When an overseas individual or company has decided to set up a business in England*, they will have considered location and logistics, suppliers, rental or purchase of office and production facilities, and a whole host of other practical operational issues.<\/p>\n
They will have considered such matters as whether to trade via a company or branch (although they may not know that the status of overseas individuals working in the UK can be different in a UK Limited company compared to a UK branch).\u00a0 If operations are via a company, they will consider whether that is a UK Limited Company, LLP or some other special purpose vehicle.\u00a0 \u00a0They will have considered corporation tax rates, capital allowance, income tax rates, VAT, extraction of profits and double tax treaties.\u00a0 But employment law is often forgotten, and, if not handled properly, can be both time-consuming and costly if employee relations go wrong.<\/p>\n
Easing the burden for business<\/strong><\/p>\n Earlier this month the qualifying period for unfair dismissal increased from 1 year to 2 years of continuous employment.\u00a0 That means that for all employees starting employment after 6 April 2012, the employee will not be able to claim that their dismissal was procedurally or substantially unfair in their first 2 years of continuous employment.<\/p>\n This contrasts with other, particularly European, jurisdictions where employers are bound by very strict dismissal procedures and the need for employers to justify their decision to dismiss, once the employees fairly short probation period has expired.<\/p>\n In 2013 further measures are likely to be introduced, which will require the employee to pay a fee for bringing a claim against their employer.\u00a0 In addition, the government is planning on introducing new rules which are designed to give employers the power to have \u2018frank discussions\u2019 with employees.\u00a0 These will be will be held outside formal \u2018performance\u2019 or \u2018disciplinary\u2019 procedures, \u00a0without fear of facing employee \u00a0discrimination claims, and will include talks on underperformance as well as discussions over whether or not an employee should consider retirement.<\/p>\n In addition, there are proposals to cut the length of the consultation period in redundancy situations, to speed up the whole process.<\/p>\n The above changes are all aimed at reducing the \u2018red tape\u2019 and easing the burden for businesses in the current economic circumstances.<\/p>\n This all sound like good news for the employer?<\/strong><\/p>\n Although employers in England will be able to dismiss with less than two years continuous employment without the need to give any reasons or follow any formal procedures, they need to be aware of other areas of the law, and correctly follow procedures so as to minimise the risk of a claim.<\/p>\n This is because employees can claim \u2018discrimination\u2019 under the Equality Act 2010.\u00a0 The act covers nine protected characteristics, which cannot be used as a reason to treat people unfairly. Every person has one or more of the protected characteristics, so the act protects everyone against unfair treatment.\u00a0 Notice that I use the word \u2018people\u2019 rather than \u2018employee\u2019 here, because a claim can be brought under this heading even before employment actually starts, ie at the recruitment interview stage!<\/p>\n There are nine \u2018protected characteristics\u2019 where discrimination can apply:<\/p>\n \u2022 Age Looking forward<\/strong><\/p>\n The new auto-enrolment pension scheme being introduced by the government places additional cost burdens on both employees and employers.\u00a0 Employers need to cost these into budgets and forecasts.<\/p>\n There are possibly other measures in the offing.\u00a0 We are currently awaiting the governments\u2019 response to the Modern Workplaces Consultation. \u00a0This covers the possibility of flexible working, giving the right to all employees, not just those with young children, to request flexible working (either \u2018part-time working\u2019 or \u2018working from home\u2019 arrangements).<\/p>\n In summary<\/strong><\/p>\n This brief sprint through some current employment issues shows that the government has gone some way in reducing the burden of \u2018red tape\u2019 faced by businesses.<\/p>\n However, as you can see, the employer setting up in England needs to be well briefed. Policies and procedures need to be clearly set out and followed.\u00a0 But it is also important to be properly advised, as attention has to be paid not only to current legislation, but also to potential future legislation, and the impact this can have on the UK business.<\/p>\n * Note \u2013 \u2018England\u2019 includes Scotland and Wales, (but not Northern & Southern Ireland or the Channel Islands, where employment law differs) <\/em><\/p>\n","protected":false},"excerpt":{"rendered":" When an overseas individual or company has decided to set up a business in England*, they will have considered location and logistics, suppliers, rental or purchase of office and production facilities, and a whole host of other practical operational issues. They will have considered such matters as whether to trade via a company or branch[…] <\/p>\n
\n\u2022 Disability
\n\u2022 Gender reassignment
\n\u2022 Marriage & civil partnership
\n\u2022 Pregnancy & maternity
\n\u2022 Race
\n\u2022 Religion or belief
\n\u2022 Sex
\n\u2022 Sexual orientation<\/p><\/blockquote>\n