Changes to Employment Law – Can You Keep Up?

Changes to Employment Law – Can You Keep Up?

Twice a year, in April and October, changes are made to UK employment law. There’s a lot that you need to know, so to help you keep abreast of the changes, I’m running one of my very popular workshops to discuss and simplify the changes. It will be held on 1 May 2014 and Hennerton Golf Club, Wargrave, Berkshire. Click here to book your place.

Here’s a summary of some of the proposed changes to due to take place this spring:

  • Power of Employment Tribunal to impose Financial Penalties on employers. The Employment Tribunal will have the power to order an employer who has lost a case to pay a financial penalty, to the Secretary of State, of between £100 and £5,000. The penalty will be imposed where the employer has breached any of the worker’s rights. Tribunal Financial Penalties apply from 6 April 2014.
  • Early conciliation to come into force. Before lodging a claim to the Tribunal, all claimants will need to notify Acas first, where conciliation will be offered. If conciliation is unsuccessful within the set period the claimant can proceed to lodge a tribunal claim. This comes into force on 6 May 2014.
  • Statutory maternity, paternity and adoption pay increase. The rate of statutory maternity, paternity and adoption rate will increase to £138.18.

In addition, there is this change, to be brought in by the end of 2014:

Managing sickness absence. A health and work assessment and advisory service is to be introduced, offering fee occupational health assistance for employees, employers and GPs. The service can provide an occupational health assessment after four weeks of sickness absence.

To keep your business fully updated, why not book your place on our workshop? The cost is just £10 +VAT, so to reserve your seat, just click here to book online.

How Do You Manage Absence in Your Business?

How Do You Manage Absence in Your Business?

The cost of absence to your business could be huge. While it’s not always avoidable, you can reduce the cost and impact by managing it effectively. Here are some of the things you need to do:

Monitor it: You won’t have an idea of the problem if you don’t keep a record of the days and dates of absence. You need to know the frequency or length of absence to decide on the next steps.

Reporting absence: You must have rules about reporting absence and you must make sure these are followed.  If you don’t do this everyone will ignore them because they can.

Discuss the problem with your employee: There’s a legal requirement to consult with employees. They need your support and you need to know how to plan their work while they are away and make arrangements for their return.

Getting the payments right: Check the contract of employment to make sure you make the correct payments. As a minimum, employees are entitled to Statutory Sick Pay and they may also be entitled to be paid for holidays.

Return to work interview: These are key tool in deterring absence and making sure that you know what’s going on with your staff. They’re a great opportunity to nip problems in the bud.

Keeping in touch: Contact is vital if an employee is away for a long period. It helps you to provide support to them and at the same time understand how the situation may develop so that you can plan your business.

Phased return to work: This may be required after a long illness and may be suggested by the GP in a fit note.  You should consider these suggestions and discuss them with the employee before you make a decision.

What if you need to dismiss a member of staff due to long term absence? What are the benefits of managing absence? You can find out more from our free fact sheet – download it here.

How to Make Appraisals Really Easy

Appraisals should be divided in three stages – preparation, the actual meeting and the follow up. Here’s what to focus on at each stage.

 1. Preparation

This is one of the most important stages of the appraisal process and is often missed or skipped over too quickly. You need to have facts about each employee’s performance and evidence of instances in which they have performed well or badly. This will make the appraisal constructive and meaningful.

Throughout the year, track each employee’s performance and keep a log of memorable incidents or projects they’re involved in. Look back at previous appraisal information and job descriptions to make sure they are meeting their agreed objectives.

Make sure that your employees are prepared too. Agree the date, time and place for the meeting at least two weeks in advance; brief them on the importance and scope of the meeting and what you expect from them.

2. The Meeting

Once the preparation is done, here’s how to carry out the meeting:

  • Ask open and probing questions, giving your employees the opportunity to decide how to answer; encourage them to talk freely
  • Listen to what they say without interrupting. Also watch their body language for messages
  • Evaluate performance, not personality. Focus on how well the employee does their job rather than personal characteristics
  • Give feedback based on facts not subjective opinion. Use feedback to positively reinforce the good. In the case of underperformance, use it to help the employee understand the impact of their actions or behaviour and the corrective action required
  • Set SMART objectives for the future and set a timeline for improvement if an employee is underperforming. Look also for development opportunities to help your employees reach their potential
  • Document each appraisal. Write a summary of the discussion, what was agreed and any action to be taken while it’s fresh in your mind.

3. Follow Up

Don’t just walk away at the end of the meeting, breathing a sigh of relief and forgetting about it all until next year!

Do what you say you will do. Fulfilling your promises reflects well on you and your business. If you’ve set deadlines for performance reviews, follow up on them. Check on progress that you discussed in the meeting.

If you don’t follow up with appraisals, the whole process will be a waste of time and something that neither you nor your employees look forward to or find useful.

Still need some help? If you follow all these tips and still think that carrying out appraisals seems too difficult, we can help. Full preparation, support during the meetings and follow up for just £90 +VAT per employee! To find out more or to book dates for your appraisals, call me on 0118 940 3032 or click here to email me straight away.

Employment Tribunals Have Changed – What Do You Need to Know?

From April 2011 to March 2012 there were a total of 186,300 tribunal cases is the UK. The cost to employers was an average of £3900; the cost to the taxpayer was £1900 for each case. Of this total, 46,300 cases were due to unfair dismissal. 24% of the cases were withdrawn, 42% were settled via Acas, 8% were successful following hearing and 10% unsuccessful following hearing.

Since July 2013 a number of changes have been made including:

Cap on unfair dismissal – there is now a basic award which is based on redundancy; and the compensatory award is now capped at £74,200 or one year’s earnings.

Employment tribunal fees – fees are now charged for issuing and hearing tribunal claims and for various applications made during tribunal proceedings. Level 1 fees for simpler claims are £160 for issue and £230 for hearing. Level 2 fees for more complex claims including unfair dismissal and discrimination are £250 for issue and £950 for hearing.

Early sift stage – during this stage, the pleadings will be reviewed by a judge soon after the Tribunal claim form has been received, with claims or responses being struck out if the judge considers there is no reasonable prospect of success.

In addition, Acas is making pre-conciliation changes from early 2014 and financial penalties are being introduced for employers from 6 April 2014.

So should you settle or should you fight? If this all sounds too complicated for you, or you have any specific questions about changes to employment law, don’t go through it alone! Please get in touch by calling 0118 940 3032 or by emailing sueferguson@optionshr.co.uk.

Scrooge’s Guide to Presents

In case you missed my December email newsletter, here’s a catch up for you!

The start of a new year is the time when some businesses think about how best to reward their staff for their hard work over the last 12 months. Instead of a one-off ‘thank you’, what about putting a more ongoing, sustainable rewards scheme in place?

Here’s the story of how one Dickensian employer got it right!

Ebenezer Scrooge loved Christmas! He really enjoyed giving his staff time off, to spend with their families over Christmas. He encouraged them to go Christmas shopping and to send cards to all their friends.

Mr Scrooge even loved giving presents to his staff. But he often struggled to find the best gift for each person. So one year, had a great idea. Instead of buying each member of his team a gift at Christmas, Mr Scrooge decided to set up a reward system for all his staff, which would run all through the year, rewarding them on an ongoing basis for their hard work.

Here’s what Ebenezer Scrooge did to create the best Christmas present that lasts for 12 months:

  1. He put a structure in place – just a simple one to begin with
  2. He took the time to identify the things that were really important to his staff – including non-financial benefits – and incorporated them into his strategy
  3. He invested in making his company an interesting and fulfilling place to work. This helped him to attract great people and helped keep overall pay costs down
  4. He created a scheme that was simple to understand, so that his line managers didn’t struggle to explain it. They were key to making his reward structure a success
  5. He didn’t assume that it was just about pay. According to research that Mr Scrooge read, some executives would consider a pay cut of up to 35% in order to get their ideal job.
  6. Then he reviewed the scheme and the effect it had on his staff throughout the year, to make sure he was still getting it right
  7. And finally he enjoyed spreading Christmas cheer amongst his staff all year long and they loved working for him!

 

Think about how you can engage your staff beyond Christmas by setting up a reward scheme this year.

The Beginner’s Guide to Management

If you’re new to managing people, or you’ve been doing it for a while without much formal training, then the next workshop I’m running will be ideal for you.

Here are a few of the things you need to do as a manager:

  • Learn the principles of team building and how to get the best out of your team members
  • Understand the behaviours of different personality types and how people work together
  • Find out how to motivate and develop people
  • Practice the art of delegation
  • Learn the best practice for managing performance
  • Carry out a successful appraisal meeting
  • Learn how to give useful feedback
  • Be prepared for “that difficult conversation.”

When you can do all this, you’ll be a great manager, with a really productive team!

If all this sounds rather daunting, don’t worry. I’m running a workshop that will cover all this and more. It will give you the management skills you need and refresh and update the skills you already have.

The two day workshop will be held on 28 January and 11 February 2014 at Wargrave Cricket Pavilion, RG10 8BG. Places are limited, so click here to book your place.

Are Your Staff Still Legal? Employment Law Update

Employment law is updated regularly. To keep you up to speed and on the right side of the law, I?m running a workshop in Reading on 20 November 2013. Click here to book your place for just £10 +VAT.

In the meantime, here is a quick summary of some of the more recent updates that you need to know about, that have been made since the update blog I wrote in July 2013.

Employment tribunal fees introduced. Fees are now charged for issuing and hearing tribunal claims and for various applications made during tribunal proceedings. Fees were introduced on 29 July 2013 in respect of claims issued on or after that date. Claims already before the tribunal at that date are unaffected. Click here to read a leaflet that tells you more about the exact charges.

New employment tribunal rules in force. The new rules are intended to simplify and streamline the tribunal process and to cut costs. They came into force on 29 July 2013 and apply to all claims irrespective of when they were issued.

Settlement agreements. Also from 29 July 2013, the Government’s proposals for facilitating the use of settlement agreements came into force. As an employer you can now offer a settlement agreement at any time, irrespective of whether there is an existing dispute. Neither you nor your employee can later refer to the fact that an agreement has been offered in subsequent unfair dismissal proceedings, should an agreement not be reached.

Compensatory award cap. A cap on the compensatory award of one year’s pay has been introduced.  The previous statutory maximum will apply, if lower. The new cap applies where the effective date of termination is on or after 29 July 2013.

Employee shareholder contracts. Since September 2013 you are able to offer employee shareholder contracts to new and existing staff, although existing staff cannot be forced to agree. Under these contracts, employee shareholders must be given free shares worth at least £2,000. Shares issued up to £50,000 in value will qualify for capital gains tax relief. In return, employee shareholders are required to give up their rights to claim unfair dismissal, a redundancy payment and to request flexible working and time off for training.

National minimum wage increases. The national minimum wage increased on 1 October 2013. Click here to see all the numbers and how they’ve changed.

And as if that’s not enough, there are more changes coming in April 2014! Some will affect maternity and paternity leave, so come to my next workshop to find out more.

How to Sack Someone

No matter how hard you work at recruiting the best staff and keeping them engaged with their work and your business, at some point you may have to sack a member of your staff. Here’s a simple overview of the different (legal!) ways in which you can do this.

Dismissal is when you end an employee’s contract. When dismissing staff, you must do it fairly. There are different types of dismissal:

  1. Fair dismissal
  2. Unfair dismissal
  3. Constructive dismissal
  4. Wrongful dismissal

Fair and Unfair Dismissal

A dismissal is fair or unfair depending on:

  • Your reason for it, which must be valid. Reasons can include capability, conduct, redundancy or something that prevents staff from legally being able to do their job, such as a driver losing their driving licence
  • How you act during the dismissal process. Even if you have a fair reason, the dismissal is only fair if you also act reasonably during the dismissal and disciplinary process.

Constructive Dismissal

This is when an employee resigns because you’ve breached their employment contract. This could be a single serious event or a series of less serious events.

An employee could claim constructive dismissal if you:

  • Cut their wages without agreement
  • Unlawfully demote them
  • Allow them to be harassed, bullied or discriminated against
  • Unfairly increase their workload
  • Change the location of their workplace at short notice
  • Make them work in dangerous conditions

A constructive dismissal isn’t necessarily unfair – but it would be difficult for you to show that a breach of contract was fair.

Wrongful Dismissal

This is where you break the terms of an employee’s contract in the dismissal process, e.g. dismissing someone without giving them proper notice. Wrongful dismissal isn?t the same as unfair dismissal.

If an employee thinks you’ve dismissed them unfairly, constructively or wrongfully, they might take you to an employment tribunal.

How to Sack Someone

When it comes to actually dismissing a member of staff, your procedure should follow the advice set out in the Acas (Advisory, Conciliation and Arbitration Service) code of practice.

This is just an overview of the legal ways in which you can ask a member of staff to leave your business. There is more information online and if you’re having any staff issues, please do get in touch with me, to talk through your issues, before you make any decisions. You can always call me on 0118 940 3032 with your questions.

How to Give Great Feedback to Your Staff

Motivating your employees is about more than your charisma and vision for your business. To help your employees perform their best, as their leader you need to provide feedback – the right kind, at the right time. Feedback is an essential tool for any manager, whether you run a small business or a large company.

Just as they need blood and oxygen, our brains need to receive comments about how they’re doing. Feedback works on the emotional system in the brain. It enables the brain to use higher-level thinking skills to decide how to continue doing good work, make the good work better, or make changes to get more positive responses and work harder toward company goals. Your leadership skills rely heavily on your ability to give and receive feedback.

Here are some ways in which you can feed your employees’ brains and give great feedback:

Be specific and timely. Comment while the task is still in the mind of your employee. This is especially important if you’re working toward a specific goal and you want to keep the momentum going. Specific feedback corrects or reinforces certain behaviours, enabling the brain to focus on something concrete, which it doesn’t do from a simple “Thank you.” If you decide to congratulate employees as a group, be sure to talk to each one personally as well.

Fit the feedback to the person. Now and then you may need to provide a pat on the back to one of your employees, or a nudge in the right direction, in a subtle yet supportive way. For such feedback to be really motivational, provide it in a way that’s best suited to the recipient.

Connect your feedback to company goals. Goals help the brain focus. Make your employees feel that their contributions are valued and create a positive emotion with the feedback. Some employers want to encourage competition, so they make sure that the entire company or department sees how everyone is doing.

Set up a schedule for follow-up conversations. A quick memo or email can easily be misinterpreted, so continued face-to-face feedback is best. Studies have shown that negative feedback may be less stressful to the brain than no feedback at all; for this reason, follow-ups are especially important for employees who need improvement. Put your message in writing as well as delivering it verbally.

Build on employees’ strengths when giving negative feedback. By beginning with the strengths, you involve the prefrontal cortex right away. If you begin with negativity, the information may never reach the frontal lobe; it may get stuck in the primitive emotional areas and put the employee in survival mode. Always give suggestions for improvement.

See if you can work all these points into your appraisals, or any time when you’re giving feedback and you’ll find it much easier to deliver, as well as much more effective in creating improvements in your employees’ performance.

With thanks to Marilee B. Sprenger, author of The Leadership Brain For Dummies

Getting Started with Performance Appraisals Part 2

Here are some things to think about, before you carry out your annual staff appraisals, to make them less daunting and more effective. We’ll go into more details on these tips and what to actually in the appraisal meeting, at our forthcoming workshop on 11 September 2013.

Prepare. A good appraisal form will provide a natural order for proceedings, so use one. If you don’t have a standard appraisal form then find one online – there are plenty of templates available. Organize your paperwork to reflect the order of the appraisal and write down the sequence of items to be covered. If the appraisal form includes a self assessment section and/or feedback section, make sure you give this to each member of staff in plenty of time, allowing them to complete it before the meeting.

Part of your preparation should also consider ‘whole-person’ development, beyond and outside the job skill-set. Many people are not particularly interested in job skills training, but will be interested and motivated by other learning and development experiences. Get to know what your people are good at outside of their work. Appraisals are not just about job performance and job skills training. Appraisals should focus on helping the ‘whole person’ to grow and attain fulfilment.

Inform. Let your staff know when and where their appraisal will be held. Give them the chance to assemble any data and relevant performance and achievement records they need.

Venue. Plan a suitable venue that’s private and free from interruptions. Privacy is absolutely essential.

Layout.  Room layout and seating are important elements as they have huge influence on atmosphere and mood. Irrespective of content, the atmosphere and mood must be relaxed and informal. Remove barriers – don’t sit across the desk from your staff member; use a meeting table or easy chairs and sit at an angle to each other.

Introduction. Relax your member of staff by opening with a positive statement. Smile, be warm and friendly to create a calm and non-threatening atmosphere. Set the scene by explaining what will happen and encourage a discussion and as much input as possible from them

When you spend some time thinking about how you’ll carry out your annual appraisals, they’ll be much more effective for both you and your members of staff.

For more information, come to our workshop on 11 September 2013 for just  £12 +VAT. Click here for the details and online booking.