01.1.1 Describe the main types of employment status within the
Creative Media sector.
There are three main employment status and these are:
Employed, which can be either full-time or part-time. Within the creative media sector, as with most industries there are many roles that can be filled by both full-time and part-time employees, the differences are simply the hours per week that are worked. A full time job is one in which you work 40 hours a week or more. These jobs are typically held by adults who are available all week long. These jobs are also characterized by the fact that they offer benefits such as health insurance and retirement plans. Part time jobs are jobs in which you work less than 40 hours a week and usualy doesnt have any benefits
Contracted employees, who are employed for a set amount of time, which is generally written into their contract at the time of employment. It is quite common for the contracted employee to have a set project to work on until completion of their contract, for example in 3D Design visualisation an employee could have been contracted only until the Model is complete, in some cases they could be further contracted for other projects such as the 2D brand up for the artwork or even be given another task to work on.
Freelancing, which can be described as self-employed, is another employment status. Rather than being under contract with an employer, you are your own boss. Freelancing is a popular choice in the design industry, for example in web design, where a project doesn't necessarily require an entire team of people to complete, and can instead be undertaken by an individual who is self-employed. It is also not uncommon to work both part-time while also working freelance as Design work may not always be available.
While I have already covered what are considered as the main three types of employment status’s, there are others that are common. For example, unpaid employment, such as being a volunteer or intern is commonly practiced this is so they can gain hands on experience in the workplace and the the employer benifits because they don’t have to pay them.
Apprenticeships are another status of employment. Being an apprentice allows for a mixture of working for an employer while also getting the qualification that is suited to that career path. Apprenticeships often lead to full-time employment, as the employee has gained set skills and knowledge for that particular job, both from gaining work experience, a formal qualification and also works the way that the employer likes things done.
01.1.2 Describe the key legal and taxation differences between main types of employment status.
01.1.3 Explain the main implications of each employment status, In relation to job security, Flexibility and working patterns.
Tax and national insurance.
With the different type of employment statues that you have when it comes to the legal side of things like pay and tax, there are many differences for all employees
These differences are:
Full-time or part-time employee, As a full-time or part-time employee you are required to pay income tax which is dependent on how much you earn a year. If your yearly income is more than £7,745 you will have to pay tax. Your employer will work out how much tax needs to be deducted.
Contracted employee or Freelancer, Being self-employed is very different to being a full-time employee. One of the major differences is that you have to pay your own tax and national insurance, something that your employer would do for you if you were full-time or part-time.
If you set up a limited company, this is another legal and taxation difference from the other types of employments. As a limited company you are seen as a person, so like you would do if you were just freelancing, to get paid you send out invoices to whoever you have worked for. One of the main differences between a limited company and someone who is working full-time or part-time or is a contracted or freelance employee is that instead of paying income tax you pay corporation tax.
Voulunteer or interns, If you are working on a voluntary or intern basis because you are not getting paid you won’t have to pay tax or national insurance.
Apprentice, As an apprentice I am earning under the minimum taxable yearly wage so I don’t need to pay any tax or national insurance.
Holiday Entitlement
Almost all workers are legally entitled to 5.6 weeks’ paid holiday per year (known as statutory leave entitlement or annual leave). An employer can include bank holidays as part of statutory annual leave.
Shown below is the details of entitlemet for diferent types of employment.
Self-employed workers aren’t entitled to annual leave.
Working 5 days a week
Most workers who work a 5-day week must receive 28 days’ paid annual leave per year. This is calculated by multiplying a normal week (5 days) by the annual entitlement of 5.6 weeks.
Working part-time
Part-time workers are also entitled to a minimum of 5.6 weeks of paid holiday each year, although this may amount to fewer actual days of paid holiday than a full-time worker would get.
For example if a worker works 3 days a week. Their leave is calculated by multiplying 3 by 5.6, which comes to 16.8 days of annual paid leave.
Apprentices
Apprentices get at least 20 days of paid holiday per year, plus bank holidays. With T2 i am given 28 days leave per year as well as bank holidays.
Irregular hours
People working irregular hours eg shift work or term-time work, need to calculate their leave entitlement for irregular hours.
Limits on statutory leave
Statutory paid holiday entitlement is limited to 28 days. Staff working 6 days a week are only entitled to 28 days’ paid holiday and not 33.6 days (5.6 multiplied by 6).
Bank holidays
Bank or public holidays do not have to be given as paid leave.
An employer can choose to include bank holidays as part of a worker’s statutory annual leave.
Extra leave
An employer can choose to offer more leave than the legal minimum. They don’t have to apply all the rules that apply to statutory leave to the extra leave. For example, a person might need to be employed for a certain amount of time before they become entitled to extra time off.
Other aspects of holiday entitlement
Workers have the right to:
get paid for leave
build up holiday entitlement during maternity, paternity and adoption leave
build up holiday entitlement while off work sick
choose to take holiday at the same time as sick leave
Holiday Pay
Workers are entitled to a week’s pay for each week of leave they take.
A week’s pay is worked out according to the kind of hours someone works and how they’re paid for the hours. This includes full-time, part-time and casual workers.
Fixed hours and fixed pay (part time or full time) A week’s holiday pay equals how much a worker gets for a week’s work (excluding non-guaranteed overtime payments in most cases)
Shift work with fixed hours (part time or full time) A week’s holiday pay equals the average number of weekly fixed hours a worker worked in the previous 12 weeks at their average hourly rate
No fixed hours (ie casual work) A week’s holiday pay is the average pay a worker got over the previous 12 weeks (in which they were paid)
Calculating average hourly rate
To calculate average hourly rate, only the hours worked and how much was paid for them should be counted. Take the average rate over the last 12 weeks. If no pay was paid in any week, count back a further week, so that the rate is based on 12 weeks in which pay was paid.
Rolled-up holiday pay
Holiday pay should be paid for the time when annual leave is taken. An employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’). If a current contract still includes rolled-up pay, it needs to be re-negotiated.
Booking time off
The general notice period for taking leave is at least twice as long as the amount of leave a worker wants to take (eg 2 days’ notice for 1 day’s leave), unless the contract says something different.
An employer can refuse a leave request but they must give as much notice as the amount of leave requested, eg 2 weeks’ notice if the leave requested was 2 weeks.
Taking holiday before leaving a job
During their notice period the worker may be able to take whatever is left of their statutory annual leave.How much they get depends on how much of the holiday year has passed.
Taking more leave than the entitlement
If a worker has taken more leave than they’re entitled to, their employer must not take money from their final pay unless it’s been agreed beforehand in writing. The rules in this situation should be outlined in the employment contract, company handbook or intranet site.
Getting paid instead of taking holidays
The only time someone can get paid in place of taking statutory leave (known as ‘payment in lieu’) is when they leave their job. Employers must pay for untaken statutory leave (even if the worker is dismissed for gross misconduct).
If an employer offers more than 5.6 weeks’ annual leave, they can agree separate arrangements for the extra leave.
Sick pay
You can get £87.55 per week Statutory Sick Pay if you’re too ill to work. It’s paid by your employer for up to 28 weeks. You need to qualify for SSP and have been off work sick for 4 or more days in a row this is including non-working days.
You can’t get less than the statutory amount. You can get more if your company has a sick pay scheme or ‘occupational scheme’. You get SSP for the days you would normally have worked. It’s not paid for the first 3 days you’re off, unless you’ve been paid SSP within the last 8 weeks and are eligible for it again. If you have more than one job you may get SSP from each employer.
How you’re paid
SSP is paid by your employer in the same way as your normal wages (eg weekly or monthly).
Tax and National Insurance will be deducted
Eligibility
To qualify for Statutory Sick Pay (SSP) you must:
Be classed as an employee and have done some work for your employer
Have been ill for at least 4 days in a row (including non-working days)
Earn at least £111 (before tax) per week
Tell your employer you’re sick before their deadline - or within 7 days if they don’t have one
Agency workers are entitled to Statutory Sick Pay.
You won’t qualify if you:
Have received the maximum amount of SSP (28 weeks)
Have taken 3 years or more ‘linked periods’ of sickness - where 4 or more days of sickness happen within 8 weeks of each other
Are getting Statutory Maternity Pay
You can still qualify if you started your job recently and you haven’t received 8 weeks’ pay yet. Ask your employer to find out more.
Fit notes or sick notes
You only have to give your employer a doctor’s fit note if you miss more than 7 days of work.
If you’re not eligible
If you don’t qualify for SSP, your employer must give you form SSP1 within 7 days of your illness
Maternity allowance
Maternity Allowance is usually paid to you if you don’t qualify for Statutory Maternity Pay and
The amount you can get depends on your eligibility. You can claim Maternity Allowance as soon as you’ve been pregnant for 26 weeks. Payments can start 11 weeks before your baby is due.
You could get either:
£138.18 a week or 90% of your average weekly earnings (whichever is less) for up to 39 weeks
£27 a week for up to 14 weeks (if your baby is due on or after 27 July 2014)
Maternity Allowance is paid every 2 or 4 weeks.
How you’re paid
All benefits, pensions and allowances are paid into an account, eg a bank account.
Impact on other benefits
Maternity Allowance won’t affect your tax credits but it will affect how much you get for:
Council Tax Reduction
Housing Benefit
Employment and Support Allowance (ESA)
Income Support
Jobseeker’s Allowance (JSA) - this will stop if you get Maternity Allowance
bereavement benefits
Carer’s Allowance
Maternity allowance for 39 weeks
You might get Maternity Allowance for 39 weeks if:
you’re employed, but you can’t get Statutory Maternity Pay
you’re self-employed and paying Class 2 National Insurance contributions
you’re self-employed and have a Certificate of Small Earnings Exception
you’ve recently stopped working
You must also have been:
employed or self-employed for at least 26 weeks in the 66 weeks before the week your baby is due
earning at least £30 a week over any 13-week period
You may still qualify if you’ve recently stopped working.
It doesn’t matter if you had different jobs or periods of unemployment.
Maternity Allowance for 14 weeks
You might get Maternity Allowance for 14 weeks if for at least 26 weeks in the 66 weeks before your baby is due:
you’re married or in a civil partnership
you’re not employed or self-employed
you take part in the business of your self-employed spouse or civil partner
the work you do is for the business and unpaid
your spouse or civil partner is registered as self-employed with HMRC and should pay Class 2 National Insurance
your spouse or civil partner is working as self-employed person
you’re not eligible for Statutory Maternity Pay or the higher amount of Maternity Allowance (for the same pregnancy)
Your baby must also be due on or after 27 July 2014.
If you lose the baby
You may still qualify if the baby is either:
stillborn from the start of the 24th week of pregnancy
born alive at any point during the pregnancy
How to claim
Print off and fill in the MA1 claim form or fill it in online via the GOV website, print it off and send it to the address on the form.
You need to provide:
proof of your income - eg, original payslips, Certificate of Small Earnings Exemption (if applicable)
proof of the baby’s due date - eg a letter from the doctor or midwife, or your MATB1 certificate
your SMP1 form - only if you were refused Statutory Maternity Pay by your employer
You may need to give more information about your partner’s self-employed business and what you do if you’re applying for Maternity Allowance for 14 weeks.
Leave
Statutory Maternity Leave is 52 weeks. It’s made up of:
‘Ordinary Maternity Leave’ - first 26 weeks
‘Additional Maternity Leave’ - last 26 weeks
You don’t have to take 52 weeks but you must take 2 weeks’ leave after your baby is born (or 4 weeks if you work in a factory).
Start date and early births
Usually, the earliest you can start your leave is 11 weeks before the expected week of childbirth.
Leave will also start:
the day after the birth if the baby is early
automatically if you’re off work for a pregnancy-related illness in the 4 weeks before the week (Sunday to Saturday) that your baby is due
Change your date for returning to work
You must give your employer at least 8 weeks’ notice if you want to change your return to work date.
Parental leave
Eligible employees can take unpaid parental leave to look after their child’s welfare, eg to:
spend more time with their children
look at new schools
settle children into new childcare arrangements
spend more time with family - eg visiting grandparents
Entitlement
Parental leave is unpaid. The child must be under 5 (or 18 in special circumstances).
For each child 18 weeks up to their 5th birthday
For each adopted child 18 weeks up to their 18th birthday or 5th anniversary of their adoption, whichever comes first
For each child who qualifies for Disability Living Allowance 18 weeks up to their 18th birthday
The limit on how much parental leave each parent can take in a year is 4 weeks for each child (unless the employer agrees otherwise).
You must take parental leave as whole weeks (eg 1 week or 2 weeks) rather than individual days, unless your employer agrees otherwise or if your child is disabled. You don’t have to take all the leave at once. A ‘week’ equals the length of time an employee normally works over 7 days.
Example If an employee works 3 days a week, one ‘week’ of parental leave equals 3 days. If an employee works irregular weeks the number of days in a ‘week’ is the total number of days they work a year divided by 52.
Carrying leave over from a previous job
Parental leave applies to each child not to an individual’s job.
Maximum weekly working hours
The law says that workers don’t usually have to work more than 48 hours a week on average, unless they choose to. This law is sometimes called the working time directive or working time regulations.
Some sectors have specific rules for their own workers. Normal working hours should be set out in the employment contract or written statement of employment details.
Opting out of weekly maximum working hours
Employers can’t force adults to work more than 48 hours a week on average, normally averaged over 17 weeks.
Exceptions
These rules don’t apply to jobs:
where the working time is not measured and the worker is in control - eg managing executives with control over their decisions
in the armed forces, emergency services and police - in some circumstances
in security and surveillance
as a domestic servant in a private household
where 24-hour staffing is required
certain categories of seafarers, sea-fishermen and workers on vessels on inland waterways
Other work sectors might have different rules on maximum working hours and workers should always speak to their employer.
If you’re a trainee doctor the 48-hour maximum working hours rule applies to you, averaged over 26 weeks.
Opting out of the 48-hour week
Workers 18 or over who want to work more than 48 hours a week, can choose to opt out of the 48-hour limit. This could be for a certain period or indefinitely. It must be voluntary and in writing.
It can’t be contained in an agreement with the whole workforce. However, employers are allowed to ask individual workers if they’d be willing to opt out. An employer shouldn’t sack or unfairly treat a worker for refusing to sign an opt-out.
Workers who can’t opt out
Employers must not allow the following staff to opt out:
workers on ships or boats
airline staff
workers in the road transport industry, eg delivery drivers (except for drivers of vehicles under 3.5 tonnes using GB Domestic drivers’ hours rules)
other staff who travel in and operate vehicles covered by EU rules on drivers’ hours, eg bus conductors
security guards on a vehicle carrying high-value goods
Cancelling an opt-out agreement
A worker can cancel their opt-out agreement whenever they want - even if it’s part of their employment contract. They must give their employer at least 7 days’ notice. This could be longer (up to 3 months) if the worker previously agreed this in the written opt-out agreement with the employer.
The employer isn’t allowed to force a worker to cancel their opt-out agreement.
Example of opt-out agreement:
I [worker’s name] agree that I may work for more than an average of 48 hours a week. If I change my mind, I will give my employer [amount of time - up to 3 months’] notice in writing to end this agreement. Signed…………………………………… Dated…………………………………….
16 and 17 year olds
16 and 17 year olds can’t normally work more than 8 hours a day or 40 hours a week.
The hours can’t be averaged out for 16 and 17 year olds. There is also no opt-out which means that they can’t work longer hours even if they want to.
working rights
Workers and Employees
Workers and Employees have the following rights
National Minimum Wage
the right to be automatically enrolled in a pension scheme and receive Employers Contributions in certain circumstances and in stages from October 2012
Rest Breaks and Paid Holiday under the Working Time Regulations
Protection from unauthorised deductions of Pay
Maternity and Adoption Pay (not Leave) and Paternity Pay (not Leave)
Protection against less favourable treatment if you are part-time
From 8th March 2013, to comply with the Parental Leave (EU Directive) Regulations, an agency worker who has at least one year’s service and has returned from unpaid parental leave, has the right to request flexible working. As your employer is likely to be the agency not the client it is their decision, although this is complicated as they will need knowledge of whether this is acceptable to the client
Statutory Sick Pay
Protection again less favourable treatment if you whistle-blow
Not to be discriminated against unlawfully on grounds or race, sex, marriage/civil partnerships, maternity or pregnancy, disability, gender reassingment, sexual orientation, age, religion or belief and to receive equal pay.
Protection under Health and Safety law. For details of the Health & Safety legislation in the UK please look at the official website www.hse.gov.uk.
With regards to appropriate Temperatures for the Workplace – there is no legal minimum or maximum temperature set, the law says that during working hours the temperature inside workplace buildings should be “reasonable”.
Protection against discrimination for membership or non-membership of a Trade Union.
Acompanied at a disciplinary or grievance procedure hearing.
Self employed and freelance
You do not have employment rights as such, as you are seen to your own boss and so can make decisions on fees, holidays etc. You will not therefore be entitled to:
Your client company’s sick leave, company maternity pay or company pension provisions
The legal right to protection under your clients company’s internal disciplinary and grievance schemes
The legal right not be dismissed (always, however, read the contract of service you have agreed as this may contain clauses relating to termination of your agreement and time-periods).
There is, however, legal protection so:
You should not be Discriminated against in the work place in most cases, and if you are could make an claim to an Employment Tribunal. This protection only applies to Freelancers who fall under Part 5 of the Equality Act 2010 – that is those who are described as ‘contract workers’ and are contracted personally to do the work, i.e you cannot claim discrimination against your Employer if you are contracted for the provision of services and hire someone else, or sub-contract someone else, to do the work – you must do the work yourself personally.
You are entitled to a Safe and Healthy working environment, see www.hse.gov.uk
You should be paid for the work that you have done. If your Client is going into receivership or administration read this advice on avoiding bad debts.
Contractors working through Employment Agencies also have rights under The Conduct of Employment Agencies and Employment Business Regulations 2003
You may also be entitled to Statutory Maternity Allowance if you are pregnant and have recently left an engagement.
Other information for Freelancers
Also, on the occasion that you are classed as a ‘Worker’ (for employment Rights) but Self-Employed (for tax purposes), you may be entitled to the ‘Workers’ Rights as above if you perform the work personally. E.g. It is quite common in the Film and TV Industry for freelancers to be classed as ‘Workers’ and receive paid Holiday under the Working Time Directive legislation.
Most self-employed individuals will pay class 2 National Insurance Contributions (NIC’s) which give you entitlement to the basic State Pension and Statutory Maternity Allowance. Class 2 NIC’s do not give you entitlement to Job Seekers Allowance, Statutory Sick Pay or the additional State Pension.
If you are registered as a Limited Company and provide your services on a freelance basis to a client organisation (as a Provider) then you will not receive ‘workers’ rights from this organisation it is up to you to provide yourself with ‘workers’ rights as you are employed by your own Limited Company.
No comments:
Post a Comment