Contractual Aspects of Payroll Administration
MODULE 2.
CONTRACTUAL ASPECTS OF PAYROLL ADMINISTRATION
Introduction
This report will outline and compare existing employee contracts to legislative requirements, and assess where Global could be at risk for not complying with these requirements.
Global is the world's leading provider of Aerospace insurance with clients who are engaged in every aspect of the Aviation and Space industries. The office is based in London with other offices across the world. London currently employs 123 employees. The payroll department consists of two people, the payroll manager and the payroll administrator. The department is responsible for the correct and timely administration of all payroll duties within the London office.
This report will conclude with any findings, and a number of recommendations are made as to how the company can improve existing practises.
2. Legislation and Payroll
“A contract is an agreement between two parties and is enforceable by law. A contract of employment is a contract of service and comes into being when an employee agrees to work for an employer in return for pay”. (Acas, 2012). The contracts used at Global contain start date, pay rate, pay method and date, notice of resignation or termination of employment, holiday entitlement and job title. These particulars must be included in all written contracts. (Gov.uk, 2013). The company only composes new contracts if there is a major variation in an employee’s circumstances, like change of role. Any other changes are confirmed via letter and filed, so the majority of original contracts are never modified.
All starters are issued a contract before the start date which is signed by HR and sent to the new employee for signature. This is in line with the Employments Right Act 1996, where a written contract must be provided within 8 weeks of employment
CONTRACTUAL ASPECTS OF PAYROLL ADMINISTRATION
Introduction
This report will outline and compare existing employee contracts to legislative requirements, and assess where Global could be at risk for not complying with these requirements.
Global is the world's leading provider of Aerospace insurance with clients who are engaged in every aspect of the Aviation and Space industries. The office is based in London with other offices across the world. London currently employs 123 employees. The payroll department consists of two people, the payroll manager and the payroll administrator. The department is responsible for the correct and timely administration of all payroll duties within the London office.
This report will conclude with any findings, and a number of recommendations are made as to how the company can improve existing practises.
2. Legislation and Payroll
“A contract is an agreement between two parties and is enforceable by law. A contract of employment is a contract of service and comes into being when an employee agrees to work for an employer in return for pay”. (Acas, 2012). The contracts used at Global contain start date, pay rate, pay method and date, notice of resignation or termination of employment, holiday entitlement and job title. These particulars must be included in all written contracts. (Gov.uk, 2013). The company only composes new contracts if there is a major variation in an employee’s circumstances, like change of role. Any other changes are confirmed via letter and filed, so the majority of original contracts are never modified.
All starters are issued a contract before the start date which is signed by HR and sent to the new employee for signature. This is in line with the Employments Right Act 1996, where a written contract must be provided within 8 weeks of employment
References: CIPP, 2012, Contractual Aspects of Payroll Administration CIPP, 2008, Objectives of the Payroll department, p15