March 2010

Recession boosts employee loyalty

More than a quarter of employees feel more loyal to their employer as a result of the economic downturn, new research has found.

The latest Kelly Global Workforce Index revealed the recession had fostered a sense of engagement between workers and bosses, with 28 per cent of employees saying they felt more loyal. Two thirds said the recession made no difference, while only 8 per cent said it has made them less loyal.

The trend was most pronounced in London, where 34 per cent of workers felt more engaged with their organisations, according to the survey of nearly 6,000 UK respondents. Wales and the North East scored the lowest with just 22 per cent of workers saying they felt more loyal towards their company.

Those who answered positively cited a shift to positive management, good company morale and active communication from senior executives as inspiring greater loyalty. Participants who responded negatively attributed their views to poor management and low morale.

The impact on work attitudes varied among age groups, with 30 per cent of Generation Y workers (those aged 18 to 29) saying the downturn had made them more loyal. This figure decreased with age, with just 22 per cent of baby boomers (48 to 65 year-olds) answering the same way.

When asked to name the one thing that would make an employee more committed to their job, 51 per cent cited ‘more interesting or challenging work’, followed by ‘higher salary or benefits’ and ‘more meaningful responsibility’ (both rated at 14 per cent).

Company reputation was considered ‘very important’ in job selection and retention by 43 per cent of baby boomers but only 35 percent of Generation Y.

John Callagher, general manager of survey compiler Kelly Services said: “The recession has been challenging for everyone, but the findings clearly show that those employers who have communicated openly with their staff about the difficult economic conditions and who have tried their best to look after staff have been able to build strong levels of trust within their organisations. As the economy recovers, this heightened loyalty will stand these employers in good stead, giving them a competitive advantage as a result of a more committed and focused workforce.”

Employers urged to hire ex-armed forces personnel

UK employers can gain real benefits from recruiting ex-military personnel, and the skills they have should not be resigned to the scrapheap when they leave the forces, the former head of the armed forces has told PM.

General Sir Mike Jackson said that those leaving the army, navy and air force have a lot to offer, such as leadership and communication skills, reliability and discipline, as well as a range of technical abilities. Yet too many soldiers have problems adapting to civilian life.

“Whether you have a long career in the services or a relatively short one, leaving can be a daunting prospect,” said Jackson. “Some soldiers do find the transition challenging – I knew many in the army who came from difficult family backgrounds and the forces had become their second family. There are 12,000 leavers each year and most are looking to go into employment, but not all of them do. They need a helping hand because one unemployed ex-soldier is one too many as far as I am concerned.”

Jackson recently became a non-executive director of a new recruitment consultancy, ForceSelect, which specialises in placing ex-service personnel and is run by staff who are all ex-forces themselves. A proportion of the profits from the company, which is also supported by author and former SAS man Andy McNab, go to a charitable foundation chaired by Jackson, to assist forces charities.

Jackson said that it is likely there will be more ex-service personnel on the labour market in the coming years, although he did not think that “drastic” cuts were on the cards.

“We will have to wait and see the result of the defence review after the election, but I very much doubt that the overall size of the armed forces will grow,” he said. “It might well shrink – not by drastic amounts, but I would expect to see a modest increase in leavers.”

Although the MoD announced that 500 soldiers would lose their jobs earlier this week, Jackson said that this was the result of “rebalancing the age/rank pyramid” and so these were not redundancies as such because posts were not being reduced overall. There are around 200,000 active service personnel, and so 12,000 leavers per year represents an annual turnover of 6 per cent.

Two large employers to have given their backing to ForceSelect are UPS and Sainsbury’s.

Imelda Walsh, Sainsbury's HR director, said: "We've actively recruited ex-service personnel at Sainsbury's for many years, and we're proud to continue our commitment to the forces through our partnership with ForceSelect. I would encourage more companies to work with ForceSelect. Not only will they be supporting the armed forces, they will also gain access to a wealth of fantastic talent that will stand their business in good stead for many years to come."

Rail company Jarvis, enter administration

Up to 2,000 jobs are at risk after railway maintenance contractor Jarvis went into administration.

The group, based in York and once the UK’s biggest construction company, said it had no option but to call in administrators after its principal customer Network Rail delayed its programme of spending on track renewal.

“Following negotiations with the company's secured lenders, it has today become clear that sufficient support will not be extended to the company to enable it to continue trading as a going concern,” said a Jarvis spokesman.

The company had already seen a plunge in half-year revenues, from £203.1 million a year earlier to £114.7 million, and had warned of a £5 million operating loss. The root of the problem is Jarvis’s dependency on Network Rail for business, at a time when the latter is reducing its spending on track replacements by 30 per cent.

Jarvis, which is chaired by former Conservative minister Steven Norris, has now renewed its call for support from lenders and Network Rail if it is continue in business.

February 2010

EU backs 20 weeks maternity leave on full pay

A committee of the European Parliament yesterday passed draft legislation that would extend maternity leave across Europe to 20 weeks on full pay.

The vote by the parliament’s Women’s Rights Committee goes even further than the extension proposed by the European Commission, which had put forward 18 weeks.

Such an extension would significantly add to employers’ expenditure on maternity pay. Current UK law states that maternity leave should be paid at 90 per cent of salary for six weeks, followed by 33 weeks at a statutory minimum rate and then up to 13 weeks unpaid. European laws, in place since 1992, only enshrine a minimum of 14 weeks leave, paid at a statutory rate that must be at least at the level of sick pay.

The legislation will now go before the full European Parliament for approval in March, and then to the council of ministers. It could be 12-18 months before the final result is known, and the measures are likely to be watered down if there is significant opposition from member states.

The UK's employment relations minister Lord Young expressed his doubts about the proposals, but stressed they were at an early stage.

“We already have a generous system that is better than many European Union countries and works well, balancing the needs of businesses and workers,” he said. “A substantial increase in maternity leave paid at full or near-full pay risks undermining this delicate balance at a time when economies across the EU can least afford it.”

The British Chambers of Commerce (BCC) also spoke out against the proposed changes.

BCC director of policy Adam Marshall said: “The Pregnant Workers Directive should be about setting minimum EU standards for the health and safety of pregnant workers - not adding new payroll costs for overburdened companies and national social security systems.

"This vote introduces complexity and uncertainty, which are totally unnecessary, as the UK and other EU countries already have well-developed national maternity pay systems.”

Fall in eastern European migrants to UK

The number of immigrants from central and eastern Europe coming to work in the UK has continued to fall, according to latest official figures.

Provisional data from the Office for National Statistics show that there were 68,000 arrivals from the new EU states in the year to June 2009, compared to 100,000 for the 12 months before that.

Separate figures show that there were 186,000 National Insurance numbers issued for people from these countries, a 36 per cent reduction on the previous year. This is considered an accurate measure of the number of legal migrant workers, since immigrants must have a NI number to start work.

However, there was little change in long-term immigration. Overall, just over half a million people came to the UK in the year to June 2009 and 370,000 left, creating a net increase in population of 147,000.

There was a marked decline in migrants from Poland in particular, but a slight increase from Latvia and Lithuania.

Immigration minister Phil Woolas said the figures were a vindication of the government’s Points-based system. However, Conservative immigration spokesman Damien Green said that immigration had been “out of control” for the last decade.

Forced retirement used as cheap alternative to redundancy?

Around 100,000 people were forced to retire last year, as employers are using the tactic to make cuts to their workforces, age campaigners have claimed.

Charities Age Concern and Help the Aged said the use of mandatory retirement ages had "soared" during the recession and was much higher than in 2006, when the default retirement age of 65 was formalised.

The charities said a survey of almost 1,000 people aged between 60 and 70 suggested that employers were using forced retirement as a "cheap and easy alternative" to redundancy during the economic downturn.

Moreover, one in four of those questioned said they knew a friend or colleague who had been forced to retire at or after 65.

The two charities, which are in the process of a merging and will be jointly known as Age UK, are urging all political parties to commit to scrapping age-related legislation.

Age Concern director Michelle Mitchell said: "Our survey clearly shows the use of forced retirement has spiralled out of control, offering some employers a low-cost shortcut to shed jobs during the recession.

"The default retirement age has stamped an expiry date on hundreds of thousands of older workers. It's the most disturbing example of age discrimination which still tarnishes later life for so many people."

The demand was part of the charity's pre-election manifesto, which included calls for increased pensions, reform of the care system and an end to the "scandal" of malnutrition in hospitals.

January 2010

Toyota’s president blamed lack of staff training for vehicle recall

Toyota’s president has suggested that a lack of staff training may have been to blame for the public relations disaster that saw millions of its cars recalled over safety fears.

Akio Toyoda told a press conference that the rapid expansion of the Japanese carmaker may have been the root of the firm’s problems.

“Up to now, we had been saying that the rapid expansion was in response to customer needs – that it was inevitable," Akio Toyoda said. "I think the company's sales expanded faster than we were able to train personnel."

Up to 8.5 million vehicles have now been recalled over brake and accelerator problems, including 185,000 in Britain. The Prius, Corolla, Auris and Avensis models have all been the centre of concerns, and the company is facing lawsuits in the US over deaths alleged to have been caused by the defects.

Toyoda is to appear before an American Congressional hearing on the issue next week. He has responded to the crisis by taking more personal control, announcing this week the appointment of a series of quality inspectors in Toyota's key regions who would report directly to him.

"We are not covering up anything and we are not running away from anything," said Toyoda, who is the grandson of the company’s founder.

Toyota’s plant at Burnaston, Derbyshire, which employs 3,500 people, will be shut down for an extended Easter break of two weeks – a week longer than previously planned – following the crisis. The company is already planning to shed 750 jobs though voluntary redundancies at the plant.

Transferable paternity leave

Regulations giving new fathers the right to transfer parental leave from their partner could be a nightmare for smaller employers to administer, lawyers have warned. 

Yesterday the government unveiled plans under which fathers could be eligible for up to six months’ paternity leave, three of them paid, if their partner returns to work and they transfer over the second half of their leave.

The changes are due to come into force in 2011, and the government have predicted that only 6 per cent of fathers will take up the option of extra leave. But Darren Sherborne, head of employment at Rickerbys, told PM that the regulations could be problematic to administer.

“The changes will make planning resources very difficult in smaller- and medium-sized firms,” said Sherborne. “Such firms do not in my experience accept the government’s reassurances that few fathers will take up the right. The question must be asked that if so few will avail themselves of the right, what is the point in introducing it?”

Sherborne said that while truly interchangeable leave could be seen as a step towards equality, it was questionable whether it was a step that society or employers were ready for.

“Small employers will be feeling beleaguered and besieged by yet more changes and the inevitable difficulty in resourcing yet more of the workforce with a right not to attend work,” he concluded.

His view was echoed by Jennifer Smith of Manchester law firm Ralli. She said: “It is unclear exactly how employers will administer the new rules, particularly how communication between the mother's employer and the father's employer will work in practice. Employers will need to start planning for the changes now, in order to minimise the impact that these new proposals will have on their businesses. The reality is almost certainly going to prove cumbersome for employers, particularly small businesses, as it likely to involve a greater administrative burden.”

Workers now pay more into pensions than employers, statistics show

Employee contributions to pensions have exceeded employer contributions for the first time in nearly a decade, figures from the Office for National Statistics have revealed.

Workers paid a total of £42.6 billion into occupational and employer-sponsored personal schemes in 2008, the most current year for which data is available. This exceeded employers’ payments of £40.6 billion. The latter figure is a significant drop, falling from £46.1 billion the previous year, at the same time as employees are saving more.

Some commentators suggested that the figures were evidence that employers are abandoning pensions.

“The message is clear: funding your retirement is your problem and no one is going to do it for you,” said Tom McPhail, head of pensions research at financial advisers Hargreaves Lansdown. Liberal Democrat pensions spokesman Steve Webb predicted that employers were likely to cut contributions further, saying that the drop was the “shape of things to come”.

However, the drop in employer contributions follows a period of several years when firm’s payments into schemes were accelerating. Employers’ contributions have doubled since 2001, as many firms sought to plug funding gaps caused by deficits in ailing defined benefit schemes. Payments into defined contribution schemes are slowly rising, although doubts remain about how effective they will be in providing adequately for many people’s retirement.

From 2012, employers will be compelled to make contributions of up to 3 per cent into employee personal account pension schemes, recently rebranded as "Nest" accounts. Angela Eagle, pensions minister, says this will help address the “market failure” which allows many firms to avoid providing pensions.

The Pension Trends publication also revealed that the total liability to the government of unfunded public service pension schemes was £770 billion on 31 March 2008. This is a reduction from £810 billion at the equivalent time in 2007, with the change attributed to a shift in accounting assumptions.

Increase in employee fraud

Last year saw a dramatic increase in serious employee fraud with losses totalling £567 million, crime experts have said.

According to KPMG’s Fraud Barometer, 2009 saw 123 cases of serious fraud by employees and managers - the most since the barometer began 22 years ago. Crimes perpetrated by managers accounted for £335 million of losses, up from £129m in 2008, and employees committed £232 million of fraud, up from £100 million.

The figures are the result of both weak security and recessionary pressures, said David Chernick, senior manager at KPMG Forensic and chairman of anti-fraud body Prefit.

“This problem is due to a combination of factors. The recession has made people with debts feel more tempted to commit fraud, but it’s not only that,” said Chernick. “As HR and security departments have had to shrink to fit smaller budgets, there are fewer security controls within an organisation for tasks such as checking references.”

People have realised that they can take advantage of weak security controls – and this applies not just to ordinary employees tempted to commit a crime, but also professional criminals who may infiltrate an organisation, he warned.
A common example of fraud happens in call centres, where bogus candidates apply for jobs specifically to steal customers’ data. Often employee crime goes unreported because employers are worried about the reputational damage, particularly when customer data has been stolen.

The average loss in a serious fraud case is £4-5 million, meaning it can represent a significant financial danger to already struggling organisations.

But Chernick said HR can prevent fraud if it follows the right processes in a disciplined way, persuades staff to be vigilant and builds widespread trust. He suggested implementing simple measures such as a fresh background check when someone changes employment contracts and having separate people doing recruiting and security checks.

“Segregating recruitment and candidate reference checking enables an objective view. People recruiting may be under pressure to get a person into a role, while the security checker’s priority is to verify identity and qualifications,” said Chernick.

Chernick also said HR teams should not be afraid of sending out factual references for previous employees as this protects innocent people and can stop fraudsters.

“There’s a big fear about passing on information about an employee because of possible litigation. But if information is factual and relevant, such as employment dates and job title, rather than subjective opinion, it is the most useful information,” he said.

December 2009

Booze-fuelled bosses set bad example to employees

Senior managers are more likely to call in sick the day after a Christmas party than other members of the workforce, a survey has shown.

Directors and managers are 67 per cent more likely than others to call in sick, as a result of overindulgence, found a report from insurers Aviva. The finding suggests that leaders may be setting a bad example to their subordinates over the festive period. A third of those calling in sick would openly admit that a hangover was the reason.

Men are far greater culprits in this regard than women, being 88 per cent more likely to be absent the morning after. However, around 2.3 million UK workers say they have had such an absence in the past. This year is set to be no different and, in fact, 26 per cent of survey respondents say they are more likely to get drunk this year to help them lift the gloom of the recession.

Men plan to drink an average of 9.6 units of alcohol at their Christmas party compared with 5.6 units for women, the report claims. Aviva surveyed 1,000 workers for the research.

Dr Doug Wright, principal clinical consultant at Aviva UK Health, said: “After what has been a stressful year for many, it’s understandable people want to let their hair down this Christmas”.

However, with 15 per cent of people claiming to have witnessed or experienced accidents at the office parties, it pays to stay sober enough that you’re not risking injury. Don’t drink on an empty stomach and try alternating alcohol with soft drinks to avoid an unwanted trip to A&E during the festive period.

“For the two million people who could be tempted to call in sick the morning after we’d suggest booking a day off to recuperate – otherwise people may find they face more than a hangover.”

£2,500 to be paid for apprenticeships

Organisations will be offered a £2,500 "golden hello" to take on young apprentices, the government has announced this month.

The first 5,000 companies to sign up to employ and train a 16 or 17-year-old, will qualify for the one-off payment between January and April next year.

The plans will be outlined by apprenticeships minister Iain Wright, alongside a Department for Work and Pensions paper released 15th December.

Work and pensions secretary Yvette Cooper will promise 100,000 new jobs, apprenticeships and training opportunities, as part of efforts to cut the numbers of young people out of work. More than one million 16 to 24-year-olds are currently not in education, employment or training.

In a bid to create more apprenticeships, the golden hello will be offered as an incentive to companies, which under the current scheme, pay apprentices a minimum wage of £95 a week.

In his pre-budget report last week, Chancellor Alistair Darling guaranteed a place for every 16 and 17-year-old in either education or training from September 2010.
To fund this pledge, Schools Secretary Ed Balls has announced he will scrap the twice-yearly bonus of £100 for 16 to 19-year-olds who stay on at school with a good behaviour and attendance record.

Growth in unemployment slows

 Nearly 2.5 million people are out of work, the final unemployment figures of the year have shown.

The Office for National Statistics (ONS) today revealed that there were 2.49 million people unemployed in the three months to October, up only 21,000 from the previous quarter, and up 608,000 from a year earlier.

The unemployment rate stands at 7.9% over the three months, unchanged on the previous quarter but up 1.9 percentage points from a year earlier.

 Youth unemployment continues to worsen, as the number of 18 to 24-year-olds out of work rose to 757,000 in the three months to October 2009 - up 26,000 from the three months to July 2009. An additional 175,000 16 to 17-year-olds were out of work in the three months to October, bringing the total number of young people out of work (932,000) closer to the one million mark.

Yesterday the government announced measures to tackle youth unemployment, including 100,000 new jobs, apprenticeships and training opportunities for under-25s.

John Cridland, CBI Deputy Director-General, said: "The UK's flexible labour market has helped keep the jobless total during the recession lower than many had feared. We particularly welcome the 'Back to Work' guarantee. People who accept an offer of work should not be worse off than those who choose to reject it."

Meanwhile, the ONS figures also revealed the claimant count had fallen by 6,300 to 1.63 million in November 2009, but this was still up 534,700 year-on-year.

Average earnings continued to show a divide across the public and private sectors. Public sector workers were offered a 2.7% rise excluding bonuses, down 0.1 percentage points, while private sector workers got a 1.4% rise, excluding bonuses, unchanged from the previous quarter.

November 2009

Evening Tribunals

Two tribunal regions are about to embark on holding evening Employment Tribunals following feedback given by tribunal users.  If the trials that will be held at Cardiff and East London are found to be successful during a six month pilot scheme, they may be rolled out to further tribunal regions.  The initial cases heard will not be complex cases, the complicated cases will still be held during normal tribunal hours. 

During recent difficult times, the number of tribunal cases has grown and this pilot scheme will undoubtedly help towards clearing some of the backlog.

Discrimination

The Department for Work and Pensions have recently commissioned a study and have found that African or Asian names are being discriminated against by employers.

CVs were sent out in three different identities, Nazia Mahmood, Mariam Namagembe and Alison Tayler.  The study found that Alison Tayler had to apply to an average of 9 different jobs before getting an interview, whereas the Nazia Mahmood and Mariam Namagembe had to send out an average of 16 CVs before they had a similar result.

The study was carried out between November 2009 and May 2009 and a range of different jobs in a number of different cities were targeted.  987 vacancies in total were applied for. The conclusion that the study came to was, there could be no other valid reason other than discrimination that could explain the results.

Employers be aware! Candidates applying for positions can bring a claim of discrimination to an Employment Tribunal, even though they are not an employee.  There is also no limit to the award that a tribunal can make against an employer, if they are found to have discriminated against an individual.

Agency Workers Directive

The Government has announced that the EU Temporary Agency Workers Directive will not be implemented until 1st October 2011.  These regulations will see temporary staff having rights to the same pay and conditions as permanent staff in the same role, after they have completed 12 weeks continuous service.

From their first day of their employment with a new company, agency workers will be entitled to:

• Notification of any vacancies that arise within the company they are working for, to give them an opportunity to secure a permanent position.
• Equality of access to any on-site facilities, such as childcare or transport services.
• New mothers and women who are pregnant will have additional rights, including the right to reasonable time off for ante-natal appointments and to request adjustment to working hours and conditions.

National Minimum Wage

The TUC is urging the Low Pay Commission to put the National Minimum wage up to £6.00 per hour from October 2010.

Stress, Anxiety and Low Self Esteem

Has the recession taken its toll on you and your employees?  With unemployment at 2.47 million, ACAS is encouraging employers to review their policies and procedures, to help people cope with their mental health and wellbeing in the workplace.  One of the best ways that Companies can do this is to raise awareness and ensure that their Managers understand what stress is, what causes stress and more importantly how to recognise it in themselves and their teams.  Many employees are currently suffering from additional pressures at work, which in the long term may have a detrimental impact on their mental health.

October 2009

Changes to National Minimum Wage (NMW)

The NWA was increased on 1 October 2009 as follows:

• workers aged 22 and over - to £5.80 per hour
• workers aged 18 – 21 - to £4.83 per hour
• workers over minimum school leaving age and under 18 - to £3.57 per hour

Changes to Statutory Redundancy Pay

As of 1st October the amount of a "week's pay" used to calculate statutory redundancy payments and basic award at tribunal, was increased to £380. This will apply to dismissals taking effect on or after 1 October 2009.

The Statutory Redundancy is normally reviewed in February of each year; however it has been reviewed earlier this year. The increase is earlier than usual, and so the next increase will not take place until 1 February 2011.

Sick leave and statutory holidays

The European Court of Justice (ECJ) has now ruled that workers who go on sick leave during a period previously scheduled as annual leave, for the purposes of the Working Time Directive, should be allowed to reschedule their holidays, even if that means allowing the leave to be carried forward into a subsequent holiday year.

Before now, employers have decided whether holidays should be “given back” to employees who are sick whilst on holiday. Public sector firms have historically been known to “give back” holidays, where as private sector companies would not.

The judgement specifically says: if a "worker does not wish to take annual leave during a period of sick leave, annual leave must be granted to him for a different period". This judgement clearly states that if an employee becomes sick when on annual leave or before the pre-booked annual leave is due to commence, the individual is entitled to reschedule pre-booked annual leave.  

Clearly, this will affect most businesses, and may prove difficult for employers to manage. Although initially this may seem a great advantage to employees, this may result in companies modifying their sickness policy to prevent employees from abusing the policy i.e. reducing sick pay to statutory minimum.

Questions & Answers:

Q:           Are employees who are sick whilst on annual leave able to postpone the pre-booked leave and take at a more suitable time?

A:           Yes, providing he/she has not already taken the statutory 4 weeks leave in that year.

Q:           Can an employee choose to take annual leave whilst off sick?

A:           Yes.

Q:           Are employers able to request for an employee to take annual leave during sick leave?

A:           No, not even by following the statutory procedure of giving twice as much notice as the holiday to be taken, and not during periods of shutdown. The employee must make the decision whether to take the sick leave as annual leave or not.  

Q:           If the employee does not take the leave whilst off sick, is it carried forward?

A:           Yes, the statutory four weeks should be carried forward. (If employers have over the above statutory 4 weeks annual leave, they may create their own rules for any additional holidays.)

Adapting to changes

To most companies, this will be a significant change and could well be abused if the employer has generous contractual sick pay schemes. As follows are some suggestions employers may want to consider when adapting to these changes:

• Review Terms and Conditions/ Contracts in relation to sick pay offered to employees. By reducing sick pay possibly to Statutory Sick Pay, this will eliminate any employees abusing the system by taking odd days off here and there. Employees will be less likely to abuse the sickness procedure if they are aware that the time off is unpaid.
• Amend your absence procedure, to ensure that employees are aware that they must notify you when absent on annual leave. A suggestion for all employers maybe to request employees to contact their workplace each day they are sick whilst on annual leave.
• Adapt the annual leave guidelines to reflect this new ruling, by enabling employees to carry over any untaken annual leave due to sickness. Thus enabling employees to take their statutory entitlement to annual leave.
• Employers may also see it beneficial to review the absence procedure in relation to requesting evidence of sickness. A possibility may be to request this evidence before converting the annual leave to sickness.
• Ensure that the payroll department are aware of this new ruling, and communicate any changes to the current procedure because of this adaptation, to ensure consistency.
• Those employees on long-term sick are also entitled to the statutory annual leave when returning to work. Some employers are prone to keep employees on long term sick “on the books”. This may encourage employers to deal with employees on long term sick more promptly.

September 2009

Trade Union Representation Duty changes

The ACAS Code of Practice was recently revised to include time off for trade union duties and activities. This has now been approved by the Minister of Business, and can be found on the ACAS website:

See: http://www.acas.org.uk/index.aspx?articleid=2391

Retirement age – Staying at 65

The retirement age is to stay at 65, for now. The Employment Equality (Age) Regulation 2006, states that employers are able to request employees to retire on reaching the age of 65 without having to justify the decision, which applies even if the employee requests to continue and is fit and able.

All the employment tribunal claims currently pending concerning compulsory retirement at 65 are now likely to be dismissed in the near future due to the confirmation of the above.

Swine Flu Update

After months of swine flu being a hot topic, and fast becoming a major problem for employers, it seems to have quietened down… for now.  The government have now predicted that up to 12% of the working population are likely to be off sick until May 2010.

The most practical way of dealing with Swine Flu is to be prepared and plan ahead. Employers should prepare contingency plans for what may lie ahead.

For further information, please contact the following:

Swine Flu information 0800 1513513

www.nhs.uk

www.direct.gov.uk/swineflu

Interesting Cases

Constructive dismissal Case – Norton v. Tewson

The Court of Appeal has confirmed that the principle set out in the case of Norton Tool v Tewson does NOT apply to constructive dismissal cases. The Norton Tool indicates that employees who are unfairly dismissed are entitled to receive compensation, including pay in lieu for their contractual notice period, irrespective of any earnings from a new employer during this period.  

May 2009

Are you prepared for Swine Flu in your organisation?

According to the Department of Health, businesses should expect repeated waves of one in four employees being off work in the event of a pandemic.

The Federation of Small Businesses said that this could be disastrous during a recession, as the absence of a quarter of the workforce could cost businesses and the economy millions, in a time when they can ill afford such pressures.

One of the main concerns will be that if swine flu strikes any of your employees, your unaffected employees will want to stay at home to ensure that they do not catch it.  Could your business cope with this scenario?

Being prepared and aware of the implications of a swine flu outbreak could make a difference to your ability as an organisation to weather the storm that may be ahead, which is paramount in this already stormy time. Don’t forget all employers have a duty of care to all their employees.

What preparations should businesses be making?

• Review your absence policies and ensure they are up to date and remind employees that these procedures must be followed. Procedures should clarify who to contact, when to phone in by and how often.  They should also clearly stipulate that, if there are any failures in following the procedure or evidence of fraudulent claims of illness, the disciplinary procedure would be invoked. It might be wise to send out a memo or email reminding staff of the procedure and what to do if they suspect they have swine flu.
• Look at the travelling your employees have to do for the business, is the travel necessary?  You can get up to date information and advice from the Foreign office.  Currently the EU Health Commissioner is asking Europeans not to travel to Mexico or the US if it is not essential.  Could you use alternatives i.e. video conferencing, Skype or simple emails to help minimise travelling.
• Issue guidance to employees on how to minimise any risks of contracting or spreading the flu virus and how employees can recognise what the symptoms are.  The government are sending out leaflets to everyone at home, employers should reinforce the same message at work.  The simple message should be reinforced via memos or emails about basic hygiene:
• Wash hands regularly
• Cover sneezes and coughs with tissues
• Put tissues into the dustbin
• Eat well to maintain a healthy immune system
• If you think you may be infected, do not attend work to avoid spreading the disease

If a member of staff does contract the disease, an employer will need to instigate a period of enforced leave in order to minimise the risk of the disease spreading, so employers should consider the impact that could have on you operations.

Companies should have contingency plans in place outlining how the business can operate either with a skeleton staff or if staff cannot attend work. Such a plan will ensure that key staff will know exactly what to do if a large number of staff are off sick.  Could your business be operated remotely? and how you could service your customers?

Thinking ahead and putting plans in place could make a real impact if your organisation is struck with swine flu.

For further information the following may be useful:

Swine Flu information 0800 1513513

www.nhs.uk

www.direct.gov.uk/swineflu

Statutory Redundancy Pay

The Department for Business, Enterprise and Regulatory Reform has indicated that there will be an increase in statutory redundancy pay from £350-£380 this year.  The potential date will be 1st October; however we will have to wait for this date to be confirmed.

Tribunals

Annual statistics have been published by the Tribunal Services, and from 1st April 07 – 31st March 08 there has been an increase in the number of claims by 43%, which probably will not come as a surprise to most if you consider the numbers of redundancies that have been made in that same period.

From the 6th April 09, Tribunal judges no longer have the discretion and must issue a default judgement, if a respondent fails to present its response in the set timescale.  This means it is even more important to ensure you manage your deadlines when submitting your response to the employment tribunal, if you have received a claim.

From 1st April 2009, employers who fail to pay up the tribunal awards of compensation to the claimant will be added to the register of judgements, which is available for anyone to read, including the press!

Interesting Tribunal Cases

Age discrimination

Be very careful when recruiting to ensure that you are not discriminating on the grounds of age.  Leeds Teaching Hospitals NHS Trust have lost their case against Linda Sturdy, aged 56, who informed her manager that she was only a few years away from 60 and the Manager responded by saying “she did not realise she was so old”.  This conversation happened after Ms Sturdy had been told that she was the preferred candidate for a new role.  Following the conversation about her age the vacancy was subsequently filled by a less experienced candidate.    Although compensation has not been awarded yet, it could potentially reach £500,000.

Sexual harassment and unfair dismissal

In the case Nots Stucki v Nadine Nassar, Ms Nassar has been awarded £64,000.00 in compensation, after she made a complaint to an Employment Tribunal of sexual harassment and unfair dismissal when she was dismissed by her boss without any warning.  The dismissal occurred after she had made a complaint against her boss for sending late night suggestive text messages.

Casual workers

Please ensure when you employ casual workers that you extend your normal risk assessment procedures, training, equipment, supervision and monitoring.  The Court of Appeal has provided further guidance as to when a casual worker will be considered an employee.  The HSE has brought a prosecution against Pola and the Appeal Court found that the workers engaged on a casual basis are still likely to be classified as employees.

April 2009

Employment legislation changes

From the 6th April 2009 the statutory dispute resolution procedures were repealed and the new Acas code of practice on disciplinary and grievance procedures came in to force. To help you understand we have broken down the key changes pre 6th April 2009 and post 6th April 2009. 

Dismissals and discipline

The key changes are as follows:

Pre changes - Employers must set out details of the disciplinary issue in writing. 

Post changes – Employers should set out details of the disciplinary issue in writing and advise the employee of the right to be accompanied.

Pre changes – if an employee has been reasonably unable to attend, an employer may make a decision of what action to take. 

Post changes – An employee must be persistently unable or unwilling to attend before a decision can be made of what action to take.

Pre changes – warnings were not covered. 

Post changes – all stages of formal disciplinary action are covered by the code.

Pre changes – if you failed to follow the statutory dismissal procedures it would constitute automatic unfair dismissal. 

Post changes – If you fail to follow the new code, it will not be deemed as automatically unfair.

Pre changes – statutory dismissal procedures applied to small-scale redundancy dismissals and non-renewal of fixed term contracts.

Post changes – Redundancy dismissals or non renewal of fixed term contracts are not covered by the code.

Grievances

The key changes are as follows:

Pre changes – employees must set out their grievances in writing.

Post changes – employees should raise their grievances in writing.

Pre changes – Ex- employees are entitled to have grievances heard through a standard or ‘modified’ grievance procedure. 

Post changes – the new code applies only to employees, which would mean that there is no legal requirement for employers to hear grievances from employees who have left.  The ‘modified’ grievance procedure is no longer available.

Pre changes – Employees and Ex-employees may be prevented from making a claim to an Employment Tribunal, if they have not submitted a grievance. 

Post changes – There is no requirement for claimants to submit a grievance before a claim to an Employment Tribunal.

General

The key changes are as follows:

Pre changes – failing to follow the SDRPs may have resulted in an uplift or reduction of tribunal award of up to 50%.

Post changes – Failing to follow the standards in the new code may result in an up lift or reduction of tribunal awards of up to 25%.

Pre changes – possible three month extension to tribunal claim time limits.

Post changes – The new code returns to an assessment of what is reasonably practicable, just and equitable in relation to extensions to time limits.

March 2009

Good News -  THS expands

In the face of all the bad news we have been hearing on the television for the last few months, we thought it would be good to share some of THS’s good news with you. We have recently secured a large contract with United Emirates’ leading global valve manufacturer Emirates Techno Casting.  ETC is looking to introduce a more western style working culture in their large site in Sharjah near Dubai.  This is good news for UK workers as they are offering excellent working conditions and tax free packages for those with suitable skills. ETC is continuing to expand and increased turnover by 60% in the last year. This could be the tip of the iceberg for THS, once we have delivered on this project there potentially will be more contracts from ETC.  This is not only placing workers from Wales and the UK who could recently have been made redundant, but it has also created an additional two posts to assist with the project. We will keep you posted.

Maternity/Paternity/Adoption and Sick pay

Don’t forget Statutory Maternity, Paternity and Adoption leave pay increases to £123.06 from April 2009, and statutory sick pay rises to £79.15. 

Employing foreign workers

From the 1st of April 2009 employers who are looking to recruit foreign workers in to the UK will required to advertise skilled vacancies through the JobCentre Plus for a minimum of 2 weeks and this must be done before adverts are placed abroad.  Companies that flout the rules could be liable for fines up to £10,000.00.

Statutory holiday entitlement

Don’t forget to check the holiday entitlement you give to your staff as the statutory amount of holiday entitlement is changing to 5.6 weeks (which may include bank/public holidays). If your current holiday entitlement is more than 5.6 weeks (which may include bank/public holidays) then you do not need to make any changes. Part time employees will receive a pro-rata’d entitlement.

Flexible working requests

Currently employees can request flexible working if they are parents of a child under the age of 6 or under the age of 18 if the child is disabled.  From April 2009 employees can now request flexible working if they are parents of a child under the age of 16.  This will mean that the number of people who are eligible to make such a request will dramatically increase.

Interesting Cases

The Heyday appeal to the European Court of Justice has now made its decision that in theory a retirement age of 65 could be justified when challenged by Heyday (a branch of Age Concern).  To be justified it needs to be “proportionate means of achieving a legitimate aim”.  That will mean that UK High Court will now have to decide whether it is lawful to dismiss on the grounds of retirement at 65 is a “proportionate means of achieving a legitimate aim”.

Killa  v Electronic Motions Systems Ltd

A recent tribunal has regarded a verdict of unfair dismissal and discrimination on the grounds of age as there was no objective criteria or proper selection applied during for redundancy.  There was also suitable alternative employment, but this was not offered to Killa.  Ensure that your selection criteria are objective and properly applied to minimise claims of unfair dismissal.  Killa was awarded compensation for the unfair dismissal but also an amount for shock because of the manner of his dismissal.

Zimmer v Brezan

Zimmer invited Brezan to a disciplinary meeting to discuss his expense claims.  The letter did not state that the meeting may result in his dismissal or that the allegation might be classed as gross misconduct.   Ensure that when inviting employees for disciplinary meetings, the letter makes it clear that the allegation may be classed as gross misconduct or it may end in dismissal.  This must be clear, employees must know what they face.

Richmond Pharmacology v Dhaliwal

A director of the Company said to a senior employee who was leaving Richmond Pharmacology “we will probably bump into each other in the future, unless you are married off in India”. Dhaliwal claimed harassment on the grounds of race.  The EAT awarded £1000.00 for injury to feelings.

February 2009

Stress

Unsurprisingly, the combination of the credit crunch plus worries about job security is having a negative effect on many people. A study conducted by Onepoll found that:

The fear of increased workloads and worrying about redundancy are the top two stress factors, with 34% and 31% feeling these are their biggest fears for the coming year. 24% admitted to taking time off work due to stress.

January 2009

Increases in compensation rates

The new rates for compensation limits are increasing on 1st Feb 2009 and will be as follows:

• The limit for unfair dismissal compensation will rise from £63,000 to £66,200
• The minimum basic award for unfair dismissal will rise from £4,400 to £4,700
• A 'week's pay' for the purposes of calculating statutory redundancy pay will rise from £330 to £350
• The daily rate for a statutory guarantee payment will rise from £20.40 to £21.50

In April 2009 the following will increase

• The flat rate for maternity, paternity and adoption pay will be £123.06 (currently £117.18)
• The new rate for statutory sick pay will be 79.15 (currently £75.40)

Temporary Workers

By 5th Dec 2011, the EU has announced that the Agency Workers Directive must be in place. This gives temporary workers equal rights to permanent staff after 12 weeks with an employer. After 12 weeks, temps will be entitled to the same or higher pay and working time conditions as a permanent worker who may have been recruited to the same position. It is currently estimated that approximately 50% of temporary placements last for 12 weeks or more.

December 2008

24-hour recession news is making employees stressed

Employees’ stress may be increased because they come to work “bathed in 24-hour global news about the economic crisis”, delegates at the CIPD’s Managing Change at Work conference in London heard.
Psychologist Aric Sigman explained that since the last recession, the output of global news organisations has increased rapidly, and some of the messages from the financial crisis have been confusing – such as whether inflation or deflation should be a concern.
“TV images seem to affect people,” he said. “Employees will come to work with images that have seen the night before. And the inconsistency in coverage will make people feel far less secure.

November 2008

Disabled people, more likely to be bullied?

Disabled people are more likely to experience hostility and bullying at work, research has found.
More than 22 per cent of people with a disability or long-term illness said they had experienced persistently unfair or critical treatment at work, while nearly 12 per cent had been the victim of physical violence, according to a survey of nearly 4,000 workers published by the Equality and Human Rights Commission (EHRC).
This compares with the equivalent figures of 13.4 per cent and 5.5 per cent for people without such an illness or disability.

Sickness

Air traffic controllers, pilots, train drivers and other transport workers are the least likely to call in sick, according to new figures.
Only 0.8 per cent of people working in the transport industry polled by the Office for National Statistics (ONS) had taken at least one day off sick in the week before their survey interview. This compares with a national average of 2.5 per cent. The ONS surveyed 53,000 households.
Call centre workers are the most likely to call in sick, with a sickness absence rate of 4.8 per cent.

September 2008

SSP Update for Agency Workers

Please note that agency workers on short term contracts of less than three months will be entitled to SSP as from 27 October 2008.

National Minimum Wage Increase

• Adult rate for those aged 22 or over: £5.73 per hour
• Youth rate (18-21): £4.77 per hour
• Rate for those aged 16-17 (provided they are above compulsory school age and excluding 16 and 17 year old apprentices who are exempt): £3.53 per hour
• The maximum amount that can be offset where accommodation is provided will be £31.22 per week (£4.46 per day).

August 2008

HR allows smoking breaks, so why not time off for prayer?

Firms must take sharia law into account when drawing up HR policies, a leading law firm has warned. Employers who allow smokers to have cigarette breaks should also account for Muslim employees having breaks several times a day for prayers.
“The Muslim Council of Britain says it takes 10-12 minutes for a devotee to go through their prayers, which is about the time it takes for a smoker to get through a large cigarette or small cigar,” It was added that providing a prayer room was not a requirement and providing one purely for Muslims might be discriminatory to other faiths.

Absence Records

Only 40 per cent of organisations monitor the cost of absence and only 72 per cent keep any record of their average level of absence, according to the CIPD’s annual survey of absence management.
According to the analysis, based on responses from 819 UK-based HR professionals in the private and public sector, the average cost of absence is now £666 per employee a year.

July 2008

Rising Petrol Costs

Tips to cut fuel use
1 Green transport policies could include car pooling or car sharing, bike and season ticket loans, homeworking and flexible-working initiatives.
2 Company cars should be as fuel efficient as possible, and staff could be issued with guidance on efficient driving practices and the cheapest places to fill up.
3 Satellite navigation systems could help drivers to take the most efficient route.

Compulsory community work for long-term jobless people

Long-term unemployed people will have to perform community work to keep receiving benefits, according to proposals in the welfare green paper published today.

Claimants of jobseeker’s allowance who have not worked for a year will have to do one month’s work in the community, which could include picking up litter or cleaning graffiti. Claimants who have not worked for two years would then be expected to do such work full-time, under the plans unveiled today by work and pensions secretary James Purnell.

The green paper also takes a tough line with unemployed people who have drug addictions, proposing that they should have to seek treatment, or take a drug test to prove they are clean, before receiving handouts.

The plan is coupled with the government’s reform of incapacity benefits, announced previously, which will impose more stringent tests to establish who is unfit for work. Incapacity benefits will be renamed the employment and support allowance, while income support will be abolished and brought within jobseeker’s allowance.

“People have an obligation to work, and the benefit system is not there to give you a choice between benefits and work: it's there to help you when you can't find work,” Purnell said. “If you can find work you should take it; if there isn't work there you should take steps to get back into work.”

June 2008

Older Workers Happier

Older workers are happier and more motivated than those in their 20s, 30s and early 40s, research has found.

Vodafone’s Nature of Work survey of 3,800 workers, part of its Working Nation series of research projects, found that 97 per cent of those working beyond the age of 65 felt “enabled” in their work, compared with 61 per cent of 31- to 35-year-olds.

A further 70 per cent of workers of 50 and older said they were fulfilled, compared with 50 per cent of 31- to 35-year-olds.

Satisfaction levels peaked at 90 per cent among the oldest age group (65 and over).

The 31- to 35-year-old age group seemed the most unhappy in their work, with 59 per cent feeling undervalued, 49 per cent “unfulfilled” and 43 per cent “demotivated”.

February 2008

Are your staff looking for a new job?

Apparently a fifth (21%) of UK office workers are unhappy in their current job, and more than half (51%) are actively seeking a new job. When looking at moving jobs, 77% of workers find a higher salary the biggest attraction, followed by better benefits (46%), better prospects (42%) and flexible working (41%).

Another survey quoted in the CIPD magazine found that more than half of UK employees searched for a new job whilst at work. One in three had used the telephone at their desk to make enquiries about new jobs, half had used their work computer to search employment websites, and a staggeringly cheeky one in five had actually completed application forms whilst sitting at their desks! Reed Employment have been analysising their online database and found that Monday lunchtime is the peak time for job seekers to search for a new role, and Tuesday lunchtime is the peak time for job applications.

January 2008

New rates of SSP, SMP, SPP and SAP

The Government has announced its proposed new rates of Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP) and Statutory Adoption Pay (SAP) - subject to Parliamentary approval.

For SSP, the weekly rate for days of sickness absence on or after 6 April 2008 will be £75.40 for employees earning £90 per week or more.

The standard weekly rate of SMP, SPP and SAP will be £117.18. As ever, rules apply as to the rate payable being the lesser of the standard rate or 90% of the employee's earnings, and rules apply to the first six weeks of SMP.

Employing Illegal Workers

As from 29th February 2008, the maximum penalty for employing an illegal worker will be increased to £10,000. Make sure you check the right to work in the UK of every new employee, whatever the job and however senior they are, before they commence employment with you and keep the appropriate records to prove this!

Privacy Invaded?

Recruitment hit the news in 2007 when it was revealed that employers were using sites such as Facebook to check out their candidates' private lives and thoughts! And employers are increasing the use of the Internet for screening applicants.

Holiday Entitlement Increase

The minimum statutory holidays were increased to 4.8 weeks as from October 2007 (24 days per year for those who work a five day week). Originally scheduled to increase in April 08, the final increase to 5.6 weeks (28 days for someone working a five day week) was postponed until 1st April 2009

• Ensure that, where this applied, your workers are aware of their increased holiday entitlements.
• Consider whether to aggregate the bank and public holidays into one overall holiday entitlement for future holiday years - thus making the calculation of holiday entitlement for part-timers, those on fixed-term contracts and those who join/leave during the year, easier, fair and straightforward. If you do this, then update your contracts accordingly for new starters, and you may need to amend your holiday form to include details of bank/public holidays paid.
• If the increase in statutory holidays will affect a large number of your workforce, then start planning now to see whether you will need additional staff to cope with the increase to 5.6 weeks.
• Review the working hours of your workers and consider whether the removal of the opt-out would create significant manning problems for you. Bear in mind that whilst the opt out means that legally your staff can agree to work more than a 48 hour average working week, you may well be vulnerable if you have staff who regularly work excessive hours as you are still responsible for their health and safety and any resulting injury due to exhaustion, stress, accidents etc.

Increases in Statutory Payment

From the 1st February 2008 the annual increase in tribunal award limits, including unfair dismissal is, a weeks pay for the purpose of calculating a statutory redundancy payment and guarantee pay will take place. Limit on guarantee payments with rise from £18.90 per day to £19.60 per day. Limit on a weeks pay will rise from £290 to £310. Maximum basic award for unfair dismissal with rise from £8,700 to £9,300.

October 2007

Marie Curie Cancer Care - Sponsored 28 mile cycle ride

The THS team all completed a 28 mile cycle ride in aid of Marie Curie Cancer Care and raised a grand total of £370.00.  The THS team just want to say a great big thank you to everyone who sponsored them, it is a fantastic cause and the sponsor money will go to help the Marie Curie Cancer Care Team continue with the fantastic job that they all do.

Increase in statutory holiday entitlement

The minimum statutory holiday entitlement was increased with effect from 1st October to 24 days (working a 5 day week).  If you pay your employees four weeks holiday plus bank/public holidays then you do not need to increase their holiday entitlement.

Increase to the National Minimum Wage

The minimum wage rose to the following:

£5.52 for workers aged over 22

£4.60 for workers aged 18 - 21

£3.40 for workers aged 16 - 17

Flexible Working Requests

From 1st October 2007 more types of adopter and foster carer are entitled to make a request for flexible working to allow them to care for a child.  The definition of "adopter" now includes those who are adopting a child, whether domestically or inter-country, where the child has not been placed with the adopters by a UK adoption agency.

Interesting Tribunals

The first female and lay Director of the London Irish Centre in almost 50 years has successfully brought a claim against the Board of Trustees of the LIC, and the Co-ordinator of the Centre's Welfarre Services on the grounds of sex discrimination.

She worked as the Centre's Director for nearly two years until she was dismissed.  All previous Directors had been Catholic priests.  They asked Ms Mumane to resign, and she refused to do so, so she was suspended.  The tribunal noted that the communications with Ms Murnane were "unacceptable, vitriolic and almost abusive".  The grievances against her were judged to be vindictive and excessive and they failed to provide an adequate explanation for their course of action.

Hygia Professional Training v Cutter

Can fresh evidence make a previous unfair dismissal fair?

The answer is No.  In Hygia Professional Training v Cutter, the employee was dismissed for trying to poach customers.  At the tribunal hearing, the employee had no real evidence of the poaching - they said that they did not know they were expected to obtain such evidence.

After the decision, the employer obtained four witness statements which, if accepted, were evidence that their ex-employee had been approaching clients whilst still employed by them.  The EAT decided that this could not make the previous unfair dismissal fair.  They should have obtained the evidence first time round.

September 2007

Staff taxis could land employers with hefty tax bill and possible fine

Companies sending staff home in a taxi after they have worked late could soon find themselves with a hefty tax bill and possible fine. Professional services firm PricewaterhouseCoopers (PwC) has warned that HM Revenue & Customs is taking a more aggressive stance on the enforcement of tax rules. There are times when late-night taxis can be tax-free if certain conditions are met. For example, after 9pm, up to 60 times a year per employee and only if the late working occurs irregularly. Having a heavy briefcase or travelling home in the dark are not grounds to claim tax-free taxis, PwC said.

Employees at risk as businesses ignore flu pandemic planning

Most organisations would fail to protect their staff against a flu pandemic because of a lack of forward planning, research suggests.

A survey commissioned by pharmaceutical giant Roche found that seven in 10 respondents admitted their companies were not sufficiently organised to protect their workers. Roche questioned 515 managers, including 150 HR directors.

The group also quizzed 2,200 workers, and found that only 13% of respondents believed their employers had HR policies in place to tackle an outbreak.

Despite the awareness of a risk to employees, 69% of managers felt that up to one-third of their workforce would face increased stress in a pandemic. More than a third of managers did not have any plans for communicating with employees and customers in the event of an outbreak. Only two in 10 knew that their company had set up such a strategy.

August 2007

Learning difficulty can be classed as a disability

A Metropolitan police officer has won a landmark ruling, finding that dyslexia can be classed as a disability.

The Employment Appeals Tribunal ruled that chief inspector David Paterson could be called a disabled person under the Disability Discrimination Act 1995 because his dyslexia had led to “a substantial impairment” in his career progression.

An employment tribunal had earlier ruled that Paterson was not disabled under the Act because dyslexia did not have “ a substantial adverse effect on his ability to carry out normal day to day activities”.

Paterson joined the Metropolitan Police in 1983, and in 2004 found out that he was dyslexic. He has accused the force of discriminating against him because of his condition, particularly in the processes for deciding on promotion.

Paterson’s case will now return to an employment tribunal hearing to decide on whether he was discriminated against.

Number of claims to employment Tribunals drops

The number of claims to employment tribunals dropped by more than 4,500 in 2006 to 2007, according to Acas.

The conciliation service’s annual report reveals that there were 105,177 claims in the period between 1 April 2006 until 31 March 2007, in comparison with 109,712 from 2005 to 2006. Unfair dismissal continues to be the largest category of complaint with 35,583 claims.

July 2007

Interesting Tribunals

A Pentocostal teaching assistant in a primary school, resigned from her employment after she was disciplined for refusing to listen to a child read from a Harry Potter book. 

The teacher refused to listen to her reading it because she claimed that the book glorified witchcraft.  She claimed that listening to the girl reading out spells from the book would leave her cursed and it would compromise her religious beliefs.

The tribunal said that the teacher was entitled to refuse to listen to the book, but could have told the child that she would be happy to listen to another.

The teacher lost her claim for religious discrimination and constructive dismissal.

Increase in Holiday Entitlement

The Government has announced that there will be a delay in the second increase to holiday entitlement under the Working Time (Amendment) Regulatins.  The first iincrease from 20 days to 24 days will still come in to force on the 1st October 2007, the second increase from 24 day to 28 days will now take effect from the 1st April 2009.  This increase will apply to employees, temporary workers and agency workers.

National Minimum Wage

National Minimum Wage will increase again from 1st October 2007 as follows:

Adult rate (Workers aged 22 and over) will increase to £5.52

Development rate for £18-21 year olds will increase to £4.60

Development rate for 16-17 year olds will increase to £3.40

The rate for the accomodation offset will increase to £30.10 per week (£4.30 per day)

Transfer of Undertaking (Protection of Employment)

Part 3 of the Guidance has been amended to make it clear that changes to contracts which are entirely positive are not prevented by the Regulations.

Smoking ban in England

The smoking ban is now in place in England.  Experience in other Countries has shown that there are few problems with compliance.  A recent survey found that 90% of workers supported the ban and 80% of smokers were attempting to give up smoking as a result of the ban.

April 2007

Interesting Tribunals

Astavede v Reliance Security Services Ltd, the tribunal held that 24 hours' notice of a hearing at which dismissal would be considered was inadequate.  Always allow sufficient time.  If you are contemplating dismissal, remember the letter inviting the employee to the meeting should clearly state this.

Lister v Cedesa Ltd the tribunal found a dismissal to be unfair because the manager who dismissed also heard the appeal.  Acas guidance suggests if you are a small employer that it is OK, the regulations state "where practicable" the appeal should be held by someone more senior.  The tribunal insisted it should be someone different.

Miah v Shearer Darnell Recruitment Ltd Miah was finding it difficult to find suitable employment and thought this may be due to racial discrimination.  Miah sent many applications off in his own name and received no response.  He then sent applications as Mark Williams, which resulted in three voicemails and two emails expressing a desire to discuss his application further.  Please note there are individuals who have brought many claims to Tribunals due to interest shown by organisations when an application has been made in an English name and no interest shown in their own name.  The award for Miah was £95,917.00 and £7500.00 for loss of feeling.

April 2007

Smoking

On the 2nd of April 2007 smoking in public places - including offices, factories, shops, pubs, bars, restaurants, schools, voluntary workplaces, public transport and work vehicles (including cars) that are used by more than one person is banned.

There are some exceptions, these are workplaces where people also live, eg prisons, oil-rigs, residential care homes, although employees will still have to be protected.

Those employers who do not uphold the ban can be fined up to £2500.00.  Clear signage must be clearly displayed in the entrances to your premises, failure to do so could result in fines of up to £1000.00.  No smoking signs should also be in company vehicles.

Increases in rates and changes

• Statutory maternity, paternity and adoption pay will increase from 1st April 2007 to £112.75 (from £108.85 current rate).
• Statutory sick pay will increase from 6th April 2007 to £72.55 per week (from £70.05 current rate).
• Maternity, paternity and adoption leave and pay all change for those due to give birth, or adopt , on or after 1st April 2007 (see News and Events March 2007 below)
• Employees will have the right, from 6th April onwards, to request flexible working if they are caring for an adult.

March 2007

Three new Customer Case Studies have been added to the THS website. Please visit the Case Studies Page to download.

March 2007

The Maternity and Parental Leave etc and Paternity and Adoption Leave (Amendment) Regulations 2006 come into force on 1st April 2007.

If a pregnant mother is expecting her child to be born on or after 1st April 2007 (even if born prematurely before 1st April 2007) she will be entitled to improved maternity rights.  Some key points include:

• All employed women are entitled to additional maternity leave - there is no longer a minimum service requirement
• The payment period for statutory maternity pay and maternity allowance has been extended from 26 - 39 weeks (to increase to 52 weeks by 2010)
• The notice a woman must give if she is changing her date of return from  maternity leave has been increased from 4 weeks to 8 weeks
• Keeping in touch days are introduced so a woman can work for up to 10 days during her maternity leave
• It is clarified all women have a right to return to work after maternity leave regardless of the size of the organisation

March 2007

Smoking will be banned in enclosed public places from 2nd April 2007 in Wales and 1st July 2007 in England.  Visit www.smokingbanwales.co.uk for more information

February 2007

Drivers who use hand-held mobile phones whilst driving will get three points on their licences from 27th February 2007, as well as an increased fine (from £30 to £60).

The Government are reminding employers of their responsibility to protect their employees and other road users by urging them to put appropriate policies in place to ensure employees do not fall foul of the new legislation.  They are emphasising that hands-free kits are not the answer because drivers are still distracted.  Ideally ROSPA would like to see hands-free kits banned also as people talking on the telephone pay less attention to the road, causing accidents.

February 2007

From 1st of February 2007, the following statutory rates were increased as follows:

• A week's pay for the purposes of calculating a basic award or a redundancy payment increased to £310.00
• Statutory guarantee pay increased to £19.60 per day
• The maximum compensation for unfair dismissal increased to £60,600.00
• The total maximum unfair dismissal award, including the basic award, in most cases is therefore £69,900.00

January 2007

The DTI has announced an increase in minimum holiday entitlement under the Working Time Regulation 1998 from 20 days to 28 days per annum.

Some employers currently include the eight bank holidays as part of workers' 20-day annual leave entitlement.  The change will require them to add the eight bank holidays to the 20-day annual leave entitlement.  Statutory annual leave entitlement will be increased in two stages, rising from 20 to 24 days on 1st October 2007, and from

24 to 28 days on 1st October 2008.  More information can be found on www.dti.gov.uk under employment matters.

October 2006
From 1st October 2006, new Government legislation means that you must not discriminate on the basis of age; this has implications for all businesses. If you fall foul of the legislation there is no limit on how much a tribunal can ask you to pay. For any further information on the act or for a free guide and CD please contact us

October 2006
After six years in business we thought the time was right for a new set of clothes and hence our corporate image, website and brochure material are all being revamped to reflect where the company is now.

July 2005
THS becomes the first organisation in Wales to be accredited to the Investors in People Leadership and Management model, we have a clear understanding of exactly how HR can truly increase the profitability of your business.

March 2005
THS becomes the first company in Wales to be accredited to the Investors in People Recruitment and Selection model, which demonstrates we are at the forefront of expertise within our market.