The Government’s new Employment Rights bill has completed its Comments Committee Stage and at this time, there seems to be little change from the proposed approach and policy other than the extension of Employment Tribunal time limits from 3 to 6 months.
Employment rights stem from a variety of different Acts and regulations. The right not to be unfairly dismissed is probably the most important provision of the Employment Rights Act 1996 though currently in most cases employees must have 2 years’ service to qualify to bring a claim.
One of the key proposals in the new Employment Rights Bill is to remove the length of service requirement for ordinary unfair dismissal protection. Whilst a probationary period will likely still be allowed, many organisations are concerned about the challenges that may come from the change and the potential for an increase in unfair dismissal claims.
Any added cost to a business will be a concern to Finance Managers/Directors especially if it’s a cost that is not planned or budgeted – like a tribunal claim. Finance Managers or Directors who have responsibility for HR processes but do not have HR support are potentially more exposed to risk. Following are three key actions for any Finance Manager/Director, not just to mitigate against tribunal claims but, to effectively manage these key employee processes:
Recruit the right people – if you have high employee turnover this will cost you money!
- Before you start the recruitment process, review the job description, person specification and job advert for accuracy and to ensure there is nothing in any of those documents that might give rise to a discrimination claim.
- A standard interview process should apply to all candidates so they are assessed against the same objective criteria. Consider additional job related assessments to objectively evaluate a candidates skills and knowledge and abilities. Throughout the selection process, notes should be taken to justify any candidate’s rejection the final candidate’s selection.
- Benchmark the proposed salary in the market and against current staff to ensure you are paying fairly.
Manage Employee Performance – maximise the value that employees create!
A documented performance management process providing continuous feedback and regular check-ins are key to maintain and improve employee’s performance in line with the organisation’s objectives.
This should be an ongoing process, and provide an opportunity for a manager to address poor performance at an early stage by providing additional training if that is required or else instigate a performance improvement plan (PIP) designed to bring the employee’s performance up to standard or otherwise support and lead to a fair process for dismissal on the grounds of capability.
To avoid what can often result in complicated exit discussions, fair and proper performance management is a key.
Manage Employee Conduct – deal with issues fairly and promptly!
Every organisation expects its employees to conduct themselves appropriately whilst at work. Introducing a Code of Conduct which clearly outlines expected standards of behaviour will benefit any organisation and can be referred to in any discussions or disciplinary meetings about conduct or behaviour. Also worth emphasising that recognising good behaviour is just as important as addressing poor behaviour – it sets an example, it’s a great motivator and costs nothing!
When managers fail to effectively address conduct issues this can negatively impact team performance resulting in decreased productivity, low morale, employee turnover. No manager enjoys dealing with a low performing or a ‘problem’ employee, but it is an important part of the role. Some employees will benefit from strict boundaries and discipline, they may acknowledge their wrongdoing and never repeat the behaviour. Occasionally an employee will persist in inappropriate behaviour but as long as it’s been addressed effectively with informal and formal warnings and in line with the company disciplinary procedure, then a dismissal is likely to be fair. A problem is unlikely to go away unless it’s addressed.
Regardless of the proposed change in legislation to give day one employment rights to all employees, the above processes are good practice for every organisation and Finance Mangers or Directors who have responsibility for HR should ensure they have clear and well communicated processes and procedures to follow.
In addition, supporting managers either through coaching or investing in training for managers to develop the skills they need would be advisable. If any of these processes become complex or difficult to manage you may want to consider engaging with an HR Consultant to navigate you through the process.
Blog by: Tina Munro, HR consultant from Gravitate HR
