Workshop Aims and Contents Aims Contents: By the end of the workshop delegates Legal Requirements of employers will understand: Common (but costly) issues The key legal requirements when Building strong foundations employing people A HR Framework for small and How a simple but effective HR medium-sized organisations Framework not only helps stay on the right side of the law but is also key to creating a successful and sustainable business The five key ingredients of a good HR framework
Legal Requirements of employers There are a number of laws that Rights and responsibilities cover: regulate the relationship between Recruitment employers and employees. Terms and Conditions (Pay) Working hours These govern what employers can expect from employees, what Time off employers can ask employees to Terminations do, and employees’ rights at work. Equality and discrimination Data protection In addition to these, the Human Rights Act entitles individuals to Health and safety defend their rights under the Dispute Resolution European Convention on Human Rights Communication and Consultation
Common (but costly) issues Unfair Dismissals Bullying & Harassment Claims Discrimination Claims Right to Work Breaches National Minimum Wage Breaches Holiday pay breaches
Common (but costly) issues Right to Work Checking Breaches - Jail for 5 years and an unlimited fine Unfair Dismissal - basic award - £15,240 (30 weeks' pay subject to the limit on a week's pay) Unfair dismissal- compensatory award - £83,682 (unlimited for certain automatically unfair dismissals) Failure to give written statement of particulars - £1,016 or £2,032 (two or four weeks' pay capped at the statutory amount National Minimum Wage Breaches - Up to 200% of the underpayments made over a 6-year period Race Discrimination – Unlimited Equal Pay Claims - Back pay for 6 years Anti-Slavery and trafficking breaches - 10 years imprisonment and/or an unlimited fine
Common (but costly) issues Health and Safety beaches - 2 years imprisonment and/or unlimited fine Working Time Directive Breaches - Entitlements claimed for & Limits claimed against Anti-Bribery breaches - 10 years imprisonment and/or an unlimited fine Change in ET Claims lodged between October to December 2017 compared to the same quarter in 2016 - increase by 90 per cent Percentage of change programmes that fail to deliver due to poor management - 74% The second greatest cause of occupational ill-health, causing 45% of days lost - Work-related stress The percentage of new businesses that will experience problems growing because they don’t understand their organisational culture - 70% The cost of British workers quitting their job because of a poor company - £23.6 billion per year
Building Strong foundations A simple but effective HR Framework is the foundation of good people management. It will not only help you stay on the right side of the law. It will also help you be a good employer, which is one of the ingredients of creating a successful and sustainable business.
Why is a HR Framework necessary? Legal Requirements Vicarious Liability Business Performance Employees’ Performance and Behaviour Employee Cooperation Employee Engagement Employee Health, safety and Well-Being Employee Morale and retention
A HR Framework – Five key ingredients A good HR framework should include: Job descriptions and structures Basic policies and procedures Contracts of Employment Handbook Good leadership and management These elements need to be aligned to your overall strategy to be fully effective.
1. Job Descriptions and structure These are key for two reasons: A good job description will include: If you haven’t defined the job and The name of the role where it sits in the business how The function/position the role can you recruit the right person for reports to it, and then manage them The general tasks and effectively responsibilities of the role People need to have a clear specifications such as the understanding of their role in a qualifications or skills needed by company if they are to make a the person in the positive contribution
2. Basic HR policies and procedures HR policies and procedures are written statements about how an organisation will manage its people. They provide foundation and structure to your organisation and are there to help managers, employees, and customers/clients. HR policies are WHAT is to be done and HR procedures outline HOW TO carry out the policies. The best policies are written in the context of the individual business. You are advised to make sure your policies and procedures do not form part of the contract of employment*
3. Contracts of Employment Contracts of employment are A written statement of particulars legally-binding agreements must be provided within two between an employer and an months of the employment starting employee. and must contain certain information*. They consist of expressed terms written into the employment Varying contractual terms normally contract and implied terms requires the employee’s (unwritten but in existence agreement. If you change them through custom and practice or without consent you will be in how a manager behaves). breach of the contract. Although employment contracts are governed by contract law, there are statutory rules which also affect employment contracts.
*Written statement of particulars Items to be included in the main document: names of the employer and employee date when employment began date on which the employee’s continuous employment began scale or rate of remuneration or the method of calculating the remuneration intervals at which remuneration is paid, that is, weekly, monthly or other specified intervals terms and conditions relating to hours of work, including any terms and conditions relating to normal working hours terms and conditions relating to entitlement to holidays, including public holidays and holiday pay, in such a manner as to allow them to be precisely calculated job title or a brief description of the type of work the employee is employed to do place of work or an indication that an employee is required or permitted to work at various locations.
*Written statement of particulars (Cont’d) Items that can be provided in instalments: terms and conditions relating to incapacity for work due to sickness or injury, including any provision for sick pay terms and conditions relating to pensions and pension schemes length of notice the employee is required to give and receive to terminate the contract where the employment is not intended to be permanent, the length it is intended to last, or the end date if it is for a fixed term any collective agreements, which directly affect the terms and conditions of employment, including where the employer is not a party, the persons by whom they were made where the employee is required to work outside the UK for a period of one month or more, details of the time they are to work abroad, the currency they will be paid in, any additional remuneration payable and any benefits provided by reason of working outside the UK and any terms relating to the employee’s return to the UK.
*Written statement of particulars (Cont’d) While the Employment Rights Act 1996 states certain items that must be included in the written statement of particulars, employers can refer their employees to their employee handbook or other policies for precise details of issues such as: documents relating to disciplinary and grievance rules and procedures documents relating to sickness and pensions documents relating to the detail of bonus or commission schemes collective agreements other terms that are not mandatory terms (for example, private health care, overtime, holiday arrangements, retirement)
4. Handbook An employee handbook, sometimes known as an employee manual, staff handbook, or company policy manual, is given to employees for their personal reference. A good employee handbook contains several key sections and includes information about company culture, policies, and procedures. You are advised to make sure your handbook does not form part of the contract of employment*
5. Good leadership and management Leadership refers to an individual’s ability to influence, motivate, and enable others to contribute toward organizational success. Influence and inspiration separate leaders from managers, not power and control. Management consists of controlling a group or a set of entities to accomplish a goal.
Next Steps Put your HR Framework in place asap Make sure your structures, documents and processes are easy to understand Give your employees copies of the relevant documentation on their first day of employment Train your managers and supervisors so they understand your HR Framework Periodically review your policies and procedures to ensure they are appropriate and up to date Add more policies and procedures as you grow – the more people you employ the more policies and procedures you’ll need
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