employment issues

Welcome to my occasional burst of enthusiasm on the tiresome topic of employment law, best practices and how to avoid all the issues that befuddle when you're trying to employ people. As usual, these are my views, and appropriate advice should be sought to fit your specific circumstances. I am not liable if you don't do this.

April 2005

Lots of little bits to remind you warn you or just simply make you wonder why...

Employee presents you with a parking bill, incurred using the company car whilst on company business. Do you have to pay?

No - all fines are personal to the person who committed the unlawful act, and you (the company) do not condone breaking the law! But maybe put such remarks in the staff handbook - a common remark of mine. Better to have it clear from the outset and save all the aggro later.

Termination payments - are they tax free. Well, it depends! An amicable parting with no hint of a contractual settlement or compensation in breach of contract can be tax free up to £30000. But don't put the termination payment in writing in the letter of termination of employment or it could easily be construed ass being part of that and still taxable as pay. And make sure you get your dates right in the P45 and payroll records. Termination payments are ex gratia and AFTER termination.

Job sharers - this may need some change in wording in your employment contract if you have job shares, because one sharer depends on the other still being there. You have a full job to fill; not a part time one, so if one sharer leaves, you have a problem if the other one can't fill in the extra hours. You will advertise externally and internally for another job sharer, and try and move the remaining sharer to a part time job, consider overtime from existing employee to fill in. But if all that fails you need to retain the right to dismiss the remaining sharer and take on a full time person. So make sure your employment contract for job sharers allows you do to this, otherwise the remaining sharer will be able to sue you!

Compassionate leave - usually for immediate family (for funerals etc) for a day or two (maybe up to 5 if funeral arrangements are needed and probate to sort out) but need not be paid. Make sure your contract mentions it. You can set a yearly limit for applications so Granny doesn't die too often, if that is your suspicion.

Sickness (again!) - ensure that your policy says employees have to phone in sick by (say) 10 am, and have to speak to a designated manager. Not just anyone. Or you call them - their home (landline) number) Use the opportunity to ask them about their illness and what progress is being made Remind your employee about payment rules and doctors notes if you think it's necessary.

Overtime - no one has to work it. Their contract normally states the hours 9 to 5.30 or whatever. But consider adding a clause stating that they will on occasion be asked to work extra, but no more than X time a day (You can make this unpaid even!). Or you can say that they work between 35 - 40 hours a week as the job demands. Same pay each week. Flexibility in small businesses is the priceless asset that enables it to survive against larger competitors.

I have often had to deal with employees moving on, and taking trade secrets with them. Proving it is difficult, but it may help to have explicit clauses in their contracts which state an express duty of fidelity and confidence. Give examples such as fraudulent behaviour and disclosure of trade secrets. Any breach is likely to lead to summary dismissal - a recent case will help you here.

Poor performance - do you have to live with it? Well, no, not if you have a capability procedure, which is fairly and consistently applied. Please note the caveat - it's normal in all employment issues!

Define capability - this is defined as having a difficulty in doing something, not a refusal to do something, which is a disciplinary matter. So - essentially we start from a training perspective. Have an informal meeting with the employee after gathering evidence of what is going wrong, when it is going wrong and what it is costing. Explain your concerns, and give the employee a chance to explain. Then the matter is either dropped, more training and guidance, or a formal meeting if that warrants it. Ensure if training is the option, tell the employee what will be done, and what you expect to see measurably different, and by when. Then review it on time! Don't let it slip, and thus condone poor performance and expect to be able to punish it later!

Enough for now. Try not to lose too much sleep over this stuff. Just ring me, and I'll worry for you.

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