Tag Archives: procedure

What Are The Latest Employment Law Updates?

Posted on by

What Are The Latest Employment Law Updates?

On 1 May 2014 we held our latest Employment Law Update workshop, when we looked at some of the recent changes that you need to know about, as an employer. Here is a summary of some of the changes.

  • Workers from overseas – from 1 January 2014, restrictions on working in EU states were lifted for Bulgarian and Romanian workers. Remember to check the right to work in the UK for all employees.
  • Employing illegal workers – from 6 April 2014, the maximum civil penalty for employing an adult subject to immigration control, who does not have the right to work in the UK, increased to £20,000 from £10,000. New guidance has been issued by the Home Office in the “Full guide for employers on preventing illegal working.”
  • Employment Allowance – from 6 April 2014 a £2000 reduction in the NIC bill for all businesses and charities has been introduced. HMRC has a calculator and information you can use here.
  • Employment tribunal fees – from 6 April 2014 some re-categorisation of claims has been done. As a reminder, Type A claims are £160 for the issue fee plus £230 for the hearing fee; Type B claims are £250 for the issue fee and £950 for the hearing fee. Type B claims include unfair dismissal. The Tribunal can order the employer to pay if the claim is successful.

These are just a few of the recent changes and we’ll cover more in future blogs. More changes will continue to be made throughout the year to Employment Law. To keep up to date, subscribe to our newsletter here, keep reading these blogs, or come to our next workshop, which will be held in the autumn.

Are You Ready for Pension Auto Enrolment? Part One

Posted on by

Are You Ready for Pension Auto Enrolment? Part One

All businesses will soon have to provide a pension for their staff. The start date depends on the size of your business. But there’s a lot more to think about than just the date. Here are five tips to consider:

Don’t leave it too late. The auto-enrolment ‘to-do’ list for employers will take some time to complete; don’t leave it to the last minute. Collating data can mean sourcing information from various systems. In addition, enrolling employees to the pension scheme could involve changes to their contracts of employment, which requires a three month consultation period. An early start is ideal – 6 to 12 months ahead of your staging date is ideal.

Understand your key dates. It’s crucial that you not only understand when your staging date is, but also any key company dates such as the pay reference period and payroll cut off. Documenting these dates and then overlaying the new dates when actions need to be completed as a result of pension reform legislation will help gauge the impact on the business. It will also help decision making, such as the need for a waiting period and if so, how long it should be.

Quality of data is key. It’s easy to underestimate the complexity of the data you require. You’ll need data for employee eligibility assessment, joining, contributions and opt outs. Inevitably this will come from different sources and systems. It takes a significant amount of time to do this within payroll cycles and the frequency that this data is needed also adds a layer of complexity. The quality of the data and the processes for sourcing the data for each payment cycle will be crucial to how smoothly that works each pay period.

Choice of contribution basis. Your chosen scheme must meet a quality standard, based around a minimum level of benefit or contribution, so you need to start budgeting for any extra costs. There is more than one acceptable contribution basis and they can be mixed and matched across the workforce to suit different reward mechanisms or pay patterns. What will work best for you? The key point is that the contribution basis and definition of earnings can be chosen to suit your business.

Method of contribution. Salary Exchange should also be considered as this can offer you significant cost saving benefits. However, where salary exchange is being used, this decision should be made prior to the scheme staging, otherwise it can cause additional administration for employers.

There is a lot to think about and do when it comes to setting up your company pension. These five tips give you a good starting point and in a future blog we’ll share with you another five tips. In the meantime, if you have any questions about pensions, do get in touch.

Changes to Employment Law – Can You Keep Up?

Posted on by

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?

Posted on by

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

Posted on by

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.

More Changes to Employment Law – What You Need to Know

Posted on by

Throughout the year changes are made to employment law. To help keep you up to date, here are some of the more recent changes.

The Right to be Accompanied. Employees have the right to be accompanied at a disciplinary meeting, where they make a reasonable request. What is reasonable will depend on the circumstances of each individual case. However, it would not normally be reasonable for workers to insist on being accompanied by a companion whose presence would prejudice the hearing. Nor would it be reasonable for a worker to ask to be accompanied by a companion from a remote geographical location if someone suitable and willing was available on site.

The Acas code is to be amended to “Employees have an absolute right to choose a companion for a grievance meeting.” Click here to visit the Acas website for more information.

Employee Shareholders. From September 2013 employees can become shareholders if both they and the employer agree all the aspects. Employees can receive £2000 worth of shares and in return, give up rights to claim unfair dismissal, a statutory redundancy payment, a statutory right to request flexible working and a statutory request for study or training. They must also give more than usual notice of return from maternity leave. Click here to find out more.

Pensions Auto Enrolment. From April 2014, depending on the size of your business, you will have to provide a workplace pension for your staff. To do this you need to know your ‘staging date’ and make sure you have information on all your employees. Check your payroll system can cope and that you have enough administration support. To find out who will be included and excluded and when you have to set up company pension, take a look at the Gov.UK website.

In April or May 2014 I’ll be running another Employment Law Update workshop. Keep an eye on this blog and the website for the date and online booking.

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

Posted on by

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.

Seven Steps for Dealing with Poor Performance in a Growing Business – Part Three

Posted on by

Last month I wrote about steps four and five of a seven stage process that you need to follow, when you have to deal with issues of poor performance in your business. Click here to read that blog again. 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 here, click here for Part One and click here for Part Two.

Dealing with Gross Misconduct – How do You do it?

Posted on by

Gross misconduct is behaviour so bad that it destroys the relationship between you and your employee and it usually results in dismissal. But what exactly can be considered gross misconduct? It’s important to know, so that you can avoid unfair dismissal claims.

Here’s how to identify and manage gross misconduct.

What is gross misconduct?

Gross misconduct is a serious breach of contract and includes any misconduct which, in your opinion, causes serious damage to your business, or irreparably breaks down trust and relationships.

There is no exhaustive list, but it can include theft, physical violence, bullying, damage to property, accessing pornographic sites, damaging your firm’s reputation, inability to work due to alcohol or drugs, breaching health and safety rules, failing to obey instructions, or serious neglect of duty. Repeated minor misconduct, such as being late to work, is not gross misconduct, although it can lead to dismissal after previous unexpired warnings.

Should my staff handbook include examples of gross misconduct?
Include a list of examples of what usually counts as gross misconduct, but state that it is non-exhaustive as you cannot provide for every eventuality. Each case should be looked at individually and consideration should be given to all the circumstances.

What procedure should I go through if someone has committed gross misconduct? When disciplining an employee you should follow your own disciplinary procedure and the Acas Code of Practice. If you don’t follow the Code it may render a dismissal unfair and could increase the amount of compensation an employment tribunal awards against you.

If you believe an employee has committed gross misconduct, you may need to suspend them to allow a full investigation to take place. This won’t be necessary in all cases, but it will usually be appropriate in cases of serious misconduct. If an employee is suspended it should be on full pay.

Carry out a fair and balanced investigation. At the end of it you may decide that no further action is necessary. However, if matters are to be taken further the employee should be invited to a disciplinary hearing where they will be given the opportunity to state their case and respond to the allegations against them. The hearing should then be adjourned for you to make your decision. You should notify the employee of your decision in writing and inform them of their right of appeal.

How can I decide if something counts as gross misconduct or not?  
If you’re unsure, get legal advice. In any case, if an incident is not obviously gross misconduct, it’s always better to go for the lesser sanction than to dismiss someone as such a dismissal may be held unfair. The current maximum compensation for unfair dismissal is £74,200.

If you need any more advice about identifying or dealing with gross misconduct, please do get in touch, to make sure you can avoid and tricky situations.

How Can I Sack Someone Legally?

Posted on by

This is a question I’ve been asked recently. It’s easy to fire someone, but not so easy to do it without getting into trouble, so here are some tips for sacking staff legally.

1. When you fire an employee, remember the three essential steps

First, invite the employee to a meeting with you. Make sure they realise it’s a disciplinary meeting, not a chat about the weather. Second, let them have their say. Take notes and record how long it lasts so you can prove it wasn’t rushed. Third, ask a senior manager to review your initial decision – you need an impartial opinion. If you fail to follow any of these steps, the dismissal is unfair and could go to a tribunal.

2. Fire employees consistently

Last year, you discovered that someone in your sales department had been colluding with a rival. You gave him a warning. A few months ago, you found out that another salesman was doing the same thing. You sacked her. Watch out – if you behave inconsistently, you won’t have a leg to stand on in court.

3. Take your time and don’t rush into firing anyone

Don’t ambush a member of staff with an allegation and fire them on the spot. Notice of a disciplinary hearing must be given at least 24 hours before the meeting.

4. Be wary of sexual discrimination

Dismissing or demoting a pregnant employee (or woman on maternity leave) can lead to problems. It can be considered as sexual discrimination, even if you believe you have a strong case for sacking her. Make sure you get the legal issues right.

5. – and other minority groups

Regardless of length of service, i’?s unlawful to dismiss an employee on these grounds: sex or marital status; colour; race; nationality or ethnic origins; physical or mental disability; sexual orientation; religion.

6. Record everything

Companies get into legal hot water by forgetting to record things like verbal warnings. Make employees sign a form to say that they’re aware of the action taken against them and agree that it’s fair. Don’t let anything slip by undocumented.

If you need to sack someone, follow these steps carefully. Get some advice before you rush into doing anything and you’ll avoid costly problems.