While it may not always make the news, workplace bullying is more common than you may think. Public service trade union, Unison, says the number of people now being bullied has doubled in the last decade, with around a third of workers saying they have experienced bullying in the last six months.

As an employer, it is not always obvious how you should handle bullying in your business. You may not even be aware that it is your legal responsibility to do so, or just how costly it can be if a case goes to court. Employment Tribunals have increased the maximum award they can make in cases where bullying and harassment are proven, with the amount awarded for Constructive Dismissal now at £66,000.

The following guide aims to give employers a better understanding of what constitutes bullying in the workplace, and of the steps that can be taken to prevent it from happening.

What is workplace bullying?

Bullying and harassment in the workplace can take many forms, but always involves conduct that is unwanted by the target. Bullying can take the form of physical harassment, verbal abuse, or non-verbal abuse, i.e. through emails or phone calls. The difference between harassment and bullying is that the latter involves persistent and deliberate offensive behavior, which usually affects the dignity of the target over time.

Why does bullying occur?

There are a number of reasons why an individual may become a target for bullying, but factors such as age, race, disability, sexual orientation, religious belief and nationality often play a part. A characteristic specific to the individual may also cause them to be targeted. Whatever the reason, none is an acceptable excuse for discrimination in the workplace.

What forms can bullying take?

Examples of typical forms of workplace bullying include:

• Ignoring or excluding individuals

• Spreading malicious rumours

• Constantly ridiculing or insulting someone

• Making unwanted sexual advances

• Abusing power through overbearing supervision

• Persistent criticism

• Constantly moving goalposts or deadlines

Liability of the employer

Under the Management of Health and Safety at Work Regulations 1992, employers are required to asses the risk of personal injury to employees in the workplace, and to put measures in place to avoid injury.

The Act defines ‘personal injury’ as any disease or impairment of a person’s physical or mental health in the workplace’, which includes damage caused as a result of bullying. This means that as an employer, you are legally obligated to protect your employees from bullying or harassment.

Other relevant legislation includes the Harrasment Act 1997, Employment Equality (Sex Discrimination) Regulations 2005, the Law of Negligence, the Health and Safety at Work Act 1974, and the contract of employment which you and your employee has signed.

How can employers prevent bullying in the workplace?

The most important step that an employee can take is to draw up an anti-bullying policy, which states that bullying in the workplace will not be tolerated. This should give an outline of behavior that would be considered bullying, and advise employees on what to do if they feel they are a victim. For example, you should have a grievance procedure which an employee can follow if they wish to make a formal complaint.

Employers should modify staff contracts of employment to include this policy. State that harassment, of any sort, is unlawful and will be regarded as Gross Misconduct.

Employers should make it clear that they will be supportive if complaints about bullying are made, and encourage staff to communicate any issues with them.

Employees should keep a close eye on staff behavior, and look out for early indications that bullying is occurring. Evidence of of harassment may not be obvious, but if a staff member seems unhappy or is often calling in sick then this could signal an issue.

Who else can help?

If an employer is unable to stop or control bullying, then they should seek help from an organisation such as Acas, which offers free, confidential and impartial advice on all employment rights issues. You can phone Acas on 08457 474 747.

What is insolvency?

A business becomes insolvent if it is unable to pay its debts when they’re due, or if the businesses liabilities (debts) are greater than the value of its assets. The term is often confused with bankruptcy, but insolvency is a state of being and bankruptcy is a matter of law. While insolvency can often lead to bankruptcy, the condition may also be temporary and fixable without legal protection from creditors. The following guide outlines steps that you can take to reduce the risk of insolvency before serious trouble arises.

Improve cashflow

In order to avoid insolvency, a business must ensure cash is flowing into the business steadily. To  improve your cashflow situation you can:

· Send invoices promptly, ensure you keep a record of all payment deadlines, and chase for payment as soon as the deadline is reached.

· Ensure you have procedures in place for dealing with customers who default on payments.

· Avoid overtrading, i.e., don’t accept orders if you don’t have the money or resources to fulfill them.

· Sell assets that are under-utilised, and lease them back

· Negotiate with your main suppliers to adjust payment dates and credit limits.

· Free up cash using invoice finance, whereby outstanding invoices are sold to a third party.

· Ask your bank whether they could extend more finance.

Negotiate with suppliers

It is worth talking to creditors before you become insolvent, as you may be able to adjust your payment terms. When negotiating with creditors you should:

· Never offer to pay more than you have available. Be upfront and realistic about what you can afford.

· Always get in writing a copy of the agreement between you and the creditor.

· Try to repay a percentage of the debt in lump sum cash payments (25-35 percent) You may try to repay higher percentages with more patient creditors, but insist that payments be made over months or even years.

· If you find that you cant meet payment deadlines even under renegotiated terms, call your creditors before the deadline has passed. You should then offer to send as much funds as you can, and try to renegotiate a payment plan for the rest of the debt.

Cut costs

While you don’t want to slash costs to a point where your business operations are compromised, there are generally a number of areas where savings can effectively be made. In order to reduce overheads, you should:

· Examine current costs so that you can determine where money can be saved. Get up-to-date figures for all items in your accounts payable, including phone and electricity services, stationary, and equipment. Calculate the total overhead cost of the last 12 months, and compare it to the 12 months prior to that. If the amount is greater, then you should look for ways to cut costs.

· Use technology to cut costs, ensuring that you have the most streamlined processes in place. For example, if you send out invoices to customers, see if you can do so via email instead of in the mail, or use conference calling to cut transport costs to meetings.

· Reuse and recycle. Just as you would at home, keep any items that can be reused, such as disks, papers and folders, and for those that can’t, recycle when possible. This will reduce both your purchasing costs and your rubbish collection bill.

· Talk to your staff. Employees will probably have the best ideas about where costs can be cut in his or her particular area, so encourage them to come up with cost-cutting incentives, and reward them for their efforts.

· Go through your stock room and storage areas, and clear out any items that are simply gathering dust. You could sell them at a discounted rate to employees or customers, giving you more shelf space as well as cash.

Seek help

It is important that you seek professional advice as soon as you see any indication of financial trouble. This way, you can asses the various options before serious trouble arises. You should take financial and legal advice immediately if:

· The business receives a County Court summons

· You are unable to pay back your debt

· You are unable to pay your employees wages

· There is an severe lack of working capital

You should talk to your account first, as they should be familiar with your business. You can also call:

Insolvency Service Helpline

0845 602 9848

UK Insolvency Helpline

0800 074 6918

Business Link Helpline

0845 600 9 006

According to technology website IT Pro, technology could help provide services while Royal Mail is on strike, despite a lack of understanding about how information is shared online and potential data security concerns.

In addition, new software such as Microsoft’s Windows 7 is designed to give consumers peace of mind when it comes to web security, which could encourage more businesses to branch out while the postal service is unavailable.

Benny Har-Even, technology editor at IT Pro, said: “If the Royal Mail is proving unreliable, businesses and companies are going to start looking for alternatives and technology can play a role in that.”

In an October 20th statement to the House of Lords outlining attempts to avoid strike action from Royal Mail workers, secretary of state for business, innovation and skills Lord Mandelson

Who is entitled to the national minimum wage?

Unless self-employed or working in the Channel Islands or Isle of Man, then virtually all adult workers in the UK are entitled to receive the national minimum wage. This includes part-time, full-time, and casual workers.

What is the national minimum wage rate?

Depending on the age of the worker, different rates of NMW will apply. As of 1 October 2009, the NMW rates are as follows:

The main adult NMW rate is currently set at £5.80 per hour, and this rate applies to workers aged 22 and over.

The development NMW rate is currently set at £4.83 per hour, and applies to workers ages 18-21.

The third NMW rate is currently set at £3.57 per hour, and applies to 16-17 year olds. Apprentices under 19 are not entitled to the NMW, nor are apprentices in their first year.

If you provide a worker with accommodation, then you will be able to offset £4.51 per day from the NMW.

What kind of pay is subject to the NMW?

A workers basic pay is subject to the NMW, but there are a number of other types of pay which may count towards this rate. These include payment on commission, and bonuses.

Overtime and shift work premiums do not count towards the NMW, nor do regional allowances which are not included in the employee’s basic pay.

For what hours does the National minimum wage apply?

For the purposes of NMW, there are four different categories for types of work. The NMW is calculated by the number of hours that a worker performs under each category. They four types of work are:

Time work: the employee is paid depending on the number of hours, or set periods of time worked.

Salaried-hours work: pay is outlined in a contract, which determines a set number of minimum hours per year. The annual salary is paid in equal instalments over 12 months.

Output work: pay is subject to the amount of work produced by the worker, and not on the hours worked. You may make draw up an agreement with the employee that gives a ‘fair estimate’ of the number of hours likely to be worked, but if you do not do this then you will be required to pay them the NMW for the actual number of hours worked.

Unmeasured work: some employees have no set hours or measures of work – for example a live-in nanny. As with output work, you may draw up an agreement, in writing, which sets out the average number of hours likely to be worked each day, or you must pay them the NMW for the actual hours that they work.

What records need to be kept for NMW?

As an employer, you will need to prove that you are paying your workers the national minimum wage. Most business will not need to keep separate records for the NMW, as the existing payroll and business records will have the information.

However you choose to keep record of you NMW payments, it is extremely important that you do so. If an employer was to dispute the fact that you had paid them the NMW, then you would need these records to defend your self. To have no record of NMW payments is a criminal offence.

The records required are:

* gross pay payments

* contracts and agreements between you and your workers

* payments for overtime and shifts

* absences

In some circumstances, for example if your workers are paid well above the NMW, or if they work a significant number of hours for each pay period, then records kept for PAYE (Pay As You Earn) and National Insurance contributions may be adequate for NMW purposes.

The law requires that records be kept for at least three years after the pay period following the one that the records cover.

It is a criminal offence to:

* refuse or wilfully neglect to pay the National Minimum Wage

* fail to keep suitable records

* keep false records

* prevent an enforcement officer from doing their job.

What happens if you don’t pay your workers the national minimum wage?

If you pay your workers less than the national minimum wage, then NMW enforcement officers can issue you with an enforcement notice. If you do not follow an enforcement notice, then you will receive a penalty notice, charging £7.40 for each day that you do not follow an enforcement notice for each worker.

For more in-depth information, visit the HMRC page on national minimum wage

Following these steps will help you to develop an efficient process for purchasing, which you can use to buy the right product, in the right quantity, at the right price, and at the right time.

When you purchase new merchandise to sell, the buying cycle can be divided into four steps.

Step 1: Determine your lines of merchandise
How much you buy and which products you choose will depend on which category the merchandise falls into. If you ran a small grocery store for example, canned foods could be classed as one line of merchandise, and personal hygiene products could be classed as another. There is unlikely to be much of a change in demand for these products, so determining what and how much to buy would involve simply looking at your current stock and your current rate of sales.

Other products however (such as vegetables or meat) may be seasonal or perish quickly. Purchasing these items involves more risk, and you must think carefully about which products to select and how much of each to buy. You don’t want to be stuck with food that is passed its use-by date, just as in a clothing shop you don’t want to be stuck with out-of-style garments. Ideally, you will maintain merchandise like this at the lowest possible levels, while still having a variety of styles, sizes, and colours etc for your customers to choose from.

Step 2: Choose your suppliers
Some products can only be bought from one supplier – Nike shoes for example, or Apple computers. In these cases, the only decision you will need to make is whether or not you wish to carry this line. For most merchandise however, there will usually be several vendors from which you must choose. You can usually contact these suppliers via their website, marketing representatives, trade shows, trade magazines, and in the Yellow Pages.

There are a range of things to consider when comparing providers. Prices will probably be the first and foremost concern, but you should also evaluate their credit terms, attention to problems, delivery reliability, help in emergencies, staggered deliveries, and any other forms of assistance they offer.

Step 3: Negotiate with suppliers
When negotiating prices with vendors, its best to be prepared by finding out what lines and quantity discounts are offered by each. If possible, you should also endeavour to find out what deals they have been doing with your competitors. Even if you know you are going to buy from a certain vendor, you should make them work for your custom.

Negotiation with vendors not only involves the purchase price of the merchandise, but can involve quantities, delivery dates, freight and packing costs, quality guarantees, promotion and advertising allowances, and discounts on end-of-line products

Step 4: Follow up
In order to maintain a continued level of effective purchasing, it is important that you review your relationship with your suppliers on a regular basis. You should stay informed by regularly researching other suppliers, paying close attention to their prices and any additional services that they offer. You should also keep an eye on market trends to ensure that your products are meeting the demands of your customers, and to help you time changes in your merchandise lines.

As of Tuesday, the number of parents entitled to request flexible working has been expanded. It was previously for parents of children up to the age of six or disabled children aged up to 18.

Businesses that grant flexible requests will need to ensure that the technology is in place to enable employees to work from home.

A spokesman at the Federation of Small Businesses said businesses will have to invest in technology to support an inevitable rise in flexible working. “More and more staff are proving they can be flexible and it is up to the employer to put the technology in place to accommodate this.”

But he said that although the organisation does not question the need for flexible working it thinks the timing could have been better. “We would have liked a pause until the economy picked up again.”

Michael Calvert, UK general manager for Aastra, one of Europe’s leading manufacturers of business telephone systems, said the regulations will cause problems for many businesses.

“Until now just 12%of the UK population has been equipped to work remotely, a figure which will now increase rapidly. However, most businesses are still unable to support flexible working practices, so workers will struggle to reap the full benefits,” he added.

John Cridland, deputy director general at the CBI, said, “There is a potential problem with the extension of the policy because most firms can only agree to a certain number of staff working flexibly before it creates operational problems. Therefore, giving more people the right to request it could also mean more people being denied it, and could risk a first-come, first-served situation that is not ideal.”

What is the Small Firms Loan Guarantee?

Many small and medium sized enterprises have viable business plans for which they are unable to get funding, due to the fact that they do not have sufficient assets that high street banks and other lenders require as security.

The Small Firms Loans Guarantee helps both new and existing businesses in this position by providing lenders with a government guarantee against default by borrowers.

The scheme was launched by the Department for Business, Enterprise and Regulatory Reform (BERR), and is operated through 23 high street and business banks and specialist lenders, with the DTI providing a guarantee on 75% of the loan value.

How the Small Firms Loan Guarantee works:

To apply for this loan, businesses must first have tried and failed to get a conventional loan, as the scheme is designed to be an addition to normal commercial finance.

The scheme guarantees 75 per cent of the loan to the lender, and the borrower will pay a 2 per cent premium on the outstanding balance. Loans of up to £250,000 are covered for businesses 2 or more years old, and newer businesses may be covered for loans of between. £5,000 and £100,000. Terms of the loan may be between two and ten years.

Once a lender has decided that a business proposal is acceptable under the scheme, the lender must then apply to BERR for the guarantee. Once BERR has issued the guarantee, the borrower must then pay them a premium in return for the support. Some banks and lenders may bypass BERR approval and grant the application themselves provided the loan is under £30,000.

Who is eligible for the Small Firms Loan Guarantee?

Many types of businesses are eligible for the scheme, including manufacturing, construction firms, and many service industries. To be eligible for the scheme, businesses must reach the following criteria:

• Must have an annual turnover of no more than £5.6 million
• Must have been in business for no longer than 5 years
• Must have no more than 200 employees
• Must be a sole trader, partnership, franchise, co-operative, or limited company, either trading at the time of application or about to start trading.

Groups of businesses with similar ownership will be considered as one unit, therefore number of employees, annual turnover etc, will be combined for consideration of eligibility.

Another consideration for eligibility concerns the turnover of the 12 months leading up to the date of application. Details of current turnover limits may be obtained from the Small Business Services (SBS) guarantee unit. 

To be accepted for the scheme, the applicant must describe in detail what it is the money will be used for. Finance will be granted for business uses only, such as:

• Improving efficiency
• Business expansion
• Financing a project
• Leasing premises or purchase of equipment
• Start up trading
• Developing a project

However, you cannot use the scheme to:

• Buy a company’s shares
• Buy out a member of a partnership
• Replace an existing loan or overdraft facility
• Start exporting
• Finance interest payments

It is advisable that you determine your eligibility with your bank or lender before beginning the application process. 
 
How to apply for the loan

To apply for the loan, an application form must first be obtained from one of the lenders involved in the Small Firms Loan Guarantee Scheme. You can view a list of the SFLG approved lenders at the BERR site.

Applicants must present potential lenders with a detailed business plan including a full three-year financial forecast comprising of profit and loss, a balance sheet and cash flow forecasts. This is so that lenders can assess the viability of the business, as well as identifying the financial requirements.

Applicants must demonstrate that the reason they have not been granted a conventional loan is a lack of security, and that any available assets have been used for conventional loans. Is it up to the lender to determine whether personal assets may be used for conventional loan lending.

Your bank should be able to give you details of the application process; however it may be worth getting the advice of an independent adviser to help improve your chances of a successful application.

For more information about guarantee arrangements, contact:

SBS Loan Guarantee Unit
Level 2,
St Mary’s House,
c/o Moorfoot,
Sheffield S1 4PQ
Tel: 0845 001 0032/0033 Fax: 0114 279 4374
email: sflgs@sbs.gsi.gov.uk

The consultation comes as part of the Walsh Review, commissioned by the government to investigate the issue of flexible working.

Currently, only parents of children aged 6 or under, or of disabled children up to the age of 18 can request flexible working. The review recommends that this be extended to include parents of children aged up to 16.

Employment relations Minister Pat McFadden said the consultation would seek the opinion of businesses on how best to reduce the administrative paperwork involved in the process.

“The right to request flexible working has worked well because it helps employees to balance their home and work lives, but at the same time gives employers the right to say no where there are legitimate business concerns,” he said.

It is also being considered whether to scrap the requirement that employees receive written acceptance of their request, However Sarah Jackson, Chief Executive of Working Families, warns against culling too much paperwork:

“Verbal agreements can be open to misinterpretation, and when the future of somebody’s job, or the success of someone’s business, is at stake it is really important to have everything clearly recorded.”

The government plans to launch an awareness campaign in the near future, with the aim of raising awareness to those who may not know they are eligible for flexible working, and to reduce the administrative procedures involved.

Virgin Media is planning to sell its business telecoms division in order to focus energies on broadband and TV cable, according to The Times.

The paper reports that Virgin will withdraw from the corporate telecoms unit, which primarily supplies small business broadband. The sale of the division could generate around £600m for the media giants, however the unit will more likely be merged with another provider, The Times has said.

Investment bank Goldman Sachs has drawn up plans to combine the division with Thus, currently being acquired by Cable & Wireless for £329m. The merge would involve a reseller agreement, meaning operations would continue via Virgin’s network.

The business division had sales of £642m last year, though it is predicted that this will decrease. Bankers estimate it makes a profit of £100m.

Furthermore, rumours continue to spark regarding Virgin’s content division, Virgin Media Television, which is reportedly being considered for auction.

If you are a Virgin Media customer looking to switch, visit XLN Telecom for cheap business broadband.

Via: The Times Online

The first step in choosing your name is to look at the type of business you are starting. Is it a limited company or are you a sole trader? The rules for naming these types of businesses are slightly different:

Limited Company names

You must register a name for a limited company or limited liability partnership with  Companies House. Before you apply for your name, you must ensure that it:

- Ends with limited, plc, limited liability partnership, LLP or equivalents.
- Does not contain any offensive words
- Does not contain  any words that imply a connection with the government or local authority
- Is not the same as or very similar to a name already registered.

If your name includes any ‘sensitive’ words, such as National, British, or Royal, permission to use them must be granted from the Secretary of State.

Sole trader and partnership names

If you decide to register a business name, you must ensure that it:

- Does not contain the words limited, plc, limited liability partnership, LLP or equivalents.
- Does not contain any offensive words or expressions
- Does not contain  any words that imply a connection with the government or local authority
- Does not contain any ‘sensitive’ words (unless permission is granted)

You may also want to check that nobody else, at least in your area is trading under that same name. The fastest way to check this would usually be to search for that name on the internet, but you should also check you local directory.

Things to consider when choosing your name:

• Do you want a name that spells out the exact nature of your business – such as ‘Hannah’s Hair Salon’, or would something snappy and abstract like ‘Chop’ suit? The latter will usually sound more modern and edgy, so it depends upon the nature of your business, your target market, and the image you are trying to convey.

• Think about the future of your business. If you are likely to expand on your products and services, it may be better to choose something more general, as changing a name down the track can be tricky. For this reason, you should also avoid words that may date over time.

• The best business names are catchy, easy to spell and easy to remember. Using literary techniques like puns: ‘Hairsay’, known phrases: ‘A Cut Above’ or alliteration: ‘House of Hair’, can help a name stick in the mind. Names with short, regularly-spelled words will generally be more memorable, and will prevent the name from sounding pretentious.

• Think about the places your name will appear; you may use it on stationary, in a shop sign, a website URL – you might even answer your phone with it. Think about how it will look and sound, as something long may not be suitable. Also, if you are considering having your own website, check that your business name is available as a domain name.

• You may want to include a location in the title of your business, but this should depend on the geographical span of your potential customers. If you are a small business serving local customers and plan to stay that way, then something like ‘Hoxton Haberdashery’ would be fine. If however you have a potentially widespread customer base (or want to appear as though you do), then it would be better to have either no location, or a larger place-name like London. Its also important not to include words like ‘Worldwide’ or ‘International’ if you can’t live up to the name and serve customers abroad.

• Finally, when in doubt – get a second opinion. Whether you have something in mind or you’re still brainstorming, the advice of friends and family will be invaluable in this decision.

For more in-depth information on the rules of naming a business, visit Businesslink