The OECD is hosting the latest session in its Tax and Development Days series. This event provides an update on some of the OECD's initiatives to strengthen tax capacity and improve tax policy and compliance in developing countries and explore future challenges. Members of the public can register for this event, which is taking place virtually, and attendance is free of charge.

Costantino Lanza and Simone Brogi, two key members of the Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD), recently gave a short interview discussing the new VAT Central Electronic System of Payment Information (CESOP). They discussed that the purpose of CESOP, which is an EU centralised database to which tax administrations send relevant data, is to reduce the VAT gap by enabling tax authorities to better identify online sellers of goods and services.

As European lawmakers reach provisional agreement on the final text of the EU Artificial Intelligence Act, Jackie Hennessy and Dani Michaux delve into the potential risks businesses may face In December 2023, European lawmakers announced a provisional agreement on the final text of a new Artificial Intelligence Act (AI Act), giving developers and users of AI systems the first chance to consider in detail what the proposed new framework could mean for them. Businesses are now in a position to consider the role AI plays in their organisation and how to mitigate potential risks that may arise as a result of this new legislative advancement. What is an AI system? According to the Act, an AI system is a “machine-based system designed to operate with varying levels of autonomy and that may exhibit adaptiveness after deployment and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as content, predictions, recommendations, or decisions that can influence physical or virtual environments”. Why do we need this Act? The AI Act classifies AI systems into three risk categories: Unacceptable risk AI systems are considered to pose an unacceptable risk and are prohibited by the Act. These practices include systems that target vulnerable people or groups of persons, systems that materially distort a person’s behaviour, the use of biometric categorisation and identification systems and systems that classify natural persons that lead to unjustifiable detrimental treatment. High-risk AI systems are those that, based on their intended purpose, pose a high risk of harm to the health and safety or the fundamental rights of persons, taking into account both the severity of the possible harm and its probability of occurrence.    A General Purpose AI (GPAI) system displays significant generality and competently performs a wide range of distinct tasks regardless of the way the model is placed on the market. It can be integrated into a variety of downstream systems or applications. The Act is intended to ensure better conditions for the development and use of AI and is a pillar of the EU’s digital strategy. Furthermore, the Act takes aim at the emerging issue of ‘deepfake’ technology. Deepfakes are defined as “AI-generated or manipulated image, audio or video content that resembles existing persons, objects, places or other entities or events and would falsely appear to a person to be authentic or truthful”.  The Act places a requirement on deployers of this technology to disclose that the content has been artificially generated or manipulated. Who will the Act affect? The Act will impact both developers and deployers of AI systems and will legislate the following: Human oversight measures for high-risk AI systems; Effective employer obligations for organisations planning to deploy AI in the workplace; Testing of AI systems in real-world conditions; and Implementation of codes of practice for proper compliance with the obligations of the regulation for providers of General Purpose AI systems. The Act represents a major overhaul for businesses developing or deploying AI systems. Businesses doing either in the course of their work should consider how AI can be made compliant with the EU AI Act and what impact this might have on the business and its operational performance. Jackie Hennessy is the Risk Consulting Partner at KPMG Dani Michaux is EMA Cyber Leader at KPMG International

Paul Guess explains what work-related burnout means and outlines the pivotal role managers can play in prevention and recovery Many people think of ‘burnout’ as solely related to how much they work. They believe just taking some time off will relieve feelings of overwhelm and pressure and that they can quickly return to work feeling refreshed and renewed. Several factors can cause burnout, however, and it is unlikely to be resolved by taking a break. One of the most important contributors to a person’s well-being at work is their relationship with their manager. As burnout has been classified as an “occupational phenomenon” by the World Health Organization, support at work is essential to curb the rising tide of overwhelm at work.  The manager's role is critical in assessing and addressing employee burnout. Here are some tips to support leaders in preventing and managing burnout in their teams. 1. Be knowledgeable about the factors that contribute to burnout  Research has indicated the six areas that, when left unchecked, can lead to burnout. Recognising how these areas impact a team can give leaders a better idea of how to improve.  Workload Do staff have a clearly defined job description, and are their responsibilities reasonable? Additionally, do they have the resources they need to fulfil the duties assigned to them? Perceived lack of control When people feel they have a say in the decisions being made that are related to their job, it can positively affect well-being and reduce feelings of disengagement and cynicism.  Appreciation and reward When people feel the extrinsic and intrinsic rewards of their job don’t match their effort and time, they can become disengaged and unmotivated – a key indicator of burnout. Fairness Ensure that people receive fair and equitable treatment. Transparency and trust are the foundations of psychological safety within the workplace, and innovation and creativity flow from this. It is essential to effectively communicate the thinking behind decisions that impact them. Community It is vital that people feel a sense of belonging within the organisation. Develop opportunities to bring teams together and keep connections strong to build positive relationships, as loneliness and isolation are often drivers of poor mental health and well-being. Values Do the leadership’s behaviours create an environment in which people feel that it’s okay to look after their well-being? Role modelling and recognising their own management style and how it contributes to an employee’s experience is an important piece of reflective work that will lead to improved relationships. 2. Pay attention to the warning signs of poor mental health There are common indicators of burnout that managers should be aware of: poor decision making; reduced concentration levels;  feelings of overwhelm;  withdrawal; procrastination;  inability to prioritise tasks effectively;  poor timekeeping;  relationship difficulties;  expressions of anger and frustration; and  increasing cynicism and disengagement. If a manager notices these behaviours in a team member,  they must be aware of how to manage burnout in an employee. There are several steps they should take:  Start supportive conversations  Managers should use one-on-one opportunities to start exploring what might be driving any difficulty. Some people will need a little encouragement to open up, so actively listening to what they say, creating space and responding sensitively will help to reassure them that their manager is there to support them. If they feel stressed or overwhelmed by their workload, guide them on how to handle pressure. Set clear goals and spotlight progress When people don’t have clear goals, they either become stuck because they are unsure where to invest their energy or frantically churn out work in the hope it will be valuable. Good leadership involves setting clear goals that contribute to the team’s success. It’s also important to recognise progress and highlight any accomplishments or achievements by individuals or the team. Protect the team’s time A manager must protect their team’s time, especially regarding their well-being. Ensure that people take time off in light of illness, bereavement or other notable situations. Encourage people to take their annual holiday allowance and have some protected time to rest and decompress during periods away from work. Managers should always be practising the behaviours they encourage, so they must be sure to take their own time off as well. Paul Guess is a mental wellbeing expert at caba, the occupational charity supporting ICAEW

PwC’s Irish CEO Survey 2024 reveals rising concerns about company survival in a shifting business landscape. CEOs must drive innovation, agility and digital transformation for lasting prosperity, writes Amy Ball The PwC Irish CEO Survey 2024 shows that 28 percent of Irish CEOs are still not confident that their company would survive more than a decade on its current path – up from 21 percent last year. In an age where CEOs increasingly foresee the possible demise of their company within 10 years if they continue in their current direction, the imperative for business transformation has never been more critical. Innovation is at the forefront of this transformation. CEOs must champion a culture that not only welcomes but seeks out innovation. This means moving beyond traditional models to embrace disruptive technologies and processes in areas such as finance, front office, HR and operations transformation, in particular. Agility The digital era demands a shift towards more agile, technology-driven business strategies that resonate with contemporary market dynamics. Equally crucial is understanding and adapting to rapidly changing consumer behaviours. Today’s consumer landscape is a mosaic of evolving preferences and expectations heavily influenced by digital technologies. Businesses closely monitoring these shifts and aligning their strategies will likely create a valuable competitive advantage. Survival strategy Digital transformation isn’t just a buzzword; it’s a survival strategy. Integrating digital technologies into every business area, from operations to customer engagement, is essential. This digital pivot involves a fundamental change in how businesses operate and deliver value as part of the transformation journey. Clear and flexible leadership Leadership in such times of change requires a nuanced approach, too. CEOs need to navigate uncertainty with a clear vision and a flexible strategy. This involves making tough decisions, fostering a culture of resilience and preparing the organisation for continuous change. Data Data is the compass in this journey. Leveraging data-driven insights for strategic decision-making can uncover new opportunities, optimise operations and enhance customer experiences. CEOs who harness the power of data can steer their company towards more informed and effective pathways. Adaptability Lastly, business model adaptability is crucial. The ability to pivot quickly in response to market changes can be the difference between thriving and merely surviving. This adaptability should be ingrained in the company’s DNA, encouraging continuous evolution and responsiveness to emerging trends and challenges. A prosperous future The CEO’s role in steering their company towards a prosperous future is more dynamic than ever. It requires a blend of innovative thinking, digital savvy, strategic adaptability and data-driven decision-making. By embracing these principles, CEOs can ensure their company is resilient enough to create sustained outcomes. Amy Ball is Business Transformation Leader at PwC

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has announced its support for a four-week consultation launched this week aimed at tackling the backstop in local audit and reporting.  The consultation will gather views on legislative changes to the Accounts and Audit Regulations 2015. The UK Companies House is hosting a webinar on 22 February on getting ready for changes to UK company law. They will discuss the first set of changes including new rules for registered office addresses and new lawful purpose statements. Read more on these and other developments that may be of interest to members below. Auditing The International Auditing and Assurance Standards Board (IAASB) has published proposed revisions to ISA 240 The Auditors Responsibilities Relating To Fraud In An Audit Of Financial Statements. The proposals aim to strengthen the standard on auditors’ responsibilities related to fraud by defining the expectations in relation to fraud, delineating more robust procedures, and increasing transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report. During the consultation period IAASB will release a videos series to help stakeholders understand the proposed revisions and respondents are encouraged to share their insights by June 5, 2024. IAASA undertakes statutory enquiries and investigations under the companies act 2014 and its own regulations. From time to time, IAASA may need to establish committees to carry out full enquiries/investigations. IAASA is seeking potential members and advisors to enquiry/investigation committees. Expressions of interest are sought by 4 March 2024. The Financial Reporting Council (FRC) has announced its support for a four-week consultation launched this week aimed at tackling the backstop in local audit and reporting.  The consultation will gather views on legislative changes to the Accounts and Audit Regulations 2015. Financial Reporting The International Accounting Standards Board (IASB) has released a webinar which introduces IFRS 18, which is expected to be issued in April 2024.  This new Accounting Standard, which will replace IAS 1, will respond to investors’ demand for better information about companies’ financial performance. This will introduce new subtotals, disclosures about performance measures as well as enhanced guidance on aggregation and disaggregation for IFRS reporters. The new standard is expected to be effective from 1 January 2027. The IASB has also released a short webinar addressing the proposals in their Exposure Draft Financial Instruments with Characteristics of Equity. The IFRS Foundation has published its January 2024 monthly news summary. ESMA, the European Securities and Markets Authority, has published the latest edition of its Spotlight on the Market Newsletter. The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment (DECA) on Lack of Exchangeability (Changes to IAS 21). In August 2023, the International Accounting Standards Board published Lack of Exchangeability, which amended IAS 21 The Effect of Changes in Foreign Exchange Rates. UKEB are inviting comments on the DECA by 6 May 2024. The UKEB has issued a draft comment letter on the IASB Exposure Draft Financial Instruments with Characteristics of Equity. This is open for public comments until 8th March 2024. UKEB has also published its final comment letter in response to the IFRS Interpretations Committee’s (IFRIC) Tentative Agenda Decision: Climate-related Commitments (IAS 37). While agreeing with the overall conclusion of IFRIC, the UKEB have suggested some amendments to enhance the clarity of the technical analysis to avoid unintended consequences. EFRAG, the European Financial Reporting Advisory Group, have released their January 2024 update which summarises public technical discussions held and decisions taken during the month. EFRAG has launched a survey to seek input from various stakeholders in preparation for the IASB’s upcoming request for information on the post implementation review of IFRS 16 Leases. The FRC has published a revised version of Actuarial Standard Technical Memorandum 1 (AS TM1) which is effective from 6 April 2024.  Anti–money laundering Issue 24 of SARs in Action is out now, a special issue on UKFIU support for SAR reporters. From virtual workshops to 1-2-1 feedback sessions, the UKFIU’s Reporter Engagement Team have a variety of support options available to SAR reporters, all of which are listed inside this magazine. Also, within issue 24, find updates on the SAR Portal, changes to Companies House and read about the National Investigation Service (NATIS) investigations into the misuse of COVID business support grants. Sustainability EFRAG, the European Financial Reporting Advisory Group has released the first set of technical explanations to assist stakeholders in the implementation of the ESRS. Last year, EFRAG launched its ESRS Q&A platform to collect and answer technical questions. The platform is a useful resource for CSRD reporters and will be updated with further responses in future. EFRAG is hosting an outreach event on 20th February which will provide an overview of the two exposure drafts on sustainability reporting standards for SMEs which were released recently. Other news In a recent blog Company Bureau Formations, a company formation and corporate service practice, provided information which readers may find useful on “Understanding CRO submission rejections 10 key factors”. It provides a list of 10 key pitfalls to avoid which could otherwise lead to a CRO submission being returned including incorrect PPSN and director’s name mismatch with PPSN details. Click here to read more details on the pitfalls. UK Companies House is hosting a webinar on Thursday 22 February at 10:30am to 11am on getting ready for changes to UK company law. They will discuss the first set of changes, including new rules for registered office addresses, a requirement for all companies to supply a registered email address and new lawful purpose statements. They will also share information about future changes and an expert panel will be available to answer questions. Click here to register for the webinar. Accountancy Europe, along with a group of European Businesses, have issued a joint statement calling for the deepening of the EU single market and renewing the dynamic of European integration. The joint statement also includes some recommendations to overcome some of the obstacles identified. The Dept. Of Finance has recently (February 2024) published its Economic Insights – Spring 2024. The report provides analysis and insights on topical economic issues and developments in a collection of short notes. The Minister for Justice has recently appointed 2 new Data Protection Commissioners to replace the outgoing commissioner. The appointments will take effect from 20 February 2024, for a five-year term. The press release states that the Data Protection Commission has grown significantly in size, scope and responsibility over the last decade and following a review by the Department of Justice into how best to support this growth, the Government decided to appoint two additional Commissioners who were selected following an open competition. Read the full press release here. For further technical information and updates please visit the Technical Hub on the Institute website.                    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Chartered Accountants Ireland has today outlined a series of concrete steps aimed at making the provision of childcare across the island of Ireland work for both providers and parents, which could leave working parents up to €4,500 a year better off and free up vital working capacity in the economy. Last month, the Institute published data underscoring the challenge that the costs and availability of childcare is presenting to businesses and working parents.  Today, its paper ‘Supporting Working Parents – The case for better childcare policy’ sets out the core economic arguments for improved childcare provision as well as shining a light on the experiences of working parents seeking childcare.  Currently places for children with unregistered childminders do not attract the same National Childcare Scheme (NCS) funding for parents as creche places, which are highly limited and often difficult to secure. This means a mother-of-two on an average annual wage of €45,000, and paying €24,000 per year for childcare, is left with just €235 per week after paying taxes and childcare fees – an amount which makes returning to the workforce a difficult economic proposition. Expediting the Government’s plans to enable parents who use childminders that are not registered with Tusla to access the NCS would give parents of up to 80,000 children easier access to subsidised childcare. Commenting, Tax & Public Policy Lead, Chartered Accountants Ireland, Cróna Clohisey said  “We know what the challenges are for providers and parents and we welcome the upcoming increases to NCS subsidies. But as a mother of two young children, I’ve seen first-hand the difficulties in securing creche places, the scramble to find a childminder, and the quest to make full-time employment viable for parents. The policy tools to address these are already largely in place, so it is time to move to solutions mode. “Implementation and awareness are the two major hurdles that need to be overcome, and bolder interventions are now required if effective change is to be achieved in the childcare space. That is where we are now focusing our attention in our proposals to the Government.”  Chartered Accountants Ireland is calling on the Government to: Expedite plans to enable parents who use childminders that are not registered with Tusla, to access the National Childcare Scheme, giving parents of up to 80,000 children easier access to subsidised childcare. Streamline Core Funding. The introduction of Core Funding represented a new and different way of providing funding to the sector, but it could be greatly streamlined by: Increase funding, capital investment and grant support to the sector to more adequately reflect the true cost of providing childcare services. Importantly, these funding levels should not be static but regularly reviewed and updated in line with economic and inflationary changes. Increase awareness: engagement across the Institute’s membership has pointed to a lack of awareness of supports already in place. The Institute is calling on the government to launch an improved campaign of awareness to working parents that is integrated into and promoted by the public health system. Commenting, President of Chartered Accountants Ireland, Sinead Donovan said  “Allowing childcare challenges to persist constricts labour market capacity, narrows the tax base through lower labour market participation, and maintains the gender pay gap by making it more difficult for parents, proven to be predominantly women, to return to the workforce full time. This is a generational issue, it’s hitting men and women in different but equally real ways. “Currently, Chartered Accountants Ireland members are being asked to vote on a proposal to amalgamate with CPA Ireland which, if passed, would create the largest single accountancy body on the island of Ireland. Issues such as childcare can only truly be solved through a whole-of-government strategy, which is why a single, strong voice for the profession will be crucial in the years to come.” ENDS  Notes to editors Chartered Accountants Ireland’s paper, Supporting Working Parents – The case for better childcare policy, will be published on the Chartered Accountants website on Tuesday 13 February. Chartered Accountants Ireland members are currently being asked to vote on a proposal to amalgamate with CPA Ireland which, if passed, would create the largest single accountancy body on the island of Ireland. An online vote closes at 1pm on Wednesday 14 February with a final, in-person opportunity to vote at the Chartered Accountants Ireland SGM on Wednesday 21 February. More information on the proposal and how to vote is available on the Chartered Accountants Ireland website.

In October 2023, HMRC announced that the 31 October 2023 deadline for the end of the VAT margin scheme for second hand vehicles moved from Great Britain (“GB”) to Northern Ireland (“NI”) prior to 1 May 2023 was being extended to 30 April 2024. This six-month extension followed extensive lobbying from Chartered Accountants Ireland in September and October 2023. We are now issuing a reminder that the extended deadline of 30 April 2024 is in just over two and half months.   This means that any vehicles moved from GB to NI prior to 1 May 2023 but sold after 30 April 2024 will require output VAT to be charged on the full selling price, and not on the margin. Businesses affected should check how such stock is selling – please contact us to discuss if this vehicle stock continues to be slow-moving. 

This week we remind agents to copy client VAT authorisations across to the Agent Services Account before 16 February 2024 and earlier this month, the Labour Party published details of their business tax plan should the party succeed in winning the next General Election. HMRC has also announced that research is taking place into the recent changes to VAT penalties that took effect from 1 January 2023.  Labour’s Business Partnership for Growth  The plans published by the Labour party earlier this month in this publication confirmed the following in the event that the party were to win the upcoming General Election:  Corporation tax would not be increased from the current main rate of 25 percent;   Full expensing, Research and Development tax relief, the Patent Box regime and the annual Investment Allowance would all remain unchanged;   In its first six months, a new Labour Government would publish a roadmap for business taxation; and  Greater use of rulings and clearances to provide certainty to businesses looking to invest in the UK would be trialled.  VAT penalty reform research  HMRC has announced that it is working with an independent research agency to research the views of VAT-registered businesses on the changes in the VAT penalty regime that apply to VAT return periods commencing on or after 1 January 2023.  Selected VAT-registered businesses are being contacted up to 25 March 2024 to invite them to take part in an interview. Note that a business may still be contacted even if it has not received a VAT penalty.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is also available and the UK Government has provided a range of resources which aim to provide support as a result of the UK implementing the first stage of its new import controls which commenced from 31 January 2024 (see below for details). On the Northern Ireland front, the return of the Northern Ireland Assembly has resulted in a new committee being formed, the Windsor Framework Democratic Scrutiny Committee.   Resources to assist with new UK import controls  The UK Government has provided a range of resources which aim to provide support, help, and guidance as a result of the UK implementing the first stage of its new import controls which commenced from 31 January 2024 as part of the first phase of its Border Target Operating Model (“BTOM”). These are as follows:  Details of key contacts which can be used for urgent border issues relating to health certification and pre-notification;  Information on the UK Government’s approach to compliance and enforcement in respect of the BTOM;  An email from HMRC providing guidance on the customs requirements to move goods from Northern Ireland to Great Britain through Ireland; and  The latest Cabinet Office Borders Bulletin which contains important Border Target BTOM guidance for businesses.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Software developers providing customs declaration software;  Known error workarounds for the Customs Declaration Service (CDS);  Importing SPS controlled goods that interact with ALVS;  How to apply for a repayment of import duty and VAT if you've overpaid (C285);  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Bringing commercial goods into Great Britain in your baggage;  Taking commercial goods out of Great Britain in your baggage;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; and  Notices made under the Customs (Export) (EU Exit) Regulations 2019. 

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. Are you interested in how HMRC uses the Litigation Settlement Strategy to try and resolve tax disputes through civil law? HMRC is holding a webinar next week on Friday 23 February which will look at the key principles of this strategy. Bookings for this particular webinar can be made now. A webinar is also being held tomorrow, Tuesday 13 February, on the National Minimum Wage; bookings can be made here. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.  All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

The Council of the European Union has published the draft Joint Employment Report 2024. This joint report by the European Commission and the Council reviews the employment situation across Member States. It provides an overview of key developments in employment across the Union and identifies key areas for policy action.

BEPS Action 5 is the international standard for addressing harmful tax practices. At the October meeting of the OECD’s Forum on Harmful Tax Practices, the group was informed that the regimes in Hong Kong and the UAE are not harmful and that two regimes in Albania and Armenia have been abolished. As of February 2024, 123 harmful regimes have been abolished with a further 12 in the process of elimination/amendment.

A staggered board can support continuity, strategic stability and help to defend against takeovers. Dan Byrne outlines the pros and cons of this distinctive governance structure A staggered board is a type of board structure designed to provide stability and continuity at corporate governance level. It divides its directors into “classes” – each serving a different time length across staggered terms. Usually, more senior directors will serve longer terms. In modern governance, the structure of a company’s board of directors can help to steer an organisation’s strategic direction.  Different companies will structure their boards differently to achieve the results they want. Adopting a staggered board structure is one option. Staggered boards are designed to ensure that only some directors are up for re-election at any given time. This has the advantage of ensuring there is always continuity across different election cycles as only some faces will be new. It also reduces the likelihood of hostile takeovers, which usually need a rapid and large-scale leadership change to succeed.  The processes of a staggered board The operation of a staggered board involves dividing directors into classes; it could be as low as two or as much as five. Each class will be up for election/re-election at different times. Take the example of  a board with three classes: each class serves a three-year term, but only one class is up for election each year. In other words, at least two-thirds of the board will stay the same after any election.  In cases where the more senior directors serve longer terms, class one may be up for election every year, class two every three years, and class three (the most senior) every five years.  These rules will depend on the company. The advantages of a staggered board A staggered board can help to ensure continuity after each election and delay or outright eliminate the risk of hostile takeovers.  It can also reduces the logistics challenge of training and onboarding several new directors simultaneously. There will always be a healthy cohort of veterans to oversee any work needed in this area, feeding a culture of long-term planning. Disadvantages Much of the criticism directed at the staggered board approach comes from shareholders who effectively only have a say on the future of a third (or less) of directors at any given time.  This means shareholder criticism is less likely to be listened to and the board may be more concerned with itself or its relationship with management. Creating a staggered board If an organisation is thinking about instituting a staggered board, it must analyse the company’s governance thoroughly before doing so.  How much does your board depend on fresh, new experience? If it’s a lot, a staggered board might not be for you.  How concerned are you about a hostile takeover or activism? If the answer is ‘a lot,’ then a staggered board may be for you. You should also consider how much your company spends on onboarding: how easy it is to find relevant talent at the board level, and how confident you are in your current board? By asking the right questions, you may find that introducing a staggered board structure is beneficial for your organisation. Dan Byrne is a writer with the Corporate Governance Institute

Adverse weather can bring disruption to businesses and their staff. Gemma O’Connor explains how an adverse weather policy can help employers to minimise its impact Adverse weather can bring power outages, high winds, and flooding and can cause major destruction of towns and villages across the country. Furthermore, employers dealing with storm and weather warnings may also face staff absenteeism. So, what can they do if employees are unable to be at work for the day because of the effects of poor weather conditions? Experts recommend putting an adverse weather policy in place. Pay obligations Payment obligation is a common topic employers ask about when bad weather strikes. A strict interpretation of the law allows employers to determine whether payment is owed to employees for workdays they miss due to extreme weather. If a company’s premises are open but employees are absent, there is no legal obligation to pay them for what is technically an unauthorised absence. Choosing to withhold pay should be considered with care, however. Doing so may affect staff morale and your reputation as an employer. Employees may also rely on prior experiences to argue that payment is due. If an has organisation paid absent employees during a previous weather warning, they will expect the same going forward. During an extreme weather event, it is possible that companies may need to close their premises. When employees are sent home or told not to come to work due to adverse weather, it is recommended that they be paid as normal. Employee options If employees can’t attend work due to the extreme weather, there are a few options available: Ask them to work from home and continue to pay them as normal. Allow them to make up any missed time later. With the agreement of the employees, the organisation could deduct any absences from their paid annual leave entitlement. Many people are already currently working from home. Employers with remote working arrangements should include a clause on working from home in their adverse weather policy. This clause could specify, for example, that staff are permitted to work from home during periods of bad weather and will be paid as normal even if the employer’s premises are closed. Change of roster An employer is entitled to change a roster at short notice in exceptional events, including extreme weather. Keep in mind that outside of these exceptional circumstances, however, employees are entitled to a notice of at least 24 hours for any roster change. Employee safety As an employer, the safety of employees should always be paramount. An employer’s statutory duty is to provide a safe place of work. This also includes ensuring that employees are not required to undertake a hazardous journey to get to work. Employers should know that, if public transport isn’t operating, they face a heightened risk of claims and reports to the Health & Safety Authority (HSA) by employees who suffer accidents on their way to work. Time for a policy Adverse weather can be a reminder and an opportunity to develop your own internal policy regarding how weather warnings will be handled. If this policy is reasonable and clearly communicated to employees, organisations can minimise their exposure to the winters of employee discontent. Gemma O'Connor is Head of Service at Peninsula Ireland

As 2024 unfolds amidst continued global challenges, Loretta O’Sullivan outlines why the island of Ireland will still likely see some economic growth We are just a few weeks into 2024 and it has already acquired many labels. It's the year of rate cuts, war and global elections. Despite this, the all-island economy is expected to be a year of growth. EY Ireland's Winter Economic Eye report forecasts reasonably solid growth in the Republic of Ireland (ROI) and a modest expansion in Northern Ireland (NI). Outlined below are the four forces we see shaping both economies in 2024. 1. A subdued external environment The world economy is recovering from a multitude of shocks – the COVID-19 pandemic, the war in Ukraine and decades-high inflation. The likelihood of a soft landing has increased, but geopolitical tensions, including the conflict in the Middle East and the Red Sea attacks, are among many headwinds. Prospects for key trading partners in 2024 are mixed, with growth set to slow in the US, but due to pick up in the Eurozone and the UK. 2. A turn in monetary policy After introducing a series of interest rate hikes in 2022 and 2023, the European Central Bank and the Bank of England are both on hold. Higher borrowing costs are expected to weigh on business spending decisions in 2024. Proactive digitalisation and decarbonisation agendas should provide support, however, and we can look forward to rate cuts later this year. The Irish government is also undertaking a large-scale capital spending programme to enhance public infrastructure and underpin digital and green transitions. In NI, the restoration of power-sharing and a Stormont Executive should encourage future investment. 3. Inflation is on the retreat Inflation has eased significantly and the passing on of lower wholesale energy prices to household bills and business costs, coupled with the transmission of monetary policy to economic activity, points to further easing ahead. In ROI, an inflation rate of 3.0 percent is forecast for 2024, falling to 2.0 percent in 2025. This downward trend will alleviate pressure on household purchasing power and improve consumer confidence, which bodes well for consumer expenditure. 4. Warm labour markets While the ROI and NI labour markets put in a strong performance in 2023, signs of softening are beginning to emerge and some cooling is likely this year. Nonetheless, unemployment rates are projected to remain low by historical standards and many businesses will continue to experience staff recruitment and retention challenges. Given the tight labour market and some compensation for past inflation, wage increases are also anticipated. This year is shaping up to be one of rate cuts, elevated geopolitical tensions and monumental elections. Yet, amidst these events, households and businesses can likely expect to see some growth across the two economies on the island of Ireland. Loretta O’Sullivan is Chief Economist and Partner at EY Ireland

The Financial Reporting Council (FRC) has announced important revisions to the UK Corporate Governance Code (the Code).  The revisions aim to enhance transparency and accountability of UK plc and deliver on the FRC’s intentions following the FRC’s largest ever stakeholder consultation on the Code in 2023. The FRC has kept changes to the Code to the minimum that are necessary. The FRC is conscious that the expectations for effective governance must be targeted and proportionate. In addition the FRC has published guidance to the Code. The purpose of this guidance is to support those who use the Code by providing advice, further detail and examples but it is not intended to be prescriptive. To make the guidance user-friendly, the FRC has included links in the Code to relevant sections of the guidance, and links in the guidance to other materials which may be of interest. The FRC will be keeping the guidance under regular review to ensure it is relevant and up to date.  The revised code can be accessed here.

Julia Rowan answers your management, leadership and team development questions Q. My organisation is going through a lot of change; there is a new leadership structure at the top, but some changes are still undecided. I am hoping that some roles in my area (which were regionalised about eight years ago) will be recentralised under my management. While this has not yet been decided, the regions have got ahead of this with quite a public challenge to the leadership to retain roles at regional level. They have much more clout than my small team and me. A. I am going to assume that your query is about the quality of the work your function provides rather than simply headcount. In any case, a couple of things are immediately clear: Whatever happens, your relationship with the regional directors, as well as with other colleagues currently fulfilling regional roles, is very important. This ‘inter-regnum’ period could be very useful to all of you (in the regions and centrally) by giving you time to get together to work on issues relating to this restructure with a view to making improvements – no matter the eventual outcome. Perhaps someone on the senior leadership team could initiate and sponsor this. You need to play a long game; organisations make changes all the time and how you are seen to deal with this issue will impact your profile. Avoid ‘either/or’ thinking (i.e. ‘they either report to the regions or to me’). There could be many ways to create win-win outcomes. Until a decision is made, there is room for negotiation (see the book suggestion below). I suggest you carefully work out a couple of positions, including: Your ideal outcome (and how to transition to it); Acceptable outcomes if you don’t get your ideal outcome (e.g. dotted line responsibility, developing the more interesting aspects of your role, new structures to support your team, developmental support, etc); and Unwelcome outcomes (and how to avoid them). It could be useful to work on this with your team. I have no doubt that they would have a lot to add to the conversation. Q. My team is under huge pressure – as am I. I try hard to help them, but they keep coming back with the same issues and they are very negative. A. It is the leader’s role to help, but how do we help? Sometimes, it’s by fixing, helping and advising.  And sometimes it’s by listening and empowering the team member to fix it themselves.  As leaders, we are often scared by negativity and we jump in quickly with advice and fixes. I suggest you listen deeply to your direct reports. When they bring up something negative, stay with it and help them to explore it.   The pull to fix is great, so this is much more difficult than it sounds. Arranging to meet to discuss the issue will give you the time to pull together some great questions that will help your team member think through the issue and come up with solutions. Of course, you can suggest solutions too – but people are much more likely to listen to your suggestions when you have helped them to think things through first. Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie If you read one thing... Getting to yes – negotiating an agreement without giving in by Roger Fisher and William Ury. We often go into negotiations with an  ‘either/or’ attitude. Either they win or I do. Getting to Yes offers a framework for ‘principled negotiation’ helping us to come up with creative options where both parties (or more) can achieve what they want.