Salestarget.co.uk > Careers advice > Money and legal

Saving for the future

Tue, 30 Aug 2011 14:16:02 +0100

One day, your sales career will come to an end. Will you be sorted for the future?

With pensions becoming ever more unreliable and the housing market in a state of flux, you need to understand how will you provide for your retirement.

Here are five alternatives to the basic pension.

1. Property

Think of your mortgage repayments as a personal pension plan. Pay off your mortgage before you retire.

If you have a large family home you could then sell and move to a smaller property, using the difference as your income.

2. Individual savings account (ISA)

ISAs are flexible tax-free schemes that don’t lock your savings away. You can withdraw your money in one or a number of lump sums. And you don’t pay income or capital gains tax on your interest.

You can take out a cash ISA with your bank or building society, or create an investment account to be invested in stocks and shares.

You can choose from mini and maxi ISAs, i.e. split your money between providers or have the maximum permitted amount with one.

3. Stocks and shares

Again, recent upheavals have made us more wary of the stock market – which could be a good thing! But if you’ve already got some form of pension and still have some disposable cash, low-risk investments are still a good way to top up your retirement income over the long term.

If you can’t afford to lose any of your money, don’t invest it. When you buy shares you’re buying a part of a company, so your profits will only grow if their business does. Dividends are usually paid out twice a year by larger companies but there are no guarantees.

To make any investment worthwhile you’ll need £1,000 or more, but a good stockbroker can mean a good return on your money.

4. Renting or letting

Alternatively you could move to a smaller house or flat when you retire, and rent out your own place for a monthly income. Or you could buy another property at any time purely to let – if you’re sure the rent you’ll collect will cover the new mortgage.

If you live in a university town you should be able to rely on the student market – just don’t invest in fancy furniture!

In your calculations you should include your responsibility for all repairs and maintenance, as well as finding tenants and collecting their rent, unless you pay a management company to take care of it.

5. Other alternatives

If you’re the type of person who loves antiques or art you could consider these additional investments. However, it’s a much more risky option – markets can be fickle and there’s no guarantee you’ll even make back your money down the line. But if you know you’ll get enjoyment from your collection today, it doesn’t hurt to keep an eye on its market value over time.

Useful links: Directgov on pensions

Coming to work in the UK

Thu, 16 Jun 2011 16:21:53 +0100

Sales jobs offer great potential for anyone who has the drive to succeed and the ability to sell. Tough measures are in place to ensure current residents don't lose out on jobs to those from overseas and employers have to prove that they cannot fill vacancies from the pool of local jobseekers. But if you have a desperately needed skill, you'll be a valuable asset to an employer, and getting a work permit should be much easier.

In this guide, we will provide you with some of the common terms you will encounter and a summary of the categories available to come to the UK to work. Immigration laws change frequently, and you should consult government guides before submitting any applications.

Migrants worker categories

UK Ancestry
Tier 1 - Highly-skilled workers, investors and entrepreneurs
Highly-skilled workers
Entrepreneurs
Investors
Post-study workers
Tier 2 - Sponsored skilled workers
General
Minister of religion
Sportsperson
Intra-company transfer
Tier 5 - Temporary workers
Creative and sporting
Charity workers
Religious workers
Government-authorised exchange
International agreement
Youth mobility scheme
European citizens
Bulgarian and Romanian nationals
Business and commercial
Training and Work Experience Scheme (TWES)
Sports and entertainments
Student internships
General Agreement on Trade in Services
Seasonal Agricultural Workers Scheme
Sectors Based Scheme
Domestic workers
Sole representatives of overseas firms
Representatives of overseas newspapers, news agencies and broadcasting organisation

Migrant worker categories

UK Ancestry

Under the UK Ancestry scheme, Commonwealth citizens with a grandparent born in the UK can enter the country and work for up to five years. No separate work permit is required and the scheme allows candidates who have worked continuously for five years to apply for permanent residency.

top

Tier 1 - Highly-skilled workers

This programme allows highly-skilled workers to come to the UK. You don't need any specific skills to qualify. It is all based on a points system.

In order to qualify for this category, you must score:

75 points for your attributes (age, qualifications, previous earnings and experience in the United Kingdom); and
10 points for English language skills; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 1 - Entrepreneurs

This programme allows entrepreneurs to come to the UK if they plan to set up or take over at least one business. Generally speaking, you need to have access to at least £200,000. Like the highly-skilled worker programme, it is points based.

In order to qualify for this category, you must score:

75 points for your attributes which are different depending on whether you make an initial or extension application; and
10 points for English language skills; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 1 - Investors

You must show that you are able to invest £1 million in the United Kingdom.

The investors programme is more lenient on points but you must have access to £1 million to invest in the UK.

To calculate your points, visit the official Home Office points calculator.

top

Tier 1 - Post-study workers

This programme allows international students who studied here and graduated to stay here. The programme is flexible in that successful applicants are allowed to look for work without the need of a company sponsoring them. Like the other programmes in this category, it is points-based.

In order to qualify for this category, you must score:

75 points for your education qualifications; and
10 points for English language skills; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 2 - General

Unlike the highly-skilled worker programme, the Tier 2 general programme requires you to be sponsored by an employer.

In order to qualify for this category, you must score at least 50 points:

30-50 points for being sponsored; and
0-15 points for qualifications; and
0-20 points for future expected earnings

To calculate your points, visit the official Home Office points calculator.

top

Tier 2 - Minister of Religion

This programme allows preachers, pastors, missionaries and people working in a religious order to come to the UK to continue their work. You have to be sponsored in order to qualify.

In order to qualify for this category, you must score 70 points:

50 points for your certificate of sponsorship; and
10 points for English language skills; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 2 - Sportsperson

This programme allows sportspeople, including coaches, at the highest level to come to UK. You have to be sponsored and meet several other guidelines. For all the information, visit the Home Office's page on the topic.

In order to qualify for this category, you must score 70 points:

50 points for being sponsored; and
10 points for English language skills; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 2 - Intra-Company Transfer

This programme is for overseas workers who are being transferred within their company to a UK location.

In order to qualify for this category, you must score at least 50 points:

30 points for being sponsored; and
0-15 points for your qualifications; and
0-20 points for future expected earnings

To calculate your points, visit the official Home Office points calculator.

top

Tier 5 - Temporary workers - Creative and sporting

In some instances you do not need to qualify based on points, but generally speaking, in order to qualify for this category, you must score 40 points:

30 points for your certificate of sponsorship; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator. For more information, see the Office's page on the topic.

top

Tier 5 - Temporary workers - Charity workers

This programme allows people to come to the UK to do unpaid volunteer work. You need to be sponsored by an organisation, and the work needs to be directly related to the work of the organisation. You will be awarded points based on having a certificate of sponsorship and available funds to sustain yourself.

In order to qualify for this category, you must score 40 points:

30 points for your certificate of sponsorship; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 5 - Temporary workers - Religious workers

This programme allows religious workers to come to the UK. Among other restrictions, you need to be sponsored and you cannot stay for more than two years. For full details, visit the Home Office's page on the topic.

In order to qualify for this category, you must score 40 points:

30 points for your certificate of sponsorship; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 5 - Temporary workers - Government-authorised exchange

This programme allows people to come to the UK under specifically-approved schemes. The schemes are quite varied. They range from teaching Mandarin to helping migrant lawyers open a law firm in the UK. Check the complete list of approved schemes.

In order to qualify for this category, you must score 40 points:

30 points for your certificate of sponsorship; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 5 - Temporary workers - International agreement

This programme was set up to aid the objectives of the General Agreement on Trade in Services (GATS) or similar treaties. GATS is a World Trade Organization treaty that aims to foster trade in services, as opposed to merchandise, between countries. For full details, visit the Home Office's page on the topic.

In order to qualify for this category, you must score 40 points:

30 points for your certificate of sponsorship; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

Tier 5 - Temporary workers - Youth mobility scheme

This programme allows young adults (ages 18-31) from Australia, Canada, Japan or New Zealand to come to the UK for up to two years, but keep in mind that there are quotas so space may be limited. To find out more, visit the Home Office's page on the topic.

In order to qualify for this category, you must score 50 points:

30 points for your nationality (includes only Australia, Canada, Japan and New Zealand); and
10 points for age; and
10 points for available money to sustain yourself

To calculate your points, visit the official Home Office points calculator.

top

European citizens

EEA and Swiss nationals are allowed to live and work in the United Kingdom. You must, however, be able to support yourself and your family without the use of public funds. For more information, visit the Home Office's page on the topic.

top

Business and commercial (For Bulgarian and Romanian nationals)

This permit allows UK employers to hire workers from Bulgaria and Romania to fill positions they have not been able to fill with local labour. The permits can last up to five years. To see the restrictions for both employers and potential employees, visit the Home Office's page on the topic.

top

Training and Work Experience Scheme (TWES) (For Bulgarian and Romanian nationals)

This programme allows people from Bulgaria and Romania to come to UK to gain skills and experience through work-based learning with the understanding that they will return to their country once the permit expires.

To learn more, visit the Home Office's page on the topic.

top

Sports and entertainments (For Bulgarian and Romanian nationals)

This permit allows sportspeople and entertainers to come here for work. There are strict restrictions as to who can qualify. For sportspeople, you need to receive a letter of endorsement from a governing body. To see the list of those bodies by sport, visit the Home Office's page on the topic.

To find out about this programme in general, visit the Home Office's page on this category.

top

Student internships (For Bulgarian and Romanian nationals)

This programme allows students to come to the UK for an internship, but they are allowed only one internship lasting no more than three months. For more information, visit the Home Office's page on this category.

top

General Agreement on Trade in Services (For Bulgarian and Romanian nationals)

This programme allows company without a presence in the UK to have employees work here. The service contract must not exceed three months. To find out more, visit the Home Office's page on the topic.

top

Seasonal Agricultural Workers Scheme (For Bulgarian and Romanian nationals)

This programme allows growers to hire low-skilled workers on a short-term basis.

To be eligible for this programme you must be at least 18 years old and be from Bulgaria or Romania. Successful applicants will be able to work in the UK for up to six months. Additionally, you will need to have a work card issued from an approved Seasonal Agricultural Workers Scheme (SAWS) operator before applying for the programme. The Home Office uses nine operators to issue the cards. They are:

Barway Services (Formerly Gs Marketing)
Tel: 01353 727314
Address: Barway, Ely, Cambridgeshire, CB7 5TZ
Concordia (YSV) Ltd
Tel: 01273 422 293
Address: 19 North Street, Portslade, East Sussex, BN41 1DH
Fruitful Ltd
Tel: 0870 727 0050
Address: Unit 3, Honeybourne Industrial Estate, Evesham, WR11 7QF
Haygrove Ltd
Tel: 01531 633659
Address: Redbank, Ledbury, Hereford, HR8 2JL
HOPS Labour Solutions
Tel: 02476 857 206
Address: National Federation of Young Farmers' Clubs, YFC Centre, Stoneleigh Park, Kenilworth, Warwickshire, CV8 2LG
R & J M Place (International Farm Camp)
Tel: 01692 536337
Address: Church Farm, Tunstead, Norwich, Norfolk, NR12 8RQ
S & A Produce
Tel: 01432 880235
Address: Brook Farm, Marden, Hereford, HR1 3ET
Sastak Ltd
Tel: 01588 673636
Address: 1-7, BDC, Long Lane, Craven Arms, Salop, SY7 8DZ
Wilkin & Sons Ltd (International Farm Camp)
Tel: 01621 815407/815496
Address: Hall Road, Tiptree, Colchester, Essex, C05 0RF

top

Sectors Based Scheme (For Bulgarian and Romanian nationals)

This programme allows companies in the food manufacturing sector to hire low-skilled workers for a maximum of 12 months.

To be eligible for this programme, you must be at least 18 years old and be from Bulgaria or Romania. Both you and your employer have to apply for different parts of the process. For more information, visit the Home Office's page on the topic.

top

Domestic workers

To qualify for this category you must be an established member of your employer's staff. The permit will be granted for a fixed period of time. At the end of that period, you can apply for an extension but only if you continue to be employed.

For all the information, visit the Home Office's page on the topic.

top

Sole representatives of overseas firms

This programme allows you to come to the UK without a work permit. You can come as the sole representative of an overseas firm for up to two years, but you must provide proof of continual employment and you cannot engage in any other work, among other restrictions. For more information, visit the Home Office's page on the topic.

top

Representatives of overseas newspapers, news agencies and broadcasting organisations

This permit allows you to come to the UK as an employee of an overseas newspaper, news agency or broadcasting organisation. Among other restrictions, you must intend to come here to work full-time for that organisation, not take any additional work and not need public funds to sustain yourself. For all the information, visit the Home Office's page on the topic.

top

Common terms

Building society - A financial institution owned by its members that offers services like a bank. Also remember, getting a bank account in the UK can be an arduous task if you have just arrived here. Try to get your current bank to set up an account with an affiliated bank in the UK, as this is much easier. Banks require proof of address and a referral letter from your home bank or British employer. You may have to be a resident in the country for six months or more before you can apply for a credit card or overdraft.

Estate agent - A person who arranges the selling or letting of properties. Keep in mind good quality housing is not in shortage in the UK, but it can come at a price. You don't need an estate agent to find a place but you may have to deal with one at some point. The best way to start is to run an Internet search on one of the many property websites to assess the typical price for the area in which you're looking. A short-term flat share is probably the best option until you're settled.

National Insurance (NI) - Every worker between 16 and retirement age must pay National nsurance contributions that will be automatically deducted from your pay. Applying for an NI number can be a lengthy process, requiring an interview with identification such as a passport, proof of address, a letter confirming you have work and, if available, payslips. You will be given an account number, which is to be used when dealing with HM Revenue & Customs.

Pay As You Earn (PAYE) - Most employees will pay tax through the PAYE system, which means money is deducted from your pay by your employer.

Visa - (also know as an "entry clearance") is required for various foreign nationals before they can enter the country. The types of visa available and their requirements change frequently.

Paternity leave

Thu, 16 Jun 2011 16:10:35 +0100

A recent study found that 60% of fathers in the financial and business sectors had flexible time available to them but did not take advantage of it. The study from the Equality and Human Rights Commission also found that 45% of men fail to take two weeks’ paternity leave after the birth of their child.

The decision to take paternity leave is often a financial one, the study concludes. To make that decision, it’s important to know what you’re entitled to. Here is a breakdown of the basics.

Requirements

In order to qualify, you need to:

Have been with the company for at least 26 weeks; and
Have asked for leave at least 15 weeks before the expected date of the birth

And you must be:

The biological father of the child; or
The mother’s husband or partner, which includes same-sex relationships; or
The child’s adopted father or the partner of the adopter

You can take the leave:

On the day the child is born; or
A specified number of days or weeks after the birth the child, regardless of whether this is before or after the expected birth date; or
A specific date after the first day of the week in which the baby is expected to be born

Duration of paid leave

Fathers can receive two weeks of paid paternity leave. It is important to note that you cannot take the leave before the baby is born, and if you take two weeks off, they need to be consecutive. Also note, that in the case of twins, you are still allowed only one period of paternity leave.

Your paternity leave can start on any day of the week on or following the child's birth but must be completed:

Within 56 days of the child's date of birth, or
(If your child is born early) within 56 days of the first day of the week your child was born

In case of stillborn

You can still take paternity leave if your child is stillborn, and the pregnancy has exceeded 24 weeks. The same applies if your child is born alive at any point and doesn't survive.

Pay

The current rate for paternity leave is £123.06 per week or 90% of your weekly salary.

Unpaid leave

Fathers can take unpaid leave within the parental leave package, which entitles them to up to 12 weeks' unpaid leave during the first five years of their child's life.

If you are thinking about taking paternity leave but you’re still unsure what’s on offer or what would work best in your situation, speak to your human resources department for help.

The information on these pages is provided for your information and reference only. Before making any important decisions regarding your employment or any legal matter, you should consult a qualified professional adviser who can provide specific advice based on your individual position. You can receive additional guidance from the government-run employment advice service Acas.

Sick pay

Thu, 16 Jun 2011 16:06:09 +0100

There are two types of sick pay that you could be entitled to – company or occupational sick pay, which will vary from job to job, and statutory. Let’s look at the legal entitlements of statutory sick pay first.

Statutory

If you're working under an employment contract, even if you've just started, you're entitled to Statutory Sick Pay (SSP) if:

you're sick for at least four days in a row (including weekends and Bank Holidays and days that you do not normally work)
you're earning at least £95 a week

If you have more than one job, you may get SSP from each employer.

How much do I get?

The standard rate for SSP is £79.15 a week. It’s paid by your employer and can be paid for up to 28 weeks.
Your employer will work out a daily rate of SSP if necessary by dividing the weekly rate by the number of days you’d normally work in that week.

SSP is usually paid on your normal payday in the same way as your normal earnings and is subject to the usual tax and National Insurance deductions. That said, if you only receive SSP you might find that your earnings aren’t high enough to be subject to tax.

How do I claim it?

To get SSP you must:

tell your employer that you are sick
if required by your employer, provide some form of medical evidence, from the eighth day of your illness

Company sick pay

If your employer has a sick pay scheme, which is equal to, or more than SSP, they don’t have to operate SSP. They can run any scheme they want so long as it doesn’t fall below the legal minimum. You should have been given details of your company sick pay scheme with your written statement of employment. And even if your company doesn't offer a scheme, this written statement should say so.

What’s the norm?

A typical sick pay scheme usually starts after a minimum period of service - eg, a three month probation – after which you receive normal pay when you’re off work due to illness, up to a specified number of weeks. After this, you might get half-pay for a further period of time.

Your employer may set out how you should inform them you’re sick - eg, ring in before a certain time of the day. Usually, you can self-certify for a week of illness, which means you don’t need a doctor’s note as proof you were ill, but after a week it’s commonplace to provide a doctor’s note.

Some sick pay schemes say that payments are at the employer's discretion so they may refuse payment if they think the absence is unjustified. However, in doing so they must ensure that their decision is free from discrimination.

And if your employer paid discretionary sick pay in the past it doesn’t mean they have to do so in the future. That said, it is possible for a discretionary arrangement to become a part of your contract through 'custom and practice'.

Illness due to work

Your employer may have a special scheme in place for workplace injuries. If your employer is responsible for your illness or incapacity you may have a legal right to make a personal injury claim. This applies to both physical or psychological injuries (eg, stress). If you think you are in this situation you should seek professional legal advice at the earliest opportunity.

Find out more from the Department for Work and Pensions.

Unfair dismissal

Thu, 16 Jun 2011 16:05:50 +0100

Unfair dismissal is a statutory right giving employees with one year’s service the right to complain to a tribunal that they have not been treated fairly or reasonably by their employer.

All employees have the right not to be unfairly dismissed and a dismissal is classed as ‘automatically unfair’, regardless of the reasonableness of an employer's actions, if an employee is exercising specific rights to do with:

pregnancy – including all reasons relating to maternity.
family leave – such as parental leave or paternity leave.
representation – such as trade union membership.
discrimination – including protection against discrimination on the grounds of age, sex, belief.
pay and working hours – including the Working Time Regulations.

So what’s ‘fair’ dismissal?

It’s fair for employers to dismiss an employee for one of the following reasons:

Misconduct at work
Lack of capability (or qualifications) to do the job
Redundancy (carried out under certain conditions)
A statutory requirement
Retirement (carried out under certain conditions)
Some other substantial reason

However, even if the employer convinces a Tribunal that they dismissed their employee for one of those reasons, they still have to show that they followed a reasonable procedure as set out in the ACAS (Advisory, Conciliation and Arbitration Service) code of conduct. They must also show that the decision to dismiss fell within the range of reasonable responses open to that employer.

Dismissals around company transfers

If the business you work for is being transferred to or taken over by another company, your position may be protected under the Transfer of Undertakings (TUPE) protections.

If you’re under TUPE and you’re dismissed by either your old or new employer because of the transfer, or a reason connected with it, the dismissal will be automatically unfair. To make it a fair dismissal, your employer must demonstrate that it was for a sound economic, technical or organisational reason.

Redundancy and retirement

Technically, redundancy is a form of dismissal. So, f you’re selected for redundancy and the reason for that selection is deemed unfair, then this is a case of unfairly dismissal.

Similarly, retirement is also a form of dismissal and must meet certain conditions to be fair:

The retirement date is on or after your 65th birthday - if 65 or over is your employer’s normal retirement age (or on or after your employer’s normal retirement age if they have justified having a lower retirement age than 65).
Your employer has given you proper notice of your retirement date (and if you are making a request to work longer than your retirement date your employer must have considered this)
You retire on the intended date

Working hours

Thu, 16 Jun 2011 16:05:21 +0100

The Working Time Regulations (WTR) prevent employers from overworking their employees and enforce the right to basic entitlements such as time off and holiday pay.

Why was the WTR introduced?

It’s clearly an issue that has become significant in recent times. Research by the Trade Union Congress in 2008 stated that five million workers in the UK are clocking up nearly £5,000 in unpaid overtime every year. And, according to figures released by the Office for National Statistics in 2009, just over a fifth of people in employment in the UK (6 million, or 20.1%) work more than 45 hours a week. This is a high proportion by EU standards though other developed countries such as Australia, Japan and the United States have more long-hours workers than the UK.

What are the Regulations?

Essentially, the average working week should not exceed 48 hours, although this is an average, not a limit on each week. You also have the right to a 20-minute break in a six-hour working day, a rest period of 11 hours in every 24 hours, a guaranteed rest of 24 hours once in every seven days, and four weeks' paid leave (pro rata for part-timers).

There are additional protections for night workers, and also for young workers under the age of 18.

You can waive your rights if you wish, but you must do so in writing and you cannot be forced to do this.

The working hours laws have widespread implications. One of the latest to affect employees in the construction industry who work on short-term contracts is a European ruling that employers can no longer 'roll-up' holiday pay. Employers will now have to pay holiday pay at the time their workers actually take their holidays rather than include an amount for holiday pay in the hourly rate of pay. As a result employers may need to renegotiate contracts.

It’s also worth noting here that the wider definition of ‘worker’ includes certain agency workers and self-employed contractors.

How is my company made accountable?

Employers have a general duty to ensure that the workforce works appropriate hours with adequate rest. They must also keep records to show that the regulations are being complied with and take reasonable steps to ensure that the workforce is complying with the 48-hour maximum week. Ultimately, they must ensure that employees are not subject to any detriment on WTR grounds.