MODULE 2.

CONTRACTUAL ASPECTS OF PAYROLL ADMINISTRATION

Introduction

This report will outline and compare existing employee contracts to legislative requirements, and assess where Global could be at risk for not complying with these requirements.

Global is the world's leading provider of Aerospace insurance with clients who are engaged in every aspect of the Aviation and Space industries. The office is based in London with other offices across the world. London currently employs 123 employees. The payroll department consists of two people, the payroll manager and the payroll administrator. The department is responsible for the correct and timely administration of all
This has not had a major impact on the business as the tendency is that new mothers take the leave. (HM Government, 2012).

Along with the aforementioned legislation, Global has had to update policies on the Employment Act 2002 and Work and Families Act 2006, (Legislation n.d) to coincide with the increasing number of new parents. All maternity and paternity leave and pay have been updated, along with adoption leave and pay as both areas have affected the company. Payroll has been proactive in updating the payroll system where necessary and changing the company in house forms used for maternity and paternity changes. Payroll and HR have also had to incorporate flexible working for parents. (Working families, 2012). This change has meant that payroll and HR need to draw up new contracts, change working patterns on the system and pro rata pay and benefits.

Where there are any changes to legislation that affects Global, the staff handbook is updated and all employees are notified of these changes via email.

3. Processes

The payroll department has written procedures in place which explains the processes the team complete for the pay run. “Documented procedures ensure a clear and defined approval process, efficient payroll activities, availability of forms and appropriate controls.” (ehow, 2013).

Global operates a negative payroll for all staff (CIPP, 2008 p15). This means that no action is required for the payroll to be run every month. The small