Navigating pay policy

Government is keeping an eagle-eye on pay and pay policy. Only in the last few weeks the BBC has again come under its fair share of scrutiny for the ways in which it pays its people. Now the corporation’s use of personal service companies has come under the spotlight.

Personal service companies themselves have also been in the news. These are limited companies that usually have just one sole director, who owns most or all the shares. The Budget revealed that the changes for Public Sector organisations, such as the BBC, will be rolled out to medium and large private sector companies. These changes put the onus on the employer to assess the right employment status and operate PAYE with penalties applied for errors. More details on what the changes are and what action companies should take is here

HR Directors would be wise to stay in the conversation when deciding which contract to put people on when they join an organisation. It’s a thorny issue. From an HR perspective, our best advice is to look at the individual as a whole when reviewing the sort of work they provide to the Company. ‘The Taylor Review of Modern Working Practices’ (July 2017) shows us just how tricky the worker and employee status issues are in the 21st Century . Employers that need help working this out should contact their usual RSM contact for advice and guidance. 

With pay still a hot topic in the news and with the gender pay gap reporting deadline less than six months away, employers may now like to consider whether they’re in a good position to report their next set of gender pay gap figures next year. The next set of gender pay gap calculations are due to be published in April 2019 (private and voluntary sector) and March 2019 (for the public sector). Employers that need help with the calculations should contact their usual RSM contact. If employers have made pledges and promises of actions, now would be a good time to review those and look at progress. 

For more information on these issues, please contact Kerri Constable or Mark Morton.