COMPLIANCE
to do. When payroll professionals need to say “no”, having concrete evidence to back up a decision is crucial. Here are some examples: Legislation and guidance: referencing specific laws and regulations, such as the Employment Rights Act or HM Revenue and Customs (HMRC) guidelines, Acas for employment law payroll-related items, e.g. holiday entitlement, provides a strong legal basis for decisions. Keeping a library of relevant legislation can be a valuable resource. Here at Armstrong Watson, we share a channel on Teams for ensuring we all keep up to date with changes as well as having an internal payroll hub, where guidance, procedures etc, are maintained. Advisory services: utilising advisory services, such as those provided by the CIPP or other professional bodies, can offer authoritative support. These services often provide detailed guidance and interpretations of complex regulations. Often my first port of call will be the CIPP website, closely followed by GOV.UK and the Employment Income Manuals maintained by HMRC. Internal policies: citing internal company policies that align with legal requirements can also reinforce the decision. These policies should be regularly reviewed and updated to reflect current laws. Information can be shared with colleagues via the intranet so that if clients challenge any advice with their account manager, colleagues can help to reinforce compliance with clients. Case studies and precedents: sharing examples of past incidents where non- compliance led to significant issues can be persuasive. Real-world examples highlight
the importance of adhering to regulations and the potential consequences of not doing so. Many firms highlight such cases on their websites or promote them on social media platforms, such as LinkedIn. “When leadership supports compliance efforts, it empowers payroll staff to uphold standards without fear of backlash”
Providing a well reasoned explanation can help the client understand the necessity of compliance. Sometimes those in our profession think it is only us who must do this, but my colleagues in other service lines follow the same routes, so it isn’t that payroll professionals are being questioned, just typical human behaviour when we don’t give the answer people want. Offer alternatives: where possible, suggest alternative solutions that comply with regulations. This shows your willingness to work with the client while maintaining compliance. Bear in mind though the line between payroll facts and operations and regulated advice, such as tax advice. Document interactions: keep detailed records of all communications with all clients, not just the difficult ones. Documentation can be invaluable if disputes arise and provides a clear trail of your compliance efforts. For those who work for companies with professional indemnity insurance, keeping records is a requirement. Seek support: if a situation becomes particularly challenging, don't hesitate to seek support from senior management or legal advisers. Their backing can provide added authority and reassurance. Empowering payroll professionals to say no is about equipping us with the knowledge, support and tools we and our colleagues need to ensure compliance. By fostering a culture of continuous learning, clear communication, and strong leadership support, organisations can help their payroll teams navigate the complexities of their role with confidence and integrity. n
Handling difficult clients Dealing with difficult clients can be
challenging, especially when compliance is at stake. Here are some tips to manage these situations effectively. Stay calm and professional: keep a calm and professional attitude, even if the client becomes confrontational. This helps to de-escalate the situation and keeps the conversation focused on facts. Smiling can also help you stay composed and professional. Listen actively: allow the client to express their concerns fully before responding. Active listening shows that you respect their viewpoint and are willing to understand their perspective. You can also play back what the client has shared, which shows their concerns and / or feedback has been heard. Provide clear explanations: clearly explain the reasons behind your decision to say “no”, referencing relevant legislation, company policies and potential risks.
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| Professional in Payroll, Pensions and Reward |
Issue 105 | November 2024
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