Clearview National December 2019 - Issue 217 | Page 73

BUSINESSNEWS
• Allow fathers to take paternity leave of up
to two weeks at the same SMP rate.
• Allow employees (including part-time
employees) with a minimum of 26 weeks’
continuous service to request flexible
working. The request must be considered
but acceptance is not mandatory.
EMPLOYMENT CONTRACTS
If you do not have a formal employment
contract in place then one will be deemed to
exist. This will normally be to the employer’s
disadvantage. Employment contracts must
include at a minimum:
• Name of employer, place of work, job
title, hours of work.
• Salary. This is usually paid in arrears in
12 equal monthly instalments and must
conform to minimum wage legislation.
Notice period on each side. If you don’t
provide this:
• Installation companies must give notice
of 1 - 12 weeks depending on how long
the employee has worked for them.
• Employees are only required to give one
week’s notice whatever their length of
service.
EMPLOYMENT TRIBUNALS
Claims in the UK are fairly common as an
ex-employee can issue a claim without having
to prove that the case has any merit.
It can be very, very painful to be taken
to court by an ex-employee. That’s both in
money terms for legal advice but also in the
sheer distraction from running your business.
Even unsuccessful claims rarely result in the
employer recovering their costs.
The number one claim is for unfair
dismissal. There must be a statutory or fair
reason to dismiss an individual. The valid
reasons are: redundancy, conduct, capability,
statutory illegality or “some other substantial
reason”. You must follow a set and fair
process to terminate employment and also
to discipline an employee. If this is not
followed the individual probably has the right
to claim they have been unfairly dismissed.
The maximum award for unfair dismissal in
2019 is over £86k or 52 weeks gross pay if
lower. Discrimination claims on the grounds
of gender, race, etc. are uncapped so can be
extremely expensive.
Formal unfair dismissal complaints cannot
be made and redundancy payments are not
due until employees have been employed for
two years. There is no qualifying period for
discrimination complaints.
ADVICE TO AVOID
LEGAL HAZARDS
There are a number of things that you can
do to help avoid the legal hazards. When it
comes to this, preparation is the key. Careful
preparation makes it less likely you will lose
a case, which in turn makes it less likely you
will ever be taken to a tribunal in the first
place. Get advice from an HR Advisor when
drawing up:
• Your employment contract and
company handbook. The aim is to
provide as much flexibility as possible
to you.
• A written disciplinary and grievance
procedure. There is an ACAS code of
advice for these. It is not compulsory
to follow the code, but it is likely to go
against you at any tribunal if you don’t.
Cover additional things in your contract
of employment such as:
• Probationary period, during which the
normal disciplinary process should not
apply. This should be up to 6 months,
with the job offer subject to satisfactory
completion of the probation period.
You should have a shorter notice period
during probation.
• Job description, reporting structure,
details of incentives, bonuses or
commissions which should also be
clearly defined and also subject to
management discretion.
• Confidentiality provisions and
restrictions following termination and
protecting the goodwill of the business.
You may restrict the right to work for
a direct competitor or entice other
employees to leave for a period of 6
months after employment ceases.
• Reserve the right to change the
employee’s contract.
THE IRON RULES
In many years in business, including
dismissals, redundancies and more, I have
never been taken to an employment tribunal.
That is because I have always followed a few
simple iron rules:
• Before I do anything that could be
contentious, I consult a professional
employment advisor or lawyer.
• I never say to any member of staff, at
any time, anything which I would be
embarrassed by if it was mentioned in a
tribunal.
• If there is a hint of a dispute with an
employee, I keep dated, written notes.
• I have my interactions witnessed. This
piece of advice alone can save a fortune if
an employee makes an allegation which
isn’t true.
THE SETTLEMENT AGREEMENT
A settlement agreement, which can bypass
the disciplinary and redundancy processes can
seem attractive. However, remember that you
should consult an advisor before discussing such
an agreement with an employee and you have to
pay for them to get legal advice. If you fail to do
this any agreement will be invalid in law.
PULLING IT TOGETHER
There are a lot of tank traps around
employment. But they can be avoided with
preparation and care. Business objectives
can nearly always be achieved while treating
employees fairly. All of the best.
ABOUT THE AUTHOR
Benjamin Dyer is CEO and co-founder
of Powered Now. Powered Now’s
mobile app aims to take the pain out of
paperwork for installers and other small
trade companies.
www.powerednow.com
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