Is the Increase in Tribunal Fees Stopping Employees Being Treated Fairly?

Posted on September 30, 2015 by Sue Ferguson

Employment tribunal fees were introduced on 29 July 2013. Fees start at around £160 to issue a Type A claim (such as unlawful deduction of wages or breach of contract) and £250 for a Type B claim (e.g. unfair dismissal and discrimination claims). A further hearing fee of £230 must be paid for Type A claims and £950 for Type B claims.

Is the increase in tribunal fees stopping employees from taking their employers to tribunal? Is this reluctance to stand up for what is due to employees allowing some employers to treat their staff unfairly?

Since these fees were established, the number of cases being heard at Tribunal has decreased. April to June 2014 shows an 81% drop in claims compared to the same period in the previous year. (Source: https://www.gov.uk/government/collections/tribunals-statistics). Is this because too many employees can’t afford the fees, or is it just that they don’t want to have to pay the fees?

UNISON has been fighting to have the fees abolished since they were brought in and in August 2015 announced that it would take the case to the Supreme Court, after the Court of Appeal rejected its appeal. UNISON General Secretary Dave Prentis said: “The decision is a huge disappointment and a major setback for people at work. Many unscrupulous employers will be rubbing their hands together in glee at the news. There is stark evidence that workers are being priced out of justice and it is women, the disabled and the low-paid who are being disproportionately punished. Our fight for fairness at work and access to justice for all will continue until these unfair and punitive fees are scrapped.”

Due to the Early Conciliation Scheme, anyone wanting to bring a claim to the Employment Tribunal must now contact ACAS first. The job of ACAS’s Early Conciliation Scheme is to help reconcile workplace problems before litigation is commenced. Initial indications suggest, according to the President of the Employment Tribunals (England and Wales), Brian Doyle, that Early Conciliation is likely to have had the same effect without the introduction of tribunal fees.

The Scottish Government announced recently that it intends to abolish fees for employment tribunals in Scotland. Should the same be done in England and Wales?

Long-Service Awards – The Best Reward?

Posted on September 16, 2015 by Sue Ferguson

Many employers use long-service awards to reward staff loyalty and encourage retention according to a recent XpertHR survey. The awards vary from small tokens of appreciation to significant enhancements to the employee’s pay and benefits package. They are particularly common in the manufacturing and production sector, where 81.6% of employers offer them. Many companies have a series of awards at 5, 10 and 15 or more years’ service.

Awards usually take the form of a cash payment or vouchers, although gifts such as champagne, plaques, a hotel stay or flowers are among the ways in which employers show recognition for service. Another approach is to give an additional day of annual leave either for that year only or from that point forward, which can be worth considerably more than the cash awards listed below. Typical key intervals and cash values of long-service awards are as follows:

Awards following one year’s service are rare, but firms often celebrate the occasion with cake. Some employers also mark years two and three of service.
The reward for five years’ service is commonly cash or vouchers. The median cash payment, from an extremely wide range from £10 to £3,500, is around £140.
After 10 years’ service, the range of cash payments is again very wide, with the median payment standing at £200 from a range stretching from £10 to £7,000.
At 15 years, cash payments range in value from £10 to £10,500 with the median at £300. Payments of £300 are also recorded at both the 20 and 25 year mark, although more generous leave entitlement awards are also common at these stages.

Only a small minority of employers make long-service awards at 30, 35, 40 or 50 years’ service.

Staff Discount Schemes

One in three employers offer staff a discount on their internal products or services, particularly in larger firms. Firms typically provide a discount of between 15% and 50%, with the median discount standing at 30%. Reductions to the costs of both goods and various services can have great value for employees while at the same time benefitting the company.

Some companies offer a combination of perks and regular discounts. For example, at one shoe retailer, employees get a free pair of shoes each season and a 50% discount on other purchases. At one law firm, employees receive free legal services up to a point and discounted services thereafter.

First-aid Payments

Around one in four employers pay an annual allowance to staff who train and take on the important role of a first-aider in their workplace. The median payment is £150 a year.

How do you thank your staff for their long term loyalty? If you’d like to talk about the best ways to reward your staff, call us on 0118 940 3032 or click here to email us.

It’s Time to Bring Your Staff Handbook Up to Date

Posted on August 12, 2015 by Sue Ferguson

Many businesses experience a quiet time in July and August, when staff and customers are on holiday. If this happens in your business, you can use the extra time you have to make sure that you’re up to date with all things HR.

When did you last check that your Staff Handbook was in line with current Employment Law? Every time changes are made to Employment law – which is usually at least twice every year, in the Spring and again in the Autumn – your handbook will become a bit more out of date. So far this year we’ve seen a number of changes to maternity and paternity laws, including shared parental leave. Flexible working laws have changed, along with those relating to attending antenatal appointments.

So how do you keep up to date?

The Acas website at www.acas.org.uk is a good source of information. It lists all the recent Employment Law changes. You’ll need to look at all the changes that have been made and work out which apply to your business. Then you’ll need to find the relevant sections within your Staff Handbook and bring them up to date. You should do the same with any staff forms and processes that you use, to make sure that you’re fully legal.

Once you’ve updated your HR processes and policies, you need to think about how to introduce the changes to your existing members of staff. If you publish your Handbook in hard copy, you can reissue it – but don’t just print it out and leave it on a shelf next to the old one! Let your employees know which policies have been changed and that they should read the Handbook, so they can see how the changes could affect them.

If you have an Intranet within your business, put your new Handbook onto it and tell your staff about the sections and laws that have changed, so that they can read the relevant sections.

However you share your Handbook, you need to encourage your staff to read it. You could ask each employee to sign a form showing that they’ve read the new Handbook and have understood how the changes affect them. This also gives them the opportunity to ask you about anything they don’t understand.

If your handbook is more than three years old, it will be out of date and will need a bit of work; if it’s more than five years old it will be more of an antique and you might even need a brand new one!

Does updating your own Staff Handbook could sound like a rather daunting task? If so, do get in touch to talk to us about how we can do it for you. Call us on call us on 0118 940 3032 or email sueferguson@optionshr.co.uk.

Are You Allowed to Use an E-Cigarette at Work?

Posted on August 5, 2015 by Sue Ferguson

A smoking ban has been in place in the UK since July 2007, preventing anyone from smoking indoors at work premises and other enclosed spaces. The ban applies to all substances that can be smoked, including cigarettes, herbal cigarettes, cigars and pipes – involving the burning of any substance.

Electronic cigarettes or e-cigarettes give off a vaporised water-based mist, but do not burn any substances. This means that, strictly speaking, they’re not covered by the smoking ban. The increased use of e-cigarettes has prompted a government debate, and it seems that there are now plans to make it illegal to sell them to under 18s, or to adults on their behalf. With the growing use of e-cigarettes, this could be a good time to re-assess your workplace rules on smoking.

Here we’ll give you our answers to some of the common questions we’re currently being asked.

Do we have to provide a separate area for e-smokers?

Employees who want to stop smoking by using e-cigarettes may complain about having to use the same designated smoking area as those smoking tobacco cigarettes. However, the law does not require you to provide any smoking area for your staff.

If you choose to designate an area for tobacco smokers, as most employers do, you must make sure that it is legally compliant. It can’t be enclosed and the smoke must not be able to enter the rest of the workplace. The same rules do not apply if you decide to provide an area for the use of e-cigarettes. You will just need to consider where you site this area in relation to any smoking area.

One particularly robust option is to prohibit any type of smoking altogether in your workplace.

Non-smokers are complaining about the vapour from e-cigarettes in the office – what should we do?

The law does not stop you from banning the use of e-cigarettes at work. If you want to do this, it is best to have a written policy in place, so that there is no confusion over what is, and what is not, allowed. Any smoke-free policy, whether it extends to e-cigarettes or not, should apply to staff of all levels without exception and even to third parties such as customers, visitors and contractors.

Some of my e-smoking staff have complained that they don’t get as many breaks as tobacco smokers. What should I do?

As an employer, you are not obliged to allow smoking breaks in addition to the usual work-day breaks, and there is increasing evidence that they disrupt productivity and hinder performance.

If this is a problem for your business, you might wish to implement a policy that prohibits additional smoking breaks during the working day. This means that employees can only use e-cigarettes or smoke during their usual breaks and outside working hours. Some employers ask e-smokers and smokers to make up any time spent on additional breaks during work hours, but the success of this very much depends on the workplace environment, industry and culture.

If you would like to implement a policy for dealing with e-cigarettes in your business, get in touch and we’ll talk about how to build it into your employment contracts. Call us on 0118 940 3032 or email sueferguson@optionshr.co.uk.

Take Seven Steps to Improve Employee Performance – Part Three

Posted on July 8, 2015 by Sue Ferguson

In a previous blog we wrote about steps four and five of a seven stage process that you need to follow, when you want to improve performance in your business. Click here to read that blog again if you need a reminder. If you missed steps one, two and three, you can read them here.

When you’re trying to reach a higher level in your business, you’re only as strong as your weakest member. Dealing with somebody in your team who doesn’t live up to the standards you require is difficult, both legally and ethically. Before you show an employee the red card, be sure you have tried everything that is expected from you, the employer, to guide them and push their performance to a higher level. To deal with the matter correctly, here are the remaining steps to follow:

Step 6: Agree a Performance Improvement Plan

Where you have issued a warning, agree a written performance improvement plan with your employee. This will help you to formally identify unsatisfactory aspects of performance, agree on where further training, coaching, or other support could improve the matter and set new objectives or reiterate existing ones. You can also agree the standards to be achieved, within clear and reasonable timescales.

Provide your employee with appropriate support to improve their performance, allowing them a sufficient and reasonable period to make progress and carefully monitor this.

Step 7: Follow-Up Meeting

At the end of the agreed review period, arrange a formal follow-up meeting to discuss your employee’s progress and repeat the procedure from Step 3 if necessary. Up to three performance review meetings should be held before dismissal is considered.

If your employee’s performance reaches a satisfactory standard within the review period and no further action is necessary, inform your employee in writing. If this is not the case then agree a further performance improvement plan and set a further period in which your employee must improve.

Finally, with any incidence of poor performance it is crucial that you follow the ACAS Code of Practice on discipline and grievance and ensure that employees are treated fairly and consistently.

Deal with issues of poor performance as soon as you notice them and you’ll find it much easier to work them out, to get the best results for your employees and your business.

If you missed the first two parts of this process click here for Part One and click here for Part Two. If you need some specific advice for your business and any of your members of staff, call us on 0118 940 3032 or email sueferguson@optionshr.co.uk and we see how we can help you.

How Legal Are Your Employees?

Posted on June 24, 2015 by Sue Ferguson

There’s a lot more to running a business than ‘doing business’. You have to spend time looking after your staff too! And that involves understanding all the legal implications of recruiting, retaining and releasing staff. The law changes on a regular basis, so you really need to know what’s going on, in order to keep on the right side of the law.

Because you’re busy doing what you do, in this blog we’ll bring you a summary of some of the recent legal changes that you need to know about. We discussed them all at our Employment Law Update workshop in May. If you have any questions about particular issues and how they relate to your employees, please do get in touch. We’ll run another workshop in the autumn.

March 2015: Companions – from March this year, changes have been made to the right to be accompanied in disciplinary meetings. Employees now have the right to choose any fellow employee, and employers must agree to this choice. The employee must think about the practicalities of their choice and can change their mind at any time. The request to be accompanied does not have to be in writing, but employees must give their employer time to make the necessary arrangements for the meeting.

April 2015: Parental Leave – before this year, parental leave was 18 weeks before the 5th birthday of the child. This has been extended to 18 weeks before the 18th birthday. The right to parental leave is an employee’s right to be absent from work for the purpose of caring for a child for whom he or she has parental responsibility. Parents can use it to spend more time with their children and achieve a better balance between their work and family life. The time is unpaid and employees must have completed one year’s service with the company to be eligible.

April 2015: Shared Parental Leave – this is a new right enabling mothers, fathers, partners and adopters to choose how to share time off work after their child is born or placed. It applies to children born on or after 5 April 2015 and must be taken by the child’s 1st birthday. The basic rate of pay is £139.58 per week.

This leave does not replace maternity leave, statutory maternity pay or the maternity allowance and is optional to parents. It allows the mother to end her maternity leave early and allow the father to take leave instead. It does not replace the father’s paid ordinary paternity leave.

Adopters and surrogate parents have the same rights as others. A mother can share her leave with the child’s father, her husband, partner or civil partner, a partner living in an enduring family relationship, but not with grandparents, grandchildren, siblings, aunts or uncles, nieces or nephews.

Click here to see a calculator that can help you work out the numbers and for more eligibility.

Holiday Pay Calculations – in a recent case, the Employment Appeal Tribunal held that a week’s pay, when calculating holiday pay, must include overtime that employees are required to work, even if the employer is not contractually obliged to offer a minimum number of overtime hours.

The government has introduced the Deduction from Wages (Limitation) Regulations 2014, which limits any potential back claims for holiday pay to two years for claims made from 1 July 2015. Arrears are limited to claims in the last three months.

The following now need to be included in calculating holiday pay: compulsory overtime, semi-voluntary overtime, commission and supplements for on call and anti social hours. It applies to the first four weeks of holiday only.

There are more details here in one of our blogs.

Keep reading our blogs for news on more employment law changes that will be coming in later this year.

Take Seven Steps to Improve Employee Performance – Part Two

Posted on June 17, 2015 by Sue Ferguson

Improving the performance of employees is something that all employers should be thinking about on a regular basis. But what happens when someone isn’t performing as well as they could be? What do you do when one person’s performance starts to affect the rest of the team?

There is a simple seven stage process that we recommend you use in these situations. Recently we wrote about the first three steps to look at – holding informal conversations, offering support and carrying out a performance review meeting. Click here to read about them again, or if you missed them.

Here are the next two steps of the process to follow.

Step 4: Make a Decision

Once you’ve carried out the performance review meeting with your employee, you need to make an informed decision about the action you need to take, in order to improve their performance. Take your time in reviewing the situation and don’t be too hasty to make your decision. Consider all the facts and the situation.

It could be that you need to provide your employee with a clearer job description and expectations for what you want them to achieve. They might need training in order to be able to carry out their job to the standard you expect. In the worst cases, you might need to give them a warning about their performance and explain how you want the situation to improve.

Step 5: Inform Your Employee of Your Decision

Make it completely clear what decision you have made, following the meeting with your employee. Telling them face to face is usually the best way to do this, as it allows further discussion. You should also put your decision in writing, so that there is a record of your decision on file, should any issues arise later.

At this stage, it is also vital that you agree the next steps with your employee. What actions do you want them to take and by when? Explain the goals you want them to achieve, or tell them about the training you need them to undertake. Again, make sure everything is in writing.

There are two more steps that you need to follow, in order to fully tackle performance issues. We’ll cover them in a future blog. If you can’t wait until then and you have employee issues that you need to deal with now, don’t leave them to escalate. Contact us on 0118 940 3032 or email sueferguson@optionshr.co.uk for some help and advice.

Holiday Commission Payments – The Verdict

Posted on April 29, 2015 by Sue Ferguson

Finally we have the decision about the calculation of commission payments.

This well publicised case was brought by Mr Lock, an employee of British Gas. He was paid a basic salary and commission based on the sales he made which represented, on average, over 60% of his take home pay.

British Gas paid holiday pay to Mr Lock based on his basic salary only, plus commission on sales he had earned prior to the holiday period. This resulted, in the weeks and months after the period of leave, in times when Mr Lock only received basic salary and not commission. This was because Mr Lock was not at work during the period of leave, did not make sales and did not generate any commission.

Mr Lock brought a claim against British Gas contending that his holiday pay should be based on basic salary and average commission.

The employment tribunal asked the European Court of Justice (ECJ) whether employers should include commission when calculating holiday pay and both decided that Mr Lock should be paid holiday pay including overtime. Since the ECJ we have been awaiting for the employment tribunal to see how to give effect to the ECJ decision.

At the hearing Leicester employment tribunal made it clear that the case was not about whether the commission received by Mr Lock should be included because the ECJ had already decided that it should. The case was about whether the Working Time Regulations could be interpreted to give effect to the ECJ decision.

The employment tribunal concluded that it could by adding wording to the Working Time Regulations which requires employers with workers who have normal working hours but who receive commission or similar payments to calculate holiday pay as if their pay varied with the amount of work done. The effect is to require employers to calculate holiday pay based on an average of the previous 12 weeks’ pay.

The Next Steps

Not all commission payments will qualify and have to be taken into account. You should reconsider how you calculate holiday pay if you operate a similar commission scheme, as you may face a claim for back pay. Legislation was introduced to limit the impact of such claims by restricting back pay for two years for cases on or after 1 July 2015.

This decision relates only to the calculation of four week’s holiday and not the entire current statutory minimum of 5.6 weeks or any enhanced holiday. You should also check any contractual provisions. If you need any help calculating holiday pay for your employees, call us on 0118 940 3032 or click here to email us.

Improving Performance Through a Probation Period

Posted on April 22, 2015 by Sue Ferguson

Taking on new members of staff for a growing business can be a costly and time consuming process – especially if you get it wrong. Finding the best person for your business is important, and many people think that they can sit back and rest once their new recruit arrives on their first day. But that’s just the start of it!

This blog looks at how to give your new employee the best start with your business.

You worked hard on crafting the best Job Description for your new team member. The adverts went out and the applications came in. You spent time interviewing potential candidates to join your team. Finally you found them – the perfect person to work with you. They even turned up on their start date. What happens next?

If you think you can just sit back and expect your new recruit to get on with their job and perform as you expect them to – with no input from you – you’ll be disappointed.

The first thing to do – even before a new employee joins you – is to decide on the length of their probation period. This could be between three and six months, depending on the type of work being done. The probation period is your chance to start assessing your new recruit; it’s their time to find their feet and get used to their new role. It is a vital tool in measuring the performance of a new employee.

Next you need to plan when you’re going to review their performance, during the probation period. Planning a review halfway through is a good idea – don’t leave it until the end. This allows you to take action if you’re in any doubt about their ability to do the job for which you have employed them. Their performance will only get better if you do something about it. They might not have understood the job that you need them to do, so this is the time to go over what you expect from them. It’s also a good time for them to air any concerns they might have about their future with you.

You should next plan to review the performance of your new recruit before the end of the probation period. This could be after five months, if the probation is six months in length. This gives you time to properly review their performance and plan any action that needs to be taken – such as training or development. This will put you in the best position to be able to confirm whether or not your new recruit will be staying on.

If you decide that they will not remain with you, and your employment contract is correctly worded, the notice period for a new employee is usually less than for someone who successfully completes a probation period. If they have to leave, you can quickly turn your attention to finding a better person to fill their role.

There is no legal requirement for using a probation period at the start of an employment contract. However, it is a very good way of making sure you get the right person for the job, after all the time and effort you put into the recruitment process. Just make sure that your employment contract explains all this and that you discuss the use of the probation period with anyone to whom you offer the job!

Options HR brochure and blog

An independent Human Resources consultancy

Tag Archives: employee