The latest HR news from

Advice on World Cup absenteeism
04/06/2010

Bolton businesses have been warned to prepare for workers taking sick days during the World Cup.

But bosses have been told there are steps they can take to work with their employees.

Employment law specialist Fiona McKay is advising businesses across Bolton to pre-empt the rise in absenteeism.

The managing director of employment law training firm Seminars and Solutions said: “Statistically, there is a rise in sick leave during key sporting events and when the sun comes out.”

The firm is advising companies to provide television screens in canteens and staff rooms so employees can watch the games inbetween shifts or on rest breaks.

Businesses have also been told to introduce temporary flexible working hours, which will enable employees to accrue hours and work past their usual working times so that they can watch games at home.

News Article From: www.theboltonnews.co.uk

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Employment law and the new administration
31/05/2010

Following the formation of a coalition government between the Conservatives and Liberal Democrats only two things seem certain – major cuts in public sector funding and uncertainty itself. We may now know the way in which the coalition is set to work in the broadest possible terms, but policy details are still emerging so why is it important to stay abreast of the latest developments and changes to legislation?

New government - to ignite economic recovery
Watching the news over the past few days will have revealed widespread anxiety over the outcome of the election followwed by a rising confidence in the business community after the formation of the Con-Lib coalition.

It's vital that HR departments keep abreast of the latest development in employment law in order to forsee any issues which may arise, minimise them or avoid them altogether. This is particularly important given the fact severe spending cuts could lead to line managers having to assume more responsibility over HR functions.

We know the Conservatives have pledged to cut the £163bn deficit and have Liberal support, they have pledged to reduce spending by £6bn in this financial year and that means job cuts – almost as an inevitable consequence. These job cuts are not just going to hit public sector bodies though, they will also affect SMEs which may rely on work from public sector clients.

Where will the cuts occur?
In the public sector, it may be that inhouse HR teams are cut in size to reduce overheads, meaning line managers will have to take over. In SMEs, we could see management posts disappearing and less experienced people having to fill in or step up to take on HR responsibilities.

Until the emergency budget is revealed, we do not know where the axe is likely to fall but the cuts will be severe. As a result, it's vital that line managers and small business owners upskill now with regards employment law to ensure the situation is handled in a professional manner. This will reduce stress for all concerned and also keep costs down to a minimum while avoiding avoidable and unnecessary compensation payments.

Age discrimination & the implications
This is an area of legislation which looks almost certain to be affected over the coming months with a phasing out of the Default Retirement Age (DRA) regulations set to take place and the state pension age looking set to rise to 66. Despite the fact the pension age is not set to rise until 2016 for men and 2020 for women, this is an area which should be kept under review.

Once in force, managers may be concerned about challenging the performance of an ageing employee - particularly if it's felt age may have played a role. Succession planning also becomes more of an issue with an ageing workforce. At present, many employers keep employees on after the age of 65 due to their skills and experience for the benefit of the business, however this may result in fewer opportunities for younger people to advance into senior roles.

Another aspect that managers and business owners will have to carefully consider is that of health and safety in relation to an older workforce. Will special measures or equipment have to be put in place to address this issue and if so, what will the cost implication be?

Immigration & welfare reform
The government will be introducing a cap on immigrants; this may have some impact on employment across all sectors when combined with other welfare reforms.

The government have also pledged to end all existing welfare reform programmes and instead create a single welfare-to-work programme which will see people claiming benefits referred to the new programme immediately – not after six months.

It’s probably also worth considering that the impact of the welfare-to-work programme could be severely undermined given they are talking about this on one hand and huge spending cuts (and redundancies) on the other.

Agency workers
David Cameron made it clear ahead of the election that he would like to repeal the laws which grant agency workers the same rights as full-time staff after 12 weeks in a job. There are also suggestions he would seek to clarify the definition of pay and the comparison between full-time and agency staff. This could have serious consequences for many people and the details are as yet unclear. It must also be stated that these laws were derived from EU legislation, so he may find it difficult to change them or repeal them.

But the Prime Minister is looking to cut spending, and it could benefit the economy generally to take steps in this area or use agency workers on a more cost effective model. For example, between 2006 and 2008 NHS spending on agency workers increased by 60%; as a result the government must see there are huge potential cost savings available through the repeal or relaxation of the rules.

We also need to find out the views of the new business secretary Vince Cable. We do not at this stage have any indication as to his agenda, how favourable he will be to employers, hirers and agencies and his views on the agreement presently in place.

Equality act and flexible working
The new Prime Minister has also signaled that he would like to remove the positive action in recruitment and mandatory pay audit clauses from the Equality Act set to come into effect in October. These could have implications for under-represented groups within certain areas, and also do little to address pay differences between men and women.

Alongside this possible backward step, it does appear that the right to request flexible working could be introduced with the Tories looking to extend it to all parents with children under the age of 18 and the Lib Dems to all parents full stop. Parents could also see themselves offered the opportunity to take flexible working at a time that suits them or even at the same time.

The newly-appointed junior equalities minister is Lynne Featherstone, a Liberal Democrat. It was her idea to introduce an clause within the equality act which would not require job applicants to declare their names on application forms. However, this is a move fraught with potential pitfalls, and it will be interesting to see how the Equalities Act plays out now she is at the helm.

Public sector pay
This could be an area where line managers and HR teams may come into contact with Trade Union officials. A pay freeze seems likely, pensions will be examined and people’s pay packets look set to be made public and displayed online.

Also consider that one of the current trends in relation to public sector pay and reduction in costs is that outsourcing and shared service arrangements become much more favourable in this economic climate. This brings a whole range of issues in itself and one of the key challenges managers will have may be managing the new outsourced or shared provider – and you also have to take into account the set up time and cost of the change itself.

Skills, laws and undecided affairs
The Conservatives state they would like to create 400,000 work pairing, apprenticeship, college and training places over two years, and a Community Learning Fund to help older workers develop new skills. How this will work in practice remains to be seen.

Initially (and this should be considered a sensible move) there will be a one in, one out law passed which means that for every new law introduced, an old one will be phased out meaning we will not end up drowning in red tape and hopefully streamlining and simplifying the whole area. This has been welcomed by the business community.

There is also a number of other policy areas which may have an impact in the area of employment law but where the details have not yet emerged. This highlights the need for line managers and HR personnel to keep abreast of any proposed changes to ensure you are not caught 'napping' when dealing with employment issues.

Be hyper-aware of employment law changes
Given the precarious state of the economy, the savage spending cuts which have been promised by the incoming administration and the wide ranging changes to policy which are on the cards, it's never been more important to ensure line managers are up to speed with the latest legislation to ensure peace of mind and reduce potential liabilities.

As it stands, we're in a total state of flux. Employment law has always been a grey area but it’s never as grey as it is at present. There's a huge amount of speculation going on about what the future may bring and what changes the new government may introduce. It's never been more important that line managers are well trained and hyper aware of what's emerging on the horizon

News Article From: www.changeboard.com

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Calling all line managers
19/05/2010

Many work-related litigation problems are triggered by errors made by line managers and not HR professionals. Even if budgets are tight, it pays to make sure they are on top of employment law basics says Fiona McKay

With huge public sector funding cuts on the horizon – the theme of ‘austerity’ was somewhat dominant in the coalition talks after the Election - there is no question that headcount reduction will continue to be routine in many organisations. So it is vital that line managers with responsibliity for staff are equipped with the necessary skills to avoid unecessary confrontation and increased compensation pay-outs.

Major employers who rely on public sector funding, such as local authorities, health providers and universities are in the firing line as government grants and funding sources dry up – it is here that job losses are anticipated the most. However, many private businesses may also feel the squeeze – particularly those which may rely on public sector funding for the bulk of their work. Job losses are likely to cut right across businesses and organisations, with positions in every department and at every level under review – including HR.

Dealing with HR issues

What that means is that line managers in larger organisations and owner/managers in SMEs will be expected to take on greater responsibility and face up to the realities of staff discipline and HR issues – which previously may have been dealt with by in-house HR teams or trusted managers.

The same point also applies to trade union relations, which again may have previously been handled by in-house HR teams or dedicated HR managers. Without the proper training this can be a risky and potentially costly exercise for employers, particularly when the process is not clear and the manager or management team are uncertain about the regulation, legislation and processes which should be followed.

The outcome of a slip-up can be costly and may involve organisations, which are already going to be under financial stress, having to pay out far more than they anticipated or budgeted as a part of the redundancy process.

Effective training

To that end effective training is vital to ensure employees are treated correctly and to avoid costly pay-outs. The ACAS code of practice[1] on discipline and grievance clearly states that line managers should try and dispose of potential issues informally before they get to the discipline and or grievance stage but without proper training this is often ignored. There are a number of things you can do to avoid the unnecessary slip ups which can result in costly compensation claims:

  • Check you have information on key legislation changes. Line managers are now expected to perform challenging people management tasks, therefore gaining training on how to deal with the legal aspects is vital. Ensure you are aware of the latest changes in legislation check what literature the company has, ensure it is up to date and make sure it is fresh and clear in your mind.

  • Be aware that employees are now very aware of their workplace rights. Even if you aren’t clear about employment law you can be assured employees will be or will know someone who is. If you are not clear and firm in your actions you are leaving yourself open to criticism and the risk of challenge.

  • All managers have a responsibility. Do not assume the understanding employment law is the sole responsibility of HR; take action now to learn the latest rules and regulations, it is a crucial discipline of a contemporary manager.

  • Don’t let things get out of hand. Try and settle matters and problems informally. The ACAS code of practice on discipline and grievance clearly states that line managers should try and dispose of potential issues informally before they get to the discipline and or grievance stage.

  • Do bear in mind that employment law is constantly changing - but generally new legislation is introduced on the 6th April and the 1st October annually. You can keep yourself abreast with changes in legislation as well as all the emerging new case law on our blog.

  • Ask for help. It’s an all-too-common problem that many people are afraid to ask for help. If you don’t understand something ask, handling grievances and disciplinary hearings can be complex so seek out the most knowledgeable people and see what they think.

  • Check out the employee handbook. Familiarise yourself with the business rules and the contents of the employee handbook. This may seem obvious, but more than one manager has been caught out by not being up to speed with the staff handbook. How can you possibly discipline someone for breaking the rules if you are not clear on what the rules are in the first place!

  • Don’t be afraid of trade union representatives. If an employee is represented by a trade union representative – which can sometimes be the case and make a tough situation even harder – there is no need to be intimidated. Make sure you are as aware and familiar with employee rights as your trade union counterpart.

The Equality Act and beyond

Finally bear in mind that the scope for discrimination claims widens this year. The Equality Act comes into effect in October 2010, which will introduce new protected characteristics on the grounds of your marriage and civil partnership status and gender re-assignment, whilst also allowing claims for dual strands of discrimination. Make sure you are up to speed with the changes this is likely to mean and the implications for your business.

Nothing makes up for training but by following the advice laid out above you should be able to steer a course through the potentially costly HR minefield you may be exposed to as public sector spending cuts start to bite across the business community as a whole.

News Article from: www.apbusinesscontacts.com

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