Employer's Charter
As an employer, as long as you act fairly and reasonably, you are entitled to:
- ask an employee to take their annual leave at a time that suits your business
- contact a woman on maternity leave and ask when she plans to return
- make an employee redundant if your business takes a downward turn
- ask an employee to take a pay cut
- withhold pay from an employee when they are on strike
- ask an employee whether they would be willing to opt-out of the 48 hour limit in the Working Time Regulations
- reject an employee’s request to work flexibly if you have a legitimate business reason
- talk to your employees about their performance and how they can improve
- dismiss an employee for poor performance
- stop providing work to an agency worker (as long as they are not employed by you)
- ask an employee about their future career plans, including retirement.
This is intended to help employers understand what they can do in general. Of course, individual circumstances may vary and employers should act in accordance with their legal obligations.
The government has launched an Employer's Charter, described by Vince Cable, the Business Secretary, as "exploding the myth of bosses disenfranchised in their own workplace". The aim is to increase awareness of employers’ rights and redress the common belief that employment law is heavily balanced in the employee’s favour thus encouraging employment and growth.Also being considered are the Employment Tribunal Reforms which will reduce the burden on the current tribunal system with speedier resolution for both the employer and the employee. This has been attempted before with the Standard Discipline and Grievance Procedure which aimed to resolve issues in the workplace rather than in court. The outcome in practice did little to reduce tribunal claims and merely served to increase onerous paperwork and red tape on the employer. This was replaced in April 2009 with the easier to follow ACAS guidelines for dispute resolution.
What are the proposals which are being consulted on?
Increase in service required to raise a claim
Headlines have highlighted an increase in the length of employment required to bring an unfair or dismissal Employment Tribunal claim from 1 year to 2 years. This does not affect discrimination disputes which can be raised from day 1. It is believed that this will reduce claims by approximately 4,000 per year.
Measures to reduce vexatious claims
- an introduction of deposits for the employee to raise a claim in a tribunal
- increased flexibility for the tribunals to strike out claims
- increases in the deposit order maximum from £500 to £1,000 where a claim has little reasonable prospect of success.
- employer’s responsibility to respond to a claim without enough information could be relaxed until either more detail is supplied by the employee or the claim is struck out for no reasonable prospect of success.
- an increase to the cap on costs which can be awarded by a tribunal from £10,000 to £20,000.
Earlier settlement of dispute measures
- claimants would be required to complete a statement of loss when submitting their claim, the goal being to reach an earlier settlement.
- encouragement to accept reasonable settlement offers will be provided as tribunals could use the information to decide whether a party has acted unreasonably when considering a costs award.
- the government believes that employment disputes can be resolved more swiftly through discussion in the workplace without the need for an employment claim. They are asking organisations who have used mediation to comment on their experience.
Financial penalties for employers who breach employment rights
The government is exploring the possibility of financial penalties of between £100 and £5,000 for employers who breach employment rights. Payable to the Exchequer it would be half the total compensation awarded to the claimant up to a maximum of £5,000. Penalties would be reduced for fast payment.The consultation (closing on 20 April 2011) is seeking views from businesses and social enterprises, individuals, trade unions, representative bodies, and other interested parties on these proposals.
You can have your say and respond to this consultation...
Email:
RWDconsultation@bis.gsi.gov.uk
Write: Rowena Robson, Senior Policy Advisor, Department for Business Innovation & Skills, 1 Victoria Street, London SW1H 0ET
Complete the response form
online
The proposals have met with varying responses so far. David Cameron welcomed them saying “A critical element of the Government's growth strategy is to create the conditions which allow businesses, especially smaller businesses, to flourish and expand, by reducing regulation and maintaining a flexible and dynamic labour market.” However, Len McCluskey, General Secretary of Unite, the union, said "This charter gives bad bosses a green light to bully and intimidate. Employers who misinterpret this advice will quickly find themselves in court and the guidance threatens to cause chaos across industry."
Of course Len is right when he suggests that misinterpretation of the advice or employment law in general can land you in hot water with potentially costly and time consuming tribunal claims. Critchleys HR and Payroll can help protect your business through guidance, support and even insurance against this eventuality.
Call us for a free 15 minute consultation on employment issues you’re facing on 01865 261188 or 01865 261145.