KR writes: What should I do if one of my workers complains he is being
bullied?
There is no specific definition of bullying but it can be characterised as
intimidating, offensive, malicious or insulting behaviour or abuse of power
directed against an individual and intended to undermine his confidence and
self-esteem, writes Peter Done, managing director of Peninsula.
You must take any allegations seriously. Start by organising a meeting with
the individual to discuss what happened. The complainant has the right to be
accompanied by a fellow worker or a trade-union official. It is important to
recognise his feelings and the effect the harassment may have had on him.
Take care not to phrase questions in a way that implies the harassment may
have been invited.
The complaint should then be investigated immediately. Find out the full
facts, doing this confidentially and with sensitivity. You must maintain
objectivity and impartiality. Should the case go before an employment
tribunal, you may be asked to demonstrate that you acted reasonably during
the investigation.
You must then hold a meeting with the alleged harasser, who must be advised of
the nature of the complaint made against him. Allow him to explain his side.
Take detailed notes throughout. Phrase your questions carefully to avoid
giving any impression that you think he is guilty.
Full statements should also be obtained from any witnesses. Once your
investigation is completed, you have to decide on the facts and whether the
incident constituted harassment or bullying. Communicate your decision in
writing to the complainant and the alleged harasser. If you conclude that
harassment occurred, you may need to follow your disciplinary procedures.
If dismissal is considered, then proper procedures must be followed. The
complainant and alleged harasser have a right to make a complaint if either
is dissatisfied with the way the investigation has been conducted or with
the conclusions reached.
TAX ON SERVICES
S C writes: My company provides IT consultancy services, employing 10 staff
to do so. I am trying to complete my end-of-year payroll return, but the
form has changed. There are two new questions relating to service companies
this year. My company provides “services”, but does this make me a service
company? How should I deal with the questions on the form?
The term “service company” is not defined in any legislation or Inland Revenue
guidance, which may mislead some businesses when they complete the form,
writes Jon Sutcliffe, partner at Kingston Smith LLP. You can, however,
reasonably assume this to mean a company that falls within the IR 35
intermediaries legislation or the Managed Service Company (MSC) rules.
The IR 35 rules apply where a company or partnership operates as an
intermediary between an individual and his “employer” so that the payments
the individual receives possibly will not be subject to PAYE or National
Insurance (NI). If the company is caught by these rules, then a deemed
employment income amount is calculated and taxed under PAYE and NI.
The MSC rules apply in circumstances where companies supply the services of
individuals to clients and those individuals receive more than 50% of the
amount billed for the services. Normally an MSC provider will have many
individuals on its books and will act more like an employment agency. The
MSC rules deem that all the income received by any of the workers is
employment income, which means it will be subject to PAYE and NI in the
normal way.
You should be particularly careful if you believe your company is an MSC
because the Revenue now has the power to collect taxes from a director or
other office holder of the MSC, or from the MSC provider.
You may need to consult a professional adviser to clarify your position and
your response.
