A summary of the key points from the Retail, Leisure and Hospitality sector breakfast Thursday 7 March 2019
Minimum wage: There was an interesting discussion on the rules relating to uniforms. One of the trickier areas is casual uniforms – i.e. requiring staff to wear a particular outfit (such as jeans and a checked shirt or black trousers and a T-shirt) which they are quite likely to own anyway. If staff earning the minimum wage (or close to it) are expected to buy these if they don't already own them, the purchase could mean that the employer is technically in breach of minimum wage requirements. We also discussed the recent enforcement action against Iceland and the Government's consultation on how salary sacrifice schemes interact with the minimum wage legislation.
Trial periods: Some attendees indicated that their businesses pay candidates for trial shifts, whereas others do not. The updated HMRC guidance on the minimum wage sets out factors which will make it more likely that minimum wage should be paid for trial shifts (e.g. if the candidate performs valuable work beyond that needed to judge their abilities and if the trial takes place over more than one day). What emerged clearly from the discussion was that it is important to consider what should and should not be involved in a trial shift (and on the basis of that, assess whether it should be paid) and communicate this clearly with candidates and also with the managers who are responsible for assessing performance.
HR technology: Several attendees discussed how software companies can provide software solutions to capture overtime hours, notify HR when the employee's age requires their pay to be increased to comply with minimum wage requirements and manage calculation of holiday pay. The consensus seems to be that these systems require some customisation in order to get the maximum benefit out of the technology and that it's worth speaking to providers to ensure that the business is getting the most out of it.
Apprenticeships: A number of attendees noted how much apprenticeship training for retail and leisure has improved in recent years, such as the availability of courses focused on casual dining.
If you have any follow up questions or would be interested in joining the next Retail and Leisure HR breakfast, please let Jane Amphlett know.
Jane Amphlett Partner: Head of Employment T: +44 (0) 20 3755 5360 E: jane.amphlett@howardkennedy.com