Helping Employees in the Lead Up to their Retirement

The thought of retirement for the employee can be mixed – a relief, exciting, or even tainted with a dread of the unknown. Especially if they haven’t made any firm retirement plans. Alternatively, they may be planning to work until they’re 70, as recent research undertaken by the CIPD shows that many people feel this will help them to remain mentally fit.

Whatever the employee’s feelings about retirement, as an employer you need to be as supportive as possible on the lead up to retirement. You also need to be careful about how you approach people who you feel may be nearing retirement age. It could be that your employees don’t want to retire yet, and you may be accused of age discrimination.

Due to a change in the law introduced on 6 April 2011, employers can no longer compel employees to retire at a specified age, unless the requirement to retire is justified objectively – for instance, if your organisation relies on a certain level of fitness to perform their job functions effectively, such as within the construction industry. This change in legislation means that employees can choose to retire when they want.

The law now means that you cannot use retirement as an excuse to dismiss employees who might be experiencing difficulties with their work, for whatever reason. Instead, all employees of all ages should be treated fairly and equally when appraising past performance, or when providing training and development opportunities. Doing this regularly will help to prevent capability issues from arising.

Treating older employees differently from younger employees could amount to age discrimination, which could, unless justified, be unlawful. For example, if you disregard inadequate performance on the part of a 65-year-old employee on the assumption that he or she will be retiring soon, but deliver heavy criticism to a 25-year-old employee whose performance is similarly inadequate, the difference in treatment would amount to age discrimination.

Similarly, if the employee indicates during an appraisal interview that he or she is considering retiring soon, take care not to discriminate against him or her. Instead, you could begin to make future plans if the employee does decide to retire.

Dos and don’ts

  • Do continue to treat the employee in the same way as you would treat other employees, for example in the provision of training opportunities.
  • Do adjust the employee’s performance expectations proportionately if they indicate that they would like to work reduced hours in the run-up to retirement, and if you can accommodate this.
  • Do discuss with the employee how they could pass on their knowledge and skills to other staff in the run-up to retirement.
  • Do discuss succession issues with the employee, for example how they might be involved in training a replacement for the job.
  • Do reassure the employee that they can change their mind about retirement if they wish.
  • Don’t say or do anything that might amount to age discrimination against the employee.
  • Don’t assume that, if the employee indicates that they plan to retire at a particular time, they will do so. Until the employee actually hands in his or her notice, communication of an intention to retire is not binding on the employee. You could, however, remind the employee of the requirement to give notice under the employment contract, and the length of the notice period.

By being mindful of both your legal requirements and your employees’ needs, and acting accordingly, means that your business is not only helping your employee during this often difficult transition in their lives, but you are also protecting, or even improving, your organisation’s reputation as a good employer.

For any further advice on how to help your employees retire well with the least disruption to your business, do call me on 0118 940 3032 or click here to email me.

What Do You Do When a Member of Staff Becomes Disabled?

This guest blog has been written by Roland Chesters from Luminate, a Disability Development Consultant.

Despite the high number of people living with disabilities in the UK, many organisations have still little experience of working with someone with a disability. Too many people just don’t know what to do when a member of staff becomes disabled. They don’t know how to work with and look after that person, or how to meet their legal obligations as an employer.

While every situation will be different, depending on the person and their disability, there are some basic guidelines that you need to follow. I want to share them with you in this post.

Without wanting to sound too obvious, the first thing that needs to done is talk to the member of staff who has become disabled. After all, it’s they who know best how the disability will affect them and their work. Their manager will need to have as many confidential, confidence building conversations as they need, about how to help them to get back to full productivity as soon as possible. Line managers should resist the urge to rush to the internet to find out as much as they can about the disability; the only thing they need to do at this stage is to ask the person with the disability what they need.

The next stage of the process is for the manager to liaise with your HR department, or an Occupational Health specialist, about any adjustments that are needed to help the disabled member of staff to perform at their best. Some of these adjustments might be visible, such as different working hours or equipment that is needed, which can cause other members of staff to start asking questions. “Why is that person coming in later than everyone else?” or “Why does she have a new chair?” Remember that line managers are not allowed to talk to other members of staff about this particular person’s disability – it is up to them to discuss it with their work colleagues, if they want.

#Tip: For SMEs that don’t have Occupational Health advisers or who can’t afford them, the Fit for Work service is a free resource. The service offers free health and work advice through its website and telephone advice line, to help employers with absence prevention. It also provides free referrals for an occupational health assessment for employees who have reached, or whose GP expects them to reach, four weeks’ sickness absence.

It’s really important that managers keep communication channels open with someone who has a disability, to make sure that future adjustments can be made if they are needed. Situations change and people adapt to living with disabilities, so managers need to remain supportive and aware of how a disabled member of staff is performing and managing.

How do managers answer questions from their staff about the visible changes to working conditions that they can see? Since managers are not allowed to discuss the details of the disability with other people, the best way to handle it is to just let them know that it’s a confidential matter that has been agreed between the line manager and the individual member of staff.

When someone at work becomes disabled, the organisation needs to assess the impact of the cost of making changes to accommodate that person and the cost of the functioning of the business. They also need to be aware of their legal obligations. However, it’s just as important that managers remember that at the end of the day, they’re dealing with a real person, who has thoughts and feelings. Talking to them about their disability is the best way to find the right solution for everyone, to make sure that they can carry on doing their best for the business.

What is a disability?

The Equality Act 2010 legally protects people from discrimination where they work, as well as in the wider society in which they live. It protects people from discrimination against them, on many grounds (such as age, sex and race), as well as disability. According to the Act, a person has a disability if they have a physical or mental impairment, and the impairment has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.

The Act states that employers are legally bound to make reasonable adjustments for employees with disabilities.  You can find out more about the Act and your legal obligations here.

#Tip: If you have a disability, remember that your employers cannot make adjustments for you until you tell them about your disability. Your boss is not a mind reader!

What are reasonable adjustments?

The average cost of reasonable adjustments per individual is about £75. In many cases these adjustments are simple and inexpensive or even free. What may seem like little changes can have a profound impact in allowing your employees to maintain productive working lives.

Examples of possible reasonable adjustments are:

  • Providing flexible work hours or a phased return to work (flexible, part-time hours)
  • Allocating a ground floor workstation to an employee who uses a wheelchair, or providing a lift or ramp
  • Providing equipment which is suited to the individual, such as a louder phone for an employee with a hearing impairment, or a special keyboard for an employee with arthritis
  • Allowing an employee with social anxiety disorder to work at a designated desk, rather than hot-desking
  • If an employee has a particular phobia, removing such items from the work area
  • Consider job sharing to help reduce the workload.

Factors which may affect what is considered a ‘reasonable adjustment’ include:

  • the extent to which taking the step would prevent the effect in question
  • the extent to which it is practicable for the employer to make the change
  • the financial and other costs which would be incurred by the employer in making the change
  • the extent to which making the change would disrupt any of the employer’s activities
  • the extent of the employer’s financial and other resources
  • the availability to the employer of financial or other assistance with respect to making the adjustment
  • the size and type of business.

#Tip: In situations where an individual requires assistance which is beyond reasonable for the employer to provide, you may consider getting support from Access to Work. This is a government-run programme which helps disabled people to get into or retain employment. The programme provides advice and practical help in assessing the disability needs of a person in the workplace. It may offer financial support towards any costs which are beyond the reasonable adjustments that the company is obliged to provide.

If one of your members of staff has a disability and you think that you might need to make adjustments for them, do get in touch and we can talk about it. Click here to email Roland or call him on 07752 518 925.

Staff Accuse B&Q of Using the National Living Wage as an ‘Excuse’ to Cut Pay and Benefits

Employers are being warned to avoid kneejerk moves when introducing measures to offset increased wage costs.

A petition drafted by a B&Q manager, accusing the DIY retailer of slashing employee benefits in an effort to offset the costs of the national living wage (NLW), has so far attracted more than 120,000 signatures. As an employer you could face a similar negative reaction if you attempt to alter terms and conditions as a result of the law to increase salaries for your lowest paid staff. The £7.20 an hour wage came into force on Friday 1 April.

As part of the change, the B&Q employees say that the retailer has suggested time-and-a-half pay for working Sundays and double time for working bank holidays; a restructuring of allowances for employees working in parts of the UK where the cost of living is higher; and the removal of a summer and winter bonus, which equates to 6% of annual salary.

The petition says that B&Q staff are required to accept the new terms and conditions of employment, or face losing their job.

“Big businesses like B&Q are using the NLW as an excuse to cut overall pay and rewards for the people who need it the most,” the petition reads.

B&Q denies that the changes to terms and conditions are as a result of the NLW, stating that a review of its pay and reward framework was launched “long before” the new wage was announced.

A B&Q spokesman said: “Our aim is to reward all of our people fairly so that employees who are doing the same job receive the same pay. That isn’t the case at the moment, as some have been benefitting from allowances for a long time when others have not, and that can’t continue.”

A survey from the Federation of Small Business found that 54% of SMEs believe they have been negatively impacted by the 50p an hour increase in pay, and will put off hiring new staff as a result. 41% will cut staff hours, while 26% plan to erode pay differentials by freezing or cutting the wages of higher paid staff.

According to analysis by the FT, employers are actively are actively considering increasing the number of self-employed individuals or apprentices – all of whom are exempt from the NLW – in their staffing mix.

But Esther Smith, employment partner at UK law firm TLT, warned that this could leave employers open to discrimination claims.

“Employers may, consciously or unconsciously, look to employ younger people to avoid the higher wage costs.  Also, if they operate zero hours’ contracts, they may elect to offer less work to those people over 25,” she said. “Both of these actions would expose the employer to age discrimination claims.”

Before you make any major decisions which could affect your business and your employees, get in touch by contacting us on 0118 940 3032 or emailing sueferguson@optionshr.co.uk.