Logo
Recruiting seasonal staff
In this guide:
- Recruiting staff
- Recruiting new staff and the alternatives
- Help with recruiting staff
- Recruiting staff: your options
- Recruiting full-time or part-time employees
- Recruiting staff on fixed-term contracts
- Recruiting agency workers
- Recruiting freelancers and outside contractors
- Zero-hours contracts
- Recruiting directors and managers
- Recruiting seasonal staff
- Recruiting staff and data protection issues
- Recruiting staff: seven things you should know
- Employing staff for the first time: eight top tips
- Recruiting effectively to grow your business (video)
Recruiting new staff and the alternatives
Consider if you need more staff and what alternatives there are.
Before spending time and money on employing someone new, you should weigh up whether you really need to recruit new staff. To do this, look at your staffing needs in relation to the wider objectives of the business.
You may need extra help immediately or you may simply be thinking about your future staffing requirements. In both cases, it's valuable to plan as far ahead as you can.
What to consider when recruiting staff
You should consider why you're looking for extra help and how long you will need it for.
When considering staff recruitment ask yourself the following questions:
- Are you considering taking on your first employee to help you grow your business or handle an increasing workload?
- Are you replacing an employee who has left? If so, why did the previous employee leave and what skills and experience have you lost? Do you need to control staff turnover?
- Do you need to bring in a new skill or skills to your business that none of your existing employees possess?
- Has your workload increased? If so, is the workload likely to continue or is it just a temporary increase?
- What will be the impact of taking on a new staff member? Do you have somewhere for them to sit? Will you need to buy new equipment for them?
- Do you need cover for yourself in the long term?
Registering as a new employer
If you are taking on your first employee you may be required to register as an employer with HM Revenue & Customs (HMRC). Employing someone: step-by-step guidance. This guidance provides information on what you will need to register as an employer and takes you through the registration process. Alternatively, you can call the HMRC New Employer Helpline on Tel 0300 200 3211.
You can register as an employer online with HMRC.
You are also required to check whether any potential employee is eligible to enter, stay, and work in the UK. Read more on ensuring your workers are eligible to work in the UK.
Alternatives to taking on new staff
Since recruitment can be expensive and time consuming, other options you could consider include:
- re-organising the company structure
- sharing work among existing employees
- promoting existing staff
- training existing employees so they attain the skills you require to grow your business - see staff training.
- asking part-time employees if they would consider full-time work or some additional hours
- improving the efficiency of the business, perhaps by rearranging tasks
- offering overtime
- adopting flexible working arrangements, eg allowing some staff to begin earlier/later to provide cover for a longer part of the day
- hiring temporary workers from an employment agency
- offering short-term apprenticeship or school work experience opportunities through Connect to Success NI
Developed withAlso on this siteContent category
Source URL
/content/recruiting-new-staff-and-alternatives
Links
Help with recruiting staff
Practical help with recruiting staff in Northern Ireland.
If you need help with recruiting or retaining staff, the Department for Communities' (DfC) range of employer services and provision can offer support. See further information on the support available from DfC on finding staff.
From multi-national companies to the shop-owner on the corner, DfC operates a tailored recruitment service across Northern Ireland that offers recruitment advice and support to employers.
A team of highly experienced staff can discuss and tailor a level of service to meet your needs from start to finish. This service may include advice and guidance, advertisement and promotion of vacancies, CV sifting, and interview facilities, access to a range of employment and disability support provision, bespoke events, and inclusion within employability and skills initiatives.
Dedicated staff to help with your recruitment needs
Client Executives
A dedicated Client Executive is appointed for large and public sector businesses offering employers a single point of contact for all their recruitment needs.
Email: dfcemployerservices@communities.gov.uk
Tel: 028 9037 6183Employer Adviser
Small, medium, and micro-sized employers can avail of bespoke support from a dedicated Employer Adviser based within each local Jobs & Benefits office. See the contacts list for Employer Advisers in each Jobs & Benefits office.
Cross Border Partnership Employment Services (CBPES)
Provides a one stop shop with information and guidance for people commuting across the border in order to work. Read more information on Cross Border Partnership Employment Services.
Dedicated services to help with your recruitment needs
Participation at job fairs
An opportunity for employers to showcase their vacancies and for jobseekers to speak with employers about job opportunities.
Meet the Employer events
This is an event where employers can come into our Jobs&Benefits offices to speak with job seekers about the vacancies and opportunities they offer and what it is like to work for them.
Bespoke recruitment events
Our employer engagement staff can facilitate employer recruitment events through the use of DfC's office’s facilities, offering pre-selection/application sifting, candidate matching, sourcing suitable applicants, interview facilities, and in-person assistance on the day.
Dedicated recruitment website - JobApplyNI.com
JobApplyNI.com is a free, government-supported website developed by DfC that allows you to advertise your job vacancies online. Connected to a network of 35 Jobs and Benefits Offices throughout Northern Ireland and staffed with a locally based customer service team JobApplyNI is well-placed to service your recruitment needs.
Read more on how to register and advertise a job using JobApplyNI.com.
To access DfC's service:
- See finding staff
- Email: dfcemployerservices@communities.gov.uk
- Tel 028 9037 6183
Developed withActionsAlso on this siteContent category
Source URL
/content/help-recruiting-staff
Links
Recruiting staff: your options
Consider your options for recruiting staff for your business.
You have to consider the type of worker you wish to employ, depending on factors such as:
- how constant the work is
- how long the work will last
- the number of hours of work each week
Staff recruitment options
You have a number of options for recruiting staff including:
Permanent employees
Permanent employees can be full-time or part-time. They have an open-ended employment contract with you. You have obligations to them, but they will be an investment in your business. See recruiting full-time or part-time employees.
Fixed-term contract employees
Fixed-term contract employees have an employment contract with you for a predetermined time or until a specific task has been completed. See employment status. You'll still have employer obligations but only for the duration of the contract. See recruiting staff on fixed-term contracts.
Employment agency
Temporary staff are engaged by the agency and supplied to you. Your contract is with the employment agency to supply you with staff, but you still have certain legal responsibilities towards the agency worker. See recruiting agency workers.
Self-employed freelancers, consultants, and contractors
This gives you the minimum of employer obligations. But you need to be sure that the people are legally defined as self-employed. See employment status.
Zero-hours contracts
These allow you to employ people casually ie as and when required, and to have people on-call to work whenever necessary and mutually convenient. Generally, you are not obliged to offer work, nor is there a responsibility for the worker to accept any work. Look at the terms of any zero-hours contract carefully as it may affect the employment status of the worker and your responsibility towards them. Read more on zero-hours contracts.
Children or young people
If you plan to employ children or young people, you must keep in mind that there are restrictions on the hours and types of work that they can legally carry out. See employing children and young people.
You will have to make tax arrangements for all employees and may also have to make tax arrangements for workers directly engaged by you. See employment status.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-your-options
Links
Recruiting full-time or part-time employees
Your responsibilities for full-time and part-time employees.
Regardless of whether your employees are full-time or part-time, you will have responsibilities to them. Some apply straight away, others after a minimum period of continuous employment - see continuous employment and employee rights.
What employers must provide to full-time and part-time staff
- You must give them a written statement of the main terms and conditions of their contract of employment within two months of starting their employment where the contract of employment is to last more than one month. See the written statement.
- You must give them an itemised pay statement at or before the time of payment. See pay: employer obligations.
- You'll have to make sure the working environment is safe and secure. See safer ways of working.
- You must also have insurance to protect against claims for any illnesses, injuries, or diseases your employees may pick up as a result of working for you. See business insurance: the basics.
- You'll need to register as an employer with HM Revenue & Customs (HMRC) to set up a payroll, deducting tax and National Insurance contributions from your employees' pay and forwarding the money to HMRC. See how to register as an employer.
- Your employees will be entitled to a minimum level of paid holiday, a maximum length of a working week (unless they opt out of this), and minimum levels of rest breaks. See hours, rest breaks, and the working week. Also, see know how much holiday to give your staff.
- They must also be paid at least the national minimum wage. Find out the National Minimum Wage and National Living Wage rates.
- If members of your staff are off sick for more than three working days, they may be entitled to statutory sick pay. Read more on how to manage absence and sickness.
- If your employee is pregnant or is about to or has recently become a parent, they may be entitled to maternity, paternity, adoption leave, or shared parental leave. They may also be entitled to parental leave during the first 18 years of their child's life (longer for a disabled child). Since April 2022, parents may also be eligible for parental bereavement leave and pay. Read more on maternity, paternity, adoption, and parental leave.
- You must also seriously consider any requests from employees who wish to work more flexibly. See flexible working: the law and best practice. Since April 2015, any eligible employee has the right to make a flexible working request, not just those with children or caring responsibilities.
- You must treat your employees fairly and avoid discrimination. If things do go wrong, all employees are entitled to fair treatment, whether you have to dismiss them, make their position redundant, or if you're selling your business. Read more on how to prevent discrimination and value diversity.
- If your employee is disabled, you must make 'reasonable' adjustments to reduce or remove the impact of physical features of your premises if they put the employee at a substantial disadvantage compared with non-disabled employees. Read more on disabled access and facilities in business premises.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-full-time-or-part-time-employees
Links
Recruiting staff on fixed-term contracts
Advantages and disadvantages of using fixed-term contracts to employ staff.
There may be times when it's best for your business to take on somebody on a fixed-term contract.
What is a fixed-term contract?
A fixed-term contract is one which either:
- lasts for a specified time, set in advance
- ends with the completion of a specified task
- ends when a specified event does or does not take place
For example, if you're a shopkeeper you may want to take on someone for just three months to cover the busy run-up to Christmas. Or you may wish to employ someone specifically to cover for another person who is on maternity, paternity, or adoption leave.
Advantages and disadvantages of fixed-term contracts
Fixed-term contracts give you the advantage of bringing in specific skills and labour as and when they are needed.
It's important to remember that unless there are special circumstances that can be justified, you have a legal responsibility to treat fixed-term employees the same as comparable permanent employees. This means you must give them:
- the same pay and conditions
- the same or equivalent benefits package
- the same or equivalent pension scheme
- the same opportunity to apply for vacancies for permanent posts in the business
Fixed-term employees also have access to the same employment rights as their permanent equivalents.
Under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations (Northern Ireland) 2002, any employee who has been on a fixed-term contract for four or more years (excluding any period before 1 October 2002) will usually be classed in law as a permanent employee if their contract is renewed, or if they are re-engaged on a new fixed-term contract.
The only exemptions to this are when employment on a further fixed-term contract is objectively justified to achieve a legitimate aim, eg a genuine business aim that can be objectively justified, and is also a necessary and appropriate way to achieve that aim, or the period of four years has been lengthened under a collective or workplace agreement.
These regulations do not apply to apprentices, students on work experience of a year or less, or people on certain training courses and temporary work schemes.
You will need to make the same tax arrangements for fixed-term employees that you would for permanent employees.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-fixed-term-contracts
Links
Recruiting agency workers
Information about the rules and regulations related to using agency workers.
Using agency staff can be ideal, especially when you need emergency temporary cover. It can cost more than employing a temporary staff member directly, but a big benefit is that all of the administration is handled by the recruitment agency.
You usually pay the agency, and the agency pays the worker. The rate the agency charges you could include elements of National Insurance payments, holiday and sick pay, as well as an administration fee and profit margin.
Rights of agency workers
Under the Agency Workers Regulations (Northern Ireland) 2011, which came into force on 5 December 2011, agency workers are entitled to the same basic working and employment conditions as permanent staff, provided that they have been in the same role with the same employer for 12 weeks.
It is the recruitment agency's responsibility to ensure agency workers receive the rights they are entitled to such as those under the Working Time Regulations and national minimum wage law. See hours, rest breaks, and the working week and who should be paid the minimum wage.
However, under the Agency Workers Regulations (Northern Ireland) 2011, agency workers are also entitled to equal access to their employer's collective facilities and job vacancies from the first day of their assignment. It will be your responsibility to ensure that these rights are met. Agency workers regulations NI guidance.
You must also ensure that you do not discriminate against agency workers who are working on your business premises.
In addition, under the Parental Leave (EU Directive) (Flexible Working) Regulations (Northern Ireland) 2013, which came into force on 8 March 2013, employed agency workers who are returning to work from a period of parental leave are now also extended the right to request flexible working. See flexible working: the law and best practice.
Even though agency staff do not work directly for you, you are still responsible for their health and safety. In fact, they are likely to be at greater risk because they don't know the business well. See agency workers' health and safety for more information.
Choosing an employment agency
You should also do some research before using an employment agency to ensure you are happy with the agency's reputation.
By law, employment agencies must comply with the Employment (Miscellaneous Provisions) (Northern Ireland) Order 1981 and the Conduct of Employment Agencies and Employment Businesses Regulations (Northern Ireland) 2005. These regulations stop them, for example, from charging workers fees for finding jobs. They must also ensure a worker has any qualifications legally required to do the work. See employment agencies.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-agency-workers
Links
Recruiting freelancers and outside contractors
Consider whether your business would benefit from the use of freelancers and outside contractors.
One way your business can take advantage of extra skills and labour without taking on many of the responsibilities of an employer is to use freelancers or outside contractors. These are workers who are self-employed or belong to separate outside companies.
For example, you might use an outside IT contractor to build your business web pages or hire a freelance PR consultant when you want a promotional push for your business.
Advantages and disadvantages of freelancers and outside contractors
An advantage of using freelancers and outside contractors is that in many cases they look after all their own income tax affairs and National Insurance contributions. But it's always a good idea to check that you won't be responsible for deducting tax and National Insurance from their payments. Read more on IR35 and other special rules.
People who are genuinely self-employed may not be entitled to the same rights afforded to employees. However, depending on the contract under which they are providing services, they may qualify as workers. Under these circumstances, they would be entitled to workers' rights such as holidays and holiday pay. If you are in any doubt about a person's employment status, you should seek professional advice.
Freelancers and contractors still have a right to the national minimum wage. But if they are being paid by their own firms, this will not affect you.
As an employer, you still have responsibilities for the health and safety of freelancers and contractors. See how to write a health and safety policy for your business. Also, you should check whether your insurance is affected by having non-employees working on your premises.
Remember too that you should avoid discrimination against anyone who carries out work for you, whether they are employed by you or self-employed. See how to prevent discrimination and value diversity.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-freelancers-and-outside-contractors
Links
Zero-hours contracts
Description of zero-hours contracts and employer responsibilities relating to them.
Zero-hours contracts are becoming increasingly common in Northern Ireland.
There is no legal definition of a zero-hours contract in either Northern Ireland or Great Britain employment law. In general terms, a zero-hours contract is one in which you do not have to guarantee the individual any work and the individual is not obliged to accept any work offered by you.
Employer responsibilities under zero-hours contracts
Zero-hours contracts are legal under domestic law. If you freely enter into a zero-hours contract with an individual, it is a legitimate form of contract between you and the individual.
There are concerns that individuals who work under zero-hours contracts have no protection under domestic employment law, or that they cannot be an employee. This is not a correct assumption - as in any employment relationship, the employment rights which an individual is entitled to will depend on their employment status.
It is likely that the majority of individuals on zero-hours contracts are either workers or employees.
In many cases, a zero-hours contract staff member will be legally classified as a 'worker' and thus will have some of the rights that an employee has such as statutory holiday entitlement and National Minimum Wage. However, the way the relationship with that worker develops may enhance the employment status to that of an 'employee', who has additional employment rights such as accruing the right to take maternity leave or pay and the right to request flexible working.
Read more on employment status.
Advantages and disadvantages of zero-hours contracts
As an employer, the advantages of zero-hours contracts include:
Flexibility
Zero-hours contracts allow you to adapt to changes in demand, eg offering more work when new orders arrive and being able to scale back when they do not. Furthermore, you could use zero-hours contracts to increase the range of services offered such as creating specialist roles or having staff available in different geographical locations.
Supporting expansion plans
Through this flexibility, your business could also grow, with limited risk in terms of recruiting permanent staff if you find that the additional services you planned are not taken up. On the other hand, if expansion is successful, zero-hours contracts provide a rapid pathway to fixed-term, annualised hours, full-time, or guaranteed hours of work.
Retention of skills
You could retain the skills and experience of staff who might wish to partially retire or who decide to work part-time.
Knowledge of the company and its culture
You could also retain a pool of trained and skilled staff, who know the culture of the business and its procedures, rather than agency staff who may not.
However, you should be aware of the welfare of any individual you employ on a zero-hours contract.
For example, not every zero-hours worker will be happy that they are on such a contract because of a lack of job security. In addition, the inclusion of exclusivity clauses in some zero-hours contracts has been banned in GB since 26 May 2015. This was formerly under scrutiny by the Northern Ireland Assembly, and exclusivity clauses may in the future be banned in Northern Ireland.
It should also be made clear when advertising or interviewing for a job, or in the contract itself, that an individual is hired on a zero-hours contract, or that there is a possibility they could be offered no work or 'zero-hours'.
As an employer, you need to fulfil and understand your responsibilities towards individuals you hire on a zero-hours contract in terms of their employment rights such as the National Minimum Wage and holiday rights. See who should be paid the minimum wage and know how much holiday to give your staff.
Asking an individual to work at very short notice, which does not allow them to plan ahead, eg to arrange childcare, could be problematic for them, causing tension or upset.
You should note that where there are long-term zero-hours contracts in place, where work is regularly offered and accepted, there is the potential for difficulties regarding the actual employment status of the individual on the zero-hours contract.
Developed withActionsAlso on this siteContent category
Source URL
/content/zero-hours-contracts
Links
Recruiting directors and managers
Skills directors and managers should have and the responsibilities they should be given.
Directors
Every limited company must have at least one director. Directors are appointed by the shareholders as the people who can best run the company on their behalf.
Directors have a range of responsibilities in areas such as health and safety, tax, and employment law. There are serious penalties for not meeting these responsibilities which makes appointing the right director very important.
There are also restrictions on who can become a director. People who may not become directors include anyone who:
- has been disqualified by the courts from becoming a director
- is an undischarged bankrupt, unless they have permission from the courts
- is under 16 years of age
For information on the appointment of directors, see recruiting company directors and running a company or partnership.
Managers
You may wish to take on someone to cover you while you're away so that you can spend more time growing the business. Consider whether it would be a good idea to appoint someone to whom you can delegate the day-to-day running of the business.
When preparing the job description, the advert, and the interview questions, you will need to keep in mind the additional qualities, experience, and skills the candidate will need to take on the managerial role.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-directors-and-managers
Links
Recruiting seasonal staff
As an employer, there are various options available to you to deal with a seasonal rush.
You may find your business is subject to seasonal fluctuations in demand. For example, December is a busy time for many businesses, particularly retailers who have to deal with a spike in demand as the Christmas period approaches.
Other areas of work that may be influenced by seasonal differences include farming, construction, and gardening.
The simplest strategy is to try to make do with the existing workforce. Increasing overtime and offering weekend or evening work may be enough to bridge the gap. However, if more labour is needed, new people will have to be brought in. See employing staff for seasonal businesses.
There are various options available to deal with this seasonal rush.
Agency workers
Using agency workers is one possibility. Employment agencies take much of the administrative burden of finding appropriate staff and can respond quickly to fluctuating demand.
However, employers also need to be aware of the Agency Workers Regulations (Northern Ireland) 2011, which give workers entitlements to the same employment conditions as permanent employees after a 12-week qualification period.
Read more on recruiting agency workers.
Zero-hours contracts
Zero-hours contracts can give great flexibility to employers and workers. Normally these contracts create an employment relationship in which there is no obligation for one side to offer work, nor the other to accept it.
They avoid the cost of agency fees and make it straightforward to take on extra staff when needed. But it's important to point out that zero-hours workers have the same rights and protections as other workers, such as annual leave, the national minimum wage, and pay for work-related travel.
Read more on zero-hours contracts.
Short fixed-term contracts
It may be more appropriate or effective to use short fixed-term contracts and buy in labour for a particular project or period.
Fixed-term work terminates after a specified period, but contract workers are entitled to the same pay and conditions as permanent staff, equivalent benefits, information about permanent vacancies, and protection from unfavourable treatment.
It's good practice to make notice provisions in fixed-term contracts in case employment needs to be terminated early.
Read more on understanding fixed-term contracts.
Pensions for seasonal and temporary workers
Like other staff, seasonal and temporary workers must be assessed to see if they qualify for automatic enrolment into a workplace pension. Assessing these types of employees can take more time because of varying hours and earnings.
Employers who know their staff will be working for them for less than three months can use postponement. This postpones the legal duty to assess staff for three months. During this postponement period, employers will not need to put staff into a pension unless they ask to be put into one. See the Pensions Regulator's guidance on employing seasonal or temporary staff.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-seasonal-staff
Links
Recruiting staff and data protection issues
How data protection procedures apply to staff recruitment information.
The Data Protection Act covers information gathered during the recruitment and selection process - eg information in application forms or CVs. Staff involved in recruitment should handle any personal information gathered securely. Under the UK General Data Protection Regulations (UK GDPR), you must explain to job applicants what you do with their personal data. An applicant privacy notice should cover what you do with job applicants' personal data during an active recruitment process, and what you should do at the end of that process with the personal data of both unsuccessful applicants and successful applicants who do not accept the job they are offered.
See the Information Commissioner's Office (ICO) guidance on the Data Protection Act 2018.
You should also make sure that any recruitment advertisements clearly identify your organisation or the employment agency you are using.
Application forms should not ask for irrelevant or unnecessary personal information, such as banking details. See advertising a job and interviewing candidates.
Using recruitment information
If you are going to use information gathered during recruitment processes for other purposes, such as marketing, you must explain this clearly to those involved. Information should not be shared with other organisations without the individual's consent.
Sensitive data recorded for equal opportunities purposes - for example, concerning disabilities, race or sexual orientation - must be used for that purpose only.
Finally, if you are going to check the information supplied by applicants, you should let them know why and how you plan to do so. For example, criminal record checks should always be done through AccessNI. See AccessNI criminal records checks.
Giving references
If someone asks you for information about a worker's record or for a reference for them, you should always check their identity and whether they are entitled to this information. You should only supply a confidential reference or information about a worker if you are absolutely sure that you have their explicit and unambiguous consent to do so.
ActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-and-data-protection-issues
Links
Recruiting staff: seven things you should know
If you want to expand your business, one way to do this is to take on new staff.
If you want to expand your business, one way to do this is to take on new staff. Recruiting new staff means taking a chance and investing in your business so it's essential that you choose the right recruitment methods to suit your individual business needs.
Staff recruitment essentials
1. Decide if you really need to recruit new staff
You're going to be spending time and money on recruiting someone new, so look at your staffing needs in relation to your business objectives. Consider why you're looking for extra help and how long you will need it for. Could another option be more viable such as sharing work amongst existing employees, reorganising the company structure, or rearranging tasks? See recruiting new staff and the alternatives.
2. Register as a new employer
If you are taking on your first employee, you may be required to register as an employer with HM Revenue & Customs (HMRC). Most new employers can register online but some will need to register by email, by telephone, or with an HMRC office. See how to register as an employer.
3. Consider the type of worker you wish to employ
The options you have for employing a new worker will depend on factors such as how constant the work is, how long it will last, and the number of hours per week. There are a number of options available including permanent employees, fixed-term contract employees, self-employed freelancers or contractors, and employment agency staff. In addition, do you need someone there on a full-time or part-time basis? See recruiting staff: your options.
4. Write a job description and person specification
Preparing a job description is not a legal requirement but it can help with deciding the scope of the work, advertising the job, and clarifying what applicants will have to do in the job. It can also help to identify a new recruit's performance and identify their training needs. If you decide to include a person specification, you should include the essential and desirable knowledge, experience, and skills you are looking for. If you already have an existing job description and person specification for a role, these should be reviewed prior to a recruitment exercise to ensure they are still accurate. See writing a person specification and job description.
5. Decide how much you should pay
Offering a competitive salary and benefits will help you to attract the best person for the job. However, you should balance this with how low you need to keep your costs. Work out what you can afford and assess whether the job requires specialised skills that should be reflected in the wages. See how to set the right pay rates.
6. Advertise and interview for the position
There are many options available when advertising a job including newspapers, online recruitment sites, and employment agencies. Decide on the most appropriate option for your business, ensuring you reach as wide a group of suitably qualified potential candidates as you can. When you have the replies to your advertisement, compare the skills and experience against the job description, draw up a list of candidates, and invite them to interview. Carry out appropriate preparation for the interview so it will be as easy as possible for you and the candidate. See recruitment forms and templates.
7. Make a job offer
The final stage of the recruitment process involves choosing the successful candidate. You can inform them by telephone or email, followed up by a formal confirmation in a letter which should set out the main terms and conditions of the job. It should also state whether the offer is conditional, ie subject to the outcome of checks, or unconditional, ie not subject to any further checks. Once the offer is accepted, a contract of employment exists between you and the employee. See job offers and staff inductions.
Further information on recruitment can be found in the Invest Northern Ireland Employers' Handbook which outlines both legal essentials and best practice guidelines for effective HR management.
ActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-seven-things-you-should-know
Links
Employing staff for the first time: eight top tips
When you become an employer for the first time and take on a new employee, there are important checks you must make.
When you become an employer for the first time and take on a new employee, there are important checks you must make. Here are eight key steps that you should consider when employing staff for the first time.
Tips for employing staff for the first time
1. Decide how much to pay your employee
Almost all workers are legally entitled to the National Minimum Wage. The National Living Wage is higher than the National Minimum Wage - workers get it if they are 23 years of age and over. See National Minimum Wage and National Living Wage - rates and overview.
2. Carry out pre-employment checks
You should carry out an initial identity check on workers and verify their references and qualifications. You may also wish to include health checks as part of your recruitment process. See pre-employment checks.
3. Check if your employee has the right to work in the UK
You must check whether your employee is legally entitled to work in the UK. See ensure your workers are eligible to work in the UK.
4. Check if you need to apply for a criminal records check
Certain types of employment (eg security or working with children or vulnerable adults) require an AccessNI criminal records check. See AccessNI criminal records checks.
5. Get employment insurance
You will need employers' liability insurance as soon as you become an employer. This insurance enables businesses to meet the costs of damages and legal fees for employees who are injured or fall ill at work through the fault of the employer. See employers' liability insurance.
6. Send details of the job in writing to your employee
Once you have chosen your new employee, you should send them details of the job in writing. This should set out the main terms and conditions of the job. You also need to give your employee a written statement of employment particulars if you're employing them for more than one month.
7. Tell HM Revenue & Customs (HMRC) you are an employer
If you employ someone, you will need to register as an employer with HMRC. See registering and getting started with PAYE.
8. Check if you need to automatically enrol your employee into a workplace pension scheme
All employers have to provide workers with a qualifying workplace pension. Read more on automatic enrolment into a workplace pension.
Also on this sitePrimary parentContent category
Source URL
/content/employing-staff-first-time-eight-top-tips
Links
Recruiting effectively to grow your business (video)
Advice on how effective recruitment will ensure you get the right people to grow your business.
A short 2-minute video explaining how effective recruitment will ensure you get the right people to grow your business.
ActionsAlso on this siteContent categorySelect subtypeVideo
Source URL
/content/recruiting-effectively-grow-your-business-video
Links
Zero-hours contracts
In this guide:
- Recruiting staff
- Recruiting new staff and the alternatives
- Help with recruiting staff
- Recruiting staff: your options
- Recruiting full-time or part-time employees
- Recruiting staff on fixed-term contracts
- Recruiting agency workers
- Recruiting freelancers and outside contractors
- Zero-hours contracts
- Recruiting directors and managers
- Recruiting seasonal staff
- Recruiting staff and data protection issues
- Recruiting staff: seven things you should know
- Employing staff for the first time: eight top tips
- Recruiting effectively to grow your business (video)
Recruiting new staff and the alternatives
Consider if you need more staff and what alternatives there are.
Before spending time and money on employing someone new, you should weigh up whether you really need to recruit new staff. To do this, look at your staffing needs in relation to the wider objectives of the business.
You may need extra help immediately or you may simply be thinking about your future staffing requirements. In both cases, it's valuable to plan as far ahead as you can.
What to consider when recruiting staff
You should consider why you're looking for extra help and how long you will need it for.
When considering staff recruitment ask yourself the following questions:
- Are you considering taking on your first employee to help you grow your business or handle an increasing workload?
- Are you replacing an employee who has left? If so, why did the previous employee leave and what skills and experience have you lost? Do you need to control staff turnover?
- Do you need to bring in a new skill or skills to your business that none of your existing employees possess?
- Has your workload increased? If so, is the workload likely to continue or is it just a temporary increase?
- What will be the impact of taking on a new staff member? Do you have somewhere for them to sit? Will you need to buy new equipment for them?
- Do you need cover for yourself in the long term?
Registering as a new employer
If you are taking on your first employee you may be required to register as an employer with HM Revenue & Customs (HMRC). Employing someone: step-by-step guidance. This guidance provides information on what you will need to register as an employer and takes you through the registration process. Alternatively, you can call the HMRC New Employer Helpline on Tel 0300 200 3211.
You can register as an employer online with HMRC.
You are also required to check whether any potential employee is eligible to enter, stay, and work in the UK. Read more on ensuring your workers are eligible to work in the UK.
Alternatives to taking on new staff
Since recruitment can be expensive and time consuming, other options you could consider include:
- re-organising the company structure
- sharing work among existing employees
- promoting existing staff
- training existing employees so they attain the skills you require to grow your business - see staff training.
- asking part-time employees if they would consider full-time work or some additional hours
- improving the efficiency of the business, perhaps by rearranging tasks
- offering overtime
- adopting flexible working arrangements, eg allowing some staff to begin earlier/later to provide cover for a longer part of the day
- hiring temporary workers from an employment agency
- offering short-term apprenticeship or school work experience opportunities through Connect to Success NI
Developed withAlso on this siteContent category
Source URL
/content/recruiting-new-staff-and-alternatives
Links
Help with recruiting staff
Practical help with recruiting staff in Northern Ireland.
If you need help with recruiting or retaining staff, the Department for Communities' (DfC) range of employer services and provision can offer support. See further information on the support available from DfC on finding staff.
From multi-national companies to the shop-owner on the corner, DfC operates a tailored recruitment service across Northern Ireland that offers recruitment advice and support to employers.
A team of highly experienced staff can discuss and tailor a level of service to meet your needs from start to finish. This service may include advice and guidance, advertisement and promotion of vacancies, CV sifting, and interview facilities, access to a range of employment and disability support provision, bespoke events, and inclusion within employability and skills initiatives.
Dedicated staff to help with your recruitment needs
Client Executives
A dedicated Client Executive is appointed for large and public sector businesses offering employers a single point of contact for all their recruitment needs.
Email: dfcemployerservices@communities.gov.uk
Tel: 028 9037 6183Employer Adviser
Small, medium, and micro-sized employers can avail of bespoke support from a dedicated Employer Adviser based within each local Jobs & Benefits office. See the contacts list for Employer Advisers in each Jobs & Benefits office.
Cross Border Partnership Employment Services (CBPES)
Provides a one stop shop with information and guidance for people commuting across the border in order to work. Read more information on Cross Border Partnership Employment Services.
Dedicated services to help with your recruitment needs
Participation at job fairs
An opportunity for employers to showcase their vacancies and for jobseekers to speak with employers about job opportunities.
Meet the Employer events
This is an event where employers can come into our Jobs&Benefits offices to speak with job seekers about the vacancies and opportunities they offer and what it is like to work for them.
Bespoke recruitment events
Our employer engagement staff can facilitate employer recruitment events through the use of DfC's office’s facilities, offering pre-selection/application sifting, candidate matching, sourcing suitable applicants, interview facilities, and in-person assistance on the day.
Dedicated recruitment website - JobApplyNI.com
JobApplyNI.com is a free, government-supported website developed by DfC that allows you to advertise your job vacancies online. Connected to a network of 35 Jobs and Benefits Offices throughout Northern Ireland and staffed with a locally based customer service team JobApplyNI is well-placed to service your recruitment needs.
Read more on how to register and advertise a job using JobApplyNI.com.
To access DfC's service:
- See finding staff
- Email: dfcemployerservices@communities.gov.uk
- Tel 028 9037 6183
Developed withActionsAlso on this siteContent category
Source URL
/content/help-recruiting-staff
Links
Recruiting staff: your options
Consider your options for recruiting staff for your business.
You have to consider the type of worker you wish to employ, depending on factors such as:
- how constant the work is
- how long the work will last
- the number of hours of work each week
Staff recruitment options
You have a number of options for recruiting staff including:
Permanent employees
Permanent employees can be full-time or part-time. They have an open-ended employment contract with you. You have obligations to them, but they will be an investment in your business. See recruiting full-time or part-time employees.
Fixed-term contract employees
Fixed-term contract employees have an employment contract with you for a predetermined time or until a specific task has been completed. See employment status. You'll still have employer obligations but only for the duration of the contract. See recruiting staff on fixed-term contracts.
Employment agency
Temporary staff are engaged by the agency and supplied to you. Your contract is with the employment agency to supply you with staff, but you still have certain legal responsibilities towards the agency worker. See recruiting agency workers.
Self-employed freelancers, consultants, and contractors
This gives you the minimum of employer obligations. But you need to be sure that the people are legally defined as self-employed. See employment status.
Zero-hours contracts
These allow you to employ people casually ie as and when required, and to have people on-call to work whenever necessary and mutually convenient. Generally, you are not obliged to offer work, nor is there a responsibility for the worker to accept any work. Look at the terms of any zero-hours contract carefully as it may affect the employment status of the worker and your responsibility towards them. Read more on zero-hours contracts.
Children or young people
If you plan to employ children or young people, you must keep in mind that there are restrictions on the hours and types of work that they can legally carry out. See employing children and young people.
You will have to make tax arrangements for all employees and may also have to make tax arrangements for workers directly engaged by you. See employment status.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-your-options
Links
Recruiting full-time or part-time employees
Your responsibilities for full-time and part-time employees.
Regardless of whether your employees are full-time or part-time, you will have responsibilities to them. Some apply straight away, others after a minimum period of continuous employment - see continuous employment and employee rights.
What employers must provide to full-time and part-time staff
- You must give them a written statement of the main terms and conditions of their contract of employment within two months of starting their employment where the contract of employment is to last more than one month. See the written statement.
- You must give them an itemised pay statement at or before the time of payment. See pay: employer obligations.
- You'll have to make sure the working environment is safe and secure. See safer ways of working.
- You must also have insurance to protect against claims for any illnesses, injuries, or diseases your employees may pick up as a result of working for you. See business insurance: the basics.
- You'll need to register as an employer with HM Revenue & Customs (HMRC) to set up a payroll, deducting tax and National Insurance contributions from your employees' pay and forwarding the money to HMRC. See how to register as an employer.
- Your employees will be entitled to a minimum level of paid holiday, a maximum length of a working week (unless they opt out of this), and minimum levels of rest breaks. See hours, rest breaks, and the working week. Also, see know how much holiday to give your staff.
- They must also be paid at least the national minimum wage. Find out the National Minimum Wage and National Living Wage rates.
- If members of your staff are off sick for more than three working days, they may be entitled to statutory sick pay. Read more on how to manage absence and sickness.
- If your employee is pregnant or is about to or has recently become a parent, they may be entitled to maternity, paternity, adoption leave, or shared parental leave. They may also be entitled to parental leave during the first 18 years of their child's life (longer for a disabled child). Since April 2022, parents may also be eligible for parental bereavement leave and pay. Read more on maternity, paternity, adoption, and parental leave.
- You must also seriously consider any requests from employees who wish to work more flexibly. See flexible working: the law and best practice. Since April 2015, any eligible employee has the right to make a flexible working request, not just those with children or caring responsibilities.
- You must treat your employees fairly and avoid discrimination. If things do go wrong, all employees are entitled to fair treatment, whether you have to dismiss them, make their position redundant, or if you're selling your business. Read more on how to prevent discrimination and value diversity.
- If your employee is disabled, you must make 'reasonable' adjustments to reduce or remove the impact of physical features of your premises if they put the employee at a substantial disadvantage compared with non-disabled employees. Read more on disabled access and facilities in business premises.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-full-time-or-part-time-employees
Links
Recruiting staff on fixed-term contracts
Advantages and disadvantages of using fixed-term contracts to employ staff.
There may be times when it's best for your business to take on somebody on a fixed-term contract.
What is a fixed-term contract?
A fixed-term contract is one which either:
- lasts for a specified time, set in advance
- ends with the completion of a specified task
- ends when a specified event does or does not take place
For example, if you're a shopkeeper you may want to take on someone for just three months to cover the busy run-up to Christmas. Or you may wish to employ someone specifically to cover for another person who is on maternity, paternity, or adoption leave.
Advantages and disadvantages of fixed-term contracts
Fixed-term contracts give you the advantage of bringing in specific skills and labour as and when they are needed.
It's important to remember that unless there are special circumstances that can be justified, you have a legal responsibility to treat fixed-term employees the same as comparable permanent employees. This means you must give them:
- the same pay and conditions
- the same or equivalent benefits package
- the same or equivalent pension scheme
- the same opportunity to apply for vacancies for permanent posts in the business
Fixed-term employees also have access to the same employment rights as their permanent equivalents.
Under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations (Northern Ireland) 2002, any employee who has been on a fixed-term contract for four or more years (excluding any period before 1 October 2002) will usually be classed in law as a permanent employee if their contract is renewed, or if they are re-engaged on a new fixed-term contract.
The only exemptions to this are when employment on a further fixed-term contract is objectively justified to achieve a legitimate aim, eg a genuine business aim that can be objectively justified, and is also a necessary and appropriate way to achieve that aim, or the period of four years has been lengthened under a collective or workplace agreement.
These regulations do not apply to apprentices, students on work experience of a year or less, or people on certain training courses and temporary work schemes.
You will need to make the same tax arrangements for fixed-term employees that you would for permanent employees.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-fixed-term-contracts
Links
Recruiting agency workers
Information about the rules and regulations related to using agency workers.
Using agency staff can be ideal, especially when you need emergency temporary cover. It can cost more than employing a temporary staff member directly, but a big benefit is that all of the administration is handled by the recruitment agency.
You usually pay the agency, and the agency pays the worker. The rate the agency charges you could include elements of National Insurance payments, holiday and sick pay, as well as an administration fee and profit margin.
Rights of agency workers
Under the Agency Workers Regulations (Northern Ireland) 2011, which came into force on 5 December 2011, agency workers are entitled to the same basic working and employment conditions as permanent staff, provided that they have been in the same role with the same employer for 12 weeks.
It is the recruitment agency's responsibility to ensure agency workers receive the rights they are entitled to such as those under the Working Time Regulations and national minimum wage law. See hours, rest breaks, and the working week and who should be paid the minimum wage.
However, under the Agency Workers Regulations (Northern Ireland) 2011, agency workers are also entitled to equal access to their employer's collective facilities and job vacancies from the first day of their assignment. It will be your responsibility to ensure that these rights are met. Agency workers regulations NI guidance.
You must also ensure that you do not discriminate against agency workers who are working on your business premises.
In addition, under the Parental Leave (EU Directive) (Flexible Working) Regulations (Northern Ireland) 2013, which came into force on 8 March 2013, employed agency workers who are returning to work from a period of parental leave are now also extended the right to request flexible working. See flexible working: the law and best practice.
Even though agency staff do not work directly for you, you are still responsible for their health and safety. In fact, they are likely to be at greater risk because they don't know the business well. See agency workers' health and safety for more information.
Choosing an employment agency
You should also do some research before using an employment agency to ensure you are happy with the agency's reputation.
By law, employment agencies must comply with the Employment (Miscellaneous Provisions) (Northern Ireland) Order 1981 and the Conduct of Employment Agencies and Employment Businesses Regulations (Northern Ireland) 2005. These regulations stop them, for example, from charging workers fees for finding jobs. They must also ensure a worker has any qualifications legally required to do the work. See employment agencies.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-agency-workers
Links
Recruiting freelancers and outside contractors
Consider whether your business would benefit from the use of freelancers and outside contractors.
One way your business can take advantage of extra skills and labour without taking on many of the responsibilities of an employer is to use freelancers or outside contractors. These are workers who are self-employed or belong to separate outside companies.
For example, you might use an outside IT contractor to build your business web pages or hire a freelance PR consultant when you want a promotional push for your business.
Advantages and disadvantages of freelancers and outside contractors
An advantage of using freelancers and outside contractors is that in many cases they look after all their own income tax affairs and National Insurance contributions. But it's always a good idea to check that you won't be responsible for deducting tax and National Insurance from their payments. Read more on IR35 and other special rules.
People who are genuinely self-employed may not be entitled to the same rights afforded to employees. However, depending on the contract under which they are providing services, they may qualify as workers. Under these circumstances, they would be entitled to workers' rights such as holidays and holiday pay. If you are in any doubt about a person's employment status, you should seek professional advice.
Freelancers and contractors still have a right to the national minimum wage. But if they are being paid by their own firms, this will not affect you.
As an employer, you still have responsibilities for the health and safety of freelancers and contractors. See how to write a health and safety policy for your business. Also, you should check whether your insurance is affected by having non-employees working on your premises.
Remember too that you should avoid discrimination against anyone who carries out work for you, whether they are employed by you or self-employed. See how to prevent discrimination and value diversity.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-freelancers-and-outside-contractors
Links
Zero-hours contracts
Description of zero-hours contracts and employer responsibilities relating to them.
Zero-hours contracts are becoming increasingly common in Northern Ireland.
There is no legal definition of a zero-hours contract in either Northern Ireland or Great Britain employment law. In general terms, a zero-hours contract is one in which you do not have to guarantee the individual any work and the individual is not obliged to accept any work offered by you.
Employer responsibilities under zero-hours contracts
Zero-hours contracts are legal under domestic law. If you freely enter into a zero-hours contract with an individual, it is a legitimate form of contract between you and the individual.
There are concerns that individuals who work under zero-hours contracts have no protection under domestic employment law, or that they cannot be an employee. This is not a correct assumption - as in any employment relationship, the employment rights which an individual is entitled to will depend on their employment status.
It is likely that the majority of individuals on zero-hours contracts are either workers or employees.
In many cases, a zero-hours contract staff member will be legally classified as a 'worker' and thus will have some of the rights that an employee has such as statutory holiday entitlement and National Minimum Wage. However, the way the relationship with that worker develops may enhance the employment status to that of an 'employee', who has additional employment rights such as accruing the right to take maternity leave or pay and the right to request flexible working.
Read more on employment status.
Advantages and disadvantages of zero-hours contracts
As an employer, the advantages of zero-hours contracts include:
Flexibility
Zero-hours contracts allow you to adapt to changes in demand, eg offering more work when new orders arrive and being able to scale back when they do not. Furthermore, you could use zero-hours contracts to increase the range of services offered such as creating specialist roles or having staff available in different geographical locations.
Supporting expansion plans
Through this flexibility, your business could also grow, with limited risk in terms of recruiting permanent staff if you find that the additional services you planned are not taken up. On the other hand, if expansion is successful, zero-hours contracts provide a rapid pathway to fixed-term, annualised hours, full-time, or guaranteed hours of work.
Retention of skills
You could retain the skills and experience of staff who might wish to partially retire or who decide to work part-time.
Knowledge of the company and its culture
You could also retain a pool of trained and skilled staff, who know the culture of the business and its procedures, rather than agency staff who may not.
However, you should be aware of the welfare of any individual you employ on a zero-hours contract.
For example, not every zero-hours worker will be happy that they are on such a contract because of a lack of job security. In addition, the inclusion of exclusivity clauses in some zero-hours contracts has been banned in GB since 26 May 2015. This was formerly under scrutiny by the Northern Ireland Assembly, and exclusivity clauses may in the future be banned in Northern Ireland.
It should also be made clear when advertising or interviewing for a job, or in the contract itself, that an individual is hired on a zero-hours contract, or that there is a possibility they could be offered no work or 'zero-hours'.
As an employer, you need to fulfil and understand your responsibilities towards individuals you hire on a zero-hours contract in terms of their employment rights such as the National Minimum Wage and holiday rights. See who should be paid the minimum wage and know how much holiday to give your staff.
Asking an individual to work at very short notice, which does not allow them to plan ahead, eg to arrange childcare, could be problematic for them, causing tension or upset.
You should note that where there are long-term zero-hours contracts in place, where work is regularly offered and accepted, there is the potential for difficulties regarding the actual employment status of the individual on the zero-hours contract.
Developed withActionsAlso on this siteContent category
Source URL
/content/zero-hours-contracts
Links
Recruiting directors and managers
Skills directors and managers should have and the responsibilities they should be given.
Directors
Every limited company must have at least one director. Directors are appointed by the shareholders as the people who can best run the company on their behalf.
Directors have a range of responsibilities in areas such as health and safety, tax, and employment law. There are serious penalties for not meeting these responsibilities which makes appointing the right director very important.
There are also restrictions on who can become a director. People who may not become directors include anyone who:
- has been disqualified by the courts from becoming a director
- is an undischarged bankrupt, unless they have permission from the courts
- is under 16 years of age
For information on the appointment of directors, see recruiting company directors and running a company or partnership.
Managers
You may wish to take on someone to cover you while you're away so that you can spend more time growing the business. Consider whether it would be a good idea to appoint someone to whom you can delegate the day-to-day running of the business.
When preparing the job description, the advert, and the interview questions, you will need to keep in mind the additional qualities, experience, and skills the candidate will need to take on the managerial role.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-directors-and-managers
Links
Recruiting seasonal staff
As an employer, there are various options available to you to deal with a seasonal rush.
You may find your business is subject to seasonal fluctuations in demand. For example, December is a busy time for many businesses, particularly retailers who have to deal with a spike in demand as the Christmas period approaches.
Other areas of work that may be influenced by seasonal differences include farming, construction, and gardening.
The simplest strategy is to try to make do with the existing workforce. Increasing overtime and offering weekend or evening work may be enough to bridge the gap. However, if more labour is needed, new people will have to be brought in. See employing staff for seasonal businesses.
There are various options available to deal with this seasonal rush.
Agency workers
Using agency workers is one possibility. Employment agencies take much of the administrative burden of finding appropriate staff and can respond quickly to fluctuating demand.
However, employers also need to be aware of the Agency Workers Regulations (Northern Ireland) 2011, which give workers entitlements to the same employment conditions as permanent employees after a 12-week qualification period.
Read more on recruiting agency workers.
Zero-hours contracts
Zero-hours contracts can give great flexibility to employers and workers. Normally these contracts create an employment relationship in which there is no obligation for one side to offer work, nor the other to accept it.
They avoid the cost of agency fees and make it straightforward to take on extra staff when needed. But it's important to point out that zero-hours workers have the same rights and protections as other workers, such as annual leave, the national minimum wage, and pay for work-related travel.
Read more on zero-hours contracts.
Short fixed-term contracts
It may be more appropriate or effective to use short fixed-term contracts and buy in labour for a particular project or period.
Fixed-term work terminates after a specified period, but contract workers are entitled to the same pay and conditions as permanent staff, equivalent benefits, information about permanent vacancies, and protection from unfavourable treatment.
It's good practice to make notice provisions in fixed-term contracts in case employment needs to be terminated early.
Read more on understanding fixed-term contracts.
Pensions for seasonal and temporary workers
Like other staff, seasonal and temporary workers must be assessed to see if they qualify for automatic enrolment into a workplace pension. Assessing these types of employees can take more time because of varying hours and earnings.
Employers who know their staff will be working for them for less than three months can use postponement. This postpones the legal duty to assess staff for three months. During this postponement period, employers will not need to put staff into a pension unless they ask to be put into one. See the Pensions Regulator's guidance on employing seasonal or temporary staff.
Developed withActionsAlso on this siteContent category
Source URL
/content/recruiting-seasonal-staff
Links
Recruiting staff and data protection issues
How data protection procedures apply to staff recruitment information.
The Data Protection Act covers information gathered during the recruitment and selection process - eg information in application forms or CVs. Staff involved in recruitment should handle any personal information gathered securely. Under the UK General Data Protection Regulations (UK GDPR), you must explain to job applicants what you do with their personal data. An applicant privacy notice should cover what you do with job applicants' personal data during an active recruitment process, and what you should do at the end of that process with the personal data of both unsuccessful applicants and successful applicants who do not accept the job they are offered.
See the Information Commissioner's Office (ICO) guidance on the Data Protection Act 2018.
You should also make sure that any recruitment advertisements clearly identify your organisation or the employment agency you are using.
Application forms should not ask for irrelevant or unnecessary personal information, such as banking details. See advertising a job and interviewing candidates.
Using recruitment information
If you are going to use information gathered during recruitment processes for other purposes, such as marketing, you must explain this clearly to those involved. Information should not be shared with other organisations without the individual's consent.
Sensitive data recorded for equal opportunities purposes - for example, concerning disabilities, race or sexual orientation - must be used for that purpose only.
Finally, if you are going to check the information supplied by applicants, you should let them know why and how you plan to do so. For example, criminal record checks should always be done through AccessNI. See AccessNI criminal records checks.
Giving references
If someone asks you for information about a worker's record or for a reference for them, you should always check their identity and whether they are entitled to this information. You should only supply a confidential reference or information about a worker if you are absolutely sure that you have their explicit and unambiguous consent to do so.
ActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-and-data-protection-issues
Links
Recruiting staff: seven things you should know
If you want to expand your business, one way to do this is to take on new staff.
If you want to expand your business, one way to do this is to take on new staff. Recruiting new staff means taking a chance and investing in your business so it's essential that you choose the right recruitment methods to suit your individual business needs.
Staff recruitment essentials
1. Decide if you really need to recruit new staff
You're going to be spending time and money on recruiting someone new, so look at your staffing needs in relation to your business objectives. Consider why you're looking for extra help and how long you will need it for. Could another option be more viable such as sharing work amongst existing employees, reorganising the company structure, or rearranging tasks? See recruiting new staff and the alternatives.
2. Register as a new employer
If you are taking on your first employee, you may be required to register as an employer with HM Revenue & Customs (HMRC). Most new employers can register online but some will need to register by email, by telephone, or with an HMRC office. See how to register as an employer.
3. Consider the type of worker you wish to employ
The options you have for employing a new worker will depend on factors such as how constant the work is, how long it will last, and the number of hours per week. There are a number of options available including permanent employees, fixed-term contract employees, self-employed freelancers or contractors, and employment agency staff. In addition, do you need someone there on a full-time or part-time basis? See recruiting staff: your options.
4. Write a job description and person specification
Preparing a job description is not a legal requirement but it can help with deciding the scope of the work, advertising the job, and clarifying what applicants will have to do in the job. It can also help to identify a new recruit's performance and identify their training needs. If you decide to include a person specification, you should include the essential and desirable knowledge, experience, and skills you are looking for. If you already have an existing job description and person specification for a role, these should be reviewed prior to a recruitment exercise to ensure they are still accurate. See writing a person specification and job description.
5. Decide how much you should pay
Offering a competitive salary and benefits will help you to attract the best person for the job. However, you should balance this with how low you need to keep your costs. Work out what you can afford and assess whether the job requires specialised skills that should be reflected in the wages. See how to set the right pay rates.
6. Advertise and interview for the position
There are many options available when advertising a job including newspapers, online recruitment sites, and employment agencies. Decide on the most appropriate option for your business, ensuring you reach as wide a group of suitably qualified potential candidates as you can. When you have the replies to your advertisement, compare the skills and experience against the job description, draw up a list of candidates, and invite them to interview. Carry out appropriate preparation for the interview so it will be as easy as possible for you and the candidate. See recruitment forms and templates.
7. Make a job offer
The final stage of the recruitment process involves choosing the successful candidate. You can inform them by telephone or email, followed up by a formal confirmation in a letter which should set out the main terms and conditions of the job. It should also state whether the offer is conditional, ie subject to the outcome of checks, or unconditional, ie not subject to any further checks. Once the offer is accepted, a contract of employment exists between you and the employee. See job offers and staff inductions.
Further information on recruitment can be found in the Invest Northern Ireland Employers' Handbook which outlines both legal essentials and best practice guidelines for effective HR management.
ActionsAlso on this siteContent category
Source URL
/content/recruiting-staff-seven-things-you-should-know
Links
Employing staff for the first time: eight top tips
When you become an employer for the first time and take on a new employee, there are important checks you must make.
When you become an employer for the first time and take on a new employee, there are important checks you must make. Here are eight key steps that you should consider when employing staff for the first time.
Tips for employing staff for the first time
1. Decide how much to pay your employee
Almost all workers are legally entitled to the National Minimum Wage. The National Living Wage is higher than the National Minimum Wage - workers get it if they are 23 years of age and over. See National Minimum Wage and National Living Wage - rates and overview.
2. Carry out pre-employment checks
You should carry out an initial identity check on workers and verify their references and qualifications. You may also wish to include health checks as part of your recruitment process. See pre-employment checks.
3. Check if your employee has the right to work in the UK
You must check whether your employee is legally entitled to work in the UK. See ensure your workers are eligible to work in the UK.
4. Check if you need to apply for a criminal records check
Certain types of employment (eg security or working with children or vulnerable adults) require an AccessNI criminal records check. See AccessNI criminal records checks.
5. Get employment insurance
You will need employers' liability insurance as soon as you become an employer. This insurance enables businesses to meet the costs of damages and legal fees for employees who are injured or fall ill at work through the fault of the employer. See employers' liability insurance.
6. Send details of the job in writing to your employee
Once you have chosen your new employee, you should send them details of the job in writing. This should set out the main terms and conditions of the job. You also need to give your employee a written statement of employment particulars if you're employing them for more than one month.
7. Tell HM Revenue & Customs (HMRC) you are an employer
If you employ someone, you will need to register as an employer with HMRC. See registering and getting started with PAYE.
8. Check if you need to automatically enrol your employee into a workplace pension scheme
All employers have to provide workers with a qualifying workplace pension. Read more on automatic enrolment into a workplace pension.
Also on this sitePrimary parentContent category
Source URL
/content/employing-staff-first-time-eight-top-tips
Links
Recruiting effectively to grow your business (video)
Advice on how effective recruitment will ensure you get the right people to grow your business.
A short 2-minute video explaining how effective recruitment will ensure you get the right people to grow your business.
ActionsAlso on this siteContent categorySelect subtypeVideo
Source URL
/content/recruiting-effectively-grow-your-business-video
Links
Blacklisting of trade union members
In this guide:
- Trade union membership rights
- Trade union membership rights of job applicants - employers
- Trade union membership rights of job applicants - employment agencies
- Tribunal claims: unlawful refusal of employment or employment agency services on TU membership grounds
- Trade union membership rights in the workplace
- Tribunal claims: discrimination against workers on TU membership grounds
- Rights of workers relating to trade union activities and services
- Tribunal claims: discrimination regarding trade union activities and services
- Time-off rights for union officials and members
- Rights of union learning representatives
- Blacklisting of trade union members
- Current tribunal and arbitration compensation limits
Trade union membership rights of job applicants - employers
The right of job applicants not to be treated unfairly by a prospective employer as a result of trade union membership status
An individual has the right not to be refused employment because:
- they are not a member of a trade union, or will not agree to become a member
- they are a member of a trade union or will not agree to cease being a member
- they will not agree to make a payment - eg to a union or charity - in lieu of union membership or to allow a prospective employer to deduct a sum of money from their pay to make such a payment
It is unlawful for an employer to refuse employment in contravention of any of these rights.
What types of employment are covered?
'Employment' means employment under a contract of service or apprenticeship.
It does not include self-employment under a contract for services.
What is meant by the term 'trade union'?
The term 'trade union' means:
- any trade union
- a particular trade union
- one of a number of particular trade unions
- a particular branch or section of a trade union
- one of a number of particular branches or sections of a trade union
Refusal of employment
A person will be regarded as having been refused the employment they are seeking if the prospective employer or agent acting on the employer's behalf:
- refuses or deliberately omits to deal with their application or enquiry
- causes them to withdraw or stop pursuing their application or enquiry - eg by making threats or discouraging remarks
- refuses or deliberately omits to offer them employment of the kind they are seeking
- makes them an offer of employment of the kind they are seeking but on terms - eg the rate of pay - which no reasonable employer who wished to fill the vacancy would offer, and which is not accepted
- makes them an offer of employment of the kind they are seeking but withdraws it or causes them not to accept it - eg by making threats or discouraging remarks
Where a person is offered employment subject to any of the requirements listed below and they do not accept the offer because they do not satisfy the requirement, or are unwilling to comply with it, they will be regarded as having been unlawfully refused employment for that reason.
The requirements are that:
- they are or should remain a member of a trade union
- they should take steps to become a member of a trade union
- they are not, or should not become, a member of a trade union
- they should take steps to cease to be a member of a trade union
- they should make payments or suffer deductions in lieu of union membership
Job advertisements specifying union membership requirements
Where a job advertisement appears specifying any of the union membership or non-membership requirements listed above, a person who does not satisfy the requirements, or is unwilling to comply with them, and who applies for and is refused the job, will be presumed to have been refused it unlawfully.
'Advertisement' means every form of advertisement or notice, whether to the public or not. For example, it could be an advertisement in a newspaper or periodical, or a notice posted in or outside a factory.
Recruitment through trade unions
Where there is an arrangement or practice under which an employer recruits only people who have been supplied - ie put forward or approved - by a trade union from among its membership, a person who is not a member of the trade union concerned and who is refused the employment because they have not been supplied by the union, will be regarded as having been refused employment because they are not a union member.
Developed withAlso on this siteContent category
Source URL
/content/trade-union-membership-rights-job-applicants-employers
Links
Trade union membership rights of job applicants - employment agencies
The right of job applicants not to be treated unfairly by an employment agency as a result of trade union membership status
An individual has the right not to be refused the services of an employment agency because:
- they are not a member of a trade union, or will not agree to become a member
- they are a member of a trade union or will not agree to cease being a member
It is unlawful for an employment agency to refuse its services in contravention of any of these rights.
What is meant by the term 'trade union'?
The term 'trade union' means:
- any trade union
- a particular trade union
- one of a number of particular trade unions
- a particular branch or section of a trade union
- one of a number of particular branches or sections of a trade union
What is meant by an 'employment agency'?
'Employment agency' means any person or organisation that provides services - whether for profit or not - for the purpose of finding employment for workers or supplying employers with workers.
A trade union is not regarded as an employment agency if it provides services only to its own members to assist them in finding employment.
However, if a trade union provides such services to non-members, it will be regarded as an employment agency.
Refusal of the services of an employment agency
A person who seeks to use the services of an employment agency will be regarded as having been refused that service if the agency:
- refuses or deliberately omits to make the service available to them
- does not provide the service to them on the same terms as it provides the service to other people
- causes them not to make use of the service, or to stop making use of it, eg by making threats or discouraging remarks
Where a person is offered the service of an employment agency, subject to any of the requirements listed below, and they do not accept the offer because they do not satisfy the requirement, or are unwilling to comply with it, they will be regarded as having been unlawfully refused the service for that reason.
The requirements are that:
- they are - or should - remain a member of a trade union
- they should take steps to become a member of a trade union
- they are not - or should not - become a member of a trade union
- they should take steps to cease being a member of a trade union
Employment agency advertisements specifying trade union membership requirements
Where an advertisement about the services of an employment agency specifies any of the union membership or non-membership requirements listed above, a person who does not satisfy the requirements, or is unwilling to comply with them, and who seeks to use and is refused the services, will be presumed to have been refused them unlawfully.
'Advertisement' means every form of advertisement or notice, whether to the public or not. For example, it could be a list of job vacancies supplied by an employment agency to people who have registered with that agency.
Developed withAlso on this siteContent category
Source URL
/content/trade-union-membership-rights-job-applicants-employment-agencies
Links
Tribunal claims: unlawful refusal of employment or employment agency services on TU membership grounds
Industrial tribunal claims where an individual has been refused employment or the services of an employment agency
Individuals can make an industrial tribunal claim if they think they have been unlawfully refused employment or the services of an employment agency on trade union membership grounds - see trade union membership rights of job applicants - employers and trade union membership rights of job applicants - employment agencies.
An individual - the claimant - can bring a claim against either or both a prospective employer and an employment agency where the claim arises out of the same situation.
If a claimant brings a claim against only one of them, either the employer/employment agency or the claimant can ask the tribunal to join the other - ie either the employment agency or employer - as a party to the proceedings.
A tribunal will grant such a request if it is made before the hearing begins. However, the tribunal may refuse the request if it is not made until after the start of the hearing. This 'request for joinder' cannot be made after the tribunal has decided whether or not the claim was well founded.
If a claimant brings a claim against both an employer and an employment agency, or if joinder has been granted and the tribunal finds the claim to be well founded against both the employer and the agency, the tribunal can order any compensation it may award to be paid only by the employment agency, paid only by the employer or divided between the two.
Pressure exerted by a trade union or other person
If the prospective employer or employment agency claims that they were induced to act unlawfully by pressure exerted on them by a trade union or other person - eg by threatening or organising industrial action - they can ask the Industrial Tribunal to join the trade union or other person as a party to the proceedings.
The claimant can also ask that a trade union or other person be joined as a party to the proceedings if they believe that they induced the employer or employment agency by these means to act unlawfully.
A tribunal will grant such a request for joinder - made by either the prospective employer/employment agency or the claimant - if the request is made before the hearing begins. However, the tribunal may refuse the request if it is made after the start of the hearing.
A request for joinder cannot be made after the tribunal has decided whether or not the claim was well-founded.
Where a trade union or other person has been joined to the proceedings and the tribunal finds the claim to be well-founded, it will also consider whether pressure was exerted on the prospective employer or employment agency, as alleged.
If the tribunal finds that such pressure was exerted, it can order the trade union or other person to pay some or all of any compensation it may award.
Remedies for unlawful refusal of employment or the services of an employment agency
If a tribunal finds that an individual has been unlawfully refused employment or the services of an employment agency because of their membership or non-membership of a trade union, it will make a declaration to that effect.
The tribunal may also:
- award the claimant compensation to be paid by the prospective employer and/or employment agency
- recommend that the prospective employer or employment agency takes action to remedy the adverse effect of their unlawful refusal on the claimant, eg by recommending that the employer considers the claimant for a job vacancy
Compensation
The tribunal will assess and award compensation as it sees fit. It may include compensation for injury to feelings.
In cases where a claim is made and upheld against a party and they fail without reasonable justification to comply with a recommendation to take action, the tribunal may increase its award of compensation, or make an award if it has not already done so.
The amount of compensation payable, including any additional compensation awarded for failure to comply with a recommendation, is subject to an upper limit.
Developed withContent category
Source URL
/content/tribunal-claims-unlawful-refusal-employment-or-employment-agency-services-tu-membership
Links
Trade union membership rights in the workplace
The rights of those in work not to be treated unfairly as a result of trade union membership or non-membership
You must not treat employees and other workers unfairly on the grounds of trade union membership or non-membership. Unfair treatment includes dismissal and subjecting a worker to a detriment.
What is meant by the term 'trade union'?
The term 'trade union' includes:
- any trade union
- a particular trade union
- one of a number of particular trade unions
- a particular branch or section of a trade union
- one of a number of particular branches or sections of a trade union
What is meant by the term 'detriment'?
A person can be subjected to a detriment through either an act or a deliberate decision not to act by an employer. Whether a worker has suffered a detriment is for an industrial tribunal to decide.
Examples of a detriment include withholding a pay increase, discrimination in promotion, transfer or training opportunities, or threats of dismissal. For a worker who is not an employee, a detriment could also be ending their employment.
In addition, a detriment could be the failure to confer a benefit on a person who failed to accept an unlawful inducement which would have been conferred on them had they accepted the offer.
For example, if an employer offered £1,000 to workers with the sole or main purpose of inducing them to give up their trade union membership, any worker who did not accept that offer and was therefore not paid the £1,000 would have been subjected to a detriment of £1,000.
Right not to belong to a trade union
No person has to join, or remain a member of, a trade union.
All employees have the right:
- not to be dismissed, or selected for redundancy, for not belonging to a trade union or for refusing to join one
- not to be dismissed, or selected for redundancy, for failing to accept an offer made by their employer with the sole or main purpose of inducing them to be or become a trade union member
In addition, all employees and other workers have the right:
- not to be subjected to a detriment by their employer (for not being or refusing to become a trade union member)
- not to be made an offer by their employer where the sole or main purpose of the employer is to induce them to be or to become a trade union member
- not to be subjected to a detriment for failing to accept such an offer
Right not to make payments in lieu of union membership
Employees have the right not to be dismissed for refusing to make a payment, eg to a union or a charity, in lieu of union membership or for objecting to their employer deducting a sum of money from their pay to make such a payment.
Employees and other workers have the right not to have other action taken by their employer to force them to make such a payment. If their employer deducts a sum of money from their pay, this counts as action to force them to make such a payment.
Right to belong to a trade union
All employees have the right:
- not to be dismissed, or selected for redundancy, for being a member of an independent trade union or for proposing to become a member
- not to be dismissed, or selected for redundancy, for failing to accept an offer made by their employer with the sole or main purpose of inducing them not to be or become a trade union member
In addition, all employees and other workers have the right:
- not to be subjected to a detriment by their employer, to prevent or deter them from belonging to an independent trade union or from seeking to become a member, or to penalise them for doing so
- not to be made an offer by their employer where the sole or main purpose of the offer is to induce them not to be (or seek to become) a member
- not to be subjected to a detriment for failing to accept such an offer
Right of complaint to an Industrial Tribunal
Individuals who think that any of their rights as set out above have been infringed can make an industrial tribunal claim. For more information, see tribunal claims: discrimination against workers on TU membership grounds.
Developed withAlso on this siteContent category
Source URL
/content/trade-union-membership-rights-workplace
Links
Tribunal claims: discrimination against workers on TU membership grounds
Industrial tribunal claims when workers are discriminated against due to trade union membership
Individuals who think that any of their rights (as set out in trade union membership rights in the workplace) have been infringed can make an Industrial Tribunal claim.
If an employee has been dismissed - including cases where they have been dismissed on grounds of redundancy - their claim is one of unfair dismissal.
If an employee or other worker considers that they have been subjected to a detriment by an act, or deliberate failure to act, by their employer, their claim is one of detriment.
For the detriment to be unlawful, the person must have been subjected to it with the intention of putting pressure on them in respect of non-membership or membership of a union, or for the other unlawful purposes relating to failure to accept unlawful inducements.
If a worker believes that you have made an unlawful inducement relating to trade union membership as described above, their claim is one of unlawful inducement.
Pressure exerted by a trade union or other person
An employer who faces a claim of unfair dismissal may have dismissed the employee concerned as a result of pressure applied by a union or other person because the employee was not a member of a trade union. The pressure could be in the form of actual or threatened industrial action.
If the employer or the employee making the complaint claims this is so, either of them may make a request to the tribunal for the union or other person concerned to be joined - ie brought in as a party - to the proceedings.
A request by either an employer or a dismissed employee for a trade union or other person in unfair dismissal proceedings to be joined in this way will be granted by the tribunal if it is made before the hearing begins. However, the tribunal may refuse the request if it is made after the start of the hearing.
If the tribunal finds the dismissal unfair and the claim of pressure well founded, it may make any award of compensation wholly or partly against the union or other person concerned instead of - or as well as - against the employer.
Compensation
The compensatory awards for the claims in relation to union membership, non-membership and unlawful inducements vary. For more information, see current tribunal and arbitration compensation limits.
Note that in cases where a worker makes a related claim to the tribunal concerning detriment and the tribunal upholds that claim, the tribunal may award compensation for the detriment suffered.
In deciding the amount of such compensation, a tribunal may not make a reduction on the ground that a complainant:
- contributed to their loss by accepting or not accepting an unlawful inducement
- has received or is entitled to an award on the grounds that an unlawful inducement has been made to them
Status of contractual changes resulting from unlawful inducements
If a worker has accepted an unlawful inducement, but any consequent agreement by them to vary their terms and conditions has not yet been effected, the agreement to vary the terms and conditions is not enforceable.
In such circumstances, the employer cannot recover any cash paid or other benefits conferred on the worker concerned.
However, in cases where the agreed variation of terms and conditions has been effected, those variations are enforceable.
Developed withAlso on this siteContent category
Source URL
/content/tribunal-claims-discrimination-against-workers-tu-membership-grounds
Links
Rights of workers relating to trade union activities and services
The right of workers who are union members not to be treated unfairly when interacting with their union
You must not treat employees and other workers unfairly on the grounds that they have taken part in the activities of the trade union which they belong to or have made use of their union's services at an appropriate time.
Unfair treatment includes dismissal and subjecting a worker to a detriment.
What is meant by the term 'trade union'?
The term 'trade union' includes:
- any trade union
- a particular trade union
- one of a number of particular trade unions
- a particular branch or section of a trade union
- one of a number of particular branches or sections of a trade union
What is meant by the term 'detriment'?
Detriment can be either an act or a deliberate decision not to act by an employer. Whether an employee or other worker has suffered a detriment is for a tribunal to decide.
Examples of a detriment would be withholding a pay increase, discrimination in promotion, transfer or training opportunities, or threats of dismissal. For a worker who is not an employee, detriment could also take the form of their dismissal.
In addition, a detriment could be the failure to confer a benefit on a person who failed to accept an unlawful inducement which would have been conferred on them had they accepted the offer.
For example, if an employer offered £1,000 to workers not to take advice from their union, any worker who did not accept that offer and were therefore not paid the £1,000 would have been subjected to a detriment of £1,000.
Right to take part in trade union activities
All employees have the following rights relating to their trade union activities:
- Not to be dismissed or selected for redundancy, for taking part - or proposing to take part - in the activities of an independent trade union at an appropriate time.
- Not to be dismissed or selected for redundancy because they failed to accept an offer made by their employer. The sole or main purpose of the offer must be to induce them not to take part in the activities of an independent trade union at an appropriate time.
In addition, all employees and other workers have the right:
- not to be subjected to a detriment by their employer to prevent or deter them from taking part in trade union activities at an appropriate time, or to penalise them for doing so
- not to be made an offer by their employer, the sole or main purpose of which is to induce them not to take part in an independent trade union's activities at an appropriate time
- not to be subjected to a detriment for failing to accept such an offer
The kinds of union activity a worker may take part in are not set out in law. However, union activities involving a worker acting on behalf of the union would be covered, eg a shop steward representing a union that is recognised for collective bargaining purposes or activities connected with the election or appointment of union officials.
Right to make use of trade union services
All employees have the following rights relating to the use they make of their union's services:
- not to be dismissed, or selected for redundancy, for making use, or proposing to make use, of the services of an independent trade union at an appropriate time
- not to be dismissed, or selected for redundancy, because they failed to accept an offer made by their employer, the sole or main purpose of which was to induce them not to use the services of an independent trade union at an appropriate time
In addition, all employees and other workers have the right:
- not to be subjected to a detriment by their employer to prevent or deter them from using their union's services at an appropriate time or to penalise them for doing so
- not to be made an offer by their employer, the sole or main purpose of which is to induce them not to make use of an independent trade union's services at an appropriate time
- not to be subjected to a detriment by their employer for failing to accept such an offer
'Trade union services' are services made available to an employee or other worker by virtue of their membership of an independent trade union. They include the union agreeing to raise a matter on behalf of the employee or other worker by, for example, writing to the employer about a grievance.
However, such services do not include having a member's terms and conditions determined by collective agreement.
The 'appropriate time' for the union member to take part in union activities or to make use of their union's services is time either:
- outside the member's working hours - this could cover activities which take place or services which are used when the person is on the employer's premises but not actually required to be working, eg during lunch breaks
- within the member's working hours where the employer has agreed that the worker may take part in trade union activities or use the trade union's services
Rights to reasonable time off for trade union duties and activities also exist where an employer recognises a union for collective bargaining. For more information on collective bargaining, see meaning and types of trade union recognition.
Right of complaint to an Industrial Tribunal
Individuals who think that any of their rights as set out above have been infringed can complain to an industrial tribunal. See tribunal claims: discrimination regarding trade union activities and services.
Developed withAlso on this siteContent category
Source URL
/content/rights-workers-relating-trade-union-activities-and-services
Links
Tribunal claims: discrimination regarding trade union activities and services
Industrial tribunal claims due to discrimination relating to trade union activities and services
Individuals who think that any of their rights (as in rights of workers relating to trade union activities and services) have been infringed can complain to an industrial tribunal.
If an employee has been dismissed - including cases where they have been dismissed on grounds of redundancy - their complaint is one of unfair dismissal.
If employees or other workers consider that they have been subjected to a detriment by an act, or deliberate failure to act, by their employer, their complaint is one of detriment.
If employees or other workers consider that you have made an unlawful inducement relating to trade union activities and services, their complaint is one of unlawful inducement.
Compensation
The compensatory awards for the claims in relation to dismissal and detriment vary. A tribunal can make an award to an individual for claims of unlawful inducements in relation to trade union membership/non-membership, activities or collective bargaining. For more information, see current tribunal and arbitration compensation limits.
Note that in cases where an employee or other worker makes a related complaint to the tribunal concerning detriment, and the tribunal upholds that complaint, the tribunal may award compensation for the detriment suffered.
In deciding the amount of such compensation, a tribunal may not make a reduction on the ground that a complainant:
- contributed to their loss by accepting or not accepting an unlawful inducement
- has received or is entitled to an award on the grounds that an unlawful inducement has been made to them
Status of contractual changes resulting from unlawful inducements
If an employee or other worker accepts an unlawful inducement, but any consequent agreement by them to vary their terms and conditions has not yet been effected, the agreement to vary the terms and conditions is not enforceable.
Also, in such circumstances, the employer cannot recover any cash paid or other benefits conferred on the employee or worker concerned.
However, in cases where the agreed variation of terms and conditions has been effected, those variations are enforceable.
Developed withAlso on this siteContent category
Source URL
/content/tribunal-claims-discrimination-regarding-trade-union-activities-and-services
Links
Time-off rights for union officials and members
Rights to time off for union duties and activities and the circumstances under which this should be paid time off
Trade union officials and members have rights to time off under certain circumstances. The time off may or may not be paid.
The right to paid time off for union duties
You must give an employee who is an official of a recognised union reasonable paid time off:
- to carry out their union duties
- for training related to union duties
A trade union official's typical duties may include:
- recruiting, organising and representing members of a trade union, either individually or collectively
- attending meetings with members of the workforce and management
- accompanying workers to disciplinary and grievance hearings
- negotiating with the employer on terms and conditions of employment or matters of discipline
The right to time off for union activities
You must give union officials and members reasonable unpaid time off for carrying out union activities.
Such activities might include:
- voting in union elections
- meeting full-time officials to discuss issues relevant to the workplace
- attending workplace meetings to discuss and vote on the outcome of negotiations
Right of complaint to an Industrial Tribunal
Individuals who think that any of these rights have been infringed can complain to an industrial tribunal.
If the tribunal finds the complaint well founded, it will make a declaration to that effect and award compensation as it sees fit.
In cases where the employer has failed to pay the employee for the time off, it will order the employer to pay the amount due.
Developed withActionsAlso on this siteContent category
Source URL
/content/time-rights-union-officials-and-members
Links
Rights of union learning representatives
The rights of union learning representatives, including arranging and undertaking training
Union learning representatives (ULRs) have the same status as union officials and are allowed paid time off to carry out their duties.
Union learning representatives are:
- representatives of a recognised union who provide advice to union members about their training, educational and developmental needs
- elected or appointed in accordance with the union's rules
- trained in line with statutory training conditions
- notified to the employer in writing
Rights of ULRs
ULRs have a legal right to reasonable paid time off during working hours to carry out their duties, which may include:
- undertaking relevant training
- analysing the learning or training needs of union members
- providing information and advice on learning or training
- arranging learning or training
- consulting the employer about learning and training
- preparing for the above
The law does not assign a negotiating role to ULRs. However, some employers have voluntarily negotiated learning agreements with their ULRs.
Advantages of ULRs for employers
ULRs can be a source of expert advice. They cost you comparatively little and can help with identifying the training needs of staff and encouraging a learning culture within the company.
Developed withActionsAlso on this siteContent category
Source URL
/content/rights-union-learning-representatives
Links
Blacklisting of trade union members
Description of the law that prohibits the blacklisting of trade unionists
From 6 April 2014 the Employment Relations (Northern Ireland) Order 1999 (Blacklists) Regulations (Northern Ireland) 2014 came into operation which prohibits the blacklisting of trade unionists.
The Regulations make it unlawful to compile, supply, sell or use a 'prohibited list' (ie a blacklist).
Employers and employment agencies cannot:
- refuse a person employment for a reason related to a blacklist
- dismiss an employee for a reason related to a blacklist
- subject a person to any other detriment for a reason related to a blacklist
What is a blacklist?
A blacklist must:
- Contain 'details' about current or former trade union members or of persons who are taking part or have taken part in trade union activities. These 'details' could include names, addresses, National Insurance numbers, occupations or work histories.
- Have been compiled for employers or employment agencies to use in order to discriminate on grounds of trade union membership or activities when recruiting or during employment.
Blacklists would include any index or other set of items whether recorded manually, electronically or in other forms, and can include haphazard or unstructured collections of information with a common connection - such as a shared purpose.
You can act unlawfully if you indirectly access a blacklist. It may not be a defence for you to claim that you did not know you were using information from a blacklist.
Everyone on a blacklist is protected, even non-trade union members.
There are some incidences where the law does not prohibit blacklists. It is lawful if you:
- Supply a blacklist in circumstances where you could not reasonably be expected to know it was a prohibited list.
- Compile, supply or use a blacklist in order to draw attention to possible or actual blacklisting activity. For this to apply, no information about the person on the list should have been published without their consent, and the activity is justified in the public interest.
- Compiled, sold, supplied or used a prohibited list for the sole or main purpose of appointing or electing an office-holder in a trade union; or appointing a person to a post or office where the appointee must have experience or knowledge of trade unions, and it is reasonable to apply such a requirement.
- Compile, sell, supply or use a blacklist to comply with a statutory or legal requirement or to obey a court order.
It is also lawful to access a blacklist either:
- in connection with legal proceedings
- to obtain or provide legal advice about blacklisting compliance
Industrial Tribunals claims
If an employer is suspected of blacklisting, or an employment agency refuses employment based on blacklist information, they could be taken to an industrial tribunal or a court.
If successful in an Industrial Tribunal, the claimant could be awarded compensation.
Court claims
A claim to a court can be made by anyone if they have suffered loss or been threatened by a potential loss.
If a complaint is successful, the court can award damages and compensation for injury to feelings. They are also empowered to make orders to stop organisations from blacklisting or using blacklists.
An individual cannot make a complaint to an Industrial Tribunal and the court in relation to the same conduct. However, if a complaint is made to an industrial tribunal, the same complainant could also ask the court to restrain or prevent an employer from blacklisting.
Developed withContent category
Source URL
/content/blacklisting-trade-union-members
Links
Current tribunal and arbitration compensation limits
Minimum and maximum amounts that may be ordered to be paid by a tribunal.
The following table lists the different tribunal and arbitration compensation awards and the most recent changes to their limits in the Employment Rights (Increase of Limits) Order (Northern Ireland) 2024.
Table of increase of limits
Compensation From 6 April 2023 From 6 April 2024 Maximum basic award for unfair dismissal (30 weeks' pay, subject to the limit on a week's pay) £20,070 £21,870 Minimum additional award for failure to comply with a tribunal's order to reinstate or re-employ an employee who has been unfairly dismissed (26 weeks' pay, subject to the limit on a week's pay) £17,394 £18,954 Maximum additional award for failure to comply with a tribunal's order to reinstate or re-employ an employee who has been unfairly dismissed (52 weeks' pay, subject to the limit on a week's pay) £34,788 £37,908 Maximum amount of 'a week's pay' for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal £669 £729 Minimum amount of basic award of compensation where dismissal is unfair £8,139 £8,863 Limit on amount of compensatory award for unfair dismissal £105,915 £115,341 Limit on guarantee pay (per day) £35 £38 Amount of award for unlawful inducement relating to trade union membership, activities or services, or for unlawful inducement relating to collective bargaining £5,382 £5,861 Minimum amount of compensation where an individual is expelled from a union in contravention of Article 38 of the Trade Union and Labour Relations (Northern Ireland) Order 1995 and not readmitted by date of tribunal application £12,206 £13,292 Limit on amount in respect of any one week payable to an employee in respect of debt to which Part XIV of the 1996 Order applies and which is referable to a period of time £669 £729
The limit for the maximum award in breach of contract cases is £25,000.Developed withContent category
Source URL
/content/current-tribunal-and-arbitration-compensation-limits
Links
Reusing a company name after liquidation
Alternatives to liquidation
An outline of alternatives to liquidation including Company Voluntary Arrangement and administration.
If a company or limited liability partnership faces financial difficulties it doesn't have to result in liquidation.
Alternatives to liquidation include:
- administrative receivership
- members' voluntary liquidation
- company voluntary arrangement
- administration
Administrative receivership
An administrative receiver can be appointed by a creditor. The receiver must be an insolvency practitioner (IP). Before a receiver can be appointed, a document, called a debenture, which gives the creditor charge over company assets must be granted by the company. Once granted the company is in administrative receivership. The receiver's job is to recover money for the creditor.
There are several options including:
- continuing in business under supervision
- selling all or part of the company
- ceasing trading and selling assets
Company Voluntary Arrangement (CVA)
A CVA is when a company proposes an arrangement with its creditors. If creditors holding more than 75 per cent of the debts accept the proposal, all creditors are bound by it. The CVA must be managed by an IP who will report on progress annually. If a CVA is accepted, creditors cannot take action against the company. A CVA ends when it has either been completed or failed.
CVA moratorium
There may be a moratorium into CVA procedures. This means that, subject to certain specific exceptions, creditors cannot act against the company. It will normally last for 28 days and the court will decide if a company is eligible.
Administration
This is when an administrator, who must be an IP, is appointed to manage a company's affairs. Their objective is to rescue the company as a going concern. An administrator may be appointed by:
- an administration order from the High Court
- the holder of a floating charge
- the company or its directors/members
Administration protects the company from its creditors. A creditor cannot petition for the winding up of a company while it is in administration.
Developed withAlso on this siteContent category
Source URL
/content/alternatives-liquidation
Links
Members' voluntary liquidation
An overview of Members' voluntary liquidation, including a formal declaration of solvency.
Members' voluntary liquidation (MVL) is when a company or limited liability partnership (LLP) is solvent and has sufficient assets to pay their creditors.
Formal declaration of solvency
The directors of a company must make a formal declaration of solvency and file it with Companies House. The declaration must:
- be made by the majority of directors on a date no more than five weeks before the passing of the resolution for voluntary winding up
- be filed at Companies Registry
- state that the directors have made a full inquiry into the company's affairs and are of the opinion that the company can pay its debts and interest within a maximum of 12 months
- include an up-to-date statement of the company's assets and liabilities
It is a criminal offence to make a declaration of solvency without reasonable grounds.
Resolutions for winding up
A general meeting must be held by the shareholders of a company. At this meeting, resolutions for winding up the company are passed, along with the appointment of a liquidator. A special resolution must be passed by shareholders for a winding-up.
The shareholders must pass a special resolution for winding up, unless:
- the company resolves that it cannot continue its business because of its liabilities, when an extraordinary resolution is required
- the articles of association of the company provide for it to be dissolved at a certain time, or following a certain event, when an ordinary resolution is required
If it later turns out that the company is not solvent, the liquidator will call a meeting of creditors and the liquidation becomes a creditors' voluntary liquidation.
Developed withAlso on this siteContent category
Source URL
/content/members-voluntary-liquidation
Links
Creditors' voluntary liquidation
Outline of Creditors’ voluntary liquidation.
Creditors' voluntary liquidation (CVL) is when a company or limited liability partnership (LLP) cannot continue its business because of its liabilities.
Resolutions for winding up
A company can hold a meeting to vote by special resolution for it to be wound up voluntarily.
Once the resolution by the company for a winding-up has been passed, the company must:
- send a copy to the Registrar of Companies
- hold a meeting of its creditors - although it is common practice for the meetings of members and creditors to be held on the same day
This gives creditors the opportunity to:
- question the directors of the company as to the reasons for the failure
- put forward an alternative liquidator
Creditors' meeting
One of the directors or designated members must be at the creditors' meeting and preside over it. If they do not attend, the creditors can appoint someone else to preside. If a liquidator has been nominated by the company, they must be at the creditors' meeting and report on any action they have taken in the period between the meetings.
Once appointed, the liquidator takes control of the company and its assets.
Developed withAlso on this siteContent category
Source URL
/content/creditors-voluntary-liquidation
Links
Compulsory liquidation
An overview of compulsory liquidation and the processing a winding-up petition.
Compulsory liquidation is when a company or limited liability partnership (LLP) is unable to pay its debts and is ordered by the High Court to be wound-up. If the High Court receives an application, known as the winding-up petition, from a relevant person, it can make a winding-up order.
Submitting a winding-up petition
Usually, a petition for the winding-up of a company or LLP is presented by one or more creditors but it can be made by:
- a company or LLP itself
- the directors or shareholders of a company or designated members of an LLP
- the supervisor of a voluntary arrangement
- the administrative receiver or administrator
- the Department for the Economy (DfE)
- the Financial Services Authority
- a clerk of the High Court
- the official receiver (OR)
- a Member State Liquidator
- the Attorney General (in the case of a charitable company)
- the Regulator of Community interest companies
- the Director of Public Prosecutions
A winding-up petition can still be presented even if a company or LLP is already in administrative receivership or voluntary liquidation.
Circumstances behind a winding-up order
A winding-up order can be made if:
- the company or LLP has decided that it should be wound up by the court
- the company or LLP has not yet been issued with a trading certificate, despite being registered as a public limited company or LLP more than a year previously
- it is an old public company
- the company or LLP has not begun trading within a year of its incorporation or has suspended its trading for a whole year
- the number of members is less than two, unless it is a private company limited by shares or guarantee
- the company or LLP cannot pay its debts
- the company or LLP has reached the end of a moratorium without approval of a voluntary arrangement
- the High Court decides that this would be just and equitable
Compulsory liquidation and liquidators
The OR will become the liquidator when a winding-up order is made against a company or an LLP - unless the court decides against this. A copy of the winding-up order must be sent to the Registrar of Companies and placed on the company's public record.
As the liquidator the OR must:
- investigate the company's or LLP's affairs and the causes of the failure
- decide whether to call a meeting of creditors, contributories and members to find a replacement liquidator in their place
- notify creditors, contributories and courts if they decide not to call a meeting
If the company or LLP has a number of assets the OR may seek to appoint an insolvency practitioner (IP) as liquidator. If an IP is appointed, the IP must notify the Registrar of Companies of their appointment as soon as reasonably practicable.
Developed withAlso on this siteContent category
Source URL
/content/compulsory-liquidation
Links
Petition for your own bankruptcy
The procedure and information on a bankruptcy petition.
Bankruptcy can be an option for you if you have personal debts that you cannot pay by their due date.
Completion of the bankruptcy petition
To petition for your own bankruptcy you must complete the bankruptcy petition (Form 6.30) along with a statement of affairs (Form 6.31).
Your next step will be to pay a £525 deposit towards the cost of administering your bankruptcy to the Department for the Economy (DfE). This deposit must be paid in all cases and payment may be made in cash or postal orders, or by a cheque from a building society, bank or solicitor. Cheques should be made payable to the 'Official Receiver'.
Alternatively you can pay the deposit online through the Insolvency Service.
You will then need to take the completed forms to the Bankruptcy and Companies Office at the High Court, along with:
- 4 copies of your petition (5 if you are a solicitor)
- 1 copy of your statement of affairs
- the receipt for the deposit paid to DfE
The Court will either hear your petition straight away or arrange a time for the Court to consider it.
For further information see make yourself bankrupt. You can also download DfE's guidance on how to petition for your own bankruptcy (PDF, 252K).
Developed withAlso on this siteContent category
Source URL
/content/petition-your-own-bankruptcy
Links
Disqualification of company directors
Overview of the disqualification proceedings of a company director.
If you are a director of a company that becomes insolvent and there is evidence of unfit conduct by you, the Insolvency Service can apply to the court to make an order disqualifying you from acting as a director for between two and 15 years.
Disqualification order
A disqualification order can be made against a director for such unfit conduct as:
- continuing to trade at the expense of creditors when the company was insolvent
- failing to keep proper accounting records
- failing to submit tax returns or pay tax due
- not preparing and filing accounts or not sending returns to Companies House
- failure to co-operate with the official receiver/insolvency practitioner
The effects of disqualification
A disqualification order or undertaking will prevent you from:
- acting as a company director
- being involved with the formation, management or running of a new company
- acting as a receiver of a company's property
Disqualification proceedings
The Insolvency Service has three years to apply for disqualification starting from the official end of the company which can be from the date of the:
- winding-up order (compulsory liquidation)
- voluntary liquidation
- administrative receivership
- administration
This period may be extended at the discretion of the court.
See the Department for the Economy (DfE) guidance on directors disqualification.
Disqualification undertakings
If you are a director who is the subject of intended disqualification proceedings, you can offer a disqualification undertaking to the department, undertaking not to be a director for an agreed period. A disqualification undertaking has the same effect in law as a disqualification order, but does not involve the courts.
Scope of disqualification
The ban on being a director applies to all registered and unregistered companies formed in Northern Ireland and Great Britain. The ban also applies to foreign companies that are registered in the UK and to:
- building societies
- incorporated friendly societies
- NHS Foundation Trusts
You will also be barred from holding other offices.
Criminal proceedings for breaches of a disqualification order
It is a criminal offence to breach a director disqualification order or undertaking, without permission from the court. The penalties range from a fine to up to two years in prison.
If you breach your disqualification order or undertaking, you will be personally liable for the company's debts incurred during the breach. The same applies to anyone involved in the management of the company who carries out your instructions knowing that you are disqualified.
Developed withAlso on this siteContent category
Source URL
/content/disqualification-company-directors
Links
Reusing a company name after liquidation
Information on the legal restrictions that apply when you want to reuse a company name after liquidation.
If you are a former director of a liquidated company, there are legal restrictions that apply regarding the reuse of that company's name or its trading name. This is intended to prevent abuse of the so-called 'phoenix company' - where a failed business re-emerges to operate under a similar name.
Prohibited names
A prohibited name is a name by which a liquidated company was known at any time in the 12 months immediately before its liquidation. This can be any of the following:
- the name registered at Companies House
- the company's trading name
- any name so similar to either of the above that it suggests an association with the liquidated company
The restrictions apply personally to you if you were registered as a director - or acted as a director - during the 12 months leading up to the liquidation.
What are the restrictions?
You - and any other former directors - are banned from being a director of a limited company that's using a prohibited name for five years from the date of the original company's liquidation. The ban includes not being allowed to take part in the formation, promotion or management of such a company.
The restrictions also extend to a business that is not a limited company - eg a partnership or sole trader - that's using a prohibited name. In such a case, any relevant former directors are banned from being concerned in or taking any part in carrying on such a business for five years.
Penalties for breaching rules on use of prohibited names
It is a criminal offence to break the rules regarding the use of a prohibited name. Successful prosecution could lead to a fine, a prison sentence or both.
You could also be made personally liable for company debts incurred during the period you were involved in managing a business using a prohibited name - even if it was a limited company.
If you are involved in managing a business and act on instructions from someone you know to be acting as a director when restricted from doing so you would be committing a criminal offence.
Exceptions to the rules - when you can reuse a prohibited name
There are certain exceptions where you can legally reuse a prohibited name. It will generally depend on the particular circumstances of an insolvency.
However, the penalties for breaking the rules are severe and it is highly recommended that you get professional advice on your options.
Developed withContent category
Source URL
/content/reusing-company-name-after-liquidation
Links
Disqualification of company directors
Alternatives to liquidation
An outline of alternatives to liquidation including Company Voluntary Arrangement and administration.
If a company or limited liability partnership faces financial difficulties it doesn't have to result in liquidation.
Alternatives to liquidation include:
- administrative receivership
- members' voluntary liquidation
- company voluntary arrangement
- administration
Administrative receivership
An administrative receiver can be appointed by a creditor. The receiver must be an insolvency practitioner (IP). Before a receiver can be appointed, a document, called a debenture, which gives the creditor charge over company assets must be granted by the company. Once granted the company is in administrative receivership. The receiver's job is to recover money for the creditor.
There are several options including:
- continuing in business under supervision
- selling all or part of the company
- ceasing trading and selling assets
Company Voluntary Arrangement (CVA)
A CVA is when a company proposes an arrangement with its creditors. If creditors holding more than 75 per cent of the debts accept the proposal, all creditors are bound by it. The CVA must be managed by an IP who will report on progress annually. If a CVA is accepted, creditors cannot take action against the company. A CVA ends when it has either been completed or failed.
CVA moratorium
There may be a moratorium into CVA procedures. This means that, subject to certain specific exceptions, creditors cannot act against the company. It will normally last for 28 days and the court will decide if a company is eligible.
Administration
This is when an administrator, who must be an IP, is appointed to manage a company's affairs. Their objective is to rescue the company as a going concern. An administrator may be appointed by:
- an administration order from the High Court
- the holder of a floating charge
- the company or its directors/members
Administration protects the company from its creditors. A creditor cannot petition for the winding up of a company while it is in administration.
Developed withAlso on this siteContent category
Source URL
/content/alternatives-liquidation
Links
Members' voluntary liquidation
An overview of Members' voluntary liquidation, including a formal declaration of solvency.
Members' voluntary liquidation (MVL) is when a company or limited liability partnership (LLP) is solvent and has sufficient assets to pay their creditors.
Formal declaration of solvency
The directors of a company must make a formal declaration of solvency and file it with Companies House. The declaration must:
- be made by the majority of directors on a date no more than five weeks before the passing of the resolution for voluntary winding up
- be filed at Companies Registry
- state that the directors have made a full inquiry into the company's affairs and are of the opinion that the company can pay its debts and interest within a maximum of 12 months
- include an up-to-date statement of the company's assets and liabilities
It is a criminal offence to make a declaration of solvency without reasonable grounds.
Resolutions for winding up
A general meeting must be held by the shareholders of a company. At this meeting, resolutions for winding up the company are passed, along with the appointment of a liquidator. A special resolution must be passed by shareholders for a winding-up.
The shareholders must pass a special resolution for winding up, unless:
- the company resolves that it cannot continue its business because of its liabilities, when an extraordinary resolution is required
- the articles of association of the company provide for it to be dissolved at a certain time, or following a certain event, when an ordinary resolution is required
If it later turns out that the company is not solvent, the liquidator will call a meeting of creditors and the liquidation becomes a creditors' voluntary liquidation.
Developed withAlso on this siteContent category
Source URL
/content/members-voluntary-liquidation
Links
Creditors' voluntary liquidation
Outline of Creditors’ voluntary liquidation.
Creditors' voluntary liquidation (CVL) is when a company or limited liability partnership (LLP) cannot continue its business because of its liabilities.
Resolutions for winding up
A company can hold a meeting to vote by special resolution for it to be wound up voluntarily.
Once the resolution by the company for a winding-up has been passed, the company must:
- send a copy to the Registrar of Companies
- hold a meeting of its creditors - although it is common practice for the meetings of members and creditors to be held on the same day
This gives creditors the opportunity to:
- question the directors of the company as to the reasons for the failure
- put forward an alternative liquidator
Creditors' meeting
One of the directors or designated members must be at the creditors' meeting and preside over it. If they do not attend, the creditors can appoint someone else to preside. If a liquidator has been nominated by the company, they must be at the creditors' meeting and report on any action they have taken in the period between the meetings.
Once appointed, the liquidator takes control of the company and its assets.
Developed withAlso on this siteContent category
Source URL
/content/creditors-voluntary-liquidation
Links
Compulsory liquidation
An overview of compulsory liquidation and the processing a winding-up petition.
Compulsory liquidation is when a company or limited liability partnership (LLP) is unable to pay its debts and is ordered by the High Court to be wound-up. If the High Court receives an application, known as the winding-up petition, from a relevant person, it can make a winding-up order.
Submitting a winding-up petition
Usually, a petition for the winding-up of a company or LLP is presented by one or more creditors but it can be made by:
- a company or LLP itself
- the directors or shareholders of a company or designated members of an LLP
- the supervisor of a voluntary arrangement
- the administrative receiver or administrator
- the Department for the Economy (DfE)
- the Financial Services Authority
- a clerk of the High Court
- the official receiver (OR)
- a Member State Liquidator
- the Attorney General (in the case of a charitable company)
- the Regulator of Community interest companies
- the Director of Public Prosecutions
A winding-up petition can still be presented even if a company or LLP is already in administrative receivership or voluntary liquidation.
Circumstances behind a winding-up order
A winding-up order can be made if:
- the company or LLP has decided that it should be wound up by the court
- the company or LLP has not yet been issued with a trading certificate, despite being registered as a public limited company or LLP more than a year previously
- it is an old public company
- the company or LLP has not begun trading within a year of its incorporation or has suspended its trading for a whole year
- the number of members is less than two, unless it is a private company limited by shares or guarantee
- the company or LLP cannot pay its debts
- the company or LLP has reached the end of a moratorium without approval of a voluntary arrangement
- the High Court decides that this would be just and equitable
Compulsory liquidation and liquidators
The OR will become the liquidator when a winding-up order is made against a company or an LLP - unless the court decides against this. A copy of the winding-up order must be sent to the Registrar of Companies and placed on the company's public record.
As the liquidator the OR must:
- investigate the company's or LLP's affairs and the causes of the failure
- decide whether to call a meeting of creditors, contributories and members to find a replacement liquidator in their place
- notify creditors, contributories and courts if they decide not to call a meeting
If the company or LLP has a number of assets the OR may seek to appoint an insolvency practitioner (IP) as liquidator. If an IP is appointed, the IP must notify the Registrar of Companies of their appointment as soon as reasonably practicable.
Developed withAlso on this siteContent category
Source URL
/content/compulsory-liquidation
Links
Petition for your own bankruptcy
The procedure and information on a bankruptcy petition.
Bankruptcy can be an option for you if you have personal debts that you cannot pay by their due date.
Completion of the bankruptcy petition
To petition for your own bankruptcy you must complete the bankruptcy petition (Form 6.30) along with a statement of affairs (Form 6.31).
Your next step will be to pay a £525 deposit towards the cost of administering your bankruptcy to the Department for the Economy (DfE). This deposit must be paid in all cases and payment may be made in cash or postal orders, or by a cheque from a building society, bank or solicitor. Cheques should be made payable to the 'Official Receiver'.
Alternatively you can pay the deposit online through the Insolvency Service.
You will then need to take the completed forms to the Bankruptcy and Companies Office at the High Court, along with:
- 4 copies of your petition (5 if you are a solicitor)
- 1 copy of your statement of affairs
- the receipt for the deposit paid to DfE
The Court will either hear your petition straight away or arrange a time for the Court to consider it.
For further information see make yourself bankrupt. You can also download DfE's guidance on how to petition for your own bankruptcy (PDF, 252K).
Developed withAlso on this siteContent category
Source URL
/content/petition-your-own-bankruptcy
Links
Disqualification of company directors
Overview of the disqualification proceedings of a company director.
If you are a director of a company that becomes insolvent and there is evidence of unfit conduct by you, the Insolvency Service can apply to the court to make an order disqualifying you from acting as a director for between two and 15 years.
Disqualification order
A disqualification order can be made against a director for such unfit conduct as:
- continuing to trade at the expense of creditors when the company was insolvent
- failing to keep proper accounting records
- failing to submit tax returns or pay tax due
- not preparing and filing accounts or not sending returns to Companies House
- failure to co-operate with the official receiver/insolvency practitioner
The effects of disqualification
A disqualification order or undertaking will prevent you from:
- acting as a company director
- being involved with the formation, management or running of a new company
- acting as a receiver of a company's property
Disqualification proceedings
The Insolvency Service has three years to apply for disqualification starting from the official end of the company which can be from the date of the:
- winding-up order (compulsory liquidation)
- voluntary liquidation
- administrative receivership
- administration
This period may be extended at the discretion of the court.
See the Department for the Economy (DfE) guidance on directors disqualification.
Disqualification undertakings
If you are a director who is the subject of intended disqualification proceedings, you can offer a disqualification undertaking to the department, undertaking not to be a director for an agreed period. A disqualification undertaking has the same effect in law as a disqualification order, but does not involve the courts.
Scope of disqualification
The ban on being a director applies to all registered and unregistered companies formed in Northern Ireland and Great Britain. The ban also applies to foreign companies that are registered in the UK and to:
- building societies
- incorporated friendly societies
- NHS Foundation Trusts
You will also be barred from holding other offices.
Criminal proceedings for breaches of a disqualification order
It is a criminal offence to breach a director disqualification order or undertaking, without permission from the court. The penalties range from a fine to up to two years in prison.
If you breach your disqualification order or undertaking, you will be personally liable for the company's debts incurred during the breach. The same applies to anyone involved in the management of the company who carries out your instructions knowing that you are disqualified.
Developed withAlso on this siteContent category
Source URL
/content/disqualification-company-directors
Links
Reusing a company name after liquidation
Information on the legal restrictions that apply when you want to reuse a company name after liquidation.
If you are a former director of a liquidated company, there are legal restrictions that apply regarding the reuse of that company's name or its trading name. This is intended to prevent abuse of the so-called 'phoenix company' - where a failed business re-emerges to operate under a similar name.
Prohibited names
A prohibited name is a name by which a liquidated company was known at any time in the 12 months immediately before its liquidation. This can be any of the following:
- the name registered at Companies House
- the company's trading name
- any name so similar to either of the above that it suggests an association with the liquidated company
The restrictions apply personally to you if you were registered as a director - or acted as a director - during the 12 months leading up to the liquidation.
What are the restrictions?
You - and any other former directors - are banned from being a director of a limited company that's using a prohibited name for five years from the date of the original company's liquidation. The ban includes not being allowed to take part in the formation, promotion or management of such a company.
The restrictions also extend to a business that is not a limited company - eg a partnership or sole trader - that's using a prohibited name. In such a case, any relevant former directors are banned from being concerned in or taking any part in carrying on such a business for five years.
Penalties for breaching rules on use of prohibited names
It is a criminal offence to break the rules regarding the use of a prohibited name. Successful prosecution could lead to a fine, a prison sentence or both.
You could also be made personally liable for company debts incurred during the period you were involved in managing a business using a prohibited name - even if it was a limited company.
If you are involved in managing a business and act on instructions from someone you know to be acting as a director when restricted from doing so you would be committing a criminal offence.
Exceptions to the rules - when you can reuse a prohibited name
There are certain exceptions where you can legally reuse a prohibited name. It will generally depend on the particular circumstances of an insolvency.
However, the penalties for breaking the rules are severe and it is highly recommended that you get professional advice on your options.
Developed withContent category
Source URL
/content/reusing-company-name-after-liquidation
Links
Petition for your own bankruptcy
Alternatives to liquidation
An outline of alternatives to liquidation including Company Voluntary Arrangement and administration.
If a company or limited liability partnership faces financial difficulties it doesn't have to result in liquidation.
Alternatives to liquidation include:
- administrative receivership
- members' voluntary liquidation
- company voluntary arrangement
- administration
Administrative receivership
An administrative receiver can be appointed by a creditor. The receiver must be an insolvency practitioner (IP). Before a receiver can be appointed, a document, called a debenture, which gives the creditor charge over company assets must be granted by the company. Once granted the company is in administrative receivership. The receiver's job is to recover money for the creditor.
There are several options including:
- continuing in business under supervision
- selling all or part of the company
- ceasing trading and selling assets
Company Voluntary Arrangement (CVA)
A CVA is when a company proposes an arrangement with its creditors. If creditors holding more than 75 per cent of the debts accept the proposal, all creditors are bound by it. The CVA must be managed by an IP who will report on progress annually. If a CVA is accepted, creditors cannot take action against the company. A CVA ends when it has either been completed or failed.
CVA moratorium
There may be a moratorium into CVA procedures. This means that, subject to certain specific exceptions, creditors cannot act against the company. It will normally last for 28 days and the court will decide if a company is eligible.
Administration
This is when an administrator, who must be an IP, is appointed to manage a company's affairs. Their objective is to rescue the company as a going concern. An administrator may be appointed by:
- an administration order from the High Court
- the holder of a floating charge
- the company or its directors/members
Administration protects the company from its creditors. A creditor cannot petition for the winding up of a company while it is in administration.
Developed withAlso on this siteContent category
Source URL
/content/alternatives-liquidation
Links
Members' voluntary liquidation
An overview of Members' voluntary liquidation, including a formal declaration of solvency.
Members' voluntary liquidation (MVL) is when a company or limited liability partnership (LLP) is solvent and has sufficient assets to pay their creditors.
Formal declaration of solvency
The directors of a company must make a formal declaration of solvency and file it with Companies House. The declaration must:
- be made by the majority of directors on a date no more than five weeks before the passing of the resolution for voluntary winding up
- be filed at Companies Registry
- state that the directors have made a full inquiry into the company's affairs and are of the opinion that the company can pay its debts and interest within a maximum of 12 months
- include an up-to-date statement of the company's assets and liabilities
It is a criminal offence to make a declaration of solvency without reasonable grounds.
Resolutions for winding up
A general meeting must be held by the shareholders of a company. At this meeting, resolutions for winding up the company are passed, along with the appointment of a liquidator. A special resolution must be passed by shareholders for a winding-up.
The shareholders must pass a special resolution for winding up, unless:
- the company resolves that it cannot continue its business because of its liabilities, when an extraordinary resolution is required
- the articles of association of the company provide for it to be dissolved at a certain time, or following a certain event, when an ordinary resolution is required
If it later turns out that the company is not solvent, the liquidator will call a meeting of creditors and the liquidation becomes a creditors' voluntary liquidation.
Developed withAlso on this siteContent category
Source URL
/content/members-voluntary-liquidation
Links
Creditors' voluntary liquidation
Outline of Creditors’ voluntary liquidation.
Creditors' voluntary liquidation (CVL) is when a company or limited liability partnership (LLP) cannot continue its business because of its liabilities.
Resolutions for winding up
A company can hold a meeting to vote by special resolution for it to be wound up voluntarily.
Once the resolution by the company for a winding-up has been passed, the company must:
- send a copy to the Registrar of Companies
- hold a meeting of its creditors - although it is common practice for the meetings of members and creditors to be held on the same day
This gives creditors the opportunity to:
- question the directors of the company as to the reasons for the failure
- put forward an alternative liquidator
Creditors' meeting
One of the directors or designated members must be at the creditors' meeting and preside over it. If they do not attend, the creditors can appoint someone else to preside. If a liquidator has been nominated by the company, they must be at the creditors' meeting and report on any action they have taken in the period between the meetings.
Once appointed, the liquidator takes control of the company and its assets.
Developed withAlso on this siteContent category
Source URL
/content/creditors-voluntary-liquidation
Links
Compulsory liquidation
An overview of compulsory liquidation and the processing a winding-up petition.
Compulsory liquidation is when a company or limited liability partnership (LLP) is unable to pay its debts and is ordered by the High Court to be wound-up. If the High Court receives an application, known as the winding-up petition, from a relevant person, it can make a winding-up order.
Submitting a winding-up petition
Usually, a petition for the winding-up of a company or LLP is presented by one or more creditors but it can be made by:
- a company or LLP itself
- the directors or shareholders of a company or designated members of an LLP
- the supervisor of a voluntary arrangement
- the administrative receiver or administrator
- the Department for the Economy (DfE)
- the Financial Services Authority
- a clerk of the High Court
- the official receiver (OR)
- a Member State Liquidator
- the Attorney General (in the case of a charitable company)
- the Regulator of Community interest companies
- the Director of Public Prosecutions
A winding-up petition can still be presented even if a company or LLP is already in administrative receivership or voluntary liquidation.
Circumstances behind a winding-up order
A winding-up order can be made if:
- the company or LLP has decided that it should be wound up by the court
- the company or LLP has not yet been issued with a trading certificate, despite being registered as a public limited company or LLP more than a year previously
- it is an old public company
- the company or LLP has not begun trading within a year of its incorporation or has suspended its trading for a whole year
- the number of members is less than two, unless it is a private company limited by shares or guarantee
- the company or LLP cannot pay its debts
- the company or LLP has reached the end of a moratorium without approval of a voluntary arrangement
- the High Court decides that this would be just and equitable
Compulsory liquidation and liquidators
The OR will become the liquidator when a winding-up order is made against a company or an LLP - unless the court decides against this. A copy of the winding-up order must be sent to the Registrar of Companies and placed on the company's public record.
As the liquidator the OR must:
- investigate the company's or LLP's affairs and the causes of the failure
- decide whether to call a meeting of creditors, contributories and members to find a replacement liquidator in their place
- notify creditors, contributories and courts if they decide not to call a meeting
If the company or LLP has a number of assets the OR may seek to appoint an insolvency practitioner (IP) as liquidator. If an IP is appointed, the IP must notify the Registrar of Companies of their appointment as soon as reasonably practicable.
Developed withAlso on this siteContent category
Source URL
/content/compulsory-liquidation
Links
Petition for your own bankruptcy
The procedure and information on a bankruptcy petition.
Bankruptcy can be an option for you if you have personal debts that you cannot pay by their due date.
Completion of the bankruptcy petition
To petition for your own bankruptcy you must complete the bankruptcy petition (Form 6.30) along with a statement of affairs (Form 6.31).
Your next step will be to pay a £525 deposit towards the cost of administering your bankruptcy to the Department for the Economy (DfE). This deposit must be paid in all cases and payment may be made in cash or postal orders, or by a cheque from a building society, bank or solicitor. Cheques should be made payable to the 'Official Receiver'.
Alternatively you can pay the deposit online through the Insolvency Service.
You will then need to take the completed forms to the Bankruptcy and Companies Office at the High Court, along with:
- 4 copies of your petition (5 if you are a solicitor)
- 1 copy of your statement of affairs
- the receipt for the deposit paid to DfE
The Court will either hear your petition straight away or arrange a time for the Court to consider it.
For further information see make yourself bankrupt. You can also download DfE's guidance on how to petition for your own bankruptcy (PDF, 252K).
Developed withAlso on this siteContent category
Source URL
/content/petition-your-own-bankruptcy
Links
Disqualification of company directors
Overview of the disqualification proceedings of a company director.
If you are a director of a company that becomes insolvent and there is evidence of unfit conduct by you, the Insolvency Service can apply to the court to make an order disqualifying you from acting as a director for between two and 15 years.
Disqualification order
A disqualification order can be made against a director for such unfit conduct as:
- continuing to trade at the expense of creditors when the company was insolvent
- failing to keep proper accounting records
- failing to submit tax returns or pay tax due
- not preparing and filing accounts or not sending returns to Companies House
- failure to co-operate with the official receiver/insolvency practitioner
The effects of disqualification
A disqualification order or undertaking will prevent you from:
- acting as a company director
- being involved with the formation, management or running of a new company
- acting as a receiver of a company's property
Disqualification proceedings
The Insolvency Service has three years to apply for disqualification starting from the official end of the company which can be from the date of the:
- winding-up order (compulsory liquidation)
- voluntary liquidation
- administrative receivership
- administration
This period may be extended at the discretion of the court.
See the Department for the Economy (DfE) guidance on directors disqualification.
Disqualification undertakings
If you are a director who is the subject of intended disqualification proceedings, you can offer a disqualification undertaking to the department, undertaking not to be a director for an agreed period. A disqualification undertaking has the same effect in law as a disqualification order, but does not involve the courts.
Scope of disqualification
The ban on being a director applies to all registered and unregistered companies formed in Northern Ireland and Great Britain. The ban also applies to foreign companies that are registered in the UK and to:
- building societies
- incorporated friendly societies
- NHS Foundation Trusts
You will also be barred from holding other offices.
Criminal proceedings for breaches of a disqualification order
It is a criminal offence to breach a director disqualification order or undertaking, without permission from the court. The penalties range from a fine to up to two years in prison.
If you breach your disqualification order or undertaking, you will be personally liable for the company's debts incurred during the breach. The same applies to anyone involved in the management of the company who carries out your instructions knowing that you are disqualified.
Developed withAlso on this siteContent category
Source URL
/content/disqualification-company-directors
Links
Reusing a company name after liquidation
Information on the legal restrictions that apply when you want to reuse a company name after liquidation.
If you are a former director of a liquidated company, there are legal restrictions that apply regarding the reuse of that company's name or its trading name. This is intended to prevent abuse of the so-called 'phoenix company' - where a failed business re-emerges to operate under a similar name.
Prohibited names
A prohibited name is a name by which a liquidated company was known at any time in the 12 months immediately before its liquidation. This can be any of the following:
- the name registered at Companies House
- the company's trading name
- any name so similar to either of the above that it suggests an association with the liquidated company
The restrictions apply personally to you if you were registered as a director - or acted as a director - during the 12 months leading up to the liquidation.
What are the restrictions?
You - and any other former directors - are banned from being a director of a limited company that's using a prohibited name for five years from the date of the original company's liquidation. The ban includes not being allowed to take part in the formation, promotion or management of such a company.
The restrictions also extend to a business that is not a limited company - eg a partnership or sole trader - that's using a prohibited name. In such a case, any relevant former directors are banned from being concerned in or taking any part in carrying on such a business for five years.
Penalties for breaching rules on use of prohibited names
It is a criminal offence to break the rules regarding the use of a prohibited name. Successful prosecution could lead to a fine, a prison sentence or both.
You could also be made personally liable for company debts incurred during the period you were involved in managing a business using a prohibited name - even if it was a limited company.
If you are involved in managing a business and act on instructions from someone you know to be acting as a director when restricted from doing so you would be committing a criminal offence.
Exceptions to the rules - when you can reuse a prohibited name
There are certain exceptions where you can legally reuse a prohibited name. It will generally depend on the particular circumstances of an insolvency.
However, the penalties for breaking the rules are severe and it is highly recommended that you get professional advice on your options.
Developed withContent category
Source URL
/content/reusing-company-name-after-liquidation
Links
Compulsory liquidation
Alternatives to liquidation
An outline of alternatives to liquidation including Company Voluntary Arrangement and administration.
If a company or limited liability partnership faces financial difficulties it doesn't have to result in liquidation.
Alternatives to liquidation include:
- administrative receivership
- members' voluntary liquidation
- company voluntary arrangement
- administration
Administrative receivership
An administrative receiver can be appointed by a creditor. The receiver must be an insolvency practitioner (IP). Before a receiver can be appointed, a document, called a debenture, which gives the creditor charge over company assets must be granted by the company. Once granted the company is in administrative receivership. The receiver's job is to recover money for the creditor.
There are several options including:
- continuing in business under supervision
- selling all or part of the company
- ceasing trading and selling assets
Company Voluntary Arrangement (CVA)
A CVA is when a company proposes an arrangement with its creditors. If creditors holding more than 75 per cent of the debts accept the proposal, all creditors are bound by it. The CVA must be managed by an IP who will report on progress annually. If a CVA is accepted, creditors cannot take action against the company. A CVA ends when it has either been completed or failed.
CVA moratorium
There may be a moratorium into CVA procedures. This means that, subject to certain specific exceptions, creditors cannot act against the company. It will normally last for 28 days and the court will decide if a company is eligible.
Administration
This is when an administrator, who must be an IP, is appointed to manage a company's affairs. Their objective is to rescue the company as a going concern. An administrator may be appointed by:
- an administration order from the High Court
- the holder of a floating charge
- the company or its directors/members
Administration protects the company from its creditors. A creditor cannot petition for the winding up of a company while it is in administration.
Developed withAlso on this siteContent category
Source URL
/content/alternatives-liquidation
Links
Members' voluntary liquidation
An overview of Members' voluntary liquidation, including a formal declaration of solvency.
Members' voluntary liquidation (MVL) is when a company or limited liability partnership (LLP) is solvent and has sufficient assets to pay their creditors.
Formal declaration of solvency
The directors of a company must make a formal declaration of solvency and file it with Companies House. The declaration must:
- be made by the majority of directors on a date no more than five weeks before the passing of the resolution for voluntary winding up
- be filed at Companies Registry
- state that the directors have made a full inquiry into the company's affairs and are of the opinion that the company can pay its debts and interest within a maximum of 12 months
- include an up-to-date statement of the company's assets and liabilities
It is a criminal offence to make a declaration of solvency without reasonable grounds.
Resolutions for winding up
A general meeting must be held by the shareholders of a company. At this meeting, resolutions for winding up the company are passed, along with the appointment of a liquidator. A special resolution must be passed by shareholders for a winding-up.
The shareholders must pass a special resolution for winding up, unless:
- the company resolves that it cannot continue its business because of its liabilities, when an extraordinary resolution is required
- the articles of association of the company provide for it to be dissolved at a certain time, or following a certain event, when an ordinary resolution is required
If it later turns out that the company is not solvent, the liquidator will call a meeting of creditors and the liquidation becomes a creditors' voluntary liquidation.
Developed withAlso on this siteContent category
Source URL
/content/members-voluntary-liquidation
Links
Creditors' voluntary liquidation
Outline of Creditors’ voluntary liquidation.
Creditors' voluntary liquidation (CVL) is when a company or limited liability partnership (LLP) cannot continue its business because of its liabilities.
Resolutions for winding up
A company can hold a meeting to vote by special resolution for it to be wound up voluntarily.
Once the resolution by the company for a winding-up has been passed, the company must:
- send a copy to the Registrar of Companies
- hold a meeting of its creditors - although it is common practice for the meetings of members and creditors to be held on the same day
This gives creditors the opportunity to:
- question the directors of the company as to the reasons for the failure
- put forward an alternative liquidator
Creditors' meeting
One of the directors or designated members must be at the creditors' meeting and preside over it. If they do not attend, the creditors can appoint someone else to preside. If a liquidator has been nominated by the company, they must be at the creditors' meeting and report on any action they have taken in the period between the meetings.
Once appointed, the liquidator takes control of the company and its assets.
Developed withAlso on this siteContent category
Source URL
/content/creditors-voluntary-liquidation
Links
Compulsory liquidation
An overview of compulsory liquidation and the processing a winding-up petition.
Compulsory liquidation is when a company or limited liability partnership (LLP) is unable to pay its debts and is ordered by the High Court to be wound-up. If the High Court receives an application, known as the winding-up petition, from a relevant person, it can make a winding-up order.
Submitting a winding-up petition
Usually, a petition for the winding-up of a company or LLP is presented by one or more creditors but it can be made by:
- a company or LLP itself
- the directors or shareholders of a company or designated members of an LLP
- the supervisor of a voluntary arrangement
- the administrative receiver or administrator
- the Department for the Economy (DfE)
- the Financial Services Authority
- a clerk of the High Court
- the official receiver (OR)
- a Member State Liquidator
- the Attorney General (in the case of a charitable company)
- the Regulator of Community interest companies
- the Director of Public Prosecutions
A winding-up petition can still be presented even if a company or LLP is already in administrative receivership or voluntary liquidation.
Circumstances behind a winding-up order
A winding-up order can be made if:
- the company or LLP has decided that it should be wound up by the court
- the company or LLP has not yet been issued with a trading certificate, despite being registered as a public limited company or LLP more than a year previously
- it is an old public company
- the company or LLP has not begun trading within a year of its incorporation or has suspended its trading for a whole year
- the number of members is less than two, unless it is a private company limited by shares or guarantee
- the company or LLP cannot pay its debts
- the company or LLP has reached the end of a moratorium without approval of a voluntary arrangement
- the High Court decides that this would be just and equitable
Compulsory liquidation and liquidators
The OR will become the liquidator when a winding-up order is made against a company or an LLP - unless the court decides against this. A copy of the winding-up order must be sent to the Registrar of Companies and placed on the company's public record.
As the liquidator the OR must:
- investigate the company's or LLP's affairs and the causes of the failure
- decide whether to call a meeting of creditors, contributories and members to find a replacement liquidator in their place
- notify creditors, contributories and courts if they decide not to call a meeting
If the company or LLP has a number of assets the OR may seek to appoint an insolvency practitioner (IP) as liquidator. If an IP is appointed, the IP must notify the Registrar of Companies of their appointment as soon as reasonably practicable.
Developed withAlso on this siteContent category
Source URL
/content/compulsory-liquidation
Links
Petition for your own bankruptcy
The procedure and information on a bankruptcy petition.
Bankruptcy can be an option for you if you have personal debts that you cannot pay by their due date.
Completion of the bankruptcy petition
To petition for your own bankruptcy you must complete the bankruptcy petition (Form 6.30) along with a statement of affairs (Form 6.31).
Your next step will be to pay a £525 deposit towards the cost of administering your bankruptcy to the Department for the Economy (DfE). This deposit must be paid in all cases and payment may be made in cash or postal orders, or by a cheque from a building society, bank or solicitor. Cheques should be made payable to the 'Official Receiver'.
Alternatively you can pay the deposit online through the Insolvency Service.
You will then need to take the completed forms to the Bankruptcy and Companies Office at the High Court, along with:
- 4 copies of your petition (5 if you are a solicitor)
- 1 copy of your statement of affairs
- the receipt for the deposit paid to DfE
The Court will either hear your petition straight away or arrange a time for the Court to consider it.
For further information see make yourself bankrupt. You can also download DfE's guidance on how to petition for your own bankruptcy (PDF, 252K).
Developed withAlso on this siteContent category
Source URL
/content/petition-your-own-bankruptcy
Links
Disqualification of company directors
Overview of the disqualification proceedings of a company director.
If you are a director of a company that becomes insolvent and there is evidence of unfit conduct by you, the Insolvency Service can apply to the court to make an order disqualifying you from acting as a director for between two and 15 years.
Disqualification order
A disqualification order can be made against a director for such unfit conduct as:
- continuing to trade at the expense of creditors when the company was insolvent
- failing to keep proper accounting records
- failing to submit tax returns or pay tax due
- not preparing and filing accounts or not sending returns to Companies House
- failure to co-operate with the official receiver/insolvency practitioner
The effects of disqualification
A disqualification order or undertaking will prevent you from:
- acting as a company director
- being involved with the formation, management or running of a new company
- acting as a receiver of a company's property
Disqualification proceedings
The Insolvency Service has three years to apply for disqualification starting from the official end of the company which can be from the date of the:
- winding-up order (compulsory liquidation)
- voluntary liquidation
- administrative receivership
- administration
This period may be extended at the discretion of the court.
See the Department for the Economy (DfE) guidance on directors disqualification.
Disqualification undertakings
If you are a director who is the subject of intended disqualification proceedings, you can offer a disqualification undertaking to the department, undertaking not to be a director for an agreed period. A disqualification undertaking has the same effect in law as a disqualification order, but does not involve the courts.
Scope of disqualification
The ban on being a director applies to all registered and unregistered companies formed in Northern Ireland and Great Britain. The ban also applies to foreign companies that are registered in the UK and to:
- building societies
- incorporated friendly societies
- NHS Foundation Trusts
You will also be barred from holding other offices.
Criminal proceedings for breaches of a disqualification order
It is a criminal offence to breach a director disqualification order or undertaking, without permission from the court. The penalties range from a fine to up to two years in prison.
If you breach your disqualification order or undertaking, you will be personally liable for the company's debts incurred during the breach. The same applies to anyone involved in the management of the company who carries out your instructions knowing that you are disqualified.
Developed withAlso on this siteContent category
Source URL
/content/disqualification-company-directors
Links
Reusing a company name after liquidation
Information on the legal restrictions that apply when you want to reuse a company name after liquidation.
If you are a former director of a liquidated company, there are legal restrictions that apply regarding the reuse of that company's name or its trading name. This is intended to prevent abuse of the so-called 'phoenix company' - where a failed business re-emerges to operate under a similar name.
Prohibited names
A prohibited name is a name by which a liquidated company was known at any time in the 12 months immediately before its liquidation. This can be any of the following:
- the name registered at Companies House
- the company's trading name
- any name so similar to either of the above that it suggests an association with the liquidated company
The restrictions apply personally to you if you were registered as a director - or acted as a director - during the 12 months leading up to the liquidation.
What are the restrictions?
You - and any other former directors - are banned from being a director of a limited company that's using a prohibited name for five years from the date of the original company's liquidation. The ban includes not being allowed to take part in the formation, promotion or management of such a company.
The restrictions also extend to a business that is not a limited company - eg a partnership or sole trader - that's using a prohibited name. In such a case, any relevant former directors are banned from being concerned in or taking any part in carrying on such a business for five years.
Penalties for breaching rules on use of prohibited names
It is a criminal offence to break the rules regarding the use of a prohibited name. Successful prosecution could lead to a fine, a prison sentence or both.
You could also be made personally liable for company debts incurred during the period you were involved in managing a business using a prohibited name - even if it was a limited company.
If you are involved in managing a business and act on instructions from someone you know to be acting as a director when restricted from doing so you would be committing a criminal offence.
Exceptions to the rules - when you can reuse a prohibited name
There are certain exceptions where you can legally reuse a prohibited name. It will generally depend on the particular circumstances of an insolvency.
However, the penalties for breaking the rules are severe and it is highly recommended that you get professional advice on your options.
Developed withContent category
Source URL
/content/reusing-company-name-after-liquidation
Links
Creditors' voluntary liquidation
Alternatives to liquidation
An outline of alternatives to liquidation including Company Voluntary Arrangement and administration.
If a company or limited liability partnership faces financial difficulties it doesn't have to result in liquidation.
Alternatives to liquidation include:
- administrative receivership
- members' voluntary liquidation
- company voluntary arrangement
- administration
Administrative receivership
An administrative receiver can be appointed by a creditor. The receiver must be an insolvency practitioner (IP). Before a receiver can be appointed, a document, called a debenture, which gives the creditor charge over company assets must be granted by the company. Once granted the company is in administrative receivership. The receiver's job is to recover money for the creditor.
There are several options including:
- continuing in business under supervision
- selling all or part of the company
- ceasing trading and selling assets
Company Voluntary Arrangement (CVA)
A CVA is when a company proposes an arrangement with its creditors. If creditors holding more than 75 per cent of the debts accept the proposal, all creditors are bound by it. The CVA must be managed by an IP who will report on progress annually. If a CVA is accepted, creditors cannot take action against the company. A CVA ends when it has either been completed or failed.
CVA moratorium
There may be a moratorium into CVA procedures. This means that, subject to certain specific exceptions, creditors cannot act against the company. It will normally last for 28 days and the court will decide if a company is eligible.
Administration
This is when an administrator, who must be an IP, is appointed to manage a company's affairs. Their objective is to rescue the company as a going concern. An administrator may be appointed by:
- an administration order from the High Court
- the holder of a floating charge
- the company or its directors/members
Administration protects the company from its creditors. A creditor cannot petition for the winding up of a company while it is in administration.
Developed withAlso on this siteContent category
Source URL
/content/alternatives-liquidation
Links
Members' voluntary liquidation
An overview of Members' voluntary liquidation, including a formal declaration of solvency.
Members' voluntary liquidation (MVL) is when a company or limited liability partnership (LLP) is solvent and has sufficient assets to pay their creditors.
Formal declaration of solvency
The directors of a company must make a formal declaration of solvency and file it with Companies House. The declaration must:
- be made by the majority of directors on a date no more than five weeks before the passing of the resolution for voluntary winding up
- be filed at Companies Registry
- state that the directors have made a full inquiry into the company's affairs and are of the opinion that the company can pay its debts and interest within a maximum of 12 months
- include an up-to-date statement of the company's assets and liabilities
It is a criminal offence to make a declaration of solvency without reasonable grounds.
Resolutions for winding up
A general meeting must be held by the shareholders of a company. At this meeting, resolutions for winding up the company are passed, along with the appointment of a liquidator. A special resolution must be passed by shareholders for a winding-up.
The shareholders must pass a special resolution for winding up, unless:
- the company resolves that it cannot continue its business because of its liabilities, when an extraordinary resolution is required
- the articles of association of the company provide for it to be dissolved at a certain time, or following a certain event, when an ordinary resolution is required
If it later turns out that the company is not solvent, the liquidator will call a meeting of creditors and the liquidation becomes a creditors' voluntary liquidation.
Developed withAlso on this siteContent category
Source URL
/content/members-voluntary-liquidation
Links
Creditors' voluntary liquidation
Outline of Creditors’ voluntary liquidation.
Creditors' voluntary liquidation (CVL) is when a company or limited liability partnership (LLP) cannot continue its business because of its liabilities.
Resolutions for winding up
A company can hold a meeting to vote by special resolution for it to be wound up voluntarily.
Once the resolution by the company for a winding-up has been passed, the company must:
- send a copy to the Registrar of Companies
- hold a meeting of its creditors - although it is common practice for the meetings of members and creditors to be held on the same day
This gives creditors the opportunity to:
- question the directors of the company as to the reasons for the failure
- put forward an alternative liquidator
Creditors' meeting
One of the directors or designated members must be at the creditors' meeting and preside over it. If they do not attend, the creditors can appoint someone else to preside. If a liquidator has been nominated by the company, they must be at the creditors' meeting and report on any action they have taken in the period between the meetings.
Once appointed, the liquidator takes control of the company and its assets.
Developed withAlso on this siteContent category
Source URL
/content/creditors-voluntary-liquidation
Links
Compulsory liquidation
An overview of compulsory liquidation and the processing a winding-up petition.
Compulsory liquidation is when a company or limited liability partnership (LLP) is unable to pay its debts and is ordered by the High Court to be wound-up. If the High Court receives an application, known as the winding-up petition, from a relevant person, it can make a winding-up order.
Submitting a winding-up petition
Usually, a petition for the winding-up of a company or LLP is presented by one or more creditors but it can be made by:
- a company or LLP itself
- the directors or shareholders of a company or designated members of an LLP
- the supervisor of a voluntary arrangement
- the administrative receiver or administrator
- the Department for the Economy (DfE)
- the Financial Services Authority
- a clerk of the High Court
- the official receiver (OR)
- a Member State Liquidator
- the Attorney General (in the case of a charitable company)
- the Regulator of Community interest companies
- the Director of Public Prosecutions
A winding-up petition can still be presented even if a company or LLP is already in administrative receivership or voluntary liquidation.
Circumstances behind a winding-up order
A winding-up order can be made if:
- the company or LLP has decided that it should be wound up by the court
- the company or LLP has not yet been issued with a trading certificate, despite being registered as a public limited company or LLP more than a year previously
- it is an old public company
- the company or LLP has not begun trading within a year of its incorporation or has suspended its trading for a whole year
- the number of members is less than two, unless it is a private company limited by shares or guarantee
- the company or LLP cannot pay its debts
- the company or LLP has reached the end of a moratorium without approval of a voluntary arrangement
- the High Court decides that this would be just and equitable
Compulsory liquidation and liquidators
The OR will become the liquidator when a winding-up order is made against a company or an LLP - unless the court decides against this. A copy of the winding-up order must be sent to the Registrar of Companies and placed on the company's public record.
As the liquidator the OR must:
- investigate the company's or LLP's affairs and the causes of the failure
- decide whether to call a meeting of creditors, contributories and members to find a replacement liquidator in their place
- notify creditors, contributories and courts if they decide not to call a meeting
If the company or LLP has a number of assets the OR may seek to appoint an insolvency practitioner (IP) as liquidator. If an IP is appointed, the IP must notify the Registrar of Companies of their appointment as soon as reasonably practicable.
Developed withAlso on this siteContent category
Source URL
/content/compulsory-liquidation
Links
Petition for your own bankruptcy
The procedure and information on a bankruptcy petition.
Bankruptcy can be an option for you if you have personal debts that you cannot pay by their due date.
Completion of the bankruptcy petition
To petition for your own bankruptcy you must complete the bankruptcy petition (Form 6.30) along with a statement of affairs (Form 6.31).
Your next step will be to pay a £525 deposit towards the cost of administering your bankruptcy to the Department for the Economy (DfE). This deposit must be paid in all cases and payment may be made in cash or postal orders, or by a cheque from a building society, bank or solicitor. Cheques should be made payable to the 'Official Receiver'.
Alternatively you can pay the deposit online through the Insolvency Service.
You will then need to take the completed forms to the Bankruptcy and Companies Office at the High Court, along with:
- 4 copies of your petition (5 if you are a solicitor)
- 1 copy of your statement of affairs
- the receipt for the deposit paid to DfE
The Court will either hear your petition straight away or arrange a time for the Court to consider it.
For further information see make yourself bankrupt. You can also download DfE's guidance on how to petition for your own bankruptcy (PDF, 252K).
Developed withAlso on this siteContent category
Source URL
/content/petition-your-own-bankruptcy
Links
Disqualification of company directors
Overview of the disqualification proceedings of a company director.
If you are a director of a company that becomes insolvent and there is evidence of unfit conduct by you, the Insolvency Service can apply to the court to make an order disqualifying you from acting as a director for between two and 15 years.
Disqualification order
A disqualification order can be made against a director for such unfit conduct as:
- continuing to trade at the expense of creditors when the company was insolvent
- failing to keep proper accounting records
- failing to submit tax returns or pay tax due
- not preparing and filing accounts or not sending returns to Companies House
- failure to co-operate with the official receiver/insolvency practitioner
The effects of disqualification
A disqualification order or undertaking will prevent you from:
- acting as a company director
- being involved with the formation, management or running of a new company
- acting as a receiver of a company's property
Disqualification proceedings
The Insolvency Service has three years to apply for disqualification starting from the official end of the company which can be from the date of the:
- winding-up order (compulsory liquidation)
- voluntary liquidation
- administrative receivership
- administration
This period may be extended at the discretion of the court.
See the Department for the Economy (DfE) guidance on directors disqualification.
Disqualification undertakings
If you are a director who is the subject of intended disqualification proceedings, you can offer a disqualification undertaking to the department, undertaking not to be a director for an agreed period. A disqualification undertaking has the same effect in law as a disqualification order, but does not involve the courts.
Scope of disqualification
The ban on being a director applies to all registered and unregistered companies formed in Northern Ireland and Great Britain. The ban also applies to foreign companies that are registered in the UK and to:
- building societies
- incorporated friendly societies
- NHS Foundation Trusts
You will also be barred from holding other offices.
Criminal proceedings for breaches of a disqualification order
It is a criminal offence to breach a director disqualification order or undertaking, without permission from the court. The penalties range from a fine to up to two years in prison.
If you breach your disqualification order or undertaking, you will be personally liable for the company's debts incurred during the breach. The same applies to anyone involved in the management of the company who carries out your instructions knowing that you are disqualified.
Developed withAlso on this siteContent category
Source URL
/content/disqualification-company-directors
Links
Reusing a company name after liquidation
Information on the legal restrictions that apply when you want to reuse a company name after liquidation.
If you are a former director of a liquidated company, there are legal restrictions that apply regarding the reuse of that company's name or its trading name. This is intended to prevent abuse of the so-called 'phoenix company' - where a failed business re-emerges to operate under a similar name.
Prohibited names
A prohibited name is a name by which a liquidated company was known at any time in the 12 months immediately before its liquidation. This can be any of the following:
- the name registered at Companies House
- the company's trading name
- any name so similar to either of the above that it suggests an association with the liquidated company
The restrictions apply personally to you if you were registered as a director - or acted as a director - during the 12 months leading up to the liquidation.
What are the restrictions?
You - and any other former directors - are banned from being a director of a limited company that's using a prohibited name for five years from the date of the original company's liquidation. The ban includes not being allowed to take part in the formation, promotion or management of such a company.
The restrictions also extend to a business that is not a limited company - eg a partnership or sole trader - that's using a prohibited name. In such a case, any relevant former directors are banned from being concerned in or taking any part in carrying on such a business for five years.
Penalties for breaching rules on use of prohibited names
It is a criminal offence to break the rules regarding the use of a prohibited name. Successful prosecution could lead to a fine, a prison sentence or both.
You could also be made personally liable for company debts incurred during the period you were involved in managing a business using a prohibited name - even if it was a limited company.
If you are involved in managing a business and act on instructions from someone you know to be acting as a director when restricted from doing so you would be committing a criminal offence.
Exceptions to the rules - when you can reuse a prohibited name
There are certain exceptions where you can legally reuse a prohibited name. It will generally depend on the particular circumstances of an insolvency.
However, the penalties for breaking the rules are severe and it is highly recommended that you get professional advice on your options.
Developed withContent category
Source URL
/content/reusing-company-name-after-liquidation
Links