Q: One of my employees has been called for jury service. Do I have to pay them for the days they are away?

Paul, Leicester

A: There is no statutory obligation to pay unless their contract of employment says otherwise, although the individual may recover certain costs from the court.

Whilst on jury service, an employed individual can claim for travelling and subsistence costs incurred.  The amount that they receive for this is not deemed to be taxable income. The individual is also entitled to submit a claim to the court for loss of net earnings, based a maximum claim of £31.56 for a half day (up to four hours of service) and £63.12 for a full day.

The above claims cover the first ten days of service, after which the amounts in respect of loss of earnings are doubled. If you do not intend to pay the employee for their days on jury service, you will need to complete and send a Certificate of Loss of Earnings to the court. The form will be provided by HM Courts Service and must be completed for the employee to provide direct to the court on their first day of service.

Q: I have an employee who has recently returned from maternity leave. Previously she was working full-time, and is now returning to work from maternity leave on a part-time basis.

How do I work out her holiday pay entitlement?

Dennis, Liverpool

A: Employees continue to accrue both their full statutory annual leave entitlement of 5.6 weeks plus any additional contractual entitlement throughout both ordinary maternity leave and additional maternity leave.  This also applies to employees who take paternity and adoption leave.

For full-time employees who wish to return to work on a part-time basis after such leave, the holiday is calculated at their original contractual agreement and then adjusted from the date they commence the part-time employment.

Here’s an example based on the holiday year beginning from the 1st of January:

A female staff member is considered to be a full-time employee from the 1st of January to the 31st of October, when she returns from maternity leave.  However, from the 1st of November she wishes to work 2.5 days per week.

Her holiday entitlement from January to October will be 28 days / 12 months x 10 months = 23.33 days.

For November to December it will be 2.5 days x 5.6 weeks = 14 days / 12 months x 2 months = 2.33 days.

The total annual leave will be 23.33 days + 2.33 days = 25.66 days for the year.

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Payroll Accounting Advice from TaxAssist Accountants

Q: I am currently looking to take on a new member of staff. I understand the national minimum wage rules may mean I have to pay him a certain hourly rate. Is this true?

Sally, London

A: Most employees are entitled to be paid the national minimum wage and the rate at which they are paid varies depending on their age.

From 1st October 2009, the national minimum wage for adults aged 22 and over increases to £5.80 per hour. The development rate increases for 16-17 year olds to £3.57 per hour and for those aged 18-22 to £4.83 per hour. The government has also promised to reduce the qualifying age for the adult minimum wage rate from 22 to 21 with effect from October 2010.

There are a few exceptions which apply to the above rates for a small minority of workers.  Currently, apprentices under the age of 19 are not entitled to the national minimum wage and apprentices between the ages of 19 and 25 are not entitled to the minimum wage in the first year of their contract.

For this purpose, apprentices are either workers who have contracts of apprenticeship, or workers who are taking part in specific training programmes which are funded by a local development agency. You must ensure you have a written agreement between you and your new worker which confirms they are employed on an apprentice contract.

For more information on whether or not your employee counts as an apprentice you should visit www.businesslink.gov.uk or speak to your local TaxAssist accountant.

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Payroll Accounting Advice from TaxAssist Accountants

Q: I want to take on a school leaver but I’ve been told there are restrictions on when I can employ them and when they can work. Is that right?

Sarah, Sheffield

A: You may employ a school leaver on a full time basis after they reach their statutory school leaving date (the last Friday in June). This includes young people who turn 16 in July or August.

A young worker is someone who is above the minimum school leaving age and under 18 years old. Young workers are subject to stricter regulations, so they cannot exceed 40 hours a week, work more than 8 hours per day, receive a rest period of 12 hours between each working day and they must have a minimum two days complete rest per week.

In most industries young workers cannot work between 10.00pm and 6.00am, but the rules for night work are complicated so do seek professional advice.

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PAYE Accounting Services from TaxAssist Accountants