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Industrial Action

Industrial Action
Alison Clynes
Written by Alison Clynes
Friday, 18 December 2009 10:00

A strike or other industrial action is a serious problem for any business. There seem to have been an increasing number of industrial disputes recently with problems for the Royal Mail, railway companies, dustmen in Leeds and the London Underground to name a few. However, the loss of revenue involved in such action and the problems with staff morale are only the beginning. There are also considerations for payroll services to take into account. If an employer were subject to an investigation or a bill for tax, interest on tax paid late and penalties, it really would be rubbing salt in the wound.

When people are involved in a trade dispute, they will often not be paid. As anyone who has ever been unemployed for any length of time will tell you, the one small silver lining if you have no weekly income is that you may well get a tax refund. However, when somebody is on strike, the employer is expected to invoke special procedures and, under no circumstances, to pay any refund that is due.

The repayments due are eventually allowed to be paid when the strike ends, the employee dies or the employee leaves the employer. Whilst this may seem relatively straightforward there is an appeals procedure which the employee can follow which can lead to the special procedures being inappropriate.

We at Dataplan Payroll specialise in all areas of Pay as You Earn and can operate your payroll services for you at a fraction of your current direct and indirect costs. Contact us today to find out more about the payroll services we can offer you.

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