How are you planning for your growth?
Well it’s a very exciting time of year for employers. You are probably preparing for the end of your current financial year and planning ahead as we enter into April. This is a time to consider your budgets and how you plan to invest in your business and your people for growth.
It’s also a critical time, as you you need to think about how you are going to workforce plan including what type of employees you need to employ in order to support those growth plans. May be you are thinking about casual workers, fixed-term, part-time or full-time employees. Well before you make the decision, here’s some key facts which you need to consider.
– Casual Workers – Typically known as a Zero Hours Contract. This is usually where you will have an individual working for you on an ‘as and when’ basis and can be a fantastic way of managing ‘peaks and troughs’ in your business activity. However, it is important to note that with a Zero Hours contract, the individual has the right to refuse the work and you have the right not to offer the work to them, which can offer a level of unpredictability and may be less commitment from the individual. There is also the need to keep up-to-date with the individual’s training needs. Note, the individual working under a Zero Hours contract will still have some of their employment rights, eg, the right to paid holiday.
– Fixed-Term – This is usually when you employ someone for a fixed period of time with a defined start and end date but you do have the ability to extend their contract by mutual agreement. It is important to bear in mind that fixed-term contracts can be a great way of filling a gap in the immediate term and may be a fantastic way of determining whether an individual may be a good fit in the long-term. However, even on a fixed-term contract, the employee could claim full employment rights and even redundancy if you have employed them for a significant period of time, even on a fixed-term contract.
– Full-time/Part-time – This is a great way of making sure that you have the commitment of an employee and can fill a vacancy permanently. However, it is important to consider that this is a commitment and therefore there are a number of factors to consider and not just in terms of employers contribution for tax purposes. For those of you who are not already impacted by this, pension auto enrolment will be another overhead to consider.
We hope that you have found this helpful, and if you’d like to know more, just give Sue Green a call on 07951 356700.