term “reselling” assumes you’ve lawfully purchased the goods in question, and is considered a completely legal business practice in the UK. The following are the main regulatory frameworks that govern them:

1. Consumer Rights Act 2015 – Ensures resold products are of satisfactory quality, fit for purpose and as described.
2. Consumer Protection from Unfair Trading Regulations 2008 – Bans all unfair, misleading and aggressive commercial practices in B2C dealings.
3. Competition Act 1998, Chapter 1 – Prohibits hard-core vertical restraints, including minimum resale price maintenance.
4. VAT registration (VAT Act 1994) – Ensures VAT registration for taxable turnover exceeding £90,000 in any 12 months.
5. Sector-specific licenses – Goods such as alcohol, tobacco and e-cigarettes require specific licenses and adherence to the Licensing Act 2003’s premises, personal-licence and mandatory conditions rules.

What business model is best for a reselling business?

The business model that is best for a reselling business not only outlines liability, but also dictates whether any additional frameworks will be applied.

• Sole trader – Approximately 6 million UK resellers are sole traders. It is perfect for hobbyists or side-hustlers who use other platforms, such as eBay, to resell items. It’s easy to get started, not even needing to register for self-assessment taxes until you earn over £1,000 a year.
• Partnerships – Approximately 36,000 UK reseller businesses are partnerships. A partnership pools its resources to source and resell items. Responsibility, liability, profits and losses all flow through to partners’ returns. Best for niche items where specialist knowledge and technicality can shine.
• Limited companies – Approximately 100,000 limited companies are reseller businesses. Limited companies shield a person’s assets from large-scale stock investments or counterfeit claims, and pay lower taxes than the higher bands of sole traders. Perfect for reseller businesses that are looking to turn full-time, and have the capacity to gather the application materials and staff.

Reselling business as a sole trader

A sole trader is an individual operating under their name, or a business owner operating under a registered business name. This is an important distinction, as operating as a sole trader means you have full and unlimited liability. Your business and personal finances are inseparable, and if you encounter legal issues or debt, it is you, not a company, who will have to face the music.

The following lists a sole trader’s specific obligations:

• Income Taxes – All profit generated from your reselling business is liable for income taxes. They will be calculated through the annual HMRC self-assessment process, requiring you to track business income, allowable expenses, and relevant tax breaks. Pay income tax at your rate (20 – 45%), plus any reliefs you can claim.
• VAT – If your reselling business’s turnover hits £90,000 in any rolling 12 months, you will be charged 20% VAT on each sale under your own name or trading name. You can reclaim VAT on what you’ve paid on your purchases, such as stock, shipping and tools.
• National Insurance – HMRC treats your reselling profits as personal earnings and collects NI via self-assessments. You will either be in Class 2 NI (£3.45/week) if profits are below £6,725 a year, and Class 4 NI on profits between £12,570 – £50,270 (and 2% above).

Reselling business as a limited company

A limited company is useful for business models that foresee long-term business activity and want to take advantage of its separate legal entity status. This means the company, not the person, is liable for all debts. Limited companies also have fantastic tax implications when making the switch from a high sole trader tax band.

To become a company, a sole trader has to:

• Register – Companies House in the UK is the official portal for those wanting to transform their business into a company. You will need to submit specific documents, appoint a company director, and pay fees.

The following are what you can expect to change between legal considerations you should make as a company versus a sole trader:

• Corporation tax – A company is subject to corporation tax, which can be lower than income tax when you earn a certain amount.
• Dividend Tax – The company director has heightened flexibility when it comes to paying salaries versus dividends.
• Annual Accounts – Financial accounts and company updates must be submitted yearly to maintain legal company status.
• Records – You are expected to keep meticulous records of income, expenses, assets, etc.

Limited Company Legislation

Companies are overseen by shareholders and directors. As a result, it’s important to note that all legislation previously talked about also counts here, but with regular compliance checks.

Furthermore, there are additional legislations to follow as a limited company:

• Second-hand margin scheme – When reselling items bought from non-VAT suppliers, you charge it only on your profit margin. Keep separate margin records for each purchase lot and sale batch.
• Alcohol wholesaler registration scheme – Ltd companies buying alcohol for reselling, even if it’s just bottles. Trading without AWRS risks civil penalties up to £10,000 per offence.
• Producer responsibility obligations regulations 2007 – A limited company that places packaged goods onto the UK market above the small-producer thresholds must fund and evidence the recovery/recycling of its packaging via PRNs/PERNs or a compliance scheme.
• Waste Electrical and Electronic Equipment Regulations 2013 – A Ltd company reselling items that are EEE to end users is deemed a producer, and must help finance the collection, treatment and recycling of WEEE.
• Waste batteries and accumulators regulations 2009 – A ltd that places batteries on the UK market is a producer and must fund and organise separate collection and recycling.
• Money laundering, terrorist financing and transfer of funds regulations 2017 – A ltd that accepts or makes cash payments less than £10,000 in exchange for goods is a high-value dealer and must register with HMRC for AML supervision.

Laws and regulations on using an Online Store

Reselling items via an online store, also known as e-commerce reselling, is one of the most common ways that reselling businesses make their money. Online marketplaces like eBay and Depop provide resellers with platforms to reach a wider audience, sometimes internationally, thereby increasing sales far beyond what a garage sale could. Additionally, cross-listing items on multiple platforms can maximise exposure and increase sales, although it requires more monitoring to ensure items can be delisted once bought.

Online reselling is highly convenient, but it’s important to understand that the store itself is protecting both buyers and sellers, with buyers typically being favoured in most cases.

An online store will mandate that the following be complied with:

• Consumer Contracts Regulations – A core set of rights is imposed on online stores to ensure that clear product descriptions, alongside all necessary information (costs, contact details of seller, cancellation policies) are present for each purchase. Furthermore, all buyers are entitled to 14 days of “cooling off”. This means they have the right to change their minds within 14 days for a full refund, with there sometimes being exceptions for perishable goods.
• Distance Selling Regulations – For products bought at a distance, without the opportunity to see the product beforehand, a list of details is required via legislation, such as the item, its cost, and the contact information of the seller.
• E-commerce Regulations – The geographic address of your business must be provided on the online store, should you sign up with one, alongside a working email address that a customer can reliably reach people on for support.
• Data Protection Act – The online store is considered liable for any leaking of private information given by customers.

Should I create my online store?

If you want to create your online store to sell online, understand that you will be expected to comply with the above as well. Modern web development provides many features to help follow legislation compliance.

Starting an online business and making online sales your focal point can be a profitable venture with relatively low startup costs and high growth potential.

What you cannot do as a reselling business

There are some things in the UK that you cannot do as a resale business owner.

It is crucial to remain compliant with legal rules and regulations to avoid severe penalties and ensure smooth business operations. It is illegal to resell certain items, such as counterfeit goods or restricted products, and doing so can result in severe penalties.

• Selling Restricted Goods – The sale of restricted goods in the UK is a no-go and can come with serious charges, depending on the goods involved.
• Counterfeit Goods – Counterfeit goods can be things such as fake items, such as fake Gucci bags, or video games that have been pirated onto disks. Reselling counterfeit items can come with serious fines, especially when it affects the bottom line of powerful companies.
• Age Restricted Items – Items such as cigarettes and alcohol can only be sold to adults. You can potentially lose licenses by putting young people in danger by exposing them to such items.
• Dangerous Goods – Goods such as chemicals or even something as benign as batteries can come with serious penalties, but only when you sell products without properly securing or making checks on them.
• Misrepresenting Products – The misrepresentation of products can cause massive damage to your business. Misrepresentation typically only applies when a trader hides major flaws with a product that shouldn’t otherwise be there, such as saying a phone is of good quality when the screen is scratched. Ensure that the description is accurate and is backed up by photographs of the items.
• Violating Intellectual Property – Unless you are explicitly permitted by the brand, using trademarks or violating copyright law can lead to severe fines and interruptions in business.
• Unethical Practices – Not all unethical practices are typically illegal. For example, price gouging during shortages, or making fraudulent bids to artificially raise prices.

Conclusion

Overall, a reselling business is a crafty and fairly modern way of being an online merchant. It can serve as a small business that acts as a side gig to a larger job, or can be invested in enough to become something much larger. With dedication and strategic planning, reselling has the potential to transition into a full-time job, offering a significant income or even a career change. With the right strategies and dedication, a reselling business can make money and provide a significant source of income. Overall, most laws surrounding reselling exist to protect the buyer. So long as you keep their interests in mind and ensure clear communication, we can’t imagine many having issues with a resale business.

FAQ – Does a reseller business pay sales tax?

In the UK, we do not have sales tax. However, America does, and when shipping there, you’ll have to navigate the country’s state-level rules. Since the 2018 U.S. Supreme Court decision of South Dakota v. Wayfair, some states may require remote sellers to collect sales tax if they exceed economic thresholds.

The USA market is huge, with over 300 million people, and many of them use online stores to buy items internationally. If you resell items using an online store, chances are they will handle the U.S. sales tax collection for you.

FAQ – What is a reseller permit?

A reseller permit, also known as a resale certificate, resale license or sales tax permit, is issued by a local authority or state that lets a business.

The post Laws On Reselling Business Products UK appeared first on Real Business.

In the UK employers are bound by the Working Time Regulations 1998, which essentially lays down the law for workers, providing guidance on rest breaks at work and between shifts. Weekly rest breaks are integral, not only to ensure your workers are well rested and ready to complete their normal working hours, but to protect their health and wellbeing too.

Below we’ll explore what a worker’s entitlements are, how you as an employer should protect those rights, and what happens if you don’t.

What Are A Worker’s Rights?

No matter the industry, compensatory rest breaks are an entitlement for all workers. From offices to working from home, garages to coffee shops, the law applies to all. Workers are entitled to the following:

•  A 20-minute rest break if they work for more than six hours.
•  An 11-hour break between working days.
•  Either a 24-hour rest period every week or a 48-hour rest period every fortnight.
•  Annual leave.

This should be extended to all worker types, from regular full-time and part-time employees, zero hour workers and apprentices, to agency workers and seasonal workers. This should be an uninterrupted rest period that allows the individual to fully recuperate.

Are There Any Exceptions?

Those completing night work have certain exceptions, as well as those working split shifts and in specific industries such as the medical profession. Here workers can voluntarily opt out of daily rest requirements to meet the needs of the business – but this shouldn’t be taken lightly as an employer.

Even if your employee opts out to meet the needs of your business, you owe them a duty of care and should ensure they get adequate rest breaks at work and in between shifts. There are several benefits to rest, which you should know as an employer to get the best out of your workers:

The Importance Of Rest

• Health is valuable. An employee’s health and wellbeing should always be your number one priority as a business owner. Insufficient rest can lead to poor physical and mental health, and without the proper chance to recover, the human body and mind can burnout.
• Prioritise safety. Health and safety at work is always important, and tired, burnt-out workers are much more prone to make serious mistakes at work that could cause injury or worse to them or fellow employees around them. Proper rest ensures the safety of everybody in the workplace.

Managing Rest Breaks Throughout The Day

Anybody working for 6 hours or more is entitled to an uninterrupted break of at least 20 minutes. That doesn’t mean that somebody working 12 hours would receive a 40 minute break. However, it’s important to remember that all breaks:

1. should be planned in advance
2. cannot be scheduled at the start or end of the day

Beyond Basic Breaks

There is some flexibility for employers when it comes to allocating breaks for employees. You can choose what’s best for your business, and you can choose to be as flexible as you like – allowing for cigarette breaks and lunch hours as you see fit.

It’s up to you as an employer if you want to go beyond basic breaks for your employees, but you’ll find that doing so will often be appreciated by your staff.

Taking Rest Between Days And Throughout The Week

No matter the type of shift work – night workers, day workers, etc – they’re entitled to uninterrupted rest breaks of 11 hours between shifts. Sometimes this may not be feasible due to emergencies, scheduling conflicts, or the industry they work in.

However, it’s your responsibility as an employer to try and give your employees an 11 hour rest between work days, and 24 hours rest over the course of a week – or 48 hours over 2 weeks.

The Challenge Of Rest For Shift Workers

A shift worker will often struggle with varying shift patterns which could upset their natural sleeping rhythm and present challenges when it comes to resting and sleeping. Being mindful of this as an employer is key, and scheduling should be set up so that employees have the opportunity to reset between shifts and adequately rest.

Workers Feeling Deprived Of Adequate Rest?

For employees who feel they’re not getting the rest they need, then open communication with the employer is key. Employees should have the opportunity to talk with their employer formally in the first instance, letting them know that they’ve been struggling with rest. It is the employer’s job to ensure workers have the right amount of rest breaks in and out of work to protect health and safety in the workplace.

If this does not happen, then it is possible that an employee might even think about taking their case to an employment tribunal or reporting the issue to the Health and Safety Executive, if they consider their issue with breaks has been continuously ignored.

How Important Is The Employment Contract?

The importance of the employment contract, cannot be overstated when it comes to understanding the arrangement between employer and employee for rest breaks – especially if those rest breaks at work and between shifts are altered slightly compared to the UK standard.

Rest breaks are a legal requirement – but employees don’t have to legally be paid for them – often, whether an employee is paid for breaks or not will be detailed in the employment contract. Review the contract conditions as an employer to understand what people are entitled to at their workplace.

Other Circumstances & Flexible Rest

Information about lunch breaks, smoke breaks, and additional rest periods should be included an employment contract. As an employer, it’s your job to be especially clear in your employment contract so that all workers are treated in the same way. Consider including clauses relating to:

• Adjusting Rest Periods – The world of work can be unpredictable at times. There may be instances where emergencies or unexpected situations arise. This could involve a server crash for IT professionals, a surge of customers in retail, or even a critical incident at a healthcare facility. Make sure you include information about what happens when all hands are needed on deck, and how you’ll compensate them afterwards.

• Additional Breaks – The law recognises the need for adaptability. During emergencies workers might need to adjust when they take their break. This could involve considering the option of taking a break later in the day, rather than completely abandoning it. The important thing is to adapt to the circumstances while still acknowledging the need for rest for ALL of your employees.

Your Responsibility As An Employer

There are certain additional things you’ll need to consider as an employer:

Special Consideration For Young Workers

We’ve already discussed the rights of most workers in the UK, but there are special considerations you’ll need to make for a young worker (aged under 18) as different rules and regulations apply. Their ability to work continuously without rest is obviously reduced, which is why you’ll need to consider the following:

• Extended Breaks – Young workers are generally entitled to breaks. They should have a 30 minute break after working for every four and half hours.

• Limitations on Night Shifts – There are also limitations on the number of hours young workers can work, during unconventional hours. As a standard, night shifts aren’t allowed for those under 18.

Finding Harmony Between Work And Life

Beyond the rules and regulations there is a concept that these guidelines suggest; the importance of maintaining a healthy work life balance.

Most workers today think they have to be constantly working to be progressing in life. Our culture is such that rest breaks are almost frowned upon, and stories of workers doing extra work over the weekend are commended as the gold standard. However, that’s not a sustainable way to live, and as an employer it’s your job to communicate that with your employees so they understand that your workplace is one with a culture that values rest and recuperation.

Remember that workers that don’t value rest burnout, putting their ability to work at risk, but also their own and others health and safety. Burnout can lead to absenteeism and high employee turnover, so take a good look at your workplace’s culture and ensure it prioritises rest.

Technology’s Influence On Rest

In this age of technology it can serve as both a blessing and a curse when it comes to achieving a work/life balance. We’re always connected to each other, via phones, emails, Zoom meetings and video calls, and it can easily spill over into home life. An employment contract should make clear what hours a person needs to be reachable for meetings and the like, and clear boundaries set to ensure work isn’t spilling over into rest time.

If a lot of your employees work from home, you might want to consider certain tools which can track hours worked and rest taken, ensuring your employees are taking the rest they need whilst at work and between shifts at home, too.

Redefining Productivity

Sufficient rest is important – and this ought to be a priority in any workplace. But it’s also important to note that productivity is not just about hours spent working. Quality and quantity are two very different things.

Just because an individual is skipping breaks and not taking enough rest between shifts doesn’t mean they’re getting more done. Even if they are doing more at work, that work is not always going to be of the highest quality because they’re likely tired and burned out. A well rested person will probably produce work of a much higher quality because they’ve had time away from it. That’s why annual leave is so important, but getting the right rest during the working week is too.

Taking regular breaks increases concentration, creativity, and problem solving abilities. Breaks aren’t a waste of time, they’re investing in your employees ability to do a better job when they return to work.

Final Thoughts: Prioritising Proper Rest In And Out Of Work

In summary, the concept of rest goes beyond requirements. It covers  health, both physical and mental, and it’s about setting people up for success whilst at work.

The right to rest isn’t about recovering; it’s about acknowledging potential, understanding limits and giving the mind and body the right time to develop the skills needed to truly succeed.  A rested person is naturally more creative, productive, and better at problem solving.

A proper, worthwhile rest both at work and between shifts isn’t a luxury, but a necessity that’s important to employees and employers alike. As an employer, it’s your job to ensure your workers realise this. Without proper rest, your workforce won’t be as strong and your employees won’t be as happy, so prioritise it.

Every employee regardless of their position or level of seniority deserves the right to rest. Recognising, respecting and reinforcing this right is the key to cultivating a happier and healthier workforce. Ultimately when we prioritise the well being of our employees, they will reciprocate by caring for the organisation. Employers, managers and HR professionals must foster a culture where taking breaks is not viewed as laziness but instead is recognised as essential for maintaining productivity, safety and morale.

For employees it’s crucial to be aware of their rights. They need to prioritise getting the rest they’re entitled to and understand that it ultimately benefits both them and their employer. Taking a stroll outside for some air, sharing a laugh with a coworker over a coffee break, or simply enjoying the tranquillity of a quiet room all contribute to creating a more positive and healthier work atmosphere. Ultimately regardless of the details surrounding breaks and rest periods the essential message remains consistent: in order to improve productivity at work we must prioritise taking breaks to allow people to recharge.

The post Is It Illegal To Have Less Than 11 Hours Between Shifts UK? appeared first on Real Business.

The current national minimum wage rates (applicable from 1 April 2025) mean that both 16 and 17-year-olds are entitled to a National Minimum Wage of £7.55 per hour. This applies whether working part-time alongside studies or fully immersing themselves in full-time employment. Keep in mind that if someone earns more than £123 per week National Insurance contributions will be deducted from earnings.

For those aged 16 and entering the working world it can feel pretty daunting as they enter into unknown territory. As they progress into adulthood and the world of work, they should take time to understand their rights when it comes to pay.

Understanding the details of the UK’s National Minimum Wage and National Living Wage rates can be challenging for both employers and employees alike. This article aims to provide information on minimum wage for 16 year olds and other relevant age brackets, including entitlements and employer responsibilities, plus help to clarify these aspects of UK employment law.

Key Points to Note About 2025/2026 Wage Rates

Every year the rates for the National Living Wage and Minimum Wage undergo revisions that apply from April 1st to March 31st. Here’s what young people can expect to be paid during the period from 2025 to 2026:

• Those aged 21 or above, receive a minimum wage of £12.21 hourly rate
• For individuals aged between 18 and 20 years old the wage is a £10.00 minimum hourly rate
• People under 18 will receive a minimum of £7.55 (which is also the same rate for apprentices)

Click here to see more minimum wage rate details from the government website.

Once a person turns 21, the National Living Wage will come into effect which means they’ll be entitled to a minimum of £12.21 per hour.

If you compare the rates in this scale you’ll notice that they increase as people gain experience and responsibilities in both life and work. Some employees may opt to pay a higher hourly rate called the real living wage (overseen by the Living Wage Foundation) which is intended to reflect everyday costs in London and the UK.

Keep in mind that the rate for 16 to 17-year-olds is the lowest because it’s meant for those who are just starting out in the workplace and serves as a foundation, for earning potential in the future.

Having an understanding of how wages will progress over time can give workers insight and some incentive when considering their career path ahead.

Apprentice Rate vs. Part-Time Rate

There are two main categories to be aware of: the apprentice rate and the part-time rate. Both of these have distinct guidelines and implications.

Explanation of the Apprentice Rate and Part-Time Rate for 16-Year-Olds

For those working part-time, the rate is clear cut but it doesn’t come with the added advantage of education and skill development offered by apprenticeships.

At 16, if a person finds themselves in an apprenticeship, the wage structure will be slightly different because they’re under 19 or in the first year of an apprenticeship. When a person is an apprentice they’ll be earning money, but the main goal is to gain valuable skills and knowledge to enhance their future career prospects.

On the other hand, if a person is working part-time and not enrolled in an apprenticeship they will earn the rate of £7.55 per hour. This type of employment is usually done alongside their studies or other commitments. It’s an arrangement where they work and get paid without any component tied to their job.

The type of employment a person has plays a role in determining their pay structure and responsibilities.

The Role of Acas and Other Government Bodies in Enforcing Minimum Wage Laws

The Advisory, Conciliation and Arbitration Service (Acas) play a part in the employment landscape. Acas provides unbiased information and advice to both employers and employees regarding relations and employment law including minimum wage requirements. Beyond being a body Acas also has the authority to mediate disputes between employees and employers ensuring implementation of the law.

Other relevant authorities include Her Majesty’s Revenue and Customs (HMRC) which is responsible for enforcing minimum wage legislation. HMRC has the power to conduct business inspections, issue notices for underpayment, and impose financial penalties for noncompliance. These institutions work diligently behind the scenes to protect the rights of workers.

Here’s how anyone can get in touch for information or if they have any concerns regarding an employment situation, especially relating to wages…

1. Acas Helpline

For advice and guidance, reach out to the Acas helpline at 0300 123 1100<. They will assist employees in handling the issue with their employer and provide steps to resolve it.

2. HMRC Complaints

For those who wish to file a complaint, about underpayment and employers not meeting their legal requirements, there is the option of contacting HMRC or through their helpline. HMRC possess the authority to investigate employers and impose penalties if necessary.

3. Direct Contact

In cases where a workplace might have its own dispute resolution procedure, it is recommended to try and have concerns addressed before seeking outside assistance.

4. Online Resources

Both Acas and HMRC offer resources that provide valuable information on minimum wage laws and employee rights. These resources are easily accessible for information when needed.

By understanding these authority’s roles and knowing how to contact them employees are better prepared to navigate any issues related to minimum wage and employment while ensuring that they are informed and protected.

Rights and Responsibilities

Understanding rights and responsibilities is crucial for those starting a job at 16. It goes beyond earning money; it’s about young people navigating the complex world of employment law and taxation to make the most out of their early work experiences.

Once a person earns more than £123 per week, certain deductions like PAYE (Pay As You Earn) and National Insurance come into play.

PAYE refers to the system used by employers to deduct Income Tax and National Insurance contributions before paying wages.

National Insurance is a type of tax that helps fund state benefits and services such as the NHS.

Any 16 year old will notice these deductions on their payslip. It is within their rights to question any amounts that they believe have been calculated incorrectly.

Impact on Future Employment and Career

Starting a career at the age of 16 is akin to laying the building blocks for a long and potentially fulfilling professional journey. Recognising the significance of employment choices, in shaping future opportunities can empower young people to make more informed decisions.

The idea of national minimum wage goes beyond protecting workers from being taken advantage of; it also establishes a financial foundation that allows them to focus on developing skills and a career.

The National Minimum Wage acts as a safety net and ensures that people are legally entitled to receive a specific wage based on their age and experience. This financial stability enables young people to explore career paths, pursue further education or even save for future endeavours without the immediate pressure of making ends meet.

Minimum wage laws aim to create an opportunity platform where all young workers can grow, learn and eventually transition into higher-paying positions as they gain more experience and skills.

By understanding these aspects of starting employment early on, young people can have a more nuanced perspective on the opportunities available to them. Whether they decide to pursue an apprenticeship or work part-time, each option has its advantages that can benefit them in the long term.

Parents’ and Guardians’ Role

Parents and guardians play a role in shaping a young worker’s understanding of employment when they secure their first job. The intricacies of wage laws and taxation can

Supporting Comprehension of Minimum Wage Laws

Grasping the details of the National Minimum Wage, PAYE and National Insurance deductions can be intimidating for young workers. Parents and guardians have an opportunity to demystify these concepts.

Whether it involves sitting down for discussions on how payslips function, or explaining the distinction between net pay, these teaching moments are crucial. They not only help young workers anticipate payday but also educate them about their financial rights and responsibilities.

Navigating Employment Options

A 16-year-old may be enticed by immediate income without considering long-term benefits like skill development or career advancement. Parents and guardians can act as sounding boards helping young workers weigh the pros and cons of employment choices, such as apprenticeships versus part-time positions or even being self-employed. This guidance can be instrumental, in steering them towards options that align with both needs and future aspirations.

Parents and guardians have a wealth of life experience that can offer advice and support to young workers. They can help them understand workplace aspects like work contracts and the implications of employment arrangements, such as zero-hours contracts. Emotional support and encouragement from parents are also crucial as young workers embark on their steps into the working world.

The guidance and support provided by parents and guardians are invaluable, for workers as they navigate the complex landscape of employment laws, opportunities and choices. They serve as a foundation enabling 16-year-olds not only to earn but also to learn and grow in their early career journeys.

Tips For A Young Person To Maximise Income

Starting a career at the age of 16 provides benefits beyond just working regular hours and is a chance to make the most out of earnings and opportunities. While earning money can be exciting for new earners, it’s essential for them to handle their income responsibly.

Keep Track of Work Hours

When young people are just starting out, it’s crucial for them to maintain a record of their hours worked. This is important, especially if they were to ever come into conflict over how much they are owed by an employer.

Whether they use a time-tracking app or manually note down their hours, having a clear log ensures that they receive proper payment at the correct current rates. This information should be kept safe and readily available to demonstrate to an employer the days and times that the employee was working.

Invest in Further Training

Although young people may currently earn minimum wage, investing in training can pave the way for higher-paying positions in the future. They should seek out training programs, workshops or even online courses that can enhance their skills and make them more marketable. Some employers may even offer support by covering the costs of programs as they recognise the value they bring to their workforce.

Stay Informed About Your Employment Rights

Being young and relatively inexperienced should not equate to being uninformed about rights. Employees should familiarise themselves with their rights at work, such as the regulations for minimum wage breaks and when they should receive overtime pay.

It’s essential for an employee to know these things because it gives them power and allows them to advocate for themselves in the workplace.

Conclusion: Empowering the Next Generation of Workers

Young workers aged 16 need to know their rights, entitlements and employer obligations. Acas and HMRC play important roles in the enforcement and mediating of minimum wage laws. Additionally, it’s important that all workers, regardless of age (but especially 16-year-olds), keep abreast of workplace regulations and employment conditions.

Parents and guardians play a role in educating young workers about employment laws and helping them make informed decisions about their career paths. Skills like budgeting understanding payslips and recognising work-related deductions are crucial for the development of young adults.

As young people embark on their journey, they need to remember that knowledge is their greatest ally. By arming themselves with it ensures they receive what they are entitled to and are potentially on the path, towards a prosperous and rewarding career.

The post Minimum Wage for a 16 Year Old Employee appeared first on Real Business.

However you choose to invest money as a business owner depends on your aversion to personal risk. When you invest money through buying shares as a limited company (either your regular company, or through a separate investment company specifically set up for investing as part of your wider financial strategy), you reduce your personal financial risk considerably. Over investing as an individual, you’ll notice the following advantages:

• When you make corporate investments through limited company investing, shareholders enjoy better capital gains tax rates on profits made from selling shares
• If you lose money on an investment, then this loss can be offset against investment profits to better reflect the tax you ought to pay
• Dividends paid out to shareholders are taxed at lower rates than those received by personal investors

To invest money in shares as a limited company you’ll need to understand the stock market and protect your business related assets from risk by investing intelligently and diversifying your investment portfolio to increase company profits. Below, we can help guide you through how to invest in shares as a limited company and do it in the most tax efficient way.

What Does Investing In Shares Mean?

When you invest in shares, you own part of a company’s stock alongside any other investors who have bought shares in that company. Essentially, you’re part owner and are therefore entitled to dividends paid out to you as a share of the company profits.

There are, however, potential risks, as investing can lead to losing money if the company you invest in performs poorly.

Why Invest In Shares Through Your Company?

When you invest through a limited company you increase your tax efficiency and reduce some of the personal risk you would otherwise face if you were investing as an individual. You can also take advantage of certain tax reliefs which could mean reduced tax paid overall – although you should be wary of your capital gains tax threshold if you are investing on a much smaller scale – as you can only earn £3,000 in capital gains tax free in the 2025-2026 tax year, before you’ll need to pay tax. For most companies, this will be exceeded, however.

When investing as a company, you can also draw funds down from the business to help with personal expenses and investments, which can help you personally.

As a company, your investments will be much easier to manage, but be aware that not all shareholders may be happy with how their money is being used. You don’t need a complete consensus when investing as the limited company, but a majority decision is required, which can make for faster decision making, but can also make you solely responsible should your investment go wrong, which could lead to some disgruntled shareholders, so be cautious.

How To Buy Shares In The UK

Before you jump right in, corporate investing should be part of a wider overall financial strategy, not something you just start on a whim.

If you’re ready, however, then either as an individual investor or company, you can buy shares online or through a stockbroker who understands the stock market on a deeper level and can offer some advice. It’s always wise to know the company you’re investing in and to understand that you may lose money if things don’t go as planned. That’s why investing in multiple revenue streams is usually a smart decision either as a trading company or an individual investor.

Ensure you liaise with investment experts if you’re new to investing. We understand that limited companies are often keen to invest their profits to prevent money from just sitting in cash bank accounts without earning anything for the business, but it’s always best to seek professional advice to ensure you’re investing intelligently and protecting your business as much as possible.

When Buying Shares Through A Limited Company

Advantages Of Investing In Shares Through A Limited Company

Some of the advantages to investing through a limited company include:

Encourage Other Companies To Invest In Your Business

Investing can be a great way to bring eyes to your company, and others may choose to invest in your business too, only furthering your own success.

Dividends Pay Out

When the company you invest in performs well, you make a profit and this can be paid to you in dividends, giving your business a steady stream of investment income.

Buy And Sell Shares To Generate A Profit

Shares are smart short and long term investments, depending on the business you invest in. You can trade these shares to increase your profit even more after enjoying dividends for a while.

A Simple Form Of Investing

If you’re new to investing as a limited company, shares are a much more accessible form of investing compared to some others.

Protection

Registering as a limited company with HMRC provides you with limited liability insurance. That means your personal assets are protected as a separate entity from your business assets and investments. Even if you make a loss through your shares, your personal assets are protected here.

Reputation

When you make wise investment choices as a limited company you increase your business’ credibility and investment reputation, which can actually really help your own business regardless of whether your limited company is specifically set up for investment purposes or if it’s your regular company that you’re simply using to invest some of your profits.

An increased reputation can lead to investors being interested in your business, and even an increase in sales.

Having Access To Funds

When you invest as a limited company it’s actually much easier to access the money you have invested, either by cashing in and selling shares as they’re on the rise, or by using dividends to increase business cash flow. Either way it’s much easier to access cash as a business investor vs a personal investor.

Risks And Limitations Of Investing In Shares Through A Limited Company

There are always risks involved in investing, but the following are especially relevant here:

Investments Are Not Seen As Trading Expenses

Investments aren’t trading expenses, so they’re instead seen as an asset for your business, so you will need to pay tax on any shares you own and there will be no corporation tax relief for the investments you make. You can, however, record losses on shares against your investment profit, reducing tax you pay when shares perform poorly.

Taxed When You Sell

When you come to sell your shares, you will need to pay tax on any profits made.

Investment Should Not Be Your Main Trade

Whilst you can open up a trading and investment company if that’s what you’re truly interested in, it’s usually not wise to rely solely on investments for making money. Corporate investments are no less likely to be affected if the investment market crashes, so you’ll lose money and investing is never guaranteed. Most business owners will enjoy investments as a side stream, rather than your main form of income.

When You Make A Loss

Although you can offset your loss if certain shares perform poorly, you actually can’t offset it from your overall business profit, but rather your investment activity profits. This can become confusing and often necessitates that you work with investment accountants, which come with extra costs.

Extra Admin

When you invest through a limited company you have to carry out a lot of extra admin to keep track of all of the investments you have made and to show exactly where your company cash has gone for accounting and tax purposes. You’ll again, likely need to rely on an accountant for this, which will cost you more as a business. But it’s also to ensure that you’re aware of the admin being carried out too – this will ensure your investments are logged correctly and investment profits and losses are correctly monitored. Keeping precise and detailed records is necessary, but can be a hardship for some.

Tax Considerations When Investing Through A Limited Company

Taxation is everything in business, and even more so when you’re investing through your limited company. All investment income will be taxed at the main rate of 25% when paying tax on an investment profit that has been recently received, but this will increase to 40% if the investment stays in your business account for more than 18 months. To make the most money, you have to move quick, hence the need to track all of your investments carefully.

When selling your investment shares you can withdraw the income to a business bank account, but you will need to pay Capital Gains Tax on this profit. Speak to your tax adviser or accountant to ensure you know how much tax you’ll pay when you sell your investment shares.

What If I Have Shareholders In My Company?

With any limited company, you’ll still need to consult shareholders if you plan on investing their money in another company to earn extra cash for your business. This is often a wise idea, because experienced shareholders who have already invested in your company may be able to offer advice about any investments you’re planning on making.

Investing is never guaranteed to be successful. There are risks involved, and when those risks affect other people’s money you have to be careful. Make sure you’re as thorough with your research as possible and rely on professional advice where necessary.

Alternative Investment Options For Limited Company Owners

There are plenty of other investment opportunities that are worth considering if you think stock market investing isn’t right for you or your company.

Invest Through A Separate Company

It can be a good idea to set up a separate investment company – but only if you’re a confident stock market investor who knows the ins and outs of investing better than most. For many, earning through investments is a side income, not a main income for a new company. This can help minimise trading costs if you use loans to support your investments, providing you with a greater investment opportunity.

But this comes with its own risks, so speak to an investment expert and financial adviser before going ahead with this option.

Invest In Your Pension

When you own your own business it can be tempting to get lost in the now to ensure your business success, but don’t forget your future, too. By investing in your pension funds you receive corporation tax relief and can start building your pension pot by increasing pension contributions. And the plus side? There aren’t any risks here, because it’s just an investment in your future.

Re-invest In Your Company

If you have extra cash and higher profits than expected, then why not just reinvest that cash surplus in your company again? Maybe you can upgrade manufacturing processes and equipment or even spend money on training your staff further to guarantee future business success?

Property

Of all the investment vehicles available to you, property is one of the most reliable. You could purchase business property to save on rent, or even buy external properties to rent out to other businesses as another revenue stream for you. Purchasing property through your limited company is often an excellent idea.

FAQs

Am I legally able to invest in shares through my limited company?

Yes, you are legally allowed to invest in shares through your limited company, provided that the investments comply with all applicable laws and regulations.

Why do business owners invest in shares through their limited companies?

Business owners invest in shares through their limited companies as a way to diversify their portfolios and generate additional income without risking their personal assets. They can enjoy higher returns and less tax implications.

Conclusion

When you invest in stocks and shares through a limited company, you boost your revenue stream and increase the likelihood of further profits for your business, all without risking your personal finances.

It can prove to be a lucrative financial strategy for those companies willing to work with investment professionals to ensure they are investing in the right businesses. But remember that no investment is without risk, and although this method does protect you to a certain degree, you do risk upsetting shareholders or business partners if things go wrong.

Work with the right professionals, do your research, and ensure you invest wisely, however, and investing in shares through your limited company could prove to be a great success.

The post Investing In Shares Through A Limited Company appeared first on Real Business.

The UK government mandates the maximum weekly working days and working hours based on the EU Working Time Directive. Employers are forbidden to assign more than an average of 48 hours a week throughout 17 weeks, nor two back-to-back 12-hour shifts. But there are some special rules and exceptions based on industry and circumstance that change this.

But what are they, and what are the specific rules that mandate how long employees work? In this article, we  define the exact rules regarding how many days you can work throughout the year, define the Working Time Directive/Regulations, and consider how it affects you as a business owner and employer.

Understanding Working Time Regulations 1998

Like many regulations and acts signed into government, the Working Time Regulations 1998 is a lengthy document outlining the exact hours a week workers (both original and agency workers) can work, as well as their assigned rest breaks and sleep time between shifts. The main goal of the working time regulations is to avoid overwork and ensure workers can enjoy a rest period to recuperate.

To break it down, here are the main points:

• 48 hours a week is the limit – Workers cannot be made to work more than 48 hours per week on average over 17 weeks. That being said, a worker can opt out of this, but they must do so in writing.
• Daily rest period – By law, workers must be allowed 11 consecutive hours of rest time during any 24 hours between shifts. Back-to-back shifts that make these hours impossible are illegal by law.
• Weekly rest period – All workers must receive 24 hours of the allotted time for uninterrupted rest per seven-day period, or 48 hours per two weeks. This is easily done through the average weekly working hours of 40 a week.
• Limit on days worked in a row – Contrary to common belief, these regulations do not specify the limit of consecutive days you can work, only the rest period.
• Night workers – Workers on a night shift have differing rules, the limit on the hours worked is 8 hours in any 24 hours. Furthermore, night shift workers are required to have regular health assessments to protect their mental state.
  • Additional notes – Night work, typically defined as work done between 11 pm and 6 am, comes with specific regulations under the Working Time Regulations (WTR). Night workers are limited to a maximum of eight hours’ work per night and are entitled to a minimum of 20-minute rest break during their shift.
• Under 18s – Workers who are under 18 cannot work more than 8 hours per day, and 40 hours per week, and must have a 12-hour rest period between working days.
• Rest breaks during shifts – Workers with more than 6 hours in a shift are entitled to at least 20 minutes of uninterrupted rest breaks. When surveyed, 81% of employees reported being more engaged with their work after taking a lunch break, a figure any worker likely can agree with.

An employment contract must clearly outline break time at work, as well as hours worked. The rest period between working days usually comes as part and parcel of standard, normal working hours and, therefore, does not need to be specified – but in contracts with irregular working hours, they often are for compliance.

What Are The Consequences Of Ignoring The Working Time Regulations In 1998?

All employers and employees must adhere to the working time regulations 1998 for several reasons:

1. Penalties – The Health and Safety Executive (HSE) or any local authorities can levy fines against businesses and companies that are found guilty of violating regulations, with the fines scaling with the severity of the breach.
2. Employment tribunal claims – The employment tribunal is an avenue by which workers can levy legal complaints against employers, and, if found guilty, they have the authority to pursue fines and other charges.
3. Enforcement notice – Enforcement notices are, as the name implies, orders from a higher authority mandating a change in conditions on the threat of legal charges.
4. Criminal prosecution – In cases where workers fall sick, become injured, or are exploited to severe extents, employers can face prison time.

Why Are These Protections In Place?

Aside from being in place to protect workers from exploitation, they are also in place to protect workers from themselves. Japan is a good example of a competitive workaholic society that has faced this issue, with many overtime workers dying of overwork. Nonetheless, the following are the reasons why rest breaks at work and home are necessary:

• Fatigue – 7-9 hours a week of rest is required to recharge the fuel in your brain, with fatigue being the result for those who don’t – meaning lower concentration, low mood, low social ability and generally being far less mentally able than you would otherwise be – as an employer it’s important that you stop employees from facing this.
• Health risks – Working without breaks for the long term can cause serious stress related to cardiovascular and musculoskeletal problems.
• Accident risk – Health and safety have developed over the years to protect workers on the job, but these rules can be hard to follow when you’re fatigued.
• Decreased productivity – The fact of the matter is, there’s a limit to how much people can work at a respectable pace and level. After a certain number of hours of being awake, your ability to do anything requiring concentration begins to falter.
• Burnout – Prolonged periods of doing the same thing over and over can lead to burnout, which is effectively mental blocks being formed in your mind that are difficult to overcome.

Is Working 7 Days Straight Illegal?

No, despite what the previously outlined rules imply. The law protects employees and gives them a right to 24 hours of uninterrupted rest in a week, aka the seven-day reference period, but where the employer decides the workweek starts and ends means you can work seven days straight.

Furthermore, not only can an employee work seven days straight – they can effectively work 12. For example, if you had 24 hours of rest on a Monday and then worked 12 days, you’d have Sunday off by law.

To move to even further extremes, the ability to write an opt-out clause means employees can choose to work 24 consecutive days with only two days off at the beginning and two days off at the end. That being said, in these situations, a worker is entitled to 11 hours of rest.

How Many 12-Hour Shifts Can You Work In A Row Without Weekly Rest Breaks?

The answer to this, put simply, is 6 consecutive 12-hour shifts, limited by the working time regulations 1988. 11 hours of adequate rest must be allowed between shifts.

Take into consideration, however, that this same set of regulations states that you may not work more than 48 hours a week, which means no more than four 12-hour shifts in a row. This number is worked out as an average over 17 weeks, opening the possibility for more shifts so long as rest is given and shorter shifts worked after the run of 12 hour shifts.

What Are The Exceptions To Employment Laws On Breaks In An Employment Contract?

The nature of an employee’s work may make it so that it’s impossible to give the required breaks. In these cases, exceptions are given with some caveats.

The following are examples:

• Emergency services
• Security services
• 24-hour staffing industries
• Sea vessels or otherwise isolating roles
• Self-employment
• Domestic servant

Bear in mind that despite these occupations being seen as exceptions, employers are still required to give compensatory rest. Compensatory rest is, of course, rest periods given as compensation to avoid the drawbacks that come with overwork.

Conclusion

Overall, the rules for how many hours you can assign or work within a week are not overly complex. There are many exceptions and caveats written into the regulations, however, they are always constructed with good reason. Compensation is often given out to those who find themselves unable to get the rest breaks otherwise owed to them, with the threat of legal action via the employment tribunal or other authorities as a consequence of those employers who abuse their workers rest rights.

FAQ – What are the maximum hours allowed to work in a day – UK?

There are no specific legal limits for the number of hours you can work in a single day, but:

• Health and safety – Employees mustn’t have working hours that are regularly above 13 hours a day.
• Working days – You must have 11 hours of daily rest between working days.
• Night workers – Working for more than 8 hours in 24 hours is disallowed.
• Working Time Regulations 1998 – This has set a limit for 48 hours a week, averaged over 17 weeks.

FAQ – Can an employee work for more than 48 hours a week if they have more than one job?

Yes, but the weekly maximum working hours applies regardless of whether an employee has more than one job or not:

• Opt out – Unless an employee opts out of their protection, then over a 17-week reference period, a person must not work for more than 48 hours a week on average.
• Employer responsibility – It is considered the responsibility of the employer to take reasonable steps to check if a person has more than one job to ensure you’re not contributing to adding more hours where none are allowed. That being said, an employee must inform their employers.

FAQ – Does job-related training time and overtime count as working time?

Yes, job-related training time and overtime count towards the total hours of the working week. If training is required by the job, hours must be included. Bear in mind that both paid and unpaid overtime are counted towards the total hours.

The post How Many Days In A Row Can You Work? – A Guide To UK Maximum Working Hours appeared first on Real Business.

Business and capitalism have a reputation for being cold and mechanical, a place where people put on fronts for profit. Countless industries, including the very largest companies in the world (Amazon, for example) have prioritised shareholders to the expense of both the environment and even employees, as decision making is influenced by increasing profit.

So, does business ethics have no place? In this article, Real Business will examine what makes business ethics important, how it affects the workplace, and the power of the positive reputation that comes from it.

What does ethics look like in the business world?

In order to make business ethics attractive, it needs two things – concrete values that should effect decision making, and concrete net positives alongside profit. Of the two, it’s the former we lack the most. There are no concrete, set definitions for what business ethics is.

It’s generally agreed that a business that prides itself ethical values should consider the impact of its actions, products and services on society, its workers and the environment. Not only should ethical leadership include treating workers well, but also ensuring that they uphold corporate social responsibility (CSR), which revolves around balancing stakeholder needs with the broader impact on society and the environment.

Examples of business ethics are:

• Honesty and integrity
• Fair treatment of workers
• Corporate governance
• Environmental responsibility
• Transparency in communication and reporting
• Anti-corruption and anti-bribery measures
• Respect for local laws and international regulations

What are the positives of business ethics?

Listing the pros of ethical behaviour seems a bit obvious at first glance. So, we’ll pair them with real-life examples to prove the efficacy of adopting ethical business practices:

1. Long-term loyalty – Reputation means a great deal in business operations, just like in personal life. Being known for good business ethics over a long period proves to the outsider that the ethical climate of your company is positive. John Lewis did this with their “John Lewis Partnership” scheme, where they’d operate on an employee-ownership model that made every staff member a business partner. This empowered employees and improved the reputation and outcomes of their business dealings, leading to them being consistently ranked highly in YouGov’s BrandIndex for trust and customer satisfaction.
2. Protect brand reputation – In the event of accusations of unethical behaviour or other scandals that go beyond isolated incidents, a reputation built on business ethics will protect you in the long run. For example, Marks & Spencers’ robust food sourcing standards and environmental responsibility helped avoid unfair association with the 2013 UK horse meat scandal, saving their brand name and becoming even more of a trusted, premium retailer where others took a serious hit.
3. Improves employee satisfaction – Staff that are treated fairly and can develop skills freely, all while working for an organisation with good business ethics, will be less likely to leave. For example, Lush Cosmetics. They ethically sourced their products by banning cruel testing and fostered a progressive internal culture, with transparency on pay and involvement in activism. They became the face of ethical decision-making amongst retail and cosmetics and have very low staff attrition.
4. Ethical investors – Some investors prefer to opt to back companies with strong ethical principles, helping their own reputation in the process. For example, Legal and General Investment Management (LGIM) refuses to invest in companies with poor ESG (Environment, Social, Governance) scores – famously removing ExxonMobil from its Future World Fund over climate inaction.
5. Avoids legal trouble – Unethical behaviour can range from angering the public, to angering legal authorities – and the latter can only lead to erosion of a company. Starbucks, for example, was revealed to have paid only £8.6m in UK tax over 14 years despite billions in sales. This resulted in outrage, and they voluntarily paid £20m in corporation tax over the next two years, and overhauled its tax structure to be transparent.
6. Sustainable innovation – By sticking to strict ethical behaviour, you push innovation in the sustainability sector. For example, Innocent Drinks invested heavily in carbon-neutral factories to offset the high energy demand (and carbon emissions) that manufacturing demands, achieving fully recyclable bottles.
7. Competitive advantage for consumer markets – Consumers understand that the one thing they can do to help the environment is send their money to a company with strong ethical values. The Co-Operative Group is one of these companies, and is deep into ethical trading, fair treatment of farmers and community involvement. 83% of their retail customers say ethical sourcing influences their food shopping decisions.

What are some examples of ethical dilemmas?

To run into an ethical issue in the course of doing business means having to choose between business growth or embracing (or avoiding) the possible negative impact of certain business decisions.

A couple of famous examples:

• Volkswagen emissions scandal – VW installed software in some of their vehicles to cheat emission tests, marketing their vehicles as being cleaner and safer than they are. This boosted sales temporarily, but the fallout was devastating – costing millions in fines and a loss of trust, devastating public relations.
• Uber’s toxic workplace culture (2017) – Uber came under fire from repeated claims of harassment, discrimination and executive misconduct. Whilst Uber, at first, defended their leadership, they realised that in order to shield themselves from further scrutiny and possible loss of business, they can to take on business ethics to reform their culture.

Supporting the points made in the previous section, it’s clear that business ethics is the natural course to take when public loss of trust and business threatens them.

What are some examples of ethical businesses, both good and bad?

Ethical companies demonstrate a strong sense of corporate responsibility by prioritising ethical practices and contributing positively to society, and whilst they are not necessarily paid in dividends as a result of their ethical culture, the reputation they gain is a power in and of itself.

Here are three companies which have put ethics at the forefront of how they operate.

Ben and Jerry’s

Ben and Jerrys are known for their outspoken stance on social justice, environmental issues and ethical sourcing via their use of fair-trade-certified ingredients, and their support of causes such as Black Lives Matter, climate action etc.

They pay living wages to employees, above the industry standard, and have managed to maintain a strong brand identity despite being owned by Unilever.

McKinsey and Company

This company is known for their global consulting services to major corporations and governments, and their failed approach to ethical dilemmas. For example, they were involved in advising opioid manufacturers like Purdue Parham, boosting sales during the US opioid crisis that caused wide-scale addiction and worse. Their unethical practices cost them nearly $600 million in settlements and serious reputation damage as a result.

They haven’t been able to repair their reputation since.

Body Shop

Body Shop pioneers the ethical practice of sourcing cruelty-free beauty and sustainability in the cosmetics industry. They are the first major brand to ever campaign against animal testings back in the 1980s, and they have kept that mentality through their strong ethical supply chains and community trade programmes. They push positive environmental impacts and human rights throughout the globe.

They have an iron-tight consumer trust to this day.

Ryanair

Ryanair was known for their low-cost air travel and aggressive cost-cutting, and later for their combative public relations. They were frequently accused of mistreating staff, such as pilots and cabin crews on zero-hour or contractor terms. They refused to pa compensation for delayed or cancelled flights, and they have failed to prove their carbon offset claims in the fact of accusations of the latter.

Ryanair continues business to this day through its strong product, but they are hated in terms of customer service and business ethics rankings.

Conclusion

Overall, ethical conduct is a net positive. The power of a strong brand identity means playing the long-game, rather than making poor ethical decisions in the name of profit. Becoming an ethical leader is no small responsibility, and whilst it may not bring short-term gains and may result in you missing opportunities, it brings a competitive edge in the public eye.

Consumers are normal people, and normal people who do not have the time to champion social causes in everyday life can at least choose to give their money to companies with ethical principles.

FAQ – Can a business survive without ethics?

Ethics is becoming increasingly important in the world of business, with customers looking to support ethical and sustainable companies. Businesses which do not prioritise ethics may find themselves losing their customer base, with their profits reducing. To keep up with the changing demands of the modern world, companies need to prioritise ethics whilst also ensuring that their profits are maintained – a challenging balance for any business.

FAQ – What is unethical behaviour in business?

An ethical business doesn’t just focus on the legalities of running their business – they ensure that they do what is morally right, whether or not anyone notices. Unethical behaviour in business refers to actions that aren’t seen as acceptable by society. This could include exploiting workers, utilising tax loopholes and causing damage to (or failing to protect) the environment.

The post Is Ethics Good For Business, Or Does It Get In The Way? appeared first on Real Business.

Ending an apprenticeship has unique challenges, but the overall difficulty of the process depends on what kind of apprenticeship contract it is. When you take on an apprentice, you are no doubt made aware that this is a low-skilled worker that will be conducting on-the-job learning, and you have a joint responsibility with the training provider to ensure their skills are enhanced throughout. Whilst empowering youthful (or unskilled) workers in this manner is a net positive for society, it’s inevitable that some businesses may find themselves at an impasse and need to terminate the contract.

But how do you go about terminating apprenticeships early? In this article, Real Business will outline all you need to know, including the specific rights in place, how much notice is required, possible pay disputes and more.

What types of apprenticeship contracts are there, and how do they change termination?

There are two pieces of legislation under UK law that determine the apprenticeship framework, including protection against termination.

Apprenticeship agreement (ASCLA 2009)

This agreement is filed under the “Apprenticeships, Skills, children and Learning Act of 2009”. It is the most common apprenticeship programme format in England today. ASCLA 2009 prefer to treat the apprenticeship programme more like a job, and less like training.

The following are things you should know about the apprenticeship agreement:

• Legal structure – This style of apprenticeship is considered invalid unless a written agreement designates it as being under ASCLA 2009. It must also have details of the trade/occupation, and confirmation that the apprentice will follow a curriculum framework approved and managed by the learning provider.
• Employment status – They are considered employees, not students, meaning have largely the same employment rights, such as health and safety protections, and same benefits, as other employees. Examples are annual leave, holiday pay, rest breaks, sick pay entitlements etc. For apprenticeships that go over two years, which is a rarity, they gain enhanced protection against unfair dismissal.
• Optional probation – A probationary period must be written into the contract for it to be valid. Dismissing apprentices during the probation period comes with a lot fewer issues than otherwise.
• Off-the-job training – A fifth (typically one day) of all work time should be devoted to “off-the-job training”, meaning developing key skills instead of doing business duties. Furthermore, they have extra support by having access to, meeting with and being tutored by, highly skilled learning and skills coaches periodically.
• Dismissal rules – Apprentices can be dismissed for poor performance, misconduct and redundancy, following the same fair disciplinary procedures as an employee. A one-week notice period must be given during these situations unless otherwise stated. All that said, there is one ground for dismissal that has unique rules for an apprentice under ASCLA:
  • Performance dismissal – In terms of performance, clear and fair expectations must be outlined, and you must provide the adequate support laid out by the training provider. To dismiss an apprentice, especially early on in the overall contract length, you must prove that they have failed to meet basic standards despite the provision of support and training. The underperformance must be persistent even after giving ample time to improve.
• Conversion – You can convert the apprentice to an employee if you like, but there may be fees with the training provider involved.

If the apprenticeship programme under ASCLA 2009 is ended early under legitimate reasons, there’s little chance of negative blowback from either the apprentice or their training provider.

Contract of Apprenticeship (Common Law Apprenticeship)

This form of apprenticeship contract is a highly traditional and protected kind, mainly because the core obligation of both the employer and training provider is to provide full-term training, with the job role and duties being secondary. They are much, much harder to end the apprenticeship early from the employer side.

Key features of this contract are:

• Legal structure – The contract must be stated clearly to be a Contract of Apprenticeship.
• Duration – The apprentice is entitled to complete the full term of the apprenticeship programme, which can be between 1-4 years. Early termination is only allowed in very specific circumstances .
• Termination protection – The only valid grounds for termination are serious misconduct, business collapse or the apprentice being considered untrainable due to complications with their own health, learning incapacity or outright refusal to participate. Poor performance and absence are not considered to be viable.
• Employment rights – On top of the enhanced protections, they get the employment rights of other employees.
• Redundancy immunity – Unless the entire business shuts down, redundancy is impossible. Even downsizing and restructuring are not considered valid.
• Early termination – Terminating this contract early is almost always an automatic breach of contract, and beyond that, both the apprentice and training provider may sue for damages.
• No early conversion – You cannot change the contract from an apprenticeship programme to an employment contract.

The contract is set up in a way that only truly unique circumstances can end their contract. If you find yourself in a position where you need to terminate the contract, the best course of action is to play it straight. Talk to the apprentice, let them know, and see if they’re willing to part ways. In the event of refusal, alternative solutions are few. Try to formulate a strong skills partnership between the apprentice, employer, and training provider.

Can Employees Leave Early During A Contract Of Apprenticeship?

Surprisingly, no. Not really.

When an employee signs a contract of apprenticeship, they are locked into it just as much as the employer. If employed under a contract of employment, an apprentice will likely have to pay back some of the training costs incurred by the employer if they’re leaving early. Other compensation may also be sought.

Terminating apprenticeships early in this scenario is only possible if both parties come to the table, and decide on it mutually.

What happens after an apprenticeship agreement ends early?

If an apprenticeship ends due to completion, more often than not, the apprentice will receive a new contract of employment that’s the same as other employees in the business, and they’ll now be a fully-fledged employee with a new fixed-term contract. Apprentices who wish to stay with the company may have the option to transition into a permanent role as an existing employee, providing them with more job security and the possibility of remaining in the same job.

When an apprenticeship ends early, both parties will simply go their separate ways if done in compliance. Otherwise, there is the possibility of legal fines.

Conclusion

Overall, the termination of an apprenticeship agreement can be done quite easily with ASCLA 2009, but not so much with the other kind. At the end of the day, we recommend always being open and honest about the performance of your apprentices, and document all instances of misconduct/poor performance if you anticipate their time is coming to an end with your company.

FAQ – How much do apprentices get paid?

Employers are required to pay apprentices at least the National Minimum Wage for their age bracket. Most employers in the UK nowadays offer apprenticeships at a similar pay level to other employees in the business to attract new talent. Even when they don’t offer higher pay than ordinary, employers are obliged to pay the National Minimum Wage for the employee’s age bracket as a minimum.

Ensuring fair compensation is crucial for providing apprentices with a rewarding and enjoyable experience, which can lead to the successful completion of their program.

FAQ – Who pays an apprentice’s wages?

The employer. However, employers may receive funding for offering apprenticeships at their business to help cover the training costs.

Both the employer and training provider play crucial roles in supporting the apprentice’s development and ensuring they receive the necessary training.

FAQ – What if an apprentice decides to leave early?

In this situation, there’s not really anything you can do about it. If you find yourself in this situation unwillingly, try to find a middle ground. Impress on them that leaving a contract of apprenticeship early can damage professional bridges with employers, which might adversely affect future job opportunities. Get a sense of their individual career development goals and see how you can support them.

FAQ – Can you make an apprentice redundant?

When businesses face financial difficulties, redundancies are common – but can you make an apprentice redundant? For ASCLA 2009 – yes, it’s a perfectly valid reason.

But for a contract of apprenticeship, redundancy is only an option if the business is closing down or it’s no longer possible to provide training due to serious financial difficulties. Redundancies may occur if the business is struggling financially and needs to reduce costs. For an apprenticeship agreement, redundancies are permitted to save business costs where necessary and given the proper notice is served to the employee.

When apprentices under apprenticeship agreements are made redundant, the UK government will still fund their training for 12 weeks to give them time to find alternative employment to finish their apprenticeship and receive the qualifications they were working towards.

The post Terminating Apprenticeship Early: Employee & Employer Rights appeared first on Real Business.

Most companies, regardless of whether they are a Public Limited Company (PLC) or Private Limited Company (LTD) start as a sole trader business entity first. They move on to limited companies to make use of their limited liability status, as well as the tax benefits offered through corporation tax. However, the choice between the PLC and LTD is made based on a few key differences.

But what are these key differences? In this article, we will outline the specific differences between PLC and Ltd companies in detail, so anyone considering making the change can make an informed decision.

The key differences between PLC vs LTD companies

The following is a bite-sized rundown of the differences between PLC and LTD:

The differences between PLC and LTD – breaking it down

Whilst the above table serves as a quick rundown, it’s not a full breakdown of the differences between private and public companies.

Trading shares

The main difference between the two legal structures is in how their shares are sold, as well as the larger effects on the companies:

• Private limited companies (LTD) – These types of companies are not listed on any public stock exchange, and all shares are privately owned and traded within closed groups. All company share trades are done with the approval of the existing shareholders, the most primary of whom are company founders and directors. The main reason for this is simple – it prevents hostile takeovers of a company, as whoever has the most shares typically has the most influence.
• Public limited companies (PLC) – Public limited company shares are listed and available for trading on stock exchanges, meaning anyone can buy them with no approval required.

The tradeoff here is that LTD company shareholders stay in control, whereas PLCs risk hostile takeover or misdirection. However, being closed off from the public stock exchange has its own share of pros and cons. When looking at the differences in how shares are traded between the two company structures, consider the following:

• Raising capital – The public limited company has access to public investment, larger capital pools and diverse fundraising methods. This puts them at a huge advantage over private limited companies, whose closed-off shares mean that investors have to come from the private sector, from profits or via loans.
• Share price and valuation – Shares are valued by market demand and supply for PLCs, meaning they can be influenced by company performance, industry trends, economic conditions and investor sentiment. This makes it incredibly volatile, as opposed to LTD companies, whose share value is determined through internal metrics and negotiation.
• Control and decision-making – LTD’s existing shareholders have massive control and decision-making power, meaning they can steer the company in whatever direction they please. They are bound by less regulatory requirements and scrutiny compared to PLCs, meaning their decisions are not slowed by making public disclosures. On the other hand, the major downside to PLCs is the possibility of losing control of the company entirely. Furthermore, the public can exert pressure by expecting consistent dividends and stock price appreciation. This has been known to cause PLCs to prioritise short-term profitability over long-term stability.

Minimum share capital and staff

The following will outline the minimum requirements for signing up as private and public companies via companies house:

• Minimum share capital – LTDs do not have any minimum share capital requirement when signing up at companies’ house, whereas PLCs need at least £50,000 to prove financial stability before listing. 25% of the nominal value (minimum value assigned to shares when issued) must be paid before trading.
• Minimum shareholders requirement – UK corporate laws require at least one shareholder to start a private company limited by shares, but a public limited company needs two. There is no maximum number of shareholders imposed on PLCs but private LTDs can have a maximum of 50.
• Company secretary – Only PLCs are legally required (under the Companies Act 2006) to appoint a company secretary and only one that is qualified.
• Company director – Limited companies both need a director, with LTD needing at least one director, and PLCs needing at least two directors.

Annual general meetings

Annual general meetings (AGMs) are formal gatherings of directors and shareholders, with discussions typically revolving around:

• Approval of financial statements.
• Annual reports.
• The election or re-election of directors.
• Appointments or reappointments of auditors.
• Shareholder voting on key company matters.

The requirements of AGMs make up one of the main differences between PLC and LTD companies:

• LTD – Unless annual general meetings are stated as being required in the company’s Articles of Association, then there’s nothing binding you legally to hold them.
• PLC – Holding annual general meetings are legally required under the Companies Act of 2006. The first AGM must be held within six months of the company’s financial year-end.

Reporting Needs

Reporting requirements differ in terms of intensity and scrutiny between PLCs and LTDs.

• Annual accounts filing* – LTD companies and PLCs are both required to submit full annual accounts, with the former requiring less depending on company size. The deadline for filing is 9 months after the financial year-end for LTD, and 6 months for PLC. The statements required for annual financial statements are as follows:
  • Balance sheets.
  • Profit and Loss Statements
  • Cash Flow Statement
  • Statement of changes in equity
  • Notes to accounts
  • Director’s report
  • Strategic report
  • Auditor’s report
• Public disclosure – PLC must publish fully audited financial statements with Companies House, which will be available to the public, whereas LTD companies are required to have fewer details.
• Half-yearly reports – PLC requires mandatory interim financial reports every 3 months of period-end.
• Director’s report – Required for both LTD and PLCs, though it is reduced for small companies.

Regulations & Protections for PLCs

A public limited company (PLC) is held to a lot more regulatory requirements than LTDs.

Public Limited Companies (PLCs)

• Listing Rules – Companies listed on the London Stock Exchange must follow strict rules on corporate governance, disclosure, and financial reporting.
• Market Abuse Regulation (MAR) – EU legislation to prevent market manipulation and insider trading. Requires timely disclosure of inside information, maintains insider lists, and takes measures to prevent or detect abusive behaviours. Applies to financial instruments traded on EU-regulated markets.
• UK Corporate Governance Code – Best practice code that sets standards for board leadership, effectiveness, accountability, remuneration and relations with shareholders. PLCs must report on how they comply with the code.
• Additional disclosure requirements – PLCs must publish audited annual reports and interim reports. Must also disclose major shareholdings, director dealings, related party transactions etc.

Can A LTD Company Become a PLC?

Yes, a private limited company can change its business structure to become a PLC providing certain criteria are met:

• Minimum share capital – To qualify for PLC status, the LTD must meet the minimum share capital requirement of having £50,000 in nominal value of shares.
• Documentation amendments – The company will need to alter its constitution by passing a special resolution to change its name and status, amending articles of association and other founding documents. These are official formal regulation steps that can’t be skipped.
• Administration – Administrative steps also include informing all shareholders and resolving any outstanding share transfer issues. Registrars and advisors guide the process.

Upon satisfying all requirements, the LTD can apply for re-registration as a PLC to the Registrar of Companies along with filing the necessary documentation. Once approved, the company can apply for a listing on a stock exchange. It must then comply with laws applicable to publicly traded companies regarding disclosures, governance practices and shareholder rights.

How To Alter A Business Constitution

If a private LTD company wants to transition to become a PLC, there is a set procedure to follow to complete the upgrade.

• Review Governing Documents – To begin the shift process, the LTD would need to evaluate if its articles of association, bylaws, shareholders’ agreement and other constitution documents permit such a restructuring or not. Any restrictions around commercial activities, legal obligations, or ownership share transfers must be examined before proceeding.
• Prepare and Approve Resolution – The intent has to be framed as a special resolution applying for re-registration as a PLC under UK Companies Act provisions. This must detail the name change while protecting shareholders’ rights. Approving 75% majority legally alters governing facets subject to regulatory consent.
• Consultation Rounds – The implications must be communicated both internally and externally – amongst employees, existing shareholders and prospective investors. Addressing concerns upfront ensures smooth facilitation at voting junctures retaining stakeholder confidence.
• Confirm to Formal Notice Requirements – Adequate advance intimation must be formally furnished to all shareholders and debenture holders per the statutory timelines before the presentation of the resolution. This grants them a reasonable opportunity for response.

Conclusion

There are huge advantages to both company structures. If you’re considering transitioning from a LTD to a PLC, you should seek advice from a business advisor or financial advisor to help you to objectively ensure that it’s the right time and decision for your business.

FAQ: What is a public limited company (PLC)?

A Public Limited Company (PLC) is a type of business structure that relies on raising investment capital by selling shares publicly. The LC denotes that it is a limited company and the P shows that it’s a public company. It needs a minimum share capital of £50,000 and is legally allowed to offer its shares for sale to the general public on a stock exchange, making it a publicly traded company.

A PLC can have an unlimited number of shareholders but has more complex regulations and reporting rules to meet. This includes the formal publication of audited financial reports, shareholder protections and holding AGMs.

FAQ: What is a limited company (LTD)?

LTD is used to signify a private limited company. Limited refers to the limited liability status of the company, which means that it’s a separate entity from its owners, ensuring that their personal assets and cash are safe should the business fail or be in debt.

Ownership of a limited company is managed through a maximum of 50 shareholders who hold shares privately. This type of company is relatively easy to set up and is popular with entrepreneurs setting up a new business venture.

The post Understanding the Difference Between PLC and LTD appeared first on Real Business.

The right to take a break at work is etched into UK law. It is a necessary part of the workday, ensuring that workers can reduce fatigue and regain lost focus. Ensuring a productive cycle within a workplace is paramount to its function, as is understanding working time regulations. Not only is a break during the working day required, the weekly rest workers are entitled to between shifts is also mandated.

This article will comb over the law regarding working time regulations, the employment contract and rest breaks guaranteed within, and further advice on how to navigate the optimisation of your workplace productivity, health and safety.

UK Law On Rest Breaks At Work

The right to uninterrupted rest breaks at work is mandated by UK Law, through the Working Time Regulations of 1998 (WTR). These regulations promote the health and safety of the workplace by ensuring workers are entitled to rest within the following thresholds:

• Before Six Hours – Funnily enough, rest breaks at work only become entitlements after you’ve worked more than six hours during a single shift. It’s entirely legal to deny a formal rest before that time, even a tea or lunch break. Only extended hours of 6 or more will provide you with a legal entitlement for a break for most workers – younger workers have the right to a 30 minute break if they work for 4.5 hours – and extra breaks if they work beyond this.
• After Six Hours – After six hours, you’re entitled to rest breaks under the following conditions:
  • Rest Breaks at Work – Entitled to a rest break of at least 20-minutes during your working day becomes mandatory. This can be your tea or lunch break, but it’s up to you, technically. It has to be uninterrupted by work, however, and taken during the actual workday rather than at the beginning or end. Overall, it’s intended to open up a window that can be used to eat. Nonetheless, they are not mandated to be paid.
  • Daily Rest – Once you’re working six hours, you’re entitled to at least 11 consecutive hours of rest, referred to as daily rest. For example, any shift workers who finish at 9 PM cannot begin working again before 8 AM the next day. There are exceptions, however.
  • Weekly Rest – Working people have to have a minimum of 24 hours rest or 48 hours per fortnight. Ideally, this is done during the weekend, but a modern employment contract tends to be more flexible.

These are legal minimums – meaning this is the minimum amount you should expect. An individual employment contract may offer more rest breaks throughout the day.

What Is A Compensatory Rest Break?

Sometimes, rest breaks under the Working Time Regulations of 1998 are not feasible. In these situations, compensatory rest breaks are mandatorily meted out. These breaks are fairly common in industries where continuity of service or production is almost essential, such as in healthcare or security.

These rest breaks at work are designed to ensure the spirit of the Working Time Regulations is achieved, giving adequate rest breaks to safeguard health and safety. Compensatory rest must be equivalent to missed time, and must be taken within a reasonable time of the missed break.

Legal Precedents

There have been cases of an employment tribunal being called and holding that compensatory rest breaks must equate to the missed period of rest but also must provide similar benefits of contributing to a worker’s well-being. For example, ensuring that the rest is interrupted and that they have a chance to refresh.

Special Circumstances For Rest Breaks At Work

There are special provisions made for key people, such as:

• Irregular Shift Workers – A shift worker may not be able to work regular hours, and have disrupting patterns inlaid into their job. UK Law acknowledges these people and applies flexibility in the application of their rest breaks. However, fundamentally, rest breaks should be equivalent and compensatory if standard breaks are missed. This ensures health and safety.
• Young Workers – Young workers are defined as individuals below the age of 18. Some above school leaving age, however, which is around 16 years of age, have enhanced protections. Due to their juvenile mind and body, they are disallowed from working more than 8 hours a day and 40 hours a week. They are entitled to a 30-minute break for any work period exceeding 4.5 hours. Furthermore, they need 12 hours of rest between working days.
• Emergency Workers – In some emergencies that may require workers to work beyond their scheduled hours, standard rest breaks may not be feasible. Most of these workers are typically staff responsible for vital functions, such as the preservation of life or industry. Likely little can be done in the way of breaks in the moment, but further compensation can be awarded at a later time.

Enforcement Of Rest Breaks At Work

If rest breaks are missed, and an employee feels compelled to act, here is the most likely way they’ll go about it:

1. Internal Resolution – First, they will likely attempt to resolve these issues directly in some way. This could be anything from a discussion with a supervisor to an email to HR. Nonetheless, the first steps are likely to cause little disruption.
2. Written Grievance – This is the first step towards higher authority. The company’s grievance procedure being interacted with will likely flag some notice. This document will detail the nature of the complaint and will highlight steps already taken towards its resolution as well as specific rest break entitlements the employee expects.
3. Advice Seeking – If employees find that they are getting nowhere, they may begin reaching out to third parties. These could be trade unions and legal advisers, who specialise in employment law to understand their rights and best course of action going forward. If the third parties believe it worthwhile to go for an employment tribunal, the following will happen.
4. Acas Early Conciliation – Before making a formal claim to an employment tribunal, they must contact ACAS. They provide free and impartial advice, attempting to facilitate an early conciliation outside of requiring a tribunal.
5. Employment Tribunal – If no conciliation can be done, the employer can file a claim. This should be done within three months less one day from when the rest break rights are denied.

Impact Of Rest Breaks On Productivity And Health

A rest break helps workers’ wellbeing. They are vital not just for legal compliance but also because they enhance worker productivity, health and relationships – and ensure that workers start work with the proper rest, ready too lead a productive day without risk to their health.

These periods allow for recovery from fatigue, reduction of stress and allow individuals to maintain high levels of concentration and efficiency. Breaks are important to every worker, with the rest period needing to be as high quality as they are frequent.

Rest Breaks And Cognitive Function

A study conducted by the National Institutes of Health has highlighted how short breaks during learning tasks can help the brain consolidate. They also strengthen memories. The brain uses downtime to quickly and repetitively process learned information, incorporating it into normal behaviour.

Furthermore, research conducted by BioMed Central on BMC Musculoskeletal Disorders proves that breaking up long periods of sitting has shown that interruptions in sedentary behaviour can improve cognitive functions. Prolonged sitting, conversely, has been linked to poor cognitive outcomes. Physical activity through daily routine can mitigate these effects.

Rest Breaks And Health

Rest breaks have been proven to cause a massive reduction in physical ailments. It has been recorded that mandatory breaks in office environments massively reduce the complaints of eye strain. This is through the relief of accessing food and being active.

Stress and anxiety build up through negative thoughts and strain over time, and require periods to essentially blow off steam. This is not always just to eat, but to socialise with coworkers and relax. Nonetheless, this break allows the brain to process and retain information, therefore making it more open to creativity and making workers more effective.

Employer Responsibilities, Compliance And Best Practices

The following is essentially a quick rundown of what an employer is required to do by law to cover themselves when navigating break times.

Legal Obligations Of An Employment Contract

• Breaks – Employers must allow for 20-minute rest breaks during a working day longer than six hours.
  • Best Practice – Let’s face it, nobody does this. It’s much more likely that a company will either provide several breaks throughout a work shift, or they’ll give a larger break near the middle of the day. A common practice is giving an hour for a lunch break without paying for said lunch, creating one continuous break that satisfies the employee. This is because employers are encouraged to exceed and find a middle ground that satisfies both parties.
• Daily Rest Period – In addition to the workday, employees require 11 hours of rest between days, as well as at least 24-hour rest periods during the week. This is easy enough for most employers.
  • Best Practice – The best practice is to have regular working days and hours where possible. This ensures there is enough time for a worker to go home to have leisure and rest time. Promote work cultures that respect personal time.
• Compensatory Rest – Provide this type of rest soon after a missed rest period, especially when work schedules tend to be disrupted.
  • Best Practice – Plan rest proactively. Monitor work patterns and ensure the employee feels seen and acknowledged. This creates open dialogue should an issue ever occur.
• Record Keeping – Employers are expected to maintain detailed records of working time and breaks for each employee. This demonstrates compliance.
  • Best Practice – Utilise digital tracking tools that help automate the recording process. Ensure accuracy and ease of access to records for all authorised parties.

Compliance Practices For Employers

• Implement Clear Policy – Develop and send out clear policies regarding rest breaks and working days/hours.
  • Best Practice – Stay on top of and open about the policy. Review policies when changes to law or company operations are made. Ensure policies are comprehensive and known by employees.
• Employment Contract – Clearly outline rest break entitlements and obligations within the employment contract.
  • Best Practices – Tailor a contract to include specific details for different roles and departments. Ensure that each group gets similar rules, with allowance for flexibility.
• Regular Reviews – Periodically review company policy and practices to ensure compliance.
  • Best Practice – Engage external HR consultants or legal experts in the process to gain an unbiased and professional perspective. Professionals of this calibre know a lot of this stuff off the top of their heads.
• Training and Awareness – Educate managers and HR personnel about compliance requirements, including rest and working week hours.
  • Best Practices – Ensure that managers have their finger on the pulse of their subordinates, and keep them informed and accountable on break and rest period regulations.
• Monitor Compliance – Regularly check employees receive all legally mandated breaks.
  • Best Practice – Deploy a compliance monitoring system that alerts supervisors and HR personnel when violations occur.

Penalties For Non-Compliance

• Financial Penalties – You could face fines for non-compliance based on the severity of the breach. This would likely happen during the employment tribunal.
  • Best Practices – The best practice is putting countermeasures in the form of compliance measures across all of your workplace. Nonetheless, in failure of this, set aside a compliance budget to cover potential fines and investments.
• Employment Tribunal – Tribunals can ensure compensatory payments are levied against the company or business, as well as the order to make mandatory changes to the business.
  • Best Practices – Attempts will be made to come to a resolution internally, and you should set up channels to ensure this happens seamlessly.
• Reputational Damage – Your business’ reputation will be harmed if it ever airs that you haven’t been handling breaks correctly. Amazon, for example, has had its ethical values heavily scrutinised after it was discovered that insufficient toilet time was being given to its employees. They at least have a lot to fall back on.
  • Best Practices – Keep your company imbued with high levels of standards of compliance.

Conclusion

All in all, ensuring breaks to your workers is a net benefit to everybody. Overwork can increase productivity in the short term, but cause great dislike and loss of cohesion in the long term. We hope this article has made it clear where employers are expected to stand in regard to break time. 

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