“the do’s & don’ts when managing staff” introduction to employment law aat birmingham...
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““the Do’s & Don’ts when the Do’s & Don’ts when managing staff”managing staff”
INTRODUCTION TO EMPLOYMENT LAWINTRODUCTION TO EMPLOYMENT LAW
AAT Birmingham Branch8th June 2011
Dr Ian Canham
Canham Associates
What are we going to talk about ?What are we going to talk about ?
Legal Aspects of Recruitment & Selection
Offering Employment & Contracts
Terminating Employment
Disciplinary Procedure
Ways of Protecting the Business
Questions & queries from audience
Do we need to worry?Do we need to worry? Most businesses will have some employees SME might not have specialist HR resource Employment issues may only arise occasionally Advice from solicitors expensive/ impractical/ not
available on the “shop floor” Employee has a range of legal rights & employers
have legal responsibilities (common, contract & statute law)
Employment law can be complex & getting it wrong can be expensive
Lets have a look at some examples & see
Recruitment Recruitment Primary ObjectivesPrimary Objectives
Legal Responsibilities Accurate advertising
No discrimination
Right To Work in UK
Employment contract
Trained to work safely
Payments (min wage)
Business Objectives Get right person for
the job
To start quickly ?
Productive as quickly as possible
Least cost wages
Recruitment Recruitment (legal requirements)(legal requirements)
Advert must be an accurate description
Only relevant job related criteria be used Must not be discriminatory (examples being)
! Race/ ethnicity/ Religion/ Gender/ Sex/ Disability! Sexuality/ Sexual Orientation/ Age/ Part time/ full time workers
Inadvertent indirect discrimination (examples ?)
References to young dynamic/ mature workers Job title or unnecessarily long lengths of previous experience Suggestions of worker types (suit retired person/ mother)
More Recruitment LegislationMore Recruitment Legislation Ensuring equal opportunities
Candidate selection criteria (impartial & free from prejudice)
Fair consideration of ethnic/ disabled applicants
Access/ resources for all candidates
Candidate & Appointment Monitoring (to check & demonstrate fair process & equality)
Data Protection/ ConfidentialityCollect only information that is relevant to the jobData only to be used for purpose it was collectedKept securely and destroyed after use/ consent to retain data
Offering EmploymentOffering Employment
On employing a person the employee and employer enter a binding legal contract.
Like marriage it is relatively easy to get into but potentially very difficult & expensive to get out of!
As such its important to protect the business by;
Employment not offered until all checks have been carried out. Issue a written letter of offer setting out the terms on which employment is
offered. All offers MUST be subject to probationary period and satisfactory references
Contracts of EmploymentContracts of Employment A written contract MUST be issued within 8 weeks of
commencing work.
Contract must include:– names of employee & employer,– Date of start & job title, – Remuneration (rate & frequency of payments/ bonus calcs, etc.)– Hours of work– Holiday entitlement– Termination notice provisions– Details of the disciplinary & grievance procedures
May use Employee Handbook (General terms) & Individual statement of main terms & conditions
Disciplinary ProceduresDisciplinary Procedures
Starts when employee conduct/ performance fails to meet Company expectations.
Designed to enable employee to correct their actions & is a progressive multi stage process.Informal warning
Verbal warning (Recorded) (6 months)
First written warning (12 months)
Final written warning (12 months)
Termination of employment (with or without notice?)
(what is payment in lieu of notice)
Disciplinary ProcedureDisciplinary Procedure Investigation
– Establish facts & collect evidence
Invite to disciplinary hearing– Advise of disciplinary nature of meeting– Advise of allegations/ problems/ reason for meeting– Provide any evidence/ examples that will be used– Advise of right to be accompanied
Hearing– Present evidence & Company’s perspective– Employee given opportunity to explain/ question– Employee may question evidence/ witnesses
Appeal
Potential Disciplinary Hearings OutcomesPotential Disciplinary Hearings Outcomes
Conduct Issues No further action
Issue written warning– Confirm reason for warning– Confirm level of warning– Provide direction of
expected behaviour to avoid further action being taken
– Right of appeal
Employment Termination– Right of appeal– Notice/ without notice
Capability Issue a written warning
– Document failings & actions required to address
– Document stage in process & duration period
– Next stage of process– Right of appeal
Employment Termination– Right of appeal– Serve notice
Termination of EmploymentTermination of EmploymentEmployer can terminate employment for following
reasons:
• Misconduct (gross/ repeated minor misconduct)
• Capability (ability to do the job/ performance)
• Redundancy (job longer required/ reduced need)
• SOSR (statutory bar/ lost qualification)
• Retirement (Default retirement age no longer exists)
Each has a procedure & failure to follow may result in ET complaint (also mutual agreement – beware)
Employment TribunalsEmployment Tribunals Most disciplinary issues are dealt with in-house &
satisfactory results achieved without the need litigate.
Before taking a complaint to the ET employee MUST exhaust the internal grievance procedure.
At tribunal each party is responsible for their own costs (save as to exceptional circumstances)
– Circa £7 – 10K+
Awards made for successful complaints are:– Reinstatement to job– Financial compensation – or both
How ET Awards are CalculatedHow ET Awards are Calculated Unfair dismissal*
– Basic award (Max £12,00 – equiv redundancy)
– Compensatory award (Max £68,400)– Loss of employment rights (£250)
– Loss of earnings (current & future capped at £400/wk)
Sex/ Race/ Age/Disability discrimination*
Whistle blowing/ H&S/ union related* Failure to issue written contract 2 wks
Written reasons for dismissal 2 wks
Harassment/ Bullying
* Same calculation procedure but unlimited compensation.
Employee GrievanceEmployee Grievance
Employees who have a complaint about their manager or other issues can use the grievance procedure to get these resolved.
Investigation
Invitation
Hearing
Appeal
So what can we do to protect So what can we do to protect the business?the business?
Protecting the Recruitment ProcessProtecting the Recruitment Process
Use Application Forms (carefully designed)
Prepare job criteria & control candidate interview
All questions/ comments must be objective & relevant to job. Use question sheet.
Check claimed qualifications/ certificates
Take up references from previous employers
Check & record the right to work in the UK
Conduct practical skills testing Keep all notes/ documents securely (ethnic analysis)
Protection for Offering EmploymentProtection for Offering Employment
All job offers made in writing -subject to satisfactory references & probationary period.
Have process for second check of all recruitment documents & set up personnel file.
Plan & carry out formal induction for new employees.
Review progress with employee at regular intervals through probationary period.
Make decision on new employee ASAP.
Issue written contracts of employment.
Protection for Disciplinary ActionProtection for Disciplinary Action
Remove emotion, deal only in facts & be consistent in approach to all HR issues.
Act ASAP. If you are not happy then do not delay.
Provide adequate notice of disc meetings, etc.
Before taking any action be sure of the correct procedures. If in doubt seek advice FIRST.
Document procedures, provide clear statements of actions/ expectations & keep records.
So do we need to worry? So do we need to worry?
Worry NO
be aware of procedure & plan any course of action carefully
If in doubt take advice BEFORE starting
At all times proceed with caution
Further help & assistanceFurther help & assistance
Canham Associates work with its clients to provide practical guidance on HR issues.
By advising on procedures, drafting briefing notes/ supporting letters or full “Hands on” involvement.
If you would like to discuss how Canham Associates may help your organisation call Ian Canham on
01922 64635 or 07792 492581