10 common mistakes that businesses make on a regular basis.
Here are the most common reasons that I get involved in employment law cases. In truth, even the very best firms make mistakes in these areas. It is a bit of a minefield when it comes to employment law, and it is also the case that emotions can run very high when dealing with employment issues. People take things personally and that is entirely understandable.
How confident are you that you are 100% correct when dealing with these;
- Not having a written contract
Some businesses piece together terms of employment from verbal exchanges, emails, and general day to day activity. This makes it tough when problems arise, but it is also a breach of employment law. Written contracts of employment must legally be provided within two months of the start date. Working times, holidays, sick pay entitlements and notice requirements have to be set out in clear terms, so that both parties know where they stand.
- Not dealing properly with redundancies
There is a strict legal process for dealing with redundancies. If more than 20 redundancies are to take place, you must: consider electing employee representatives and brief anyone that is impacted by the proposed changes (not just those that at risk). In any event, you must also consult each individual staff member affected, be fair when selecting your redundancies, give the correct notice/pay (taking heed of any contractual rights), handle appeals, etc.
- Not dealing properly with grievances
Grievances can start as small problems, but can soon become time-consuming and potentially expensive battles. The law requires the employer to set out a grievance procedure and communicate it in writing to all employees. It must specify who the employee should talk to about a grievance and how they should communicate with them. It must set the time limit for each step of the process, and highlight each step in detail.
- Not keeping up to date with employment la
Employment law changes so often that it is a full-time job keeping up with it all. Business owners and managers can easily miss all the changes that take place.
Laws that have changed recently include unfair dismissal claims, flexible working, sick pay, tribunals, holiday pay and surrogate parents’ rights. Fortunately, a well-informed and professional solicitor can help you avoid expensive mistakes by informing you of what changes are coming up and how it might affect your business.
- Not providing rest breaks
Do you know about the three types of rest breaks which employees are entitled to? Perhaps you are aware that workers must have at least an unpaid rest break of 20 minutes within each 6-hour period of work.
However, workers also have the right to 11 hours of rest between working days or shifts and 24 uninterrupted hours each week. It is all too easy for business owners to break the law unless you know all this.
- Not giving proper and due notice
Dismissing an employee without giving proper notice is classified as wrongful dismissal. There are minimum periods of notice the law requires, and your employment contracts must tell your staff everything they need to know about these notice periods – for example, how much notice they must give and how much they will receive. If your employee has been working for more than one month but for less than 2 years, you have to give at least 1 week’s notice. For 2 years and more, it is 1 week for each year worked – up to a maximum of 12 weeks.
The law takes precedent over whatever your contract says – even when you have a contract that says an employee has four weeks’ notice, when they have been working five years or more, you must give them one week’s notice for every year they have worked for you. If your contract is more generous than the statutory minimum, you must honour that.
- Not investigating disciplinary matters properly
Disciplinary matters which are not investigated fully and fairly, and dealt with promptly and properly, can open you up to claims of unfair dismissal. Your disciplinary rules and procedures must be in writing and given to all staff, with full details of acceptable and not acceptable conduct. When problems do occur, your investigation must establish the facts fairly and thoroughly. In misconduct cases, you must believe the employee guilty of misconduct and have reasonable grounds for that belief.
- Making unilateral changes to employees’ contracts
Sometimes there are business reasons to make changes to contracts such as new technology or new products. However, you need your employees’ consent. Changing a staff contract without agreement, means you could have constructive dismissal and breach of contract claims against you. You must consult on changes, and if it is not possible to get agreement, then in some cases you may end up dismissing the employee. This means you absolutely must follow the correct dismissal procedure.
- Indirect discrimination
Employers can be guilty of indirect discrimination. This is when you put someone with a protected characteristic – such as disability, maternity, age, sexual orientation, marriage or race (to name but a few) – at a disadvantage.
Indirect discrimination may be lawful if you can show that there is an ‘objective justification’ for it. For example, the armed services high level of fitness discriminates, justifiably, against those with specific health problems.
- No ill health absence policy
Small businesses are extremely vulnerable when it comes to staff being off sick, so you must have an effective policy for tackling absence. A full sickness and absence policy will give all your staff a roadmap for handling minor absences, and may deter those who make a habit of being absent. It will also keep you legal, guiding you through the formal warning steps which may lead to dismissal – if it becomes necessary.
A good employment solicitor is not just someone that deals with the issues once they arise. They are someone that can take a look at things you have in place, identify the gaps and remedy any deficiencies before an issue arises.
If you are an employer or employee facing any employment issues or problem and you need advice, you may like to reserve my one hour £95 fixed fee consultation.
Please call 0118 958 9711 or email Justin Sadler at justin@barrettandco.co.uk to reserve your £95 fixed fee consultation.
