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Who to put at Risk During Redundancies

#HRFridayFact: If redundancies are necessary, similar roles must be put at risk and a fair scoring system used to select individuals

Sometimes, even in periods of growth, businesses have to remodel and re-shape to accommodate and react to shifts in economic conditions. Ditching unprofitable lines for example. If redundancies become a necessity then “last in, first out” isn’t an acceptable policy and businesses should use a system that fairly scores all relevant employees’ abilities against the skills required to fulfil the available positions.

Whenever there is a redundancy situation you must remember that it is positions that are made redundant and not people. You must never use redundancy as a reason to dismiss a specific person without following a proper redundancy process. So, where a position has been identified as being redundant and more than one person is currently employed who can fulfil it, operating a fair selection process is paramount where all employees in that role are put “at risk”.

So if a company suffers a downturn in business and requires 2 less technicians from a team of 10, then all 10 technicians must be put at risk. A fair scoring system must then be applied to establish who the top employees are, based on their ability and aptitude and the bottom two will lose their jobs.
For example, if you close down a section of the business that makes product X, you may also have to put the section that makes product Y at risk if employees from the first section have the skills and ability to make both products.
Equally, employees that do similar roles at different offices or sites across the country may all need to be put at risk of redundancy if the need for one of those workers becomes unnecessary. So if the bookkeeping role of four offices could be managed by just two bookkeepers then all four would need to be put at risk and the best two selected following a fair selection process.

Unacceptable selection methods for redundancy include:

  • Last in first out
  • Drawing lots
  • Selection based on the lowest cost
  • Selection because someone is perceived as a difficult person.

We recommend employees are scored against a ‘selection matrix’ that awards points for each requirement of the position including skills, qualifications, track record and experience. This could include minus points for poor attendance and any disciplinary history. The lowest scores are those who are dismissed.

Ensure your scoring matrix is fair and does not favour or discriminate against any individual or group. A redundancy situations that can be construed as an excuse to exit a specific employee could lead to an unfair dismissal claim so it’s crucial that your process is flawless.

For further help and support with making redundancies contact us on 01452 331331 or e-mail info@hrchampions.co.uk

17 August 2017, 12:49

Employing Child and Young Workers

#HRFridayFact: If you’re offering summer jobs to young and child workers ensure you are compliant with the specific working rules that apply

Some businesses may offer summer jobs to young people and child workers to cover staff holiday and/or increased seasonal demand during the summer holidays. There are certain rules for employing young and child workers that employers must comply with.

In the UK, Children who are below age 16 in their current academic year are classed as child workers. Those between 16 and 18 are classed as young workers. The two groups have specific rules and rights when it comes to employment and even for temporary summer jobs, employers should be aware of and pay heed to these.

Even if you are employing your own son or daughter, you must comply with the rules for child workers which are often governed by local bylaws set out by the local council. It may be a requirement, as it is in Gloucester, to obtain a work permit for example.

There are restrictions for child workers which prohibit them from working under certain conditions. These are:

  • in places like a factory or industrial site
  • before 7am or after 7pm
  • for more than 4 hours without taking a break of at least 1 hour
  • in most jobs in pubs and betting shops and those prohibited in local bylaws
  • in any work that may be harmful to their health, well-being or education

During school holidays 13 to 14-year-olds are only allowed to work 5 hours per day (2 hours on a Sunday) up to a maximum of 25 hours a week.  15 to 16-year-olds can only work a maximum of 35 hours a week with a maximum 8 hours per day. (Again, 2 hours on a Sunday).

Furthermore all child workers must have a 2-week break from any work during the school holidays in each calendar year.

Young workers cannot usually work more than eight hours per day or 40 hours per week and these hours cannot be averaged over a longer period like adult workers under the Working Time Directive. Those who work for more than four and a half hours must have a rest break of 30 minutes. Rest breaks must be taken in one block and at some time during the work period, not at the end.

Young workers should also get 12 uninterrupted hours rest in each 24 hour period in which they work and get two days off each week. These two days should be taken together and cannot be averaged over a two-week period. Ie working 6 days one week and 4 the next.

Full-time students who are just working a holiday job and will be returning to full-time education after the holidays may not need to pay tax through PAYE but will still pay National Insurance if they more than the weekly threshold. As they will have a national Insurance number from age 16 you should put them on your normal payroll.

Young people will be keen to earn some spending money, which makes them targets for exploitation. Remember that the National Minimum Wage will apply and that you have your other employer responsibilities to consider such as ensuring a safe working environment and that no-one is subject to any age discrimination.
For further help and support with employing young people, call us on 01452 331331 or e-mail info@hrchampions.co.uk

17 August 2017, 12:45

Drug and Alcohol Testing

#HRFridayFact: You need consent for drug and alcohol tests in the workplace so ensure you have a contractual clause or staff handbook policy

If you’re in an industry where you have workers who’s ability to do their job safely could be impaired if they are under the influence of drugs and/or alcohol, you should retain the right to impose testing. Because you need consent to be able to test employees, make sure there is a clause in their contract of employment or a policy in you staff handbook that allows you to make random tests.

Remember that employers have a legal obligation to look after their employees’ safety and wellbeing at work and that danger can come from a worker’s own intoxicated state or that of a colleague.

Testing is normally only carried out on employees that would be considered to be in ‘high risk’ groups. Examples include drivers, those who work at heights such as scaffolders, handlers of hazardous substances or those who work with vulnerable adults and children.

To avoid risks of victimisation or discrimination claims, drug and alcohol tests should be carried out either on the entire high risk group, eg. all drivers; or on a selection of employees that you can prove has been randomly selected.

Selecting individual workers would be acceptable in situations where you have reasonable belief to suspect that person was under the influence of alcohol or drugs

Although self-use kits are available, when conducting tests it’s a good idea to use a professional external organisation, to maintain consistency and avoid mistakes. You’ll also be able to ensure that proper records are kept and it is less likely that any positive results are objected to.

The frequency of tests, whether they are random and who they will be applied should be information contained within your contracts or staff handbook. This should also detail the likely consequences of a positive test result depending upon which substances are identified in the test, and the consequences of refusing to take a test.

We recommend that it is made very clear that tests will be held at random. Giving notification to drug and alcohol test totally negates the reason for applying them.

For further help and support in managing drug and alcohol testing, your staff handbook wording and what to do in the result of a positive test or refusal, call us on 01452 331331 or e-mail info@hrchampions.co.uk

11 August 2017, 11:33

Representation is only for Disciplinary Meetings

#HRFridayFact: Staff are only entitled to representation at disciplinary meetings. Though it may be appropriate to offer it at other times

There are various reasons that you will want to hold meetings with members of staff. It’s usual that meetings are held with just the employee, but for disciplinary meetings you must offer representation which can be either another employee or an appointed representative of a recognised union.

Investigation meetings during a disciplinary process don’t count as disciplinary meetings, and other than a note taker there should just be the investigating officer and the subject of the interview, whether that’s a directly involved party or a witness. It’s only at the disciplinary hearing, the point when the outcome of the investigation will be decided, that the subject of the disciplinary is entitled to be accompanied by a representative.

Whilst other meetings such as one-to-ones, appraisals, exit interviews, return to work interviews and investigation meetings wouldn’t usually warrant any accompaniment, you may want to consider it under safeguarding guidelines. So for vulnerable adults and the young, an “appropriate adult” is best practice. This could be a parent or support worker, or there may be a nominated person within your organisation that is willing to volunteer for this role.

We are often questioned as to whether an employee can bring a parent, spouse or partner to a disciplinary hearing, and whilst some organisations might want to allow this, it isn’t something we would recommend.

For any support and advice with disciplinary processes, including on-site support for interviews and meetings, call us on 01452 331331 or e-mail info@hrchampions.co.uk

04 August 2017, 12:37

No Special Powers for Passing Probabtion

#HRFridayfact: Probationary periods are best practice rather than a legal requirement & employees do not gain special powers upon passing.

It’s a misconception that once a new employee has passed his or her probationary period that they suddenly become dismissal-proof or gain special rights. We recommend that organisations use probationary periods as a management tool, however they are not a legal requirement.

If your probationary process is properly executed then the need to dismiss someone after they have met their probation criteria should raise questions within your organisation. When it does happen though, best practice suggests that a disciplinary process may be the best route to take to minimise the company’s exposure to risk.

Probationary periods are usually set for three months as this is deemed to be a fair period of time to make an assessment of an employee, their behaviour and productivity. It is the timescale adopted by most although shorter or longer periods are perfectly acceptable and should be driven by the particular job and needs of the business.

Throughout the probationary period, the employee should undergo a properly planned induction process and receive regular feedback. Leaving someone to their own devices followed by a judgment at the three month mark isn’t really fair. The employee should be made aware whether or not their performance is meeting the required standard throughout the probation period and given the opportunity to amend it if it isn’t.
If the employee doesn’t meet required standards by their probation term then it’s okay to simply dismiss. However, if you’ve managed the process properly, the dismissal won’t come as a surprise.

If, at the end of probation, the employee still hasn’t reached standard but the employer can see that there is potential to do so, an extension of the probationary period may be a suitable course of action. The probation can be extended for any appropriate period.

Whether the probationary period is passed or extended should be confirmed in writing so that the employee knows where they stand and no assumption of passing probation is made.

Occasionally we hear about members of staff whose performance has dropped following the end of their probation and their employer wants to know what they should do. We usually recommend performance managing the individual but, as full employment rights are not achieved until two years’ service, it’s not strictly necessary so a simple dismissal is always an option until then. This is unless there are any discrimination risks however as there is no length of service eligibility for a discrimination claim.

For further help and advice with probationary periods and induction programmes, call us on 01452 331331 or email info@hrchampions.co.uk

27 July 2017, 16:04

Vehicle Tracking Obligations

#HRFridayFact: Employers can only use vehicle tracking with their employees’ knowledge and consent & must comply with the Data Protection Act

The proliferation of GPS technology in recent years has made vehicle tracking technology significantly more accessible and intricate. Employers who deploy vehicle tracking must do so transparently and remember that vehicle information that can identify a specific individual will fall within the remit of the Data Protection Act.

Vehicle tracking can have some major benefits for businesses. Information such as the vehicle location, distance travelled, route taken and driver habits can easily be monitored. This data can then be used to highlight fuel inefficiencies, monitor vehicle wear and tear, improve driver habits and of course significantly contribute to vehicle security. All of which can help improve overall efficiency and customer service.

Organisations that use vehicle tracking however must be very clear about their legal obligations.

Employees must be made aware that their vehicles will be tracked and consent to it. This can be accomplished within the terms of their employment contract. If the vehicle is made available for private use, then there must be a mechanism to suspend tracking outside of business hours; such as a privacy button.

Overzealous monitoring may well cause ill-feeling or suspicion amongst employees so we recommend that employers have a policy in place that explains the reasons why vehicle tracking is in place and how any information will be used. To comply with data protection, the policy should include details of why the data will be gathered, how it will be used and stored and who has access to it.

If there is a reasonable belief that a company vehicle has been used inappropriately or that there are unusual patterns of activity or non-activity then the tracking data can be used to investigate this. A normal investigation procedure should ensue and the vehicle tracking data can be brought in as evidence.

Inappropriate use of a vehicle that brings a company into disrepute or falsifying company documents such as a timesheet could warrant as much as a dismissal so it’s paramount that your policy is up to date and accurate so that any evidence used is admissible.

For more support with implementing or enforcing a vehicle tracking or monitoring policy you know where we are. Call on 01452 331331 or e-mail info@hrchampions.co.uk

21 July 2017, 13:52

Calculating Holiday for Part-Time workers

#HRFridayact: When calculating holiday taken by part time workers it should applied to what they work based on their normal working week

Calculating holiday entitlement and holiday pay for part time workers can sometimes be a complicated issue to get your head around. To minimise any potential for error, it’s best to calculate it and apply it based upon what the employee works during their normal working week; whether that’s hours or days per week.

All employees have a statutory entitlement to a minimum of 28 days holiday per year including the standard eight UK public holidays. This equates to 5.6 weeks per year. Part time workers are entitled to holiday calculated on a pro-rata basis of the statutory entitlement.

So, an employee who works three days per week is entitled to three fifths of statutory or 16.8 days per year including bank holidays.

Someone who works 20 hours per week is entitled to 112 hours per year.

You must remember to apply any holiday taken based upon the employees working pattern. So, someone who works five hours per day for three days per week and goes on a two week holiday for example, will effectively use up six days or  30 hours of their annual allowance depending on how the holiday is calculated.

For casual workers or those who work irregular hours, it may be easiest to calculate holiday as it accrues for hours worked. Statutory holiday equates to 12.07% of hours worked so for someone who has worked 50 hours say, they have will have accrued 50 x 12.07% = 6 hours 2 minutes holiday. Because of the nature of causal work, where workers aren’t obliged to accept work that is offered, some employers choose to add the 12.07% as they go as additional pay, negating any liability to pay accrued holiday pay on the cessation of work.

Most payroll software will calculate holiday entitlement for you but it’s worth knowing how it’s worked out so you can explain it to employees and included entitlement in their contracts. To minimise the risk of error when calculating holiday, we recommend that you use the Government holiday calculator web page at https://www.gov.uk/calculate-your-holiday-entitlement which covers pretty much all possible scenarios.

For any further help or support with employee holidays or any other HR related matter, call us on 01452 331331 or e-mail info@hrchampions.co.uk

14 July 2017, 09:23

Employees' Right to Written Terms

#HRFridayFact: All employees have a right to a written contract of employment. New employees must receive theirs within 8 weeks of starting

With HR and Employment Law becoming increasingly complicated, it’s sometimes easy to overlook the basics. One of the basic rights of all employees is to have a written statement of the terms under which they are employed which we usually wrap up as a contract of Employment

Whilst it is acceptable for the terms of employment to be laid out in a letter, we strongly recommend that a contract is used. Apart from providing additional gravitas, a standardised contract means that you are consistent across all employees and all of their terms and obligations can be covered. Equally, the employee will be happier fully understanding the terms under which they are employed and their own obligations to the company.

The contract should contain the explicit terms under which the employee will work including job title, start date, remuneration, working hours, and holiday entitlement. We also recommend that it states the employee’s place of work, including any potential variations of where they may work; a different office or store for example. This isn’t a complete list of clauses the contract should contain, but you get the idea.

Any terms not stated in the contract will revert to statutory so we encourage employers to be as comprehensive as possible. Terms that affect all employees, like the disciplinary procedure, should appear in the staff handbook and references made to this where appropriate.

It’s a legal requirement that any new employees must receive their contract, ie their written terms of employment, within eight weeks of starting work. Failure to this could result in a fine and will be looked upon dimly should a matter ever go to tribunal.

Provision and review of Employment Contracts and Staff Handbooks is one of our key services, so if you would like support in this field then please call us on 01452 331331 or e-mail info@hrchampions.co.uk

07 July 2017, 13:48

Handling Employees who "Storm Out"

#HRFridayFact: An employee who declares that they quit and storms out of work should be given time to cool off and an opportunity to return

Having an employee who dramatically storms out of work, intimating or stating that they quit on the spot, can leave employers confused about what they should do. In such circumstances it’s wise to give the employee the benefit of the doubt and allow them to return to work. Don’t ignore it however and follow up with some action.

We’ve seen it happen on television, and some employers have experienced it first hand, but an employee storming out of work can be disruptive and needs to be handled assertively.

The reasons why someone might go off in a huff are varied. They may object to something they have been told or asked to do, may disagree with a management decision or simply be tired and frustrated by their job. Of course there are dozens more reasons and circumstances which may provoke such behaviour, so be careful not to jump to conclusions.

As employers and managers we must be pragmatic and not react to the behaviour in a way that could worsen the situation for either party. It might be tempting to slam the door firmly shut behind the employee but that’s likely to cause more problems than it solves.

Instead, give the employee a period of time to cool down. Wait to see if he or she returns to work for their next shift. If they do then you can have a conversation with them. Determine if there are any underlying problems or mitigating circumstances. If there is, then offer support. If it was just a display of temper then you’ll need to be clear that the behaviour was inappropriate and some form of disciplinary action may be where it leads.

If the employee fails to show into work the next day without any form of contact then it becomes a case of unauthorised absence and should be managed as such until they return to work or not. Until you have a written resignation, you still have a duty of care and some responsibilities, not least those that come under HMRC and taxation rules.

You’ll need to write to the employee and ask them to attend a meeting. We recommend delivering a letter by hand on the same day or by recorded delivery to arrive the next day. Or both. The meeting will be an investigation at first and an opportunity for them to present their case or side of the story.

Depending on the outcome of the investigation, including whether or not they attend, either you’ll agree a return to work and/or it will go to a disciplinary process. They may still decide to tender their resignation of course but at least now it hopefully won’t be in the heat of the moment.

Remember that you don’t need to pay an employee for the time that they are not at work and if they never return then you won’t have to pay their notice but there might be some holiday pay to calculate.

For help and support with nay HR and Employment Law matters, especially the prickly ones, call us on 01452 331331 or e-mail info@hrchampions.co.uk

30 June 2017, 10:01

Making Deductions from Final Pay

#HRFridayFact: Deductions can only be made from an employee’s final pay if there is a clause in their contract that allows it.

When a worker leaves your employment for whatever reason, you must calculate their final pay to take account of statutory holiday days that they have accrued. If they have are owed any holidays, they must be compensated for this as pay in their final wage or salary payment.

However, if they have taken more holiday days then they have accrued, in order to make a deduction from their final pay to compensate the company for the days they have not worked but have been paid for, there must be a relevant clause in their contract which allows you to do this.

Holidays is the obvious instance where this situation might arise, but it also goes for other instances where you might want to make a deduction, such as advanced bonus, commission or productivity payments; or where there is damage to company equipment such as a mobile phone or vehicle that was caused by the employee.

If you are making a final payment under a Payment in Lieu of Notice (PILON) clause, you do not have to calculate the holidays they would have accrued in their notice period because you are paying them ‘in lieu’. Additionally, provided you could give adequate notice, you could potentially require the leaver to take any outstanding holiday during their notice period should they work it, thereby nullifying the need to make a payment for it.

Incorrectly making deductions from an employee’s final pay will effectively mean you are in breach of contract. Whilst this isn’t necessarily a Tribunal situation, you could find yourself in receipt of a letter from the employee’s solicitor.

For help and support with all your HR, Employment Law and contractual issues, please call us on 01452 331331 or e-mail info@hrchampions.co.uk

23 June 2017, 12:01