Legislation and its effect on payroll

This report discusses the impact of legislation on payroll and how it affects employees. It covers the processes applied during various stages of employment and considers special cases and equal opportunities. The report focuses on TESCO as a case study.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Legislation and its effect on payroll........................................................................................1
2.-Processes applied during various stages of employment........................................................3
3. Consideration of special cases and equal opportunities..........................................................5
CONCLUSION................................................................................................................................6
Recommendations............................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Payroll department within an organisation are entitles with the responsibilities to
resolving the issues related to employment. In this it is essential to have proper awareness of
current legislations as well as employment law (Doran, Bartel and Waldfogel, 2019). Along with
this, payroll department also have responsibility related to ensuring proper time and in accurate
manner and make sure that employee get pay and deductions are made as per according to the
employment legislations. Present report has been concluded on TESCO. Company operate their
functioning as leading British multinational general merchandise and groceries retailing
organisation. In this report formative discussions has been made on legislation and its effect of
payroll. In addition to this processes that are being applied during various employment stages are
also covered in this report. Lastly, this report include special cases and well as equal
opportunities.
MAIN BODY
1. Legislation and its effect on payroll
It is essential for an employer to ensure that each and every employee get treated as per
according to the law and legislations. It has been identified that employing mainly comes with
certain set of responsibilities. There are different types of laws that required to be placed in order
to protect workers right and ensure that they get paid in a fair and correct manner. In this, it is
essential for employers to effectively understand all the relevant laws in order to treat every
employee in lawful manner. In addition to this, it has been determined that as per in accordance
with company policy it is important for an employer to issue all the written employment contract
before starting date of employee employment date. This has been states under the statute
(Employment Act 1996) most of the employees must receive written statement along with
essential terms and conditions within starting date of month of employment. Along with this,
employer is required to make sure that employment is not being based orally (GOV.UK, 2013. In
addition to this, according to the Act (Employment Act 1996) no right has been kept with
employer as to deduct any voluntary deductions without undertaking employee authority. Thus,
it is essential for payroll manager to make sure that all the essential redundancy payments as per
the statutory requirements. Mentioned below there are legislation along with its effect on payroll:
Employment Relations Act 1999
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This act mainly came into effect on 27 July 1999. This act mainly establish different
types of right at work in some of the certain following areas that are industrial action ballots,
paternal leave, maternity leave, partnership, employment tribunal awards, employment agencies
and more. As per according to this law, an employer have no right to blacklist workers on the
basis of trade union activities and membership. This act mainly include some of the certain basic
elements of employment along with legal obligations and protection that are required to be
obliged by both employees and employers.
Part-Time Workers Regulations 2000
It has been identified that majority of staff within organisation are on part time or tern
time contract. For instance, in majority of locations in TESCO were company offer their services
24/7 there are large number of employees those who are in employment with company on part
time basis (Fullerton, Dixon, and McCollum, 2019). Thus, it is essential for organisation to
make sure that, the regulation of part-time workers regulations 2000 are adopted within entity
structure. In this employer is required treat all of their part time employees exact same as full
time workers. In this payroll effectively make sure that employee basis pays are on pro rata basis
as per according to the working hours. In addition to this, it is also important for entity to ensure
that their part-time workers get duly paid and get treatment same for training, pay rate, maternity
pay, sick pay, pensions, redundancy and holiday.
Employment Act 2002 and Work and Families Act 2006
As per according to this law, this has been evaluated that employees are duly entitles to
take adoption or maternity leave and maternity leave irrespective of their length of working
hours, employment services or salary (Smith and Sheridan, 2019). In addition to this, it is
essential for payroll manager to effectively check that each and every workers are entitles with
maternity pay before the payments are processed.
Thus, as per according to the above mentioned discussion it has been evaluated that it is
essential for an TESCO payroll manager to ensure that employees within organisational structure
have same rights such as 48-hour work weeks, termination protections, redundancy pay,
minimum paid holidays and more in a written statement of employment. Negligence of this may
lead payroll department within entity to face number of issues that may automatically affect
profitability and productivity of organisation.
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2.-Processes applied during various stages of employment
In a firm there is various stages of employment which have associated with different law
some of there stages is some stages which are discussed below ;
New Appointments :
For fulfilling the HR needs of the organisation every firm use recruitment new persons in
there organization and for fair recruiting there are various law which the firm have to follow in
there process . When company is doing recruitment than they have to give equal right to male
and female candidates which is mentioned in Equality Act 2010 which states that every
individual have an equal right of compensation if there ability ans knowledge are same fort that
post there must no discrimination on behalf of sex of individual. For instance Tesco use no
discrimination policy in their firm as they employee both males and female in there firm.
Employment Relations Act 1999 also helps the employees in management of there relation with
other this act provide than right to form and join unions for fulfilling their personal needs in
organisation . This will help the new employees in forming groups and establishing there
personal relations.
Transfers (Internal & TUPE) :
When company want more human resources in there firm but don't want new person
than it use transfer as a tool for filling its vacant posts there are various laws regarding transfer of
persons. Employment Rights Act 1996 of UK give different rights to the employees of
organization . In this law there is also a right which is related to transfer of employee, that point
states that all employee have a right to choose the transfer post and destination according to there
suitability. There is also a law which help the employee in getting assistance of change in
language because of transfer. This law is Foreign Language Assistants (FLA) this law is formed
by British Council, 2012 for saving interest of employee on transfer in nation like china where
there is complete difference in language as well as culture .
Permanent and TemporMarcus, B.H., Simkin, L.R., Rossi, J.S. and Pinto, B.M., 1996.
Longitudinal shifts in employees' stages and processes of exercise behavior change. American
Journal of Health Promotion, 10(3), pp.195-200.
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ary variations to contract :
There are two type of contract which a HR department of firm made to there employee in
their payroll. This system have various conflicts in it because of cheating and unethical practices
of some firm. This is the reason that government formulated various law in this process. There
laws help employees to get the pay of what they done without having any dispute with their
payroll. CIPP, 2012 this law help to avoid the over payment of permanent or temporary contact
by management of payroll reports like net pay difference, leaves, increment, difference and
holidays this law ensure effective pay role management in the organisation for facilitating
sportive environment. In context of Tesco company provide there employee permanent
employee contact which help firm in maintain proper pay roll management in there firm and
effective utilization of there resources . Part-Time Workers Regulations 2000 this act provide
the employees the facility of working ass a full timers but the payroll of these employee will
remain as part time but they can enjoy other facility. Fixed Term Employees Regulations 2002
The company HR and Payroll staffs ensure fixed term employees are employed and paid with the
same rights as permanent staff
Starter’s, Leavers:
Leaves are the gaps or those differences in the working of individual where he is not
present in organization for doing its work. This have direct impact on payroll of an employee as
it will deducted accordingly but for preventing interest of employee in there are some laws which
help employees in managing there leaves . For example there is law regarding the mandatory
leave for male and female which are divided in different category like sick leave, festival off,
casual leaves and paid leaves which have no effect on employee payroll this is covered in
pension law. There is also a different law for women working in organisation which provide than
extra leave for there maternity period. This leaves are non transferable and can only use at the
time of having baby . The law regarding this leave is Statutory Maternity Leave. In this
employee will get leave of 52 weeks for maternity period and 26 weeks extra maternity leave. t
he first 6 weeks: 90% of their average weekly earnings before tax the remaining 33 weeks:
£148.68 or 90%
Retirements, Redundancies :
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Retirement is the process of leaving the job by voluntary or because of other factors like
age, time period, etc. retirement have its different impact on organisation as in this stage
company have to follow same laws which are related to both employee and employer in
organisation, for example there is a pension scheme which have to be provides to retiring
employee of firm . This will help them in running there life because after retirement because of
age they are unable to do hard work. There are various types of pension schemes like Basic
State Pension, State Second Pension (S2P), Defined benefit pension and Defined contribution
pension. In the context of Tesco, they follow this rule strictly as there core function is to
maintain the security in mind of there employee which can help firm in maintain cooperation in
working .
Death in Service :
This is that service which arise when working employee of organisation died while
working in the organization. In this firm will provide a sum of money to the representative of
dead employee (Hussain and et. al., 2018) . This sum is tax free and have no future tax liability.
There is a cover of £30,000 yearly for partner of dead person nor will get £120,000 in lump sum
if that person survive in accident. this point is cover in employee safety act which deals with
safety of employee and there family. In context of Tesco this law have different existence in
firm as they have additional rules which help the family of dead person by giving job to one
member of that family.
3. Consideration of special cases and equal opportunities
International
Foreign Language assistant
It has been identified that, TESCO operate their functioning in different geographical
locations. This makes them to deal with individuals with different languages. In this it is
essential for employer to undertake advantage of Foreign Language Assistants (FLA) those who
especially belongs form China. This has been identified that employment payment is basically
set by Department for Education (DfE). In this, it is essential for payroll manager to make sure
that payment as well as pension of employees are effectively set as per in accordance with HR
instruction. Further this has been determined that payroll unit is required to make sure that they
set right tax code and get P46 tax form as well as covering letter from workers before starting
date. According to British Council Booklet (British Council, 2012) this has been identified that
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FLA posses right to make application on National Insurance as to duly enable contribution to
register on system. Along with this employees are entitled to perform their work in 12 hours a
week.
Subcontractors
Industrial action
It has been identified that employees within TESCO employees were on a day strike
because of the dispute over pension reforms of company. In this industrial actions were duly get
organised by trade unions officials (Abebe, 2019). This has been determined that, recently TUC
(2012)issued employee rights, in this employers are allowed to deduct pay from wages of
employee without authority of employee if any employee make their presence in strike. In
relation with this, payroll department of TESCO get this information by entity HR department
related to unpaid leave for strike actions. In this payroll manger of company having
responsibility related to make sure that payroll system get duly calculated on a correct way to
deduct a day pay of non-pensionable rate from employee wage. This has been defined that
employer have authority to make reduction in employee service length from employee depending
on the numbers of days employee takes place.
Discrimination
Equal Opportunities
It is essential for an organisation to to make sure that all the employees within entity get
treat on an equal basis with equal respect as well as dignity. Along with this, this has been
evaluated that core values of TESCO in promoting equality and diversity. Further this, has been
evaluated that every change in procedures and policies are communicated to employees. In
addition with this, it has been identified that TESCO is itself a culturally diverse community.
Thus, it is important for organisational employers to employ individuals with diverse genders,
ethic origins, educational levels, ages, disabilities and more. In accordance with the guidance on
Equality Act (EHRC, 2010) employer is required to treat all of their workers in a equal manner.
CONCLUSION
As per the above mentioned report it has been concluded that, organisation is required to
make sure that all the relevant and necessary employment laws and legislation are applied on
organisational working structure as to treat all employees in an equal manner. Further it has been
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identified that employers are not entitles to make deduction from pay of employees. In this
payroll department of organisation are required to have understanding of all Employment
Legislations and process them accurately in order to perform their operations in well effective
manner. In addition to this, it has been evaluated that, payroll manager are required to make sure
that all of their employees those who work in local and international level are paid according to
the employment legislations. Further, it is also essential for Organisational authorities to make
sure that all of their employees within organisational working structure get treated on an equal
manner and opportunities are provided to them as per according to governmental rules and
legislations.
Recommendations
It has been determined that employment law of UK are changing in a frequent manner
after BREXIT scenario. Thus, it recommended to both Payroll and HR staffs to have proper
understanding of legislations and have up to date training as to apply all the relevant laws in a
correct manner. In addition to this, payroll department is also recommended to run
supplementary pay run. This will allow them save cost but also benefit them to improve their
relationship with consumers. In addition to this, it is also being recommended to payroll manager
of TESCO to implement Employment Equity (Age) Discrimination Act within their
organisational working structure in order to provide equal treatment to all employees in a equal
manner. This will not only benefit them to manage their work as per according to governmental
laws and measures but also aid them to formulate and maintain best effective relationship with
their employees.
REFERENCES
Books and Journals
Doran, E.L., Bartel, A.P. and Waldfogel, J., 2019. Gender in the Labor Market: The Role of
Equal Opportunity and Family-Friendly Policies. RSF: The Russell Sage Foundation
Journal of the Social Sciences. 5(5). pp.168-197.
Abebe, F., 2019. Practice, Opportunities And Challenges Of Electronic Banking Customers In
Addis Abeba Area Case Study On Cbe, Ab, Db And Aby (Doctoral dissertation, Addis
Ababa University).
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THAT, J.H.J.I.A. and BOB, H., 2019. Ensuring Equal Employment Opportunity and
Safety. Human Resource Management, p.70.
Galvin, D.J., 2019. From labor law to employment law: The changing politics of workers’
rights. Studies in American Political Development. 33(1). pp.50-86.
O’Connor, M.A., 2019. Promoting economic justice in plant closings: exploring the
fiduciary/contract law distinction to enforce implicit employment agreements.
In Progressive Corporate Law (pp. 219-245). Routledge.
Smith, T.E. and Sheridan, S.M., 2019. The effects of teacher training on teachers’ family-
engagement practices, attitudes, and knowledge: A meta-analysis. Journal of
Educational and Psychological Consultation. 29(2). pp.128-157.
Fullerton, A.S., Dixon, J.C. and McCollum, D.B., 2019. The institutionalization of part-time
work: Cross-national differences in the relationship between part-time work and
perceived insecurity. Social Science Research. p.102402.
Marcus, B.H., Simkin, L.R., Rossi, J.S. and Pinto, B.M., 1996. Longitudinal shifts in employees'
stages and processes of exercise behavior change. American Journal of Health
Promotion, 10(3), pp.195-200.
Hussain, S.T and et. al., 2018. Kurt Lewin's change model: A critical review of the role of
leadership and employee involvement in organizational change. Journal of Innovation
& Knowledge, 3(3), pp.123-127.
Zhang, X. and Bartol, K.M., 2010. The influence of creative process engagement on employee
creative performance and overall job performance: A curvilinear assessment. Journal of
Applied psychology, 95(5), p.862.
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