lucyhibbert
HR Officer
SR Technics UK Limited
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Removal of Long Service Awards

Removal of Long Service Awards

Prior to the 1st October 2006 and the introduction of the new employment legislation - Employment Equality (Age) Regulations 2006 the Company i work for took legal advice on long service awards and any other benefit with a requirement for over five years service. We were advised that we needed to look at our annual leave policy, long service awards and training bonds policy. Our long services awards were based on 25 or 40 years service and there is a potential risk that they could be viewed as indirect discrimination on the basis of age.

The Company took the view that if it was challenged and proved via case law that long service awards were NOT indirect age discrimination then we would look to reintroduced and back date the long service awards. To date this has not happened. Overall, and as an organisation, we have taken legal advice concerning the introduction of the new employment legislation and looked at the potential risk to the organisation and it was based on this that the business decision was taken to remove the long service awards.

However i am now dealing with 2 x employee's who are agrieved over this and i although i can find quite a bit of info on companies who kept the awards and the proces they went through to do that i am stugglying to find other companies who took the same decision as us.

I would really appreciate to hear from anyone else who took a similar decision.

Thanks,

Lucy Hibbert

Lucy Hibbert

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18th Jan 2008 18:42

lucy
you made the wrong decision and the consequences are entirely predictable.
You like some other listened to the scary solicitors and did not do a proper assessment of the benefits of keeping what you had
i can use the law especially new law to support any argument. the trick is being practical.
at least you were scared and not an opportunist meany

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By kluxon
22nd Jan 2008 10:13

Hi

Sorry but I agree with Peter

Little or no reason to take these away apart from the hysterical pre-legislation frenzy we tend to get ourselfs in.

Why dont you take opportunity to stadnd back and use the challenge to reintroduce them. Say you were mistaken?

We had LSA's at 25 and 40 years, we still have them. Staff like them, company likes to recognise this exceptional service and no one objects.

Keith

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24th Jan 2008 21:41

lucy
sorry if you felt i was harsh
the real problem is where you get your advice from. Really good lawyers would advise that you did an assessment before you had made the decision. that would have resulted in canvassing employee opinion and you would not have got intoa fix
i think keith's advice is sound. admit you made a mistake having listened to your employees

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24th Jan 2008 09:20

Sorry Lucy but I also agree with the others.

I'm Personnel Manager for an SME - I explained the legal advice to the MD and we took the decision that the risk of a challenge to the long service scheme was low and did not justify the inevitable complaints we would receive from existing staff. Our decision was the opposite of yours - not to change until case law showed a real need.

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24th Jan 2008 07:45

Lucy,

I do think you've jumped a bit too quickly, Keith agrees with Peter also, as do I.
It is certainly worth reviewing your stance on this issue, others see it differently, advice can sometime turn out wrongly.
As for professionalism, this is a free site, all advice comes freely whether welcome or not, perhaps your expectations need to be lowered. Responses on free websites cannot be managed.
Despite 300+ views no one seems willing to come forward who has taken a similar view as your company.

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23rd Jan 2008 18:36

I must say how dissapointed (to put it lightly) i was in Peter Stanway's comment on my question.

Perhaps you, as most good consultants do, should think about posting constructive comments on this web board rather than seeing this as an opportunity to look superior by criticising others!

I think that many HR professionals would agree that often with new legislation there are grey areas and increasingly you are having to make decisions based on what advice and information you have at the time and in the best interestes of the business. To the best of my knowledge crystal balls[***]/ time machines aren't available on CIPD.com......

I think most of us have been in situations where you do not agree with a business decision that has been made. However part of job is managing the situation now.

I would still like to invite comments from anyone with anything constructive or of value to add to the original question.

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