With 218,000 tribunal claims in 2010-11 and almost 25 percent of those for unfair dismissal, it was likely that the government was going to take steps to reduce the number of claims made.
The decision was made that the amount of time an employee has to work for an organisation before being able to make unfair dismissal claim against the employer will be increased.
Anyone hired after 6th April 2012 will be subject to the two-year rule.
This will not be applied to the cases where dismissal is automatically judged to be unfair because someone has been sacked for trying to exercise their employment rights – these can still be brought at any time.
The government believes that the change from one year to two years will boost companies’ growth by directly saving them £10m per year and could deliver wider benefits worth more than £40m annually.
It says the changes will make it “easier for businesses to take on staff and improve the process when staff have to be let go”.
Dealing with employees’ claims requires a large chunk of unproductive time spent in court and on consultations with lawyers. This can result in loss of morale among the other employees and the damage to the company’s reputation sometime cannot be reversed.
Below shown are 10 STEPS on how to minimize the risk of employees’ claim:
1. Treat staff in the same way you would like to be treated –being fair, respectful and protective towards your employees’ dignity will build a positive and productive atmosphere in your workplace.
2. Create, promote and enforce workplace rules – prepare an employee handbook, familiarise your workforce with its content and get every employee to sign an agreement to comply with all the work rules. The handbook, despite information explaining employer’s right to terminate employees, hours of work, holiday, maternity leave and sick pay entitlements, should also include an antidiscrimination and harassment policy.
3. Review and communicate company policies on a regular basis – make sure that all your policies are up-to-date and in line with the current laws. Post any updates and ensure all your employees have easy access to them.
4. Put safety and data protection standards into place – make sure employees know they what they are and insist that they obey them.
5. Provide your managers with all necessary and regular training on workplace laws – ensure your supervisors’ knowledge of workplace regulations is up-to-date and that they understand their staff’s rights as described in the employees’ handbook.
6. Be consistent when applying company policies – treat employees equally – do not allow some to escape minor violations while others are disciplined for them. Conduct performance reviews and keep a written record of all unacceptable workplace behaviour.
7. Document the progressive disciplinary process – notify any employee about their unsatisfactory behaviour in writing, have it signed as being discussed and any action being taken, and file this information securely.
8. Ensure employees are compensated for all hours worked – to avoid lawsuits related to payroll, scrupulously collect and always verify your employee attendance records.
9. Set realistic expectations – never pressure employees to “just get it done” by working off the clock. It may lead to claims for stress-related issues and overtime payments.
10. Verify employees’ time records regularly – make sure workers are properly reporting their time. Companies can be liable for unpaid overtime if it can be proven that a supervisor knew about it – even where employees didn’t keep accurate time records.
Although complying with workplace regulations can sometimes be a complex and time-consuming task, there are now widely available solutions that will prove helpful in dealing with such employee matters.
Modern HR systems can create a centre of all HR-related documentation, allowing you to monitor your employees working time and various entitlements. They also reduce the number of mistakes and administration time to an absolute minimum.
A good HR system will provide you with a central database of all your staff details, including documents related to their training, qualifications, entitlements, ages, terms of employment etc.
Combined with an automated Time and Attendance system, it can provide a complete and up-to-the minute record of all employees’ working time data, give you an accurate insight into how long employees are spending in the workplace, and breakdown the hours spent on specific jobs and projects.
For salaried staff, this ensures they are compensated for extra hours worked outside of their normal working day (for example Time Off in Lieu, etc.).
By analysing overtime data and work records, you may also find that it could be more cost effective to bring in additional resources or temporary staff in times of high demand as opposed to paying high overtime rates.
An advanced time and attendance system will also play a critical role in your health and safety procedures. In case of a fire, the system will print off a list of employees currently onsite, allowing you to quickly identify who was in the building when the fire started.
And what’s more, the systems cost much less than the average lawsuit case!
