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We regularly update this site with news from the world of human resources, whether it's changes to legislation or sharing of best practice:
Latest news:
Statutory Dismissal and Grievance Procedures
Employers lack awareness of obligations for pregnant workers Information and Consultation Draft Regulations Do you recruit temporary staff through Recruitment Agencies?
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Age Discrimination The Employment Equality (Age) Regulations 2006 The regulations make it unlawful to discriminate against workers, employees, job seekers and trainees on the basis of their age (this applies to people of all ages, both old and young). The regulations cover recruitment, terms and conditions of employment, promotions, transfers, dismissals and training. They do not cover the provision of goods and services. In common with other Equality legislation, the regulations make it unlawful to:
There are limited circumstances when it is lawful to treat people differently because of their age, such as, if the employer has an objective justification, which can be demonstrated with valid evidence. For example, an employer may be able to set a maximum age for recruitment into a particular role, if this is to reflect the considerable training requirements of the position, and the need for a reasonable period of employment before retirement. Other Changes from 1st October 2006
What do the regulations mean in practice? The regulations apply to all areas of employment, but are likely to have the biggest impact in the following: Recruitment Employers need to review recruitment practices to ensure that judgements are based on objective evidence about a candidate’s ability to do the job, rather than assumptions about their age. In particular you should check the following:
Retirement
Pay and Benefits
Redundancy
What will be the impact of Age Discrimination Legislation? We don’t know yet, however, we may gain some insight from the experience in the Republic of Ireland. Age discrimination was outlawed in Ireland in 1998, and age related claims now make up 19% of Irish employment cases. UK employers would be wide to take note of the following cases:
Further Information www.dti.gov.uk/employment/discrimination/age-discrimination/index.html
In order for a retirement to be fair after 1st October 2006, employers will need to demonstrate that:
Transitional Arrangements from 1st October 2006 until 31st March 2007 When a retirement is due to take place during the transitional period (1st October 2006 to 31st March 2007), employers must:
An employee who wishes to exercise this right during the transitional period, should make a written request as soon as reasonably possible once notified of their retirement (preferably at least 4 weeks before retirement). Note that employees can make a request up to 4 weeks after employment has been terminated, during the transitional period. The Full Retirement Procedure from 1st April 2007 The full retirement procedure will apply for retirements after 1st April 2007:
What should employers do now?
Put a procedure in place to ensure that employees are automatically notified of their retirement date (and right to request to work beyond retirement) between six and twelve months in advance.
Statutory Dismissal and Discipline Procedure From 1st October 2004, when an employer contemplates dismissal the Statutory Disciplinary Procedure must be followed: Step 1 The employer must advise the employee in writing of the allegations against them or the reasons that dismissal is being contemplated. Step 2 The employer invites the employee to a disciplinary hearing to discuss the issues. The employee has a right to be accompanied by a fellow employee or trade union representative. The employer informs the employee of the outcome of the disciplinary hearing. Step 3 The employer informs the employee that they have a right to appeal. Where the employee takes up this option, the employer must set up an appeal hearing. The employee has a right to be accompanied to the appeal hearing by a fellow employee or trade union representative. The appeal decision is final and the employee is notified of the outcome. The statutory dismissal and disciplinary procedure applies to dismissals in a wide range of circumstances including:
A failure by an employer to follow the statutory procedure will make any dismissal automatically unfair. Employment Tribunals will now be able to increase compensation by up to 50% in cases where an employer has failed to follow the statutory procedure. They will also be able to decrease compensation by up to 50% in cases where the employee has failed to follow the statutory procedure (e.g. failing to attend the disciplinary hearing, failing to appeal). All employers will be required from 1st October 2004, to produce a written document setting out their disciplinary rules and procedures. Employers also have to include a reference to disciplinary rules and procedures within the Written Statement of Employment Particulars (or employment contract). Employment Tribunals will be able to award an employee up to four weeks pay as compensation, should their employer fail to issue a Written Statement of Employment Particulars (or if the document is inaccurate or incomplete). Statutory Grievance Procedure From the 1st October 2004, when an employee raises a grievance about their employment, employers will need to comply with the requirements of the Statutory Grievance Procedure: Step 1 The employee must inform their employer of their grievance in writing. Step 2 The employer must invite the employee to a meeting to discuss the grievance. The employee has the right to be accompanied by a fellow employee or trade union representative. The employer informs the employee of their decision following the meeting. Step 3 The employee has the right to appeal against the employer’s decision. In these circumstances the employer must invite the employee to attend an appeal hearing. The employer informs the employee of their decision following the appeal hearing. The Statutory Grievance Procedure also applies where an employee raises a grievance after termination of employment. In such circumstances a modified procedure may apply, allowing the employer to review the grievance without holding a meeting and to respond in writing. Employees will be unable to proceed to Employment Tribunal unless they have raised a written complaint with their employer and waited 28 days for a response. Again if either party fails to follow the statutory procedure, Tribunals may increase or decrease any compensation by up to 50%. What Should Employers Do?
This article has been designed to provide an overview, rather than a comprehensive review of the legislation. Full details and guidance for employers can be found on the DTI website www.dti.gov.uk/er/resolvingdisputes.htm. Disciplinary and Grievance Toolkit We have produced an employer toolkit which includes sample letters, forms and process flow charts to help managers with administrative requirements when handling disciplinary and grievance issues. The toolkit costs £45 + VAT. Follow the link for more information http://www.perfectclarity.co.uk/toolkits.htm
Employers lack awareness of obligations for pregnant workers A 2004 survey by the trade union Usdaw indicated a lack of awareness amongst employers of the legal rights of pregnant workers. The survey of Usdaw members found that:
Confused about maternity? Perfect Clarity has developed a Family Friendly Working toolkit for employers. Priced at £45 + VAT the toolkit contains comprehensive guidance on maternity. A risk assessment form for pregnant workers is included, along with sample letters and forms to support the administration of maternity, paternity, parental leave and flexible working requests. Follow the link for more information. http://www.perfectclarity.co.uk/toolkits.htm
The UK Government is under pressure to follow Ireland’s lead in banning smoking in all workplaces. ASH (Action in Smoking and Health) are campaigning for bars, restaurants and clubs to be made smoke free zones. They argue that working in a smoke filled environment is a health and safety issue. As a result, employers are urged to take steps to protect their staff from the health risks associated with passive smoking. A clear smoking policy, communicated to all employees, is a sensible approach for employers concerned with minimising the risk of legal action.
How are your interview skills? In many parts of the country it is a job applicant’s market at the moment, with employers facing tough competition to recruit talented new staff. A recent survey of 4000 jobseekers, carried out by recruitment consultancy Reed, found that an organisation’s approach to interviews can have a dramatic impact on their ability to recruit. Two thirds of candidates reported turning down jobs because the organisation failed to impress them during the interview. Whilst 85% of respondents stated that it was vital for the organisation to make a good first impression at interview. The survey’s 4000 respondents quoted a surprising range of complaints about interviews, including:
Don’t forget that the candidate is assessing your organisation, as much as you are assessing them during the interview. Selection interviewing is an important skill with which few people are born. All interviewers should be trained to enable them to effectively assess candidates, and to create a good first impression of the organisation. For further information on recruitment and selection training visit www.perfectclarity.co.uk/training/recruitment_and_selection.htm, to discuss how we can support your recruitment campaigns email info@perfectclarity.co.uk
Information and Consultation Draft Regulations The Government has issued draft regulations designed to encourage greater communication between employers and staff. “The Information and Consultation of Employees Regulations” will come into effect in March 2005 (for employers with more than 150 employees). This new legislation is in addition to current regulations requiring consultation in connection with TUPE or collective redundancies. Under the regulations, where at least 10% of staff make a request an employer is obliged to implement an information and consultation mechanism (e.g. this may take the format of a Works Council). Employers can negotiate for up to 6 months with employees about the information to be provided. However, where no agreement is reached standard provision will apply, which state that the employer must provide information on:
The standard provisions also require employers to consult over items b. and c. above. Such consultation must be carried out with a view to reaching employee agreement. The introduction of the regulations will be phased, affecting employers with 150 + employees in March 2005, those with 100 – 150 employees in March 2007 and those with 50+ employees in March 2008. Employers with less than 50 employees are exempt. Where employers do not comply with the regulations a fine of up to £75,000 may be imposed.
Did you know that on average it costs UK employers £9,766 to recruit and train a new employee? A recent study by Momentum Financial Services also found that average labour turnover in UK companies is 17.9% per annum. There is no doubt that some turnover of staff is beneficial, as it allows the recruitment of people with new skills, ideas and different experiences. However, if your organisation has a high level of labour turnover, the cost can clearly be enormous. What can you do to reduce it?
Need any help? We have plenty of experience of analysing and addressing labour turnover issues. For a free review of your labour turnover issues, why not email us info@perfectclarity.co.uk
Do you recruit temporary staff through Recruitment Agencies? Many employers have experienced being charged a “temp to perm” fee by a recruitment agency, when permanently employing a long term agency temp. If this has caused you frustrations in the past, the “Conduct of Employment Agencies and Businesses Regulations” which come into force on 6th April 2004 may present some good news. The regulations state that, after the end of a “relevant period” the client will now have the right not to be charged a “temp to perm” fee. In brief, the “relevant period” will be the longer of either:
The regulations outline other provisions relating to the way in which employment agencies operate. Further information can be found by visiting www.dti.org.uk.
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