““the Do’s & Don’ts when the Do’s & Don’ts when managing staff”managing staff”

INTRODUCTION TO EMPLOYMENT LAWINTRODUCTION TO EMPLOYMENT LAW

AAT Birmingham Branch8th June 2011

Dr Ian Canham

Canham Associates

What are we going to talk about ?What are we going to talk about ?

Legal Aspects of Recruitment & Selection

Offering Employment & Contracts

Terminating Employment

Disciplinary Procedure

Ways of Protecting the Business

Questions & queries from audience

Do we need to worry?Do we need to worry? Most businesses will have some employees SME might not have specialist HR resource Employment issues may only arise occasionally Advice from solicitors expensive/ impractical/ not

available on the “shop floor” Employee has a range of legal rights & employers

have legal responsibilities (common, contract & statute law)

Employment law can be complex & getting it wrong can be expensive

Lets have a look at some examples & see

Recruitment Recruitment Primary ObjectivesPrimary Objectives

Legal Responsibilities Accurate advertising

No discrimination

Right To Work in UK

Employment contract

Trained to work safely

Payments (min wage)

Business Objectives Get right person for

the job

To start quickly ?

Productive as quickly as possible

Least cost wages

Recruitment Recruitment (legal requirements)(legal requirements)

Advert must be an accurate description

Only relevant job related criteria be used Must not be discriminatory (examples being)

! Race/ ethnicity/ Religion/ Gender/ Sex/ Disability! Sexuality/ Sexual Orientation/ Age/ Part time/ full time workers

Inadvertent indirect discrimination (examples ?)

References to young dynamic/ mature workers Job title or unnecessarily long lengths of previous experience Suggestions of worker types (suit retired person/ mother)

More Recruitment LegislationMore Recruitment Legislation Ensuring equal opportunities

Candidate selection criteria (impartial & free from prejudice)

Fair consideration of ethnic/ disabled applicants

Access/ resources for all candidates

Candidate & Appointment Monitoring (to check & demonstrate fair process & equality)

Data Protection/ ConfidentialityCollect only information that is relevant to the jobData only to be used for purpose it was collectedKept securely and destroyed after use/ consent to retain data

Offering EmploymentOffering Employment

On employing a person the employee and employer enter a binding legal contract.

Like marriage it is relatively easy to get into but potentially very difficult & expensive to get out of!

As such its important to protect the business by;

Employment not offered until all checks have been carried out. Issue a written letter of offer setting out the terms on which employment is

offered. All offers MUST be subject to probationary period and satisfactory references

Contracts of EmploymentContracts of Employment A written contract MUST be issued within 8 weeks of

commencing work.

Contract must include:– names of employee & employer,– Date of start & job title, – Remuneration (rate & frequency of payments/ bonus calcs, etc.)– Hours of work– Holiday entitlement– Termination notice provisions– Details of the disciplinary & grievance procedures

May use Employee Handbook (General terms) & Individual statement of main terms & conditions

Disciplinary ProceduresDisciplinary Procedures

Starts when employee conduct/ performance fails to meet Company expectations.

Designed to enable employee to correct their actions & is a progressive multi stage process.Informal warning

Verbal warning (Recorded) (6 months)

First written warning (12 months)

Final written warning (12 months)

Termination of employment (with or without notice?)

(what is payment in lieu of notice)

Disciplinary ProcedureDisciplinary Procedure Investigation

– Establish facts & collect evidence

Invite to disciplinary hearing– Advise of disciplinary nature of meeting– Advise of allegations/ problems/ reason for meeting– Provide any evidence/ examples that will be used– Advise of right to be accompanied

Hearing– Present evidence & Company’s perspective– Employee given opportunity to explain/ question– Employee may question evidence/ witnesses

Appeal

Potential Disciplinary Hearings OutcomesPotential Disciplinary Hearings Outcomes

Conduct Issues No further action

Issue written warning– Confirm reason for warning– Confirm level of warning– Provide direction of

expected behaviour to avoid further action being taken

– Right of appeal

Employment Termination– Right of appeal– Notice/ without notice

Capability Issue a written warning

– Document failings & actions required to address

– Document stage in process & duration period

– Next stage of process– Right of appeal

Employment Termination– Right of appeal– Serve notice

Termination of EmploymentTermination of EmploymentEmployer can terminate employment for following

reasons:

• Misconduct (gross/ repeated minor misconduct)

• Capability (ability to do the job/ performance)

• Redundancy (job longer required/ reduced need)

• SOSR (statutory bar/ lost qualification)

• Retirement (Default retirement age no longer exists)

Each has a procedure & failure to follow may result in ET complaint (also mutual agreement – beware)

Employment TribunalsEmployment Tribunals Most disciplinary issues are dealt with in-house &

satisfactory results achieved without the need litigate.

Before taking a complaint to the ET employee MUST exhaust the internal grievance procedure.

At tribunal each party is responsible for their own costs (save as to exceptional circumstances)

– Circa £7 – 10K+

Awards made for successful complaints are:– Reinstatement to job– Financial compensation – or both

How ET Awards are CalculatedHow ET Awards are Calculated Unfair dismissal*

– Basic award (Max £12,00 – equiv redundancy)

– Compensatory award (Max £68,400)– Loss of employment rights (£250)

– Loss of earnings (current & future capped at £400/wk)

Sex/ Race/ Age/Disability discrimination*

Whistle blowing/ H&S/ union related* Failure to issue written contract 2 wks

Written reasons for dismissal 2 wks

Harassment/ Bullying

* Same calculation procedure but unlimited compensation.

Employee GrievanceEmployee Grievance

Employees who have a complaint about their manager or other issues can use the grievance procedure to get these resolved.

Investigation

Invitation

Hearing

Appeal

So what can we do to protect So what can we do to protect the business?the business?

Protecting the Recruitment ProcessProtecting the Recruitment Process

Use Application Forms (carefully designed)

Prepare job criteria & control candidate interview

All questions/ comments must be objective & relevant to job. Use question sheet.

Check claimed qualifications/ certificates

Take up references from previous employers

Check & record the right to work in the UK

Conduct practical skills testing Keep all notes/ documents securely (ethnic analysis)

Protection for Offering EmploymentProtection for Offering Employment

All job offers made in writing -subject to satisfactory references & probationary period.

Have process for second check of all recruitment documents & set up personnel file.

Plan & carry out formal induction for new employees.

Review progress with employee at regular intervals through probationary period.

Make decision on new employee ASAP.

Issue written contracts of employment.

Protection for Disciplinary ActionProtection for Disciplinary Action

Remove emotion, deal only in facts & be consistent in approach to all HR issues.

Act ASAP. If you are not happy then do not delay.

Provide adequate notice of disc meetings, etc.

Before taking any action be sure of the correct procedures. If in doubt seek advice FIRST.

Document procedures, provide clear statements of actions/ expectations & keep records.

So do we need to worry? So do we need to worry?

Worry NO

be aware of procedure & plan any course of action carefully

If in doubt take advice BEFORE starting

At all times proceed with caution

Further help & assistanceFurther help & assistance

Canham Associates work with its clients to provide practical guidance on HR issues.

By advising on procedures, drafting briefing notes/ supporting letters or full “Hands on” involvement.

If you would like to discuss how Canham Associates may help your organisation call Ian Canham on

01922 64635 or 07792 492581