Download SEEDS - Questions and answers for employers

Questions and Answers SEEDS
Please note that this document is produced by Southwark Council strictly for guidance only and the
information it contains will be subject to amendment from time to time.
1. Application issues
1.
Who can apply for SEEDS?
Employers can apply for the Southwark Enterprise and Employment Development Scheme
(SEEDS) and these include SMEs and voluntary organisations that want to create a one year job
at the London Living Wage for young Southwark residents.
2.
Can I apply if I am an employer that operates outside of Southwark?
Yes – applications from employers that operate outside of Southwark will be accepted. However,
the job should be created for a young Southwark resident and the employer would not qualify for
the wage incentive, but only for recruitment and coaching support.
3.
I have more than 250 employees and I am not an SME, do I qualify for the wage incentive?
No – you will have to cover the full London Living Wage salary for the entire year, however you
will be able to receive support from a personal coach to support the young employee.
4.
What type of jobs can I offer?
Employers can offer one year full time employment contract or an apprenticeship, at the London
Living Wage.
5.
Is there a minimum number of jobs that I can apply to create?
No – an organisation can apply to create 1 job if desired.
6.
Is there a maximum of number jobs that I can apply to create?
Yes, the maximum number has been set at 3 to ensure fair distribution of employees across
different sectors and greater chances of future job retention.
7.
Can I hire young people above the age of 24?
No – the project supports a specific cohort of young people between the age of 16 and 24.
However, you can hire a young person as long as s/he is 24 when the employment relationship
begins.
8.
Can I recruit someone who is aged under 18?
Yes – however all young people are required to stay in a form of education or training until at
least their 18th birthday (Raising the Participation Age - RPA). This means that all 16-18 year
olds are required to participate in learning or training after leaving school; participation can
involve:
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Entering full time education and training
Securing an apprenticeship
Employment combined with guided learning (280 hours per year minimum);
Your SEEDS adviser will help identify an employment route that fulfills the requirements of RPA
for people aged under 18. Younger employees will also be subject to the council’s Safeguarding
policies.
9.
Can I apply to create jobs that last less than 12 months?
No – all jobs must be offered with the intention of lasting for at least one year.
10.
I want to create a job for an apprentice using SEEDS funding. Will it be permissible to pay
the National Minimum Wage for apprentices?
No – the employee subsidised under SEEDS arrangements will be expected to be paid London
Living Wage. SEEDs will match fund the London Living Wage up to 35% with an SME, up to 50%
with a micro business and up to 75% for a volunteering organisation.
11.
Will I need to pay for the training offer from the College?
For people up to the age of 18 the college will draw down the funding from the Skills Funding
Agency. For young people aged 19 - 24 the employer will normally need to make a 50%
contribution to the costs of training. Certain learning providers have access to additional funding
and can offer concessions to meet the employer's needs.
12.
How will applications be assessed?
Applications will be reviewed on rolling basis by a panel made up of officers from Southwark
Council, Southwark Works and Tree Shepherd.
13.
If my application is unsuccessful can I reapply?
Yes – you will be able to reapply. Upon request, the Council will also provide feedback on your
unsuccessful application to help inform any future application you want to submit.
2. Financial Support
1.
What is the maximum funding available for each job created?
Micro businesses (1-10 employees) will qualify to receive up to 50% wage incentive contribution.
SMEs (up to 250 employees) will qualify to receive up to 35% contribution. VCS organisations
with 1-10 employees will be eligible to receive up to 75% contribution, VCS organisations with 11250 employees will be eligible to receive up to 50% contribution. Funds will be paid over a 52
week (1 year) period.
The wage incentive contribution will be made against a maximum of a 35 hour week at London
Living Wage. Employment contracts for more than 35 hours per week may be offered but contract
hours above 35 per week will not be eligible for the wage incentive payment.
In 2015 the London Living Wage is £9.15 an hour. If the contract states that one SEEDS
employee works 35 hours a week, this means that s/he is entitled to £16,653 a year [ (£9.15*35
2
hours)*52 weeks]. The London Living Wage is adjusted each year in November, wages for
SEEDS employees must be adjusted accordingly in line with the prevailing London Living Wage.
How will the wage incentive be paid to the employer?
The incentive is payable in arrears and according to the following installments:
Trial
Job start payment
Payment at 13
employment
Payment at 26
employment
Payment at 39
employment
Payment at 52
employment
weeks of
wage incentive payment
NA
Start payment of £300
25%*
weeks of
25%*
weeks of
25%*
weeks of
25%*
*(% of maximum annual contribution less the start payment)
3. How can I claim my incentive?
If Southwark Council is your only funding towards the LLW of SEEDS employees, the procedure is as
follows:
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As soon as you sign the contract with us and these are counter-signed by us, a copy of the
contract will be sent back to you for record.
At this point, you can invoice Southwark Council for the initial £300 as indicated in the payment
schedule above. If you employ more than one young person, please indicate the £300 for each of
the employees separately on the invoice with then the sum at the end. This will help us keep
clear records.
If you are entitled to 35% wage contribution:
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At completion of week 13 you can send Sarah Williamson ([email protected])
evidence that you are paying SEEDS employees the LLW – Sarah will communicate to the
council that evidence is good and keep a record.
At week 13, you can send a second invoice. The way to calculate the sum you are entitled to is
the following:
If the annual salary is : (£9.15*35 hours)*52 weeks = £16,653
35% of 16,653 is £5,828.55
Net of the £300 start payment the remainder to be claimed across the year is (£5,828.55 - £300)
= £5,528.55
You can claim 25% of the sum at week 13 which is £1382.14 – you will be claiming the same
sum at weeks 26, 39 and 52 after sending evidence of continuous employment
At the end of the year you will have received (£1382.14 x 4 instalments + £300) = £5,828.56
which is 35% of the LLW a year (with rounding).
NB these are 2015 figures and will be adjusted for the 2016 London Living Wage from November
2015.
If you are entitled to 50% wage contribution:
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At completion of week 13 you can send Sarah Williamson ([email protected])
evidence that you are paying SEEDS employees the LLW – Sarah will communicate to the
council that evidence is good and keep a record.
At week 13, you can send a second invoice. The way to calculate the sum you are entitled to is
the following:
If the annual salary is : (£9.15*35 hours)*52 weeks = £16,653
50% of 16,653 is £8,326.50
Net of the £300 start payment the remainder to be claimed across the year is (£5,828.55 - £300)
= £8,026.50
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You can claim 25% of the sum at week 13 which is £2,006.63 – you will be claiming the same
sum at weeks 26, 39 and 52 after sending evidence of continuous employment
At the end of the year you will have received (£2,006.63 x 4 instalments + £300) = £8,326.52
which is 35% of the LLW a year (with rounding).
NB these are 2015 figures and will be adjusted for the 2016 London Living Wage from November
2015.
If you are entitled to 75% wage contribution:








At completion of week 13 you can send Sarah Williamson ([email protected])
evidence that you are paying SEEDS employees the LLW – Sarah will communicate to the
council that evidence is good and keep a record.
At week 13, you can send a second invoice. The way to calculate the sum you are entitled to is
the following:
If the annual salary is : (£9.15*35 hours)*52 weeks = £16,653
75% of 16,653 is £12.489.75
Net of the £300 start payment the remainder to be claimed across the year is (£5,828.55 - £300)
= £12,189.75
You can claim 25% of the sum at week 13 which is £3074.44 – you will be claiming the same
sum at weeks 26, 39 and 52 after sending evidence of continuous employment
At the end of the year you will have received (£3074.44 x 4 instalments + £300) = £12,489.76
which is 75% of the LLW a year (with rounding).
NB these are 2015 figures and will be adjusted for the 2016 London Living Wage from November
2015.
4. Can I claim other wage subsidies like the AGE Fund for apprenticeships?
Yes we encourage employers to claim all financial support available. However this amount will be
subtracted from the SEEDS contribution to help us support as many employers and young people
as possible under the scheme.
5. What is a trial period?
A work trial period may be made available to both the employers and the employee as an
additional recruitment opportunity to test the fit between the young person, the role and the
employer. Wage incentive payments will not be paid until a formal offer of employment for 12
months is made.
6. If an employee leaves early, what payments will I receive?
If an employee leaves before 6 weeks you will be eligible for the start payment of £300. If they
leave between 6 and 13 weeks you will be eligible for the start payment and a further wage
subsidy payment up to week 6 calculated pro rata. After week 13, you will be eligible for further
payments only at weeks 26, 39 and 52. However, smaller employers with 1-10 employees will
also be eligible for a wage subsidy payment up to week 20 if an employee leaves between weeks
20 and 26, calculated pro rata.
7. If an employee leaves early and is not replaced can the subsidy that has been claimed for
them up until that point be kept?
Yes – as long as evidence of expenditure on wages appropriate to the level of subsidy claimed
can be provided (e.g. bank transfers). If expenditure on wages cannot be evidenced then the
subsidy will be subject to claw back.
3. Recruitment
1. How will I recruit to the jobs that I want to create?
The SEEDS staff will assist the employer in the recruitment process, including drafting job
descriptions, organising interviews, shadowing or trial periods.
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2. Can I recruit people that are not resident in Southwark?
No – every person recruited must be a Southwark resident.
3. If I recruit someone through SEEDS, will I be then obliged to offer the employee long term
employment when s/he completes the 12 month contract?
No – employers will not be required to offer further employment opportunity when the SEED
candidate completes the year. However, should a job become available the employer will be
expected to commit to offer an interview to the SEED candidate.
4. Can I recruit someone who is already working?
This is only permissible where a person is working less than 16 hours a week, in line with current
benefit eligibility rules. This eligibility check will be confirmed by SEEDS staff before any
candidate is presented to you.
5. Do I need to provide any information to support the recruitment process?
Every employer creating jobs will have to provide:
- job description and person specification
- information regarding the size of the business
- name a mentor for the employee and,
- offer on the job training
6. Do I need to follow a prescribed recruitment process?
No – employers will be able to establish with SEEDS staff the best recruitment mechanisms. You
can choose between CVs or application forms, you can also opt for a trial period together with the
interview if these fit with your organisation recruitment strategy.
7. How many people am I expected to interview?
You are invited to interview an average of 3-5 people per vacancy.
8. Who makes the final decision on people to be recruited?
Employers make the final decision on who they want to recruit. However, employers must
provide written feedback on each unsuccessful applicant to support their future job search.
9. How long should recruitment take?
There is no set timescale but we aim at recruiting within a month from the moment a vacancy is
notified.
10. Do I need to check right to work status before employing someone through the SEEDS?
Yes – this will be done by SEEDS staff but should also be done by the employer in line with their
existing employment policies and procedures.
4. Employee-Employer Relationship
1.
Is each person I recruit classed as an ‘employee’?
Yes – young people recruited through SEEDS will be classified as employees. S/he will be
expected to be on your payroll and enjoy the same benefits as other employees.
2.
Do I need to issue a contract of employment to each person I recruit?
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Yes – you will be expected to provide a contract for each employee.
3.
Are there a minimum number of hours that each person I recruit needs to work?
Each employee will be expected to work a minimum of 30 hours per week (including time for
training). Part-time jobs will not generally be considered.
However, where a person’s working hours have to be restricted, for example, due to a health
condition or caring/childcare responsibilities then there will be flexibility to reduce working hours,
subject to approval from SEEDs staff.
4.
How is the working week defined?
Monday to Sunday, but not more than 5 days a week of work. On exceptional cases 6 days a
week of work could be accepted, however wage incentive will only contribute towards a maximum
of 35h per week.
5.
Can I recruit someone on a part-time basis?
The minimum number of hours that each person has to work is 30, with the exception of the
flexibilities and additional conditions already addressed.
6.
Are Holiday Pay hours counted towards the number of hours worked in a week?
Yes – and timesheets, or other forms of evidence to record hours worked, will need to indicate
when holiday has been taken.
7.
Can time taken off for absences due to sickness count towards the number of hours
worked in a week?
Yes – and timesheets, or other forms of evidence to record hours worked, will need to indicate
when there has been a sickness absence.
8.
What happens if a worker goes on long-term sickness?
As jobs created through SEEDS are real jobs the expectation is that the employer should apply
their standard sickness absence policy in this instance. The person will still be maintained as an
employee and, as such, subsidy can still be claimed for them. In the case of long-term certified
sickness absences there should be continued contact among the coach, the employer and
employee.
Timesheets, or other forms of evidence to record hours worked, will also need to indicate when
there has been a sickness absence.
9.
How are unauthorised absences treated?
An employer should treat unauthorised absences in line with their existing policy and this should
be stated in the contract of employment.
Timesheets, or other forms of evidence to record hours worked, will also need to indicate when
there has been an unauthorised absence.
10.
How should complaints or issues be resolved?
Where an employee raises a complaint or issue the employer should have the necessary
procedures in place to deal with this. Where the complaint or issue cannot be resolved, the
employer and/or employee can contact the SEEDS staff who will mediate, if necessary, in
attempt to bring the matter to a satisfactory conclusion.
11.
When a SEEDS employee leaves early can the job be re-filled as a new job with a new
employee?
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Yes – however, the reasons for the young person leaving earlier will be carefully reviewed and
may influence this decision.
12.
When a SEEDS employee completes 52 weeks of employment can the job be re-filled
as a new job with a new employee?
Yes – however preferences will be given to employers who succeeded in permanently hiring a
former employee who was supported by the scheme.
13.
If an employee leaves early can they be replaced directly for the remainder of the
contracted duration?
No – any replacement employee will be given a one year contract as per approved application,
unless special dispensation is granted by Southwark Council.
14.
If an employee starts or leaves on a Thursday can they be claimed as having worked a
full week?
Yes – as long they have worked at least 5 hours in either the starting or leaving week.
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