The changeover of the government has certainly seen some dramatic developments. In the employment world alone there appears to be panic amongst companies and HR professionals. We hope the following points of clarification, as much as we can do at this time, will calm the panic that appears to be widespread in the UK.
UNFAIR DISMISSAL
The new prime minister has declared full rights for employees from day one of their employment.
In particular, there is to be protection for new employees concerning unfair dismissal. Prior to this announcement, employees would normally have to be in the same employment for two years before making a tribunal claim unless the employee had a protected characteristic covered in the Equality Act 2010.
The recent announcement means an employee may be able to claim an unfair dismissal from day one. This may increase the number of claims coming to employers, especially as there are no initial costs for the employee to make a claim. Will the floodgates open? At this stage, we don’t know, as we are awaiting more information as to what “full rights” means. But, it may be fair to say that short service dismissal may become a thing of the past, and this may be good or bad, depending on your views.
So, what can employers do to protect themselves? Well, they may want to review a few areas, as per the below points:
- Probation Period
First of all, make sure you have identified the probation period duration, i.e., three, six, or even 12 months. Ensure you have a documented procedure about the probationary period, and explain the process clearly, so it is communicated to all line managers and employees.
Regular reviews of performance within this period must be undertaken and documented evidence must be available to prove the undertaking. The reviews, where necessary, must show the good and the not-so-good performances. If the employee is underperforming, make sure clear and achievable objectives are set and agreed with by the employee, and that the objectives are within a realistic timeframe.
If the employee fails to meet the objectives set either within the period or at the end of the period review, the employer can terminate the employment. However, to help safeguard the possibility of the employee going to a tribunal, all documentary evidence must be up to date, fair to the employee, and ideally signed by the employee as a true and accurate record at each stage.
More detailed information on the procedure, what to discuss at reviews, and templates for each of the stages is available on the HR Manager for completion and download. We can also advise via the Lawgistics legal helpline, which is available to our members.
- Performance Improvement Plan (PIP)
If the employee has completed their probationary period, but you have concerns about their performance, a Performance Improvement Plan, known as a PIP, is one of the tools that may be utilised. The PIP will be initiated at a meeting with the employee and their line manager.
During the PIP meeting, the performance of the employee is discussed to highlight underperforming areas. The line manager and employee agree on how the employee can reach the right performance levels within an agreed timescale.
Review meetings will be held thereafter to discuss the employee’s progress (or lack of progress). It is crucial when undertaking PIPs, that there is a clear and documented procedure to state how many review meetings the employee may have. For example, if you schedule two review meetings, but you terminate employment after the first meeting, the employee could have a case for unfair dismissal. In this instance, if a negative change has occurred, which could be construed as gross misconduct, then the disciplinary process should be utilised.
Lawgistics are on hand to guide you through the disciplinary process. Also, templates and further guidance are available on HR Manager.
EXPLOITATIVE ZERO-HOUR CONTRACTS ARE TO BE BANNED
Well, the definitive word is, “exploitative.” But, what does it mean? If you looked in the dictionary, it would state:
“If you describe something as exploitative, you disapprove of it because it treats people unfairly by using their work or ideas for its own advantage, and giving them very little in return.”
This is a fairly clear meaning, but what does the government believe the meaning to be in relation to zero-hour contracts? Unfortunately, we do have to wait for clarity on this one. I don’t think the government will be providing a checklist to ascertain whether a contract is exploitative, but hopefully, they will give us a better understanding in the upcoming weeks. Once we are aware of the facts around this change, we will publicise via our legal updates.
We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.
In the interim, if you do need guidance, call our legal advice helpline.
THE PRACTICE OF “FIRE AND REHIRE” IS TO BE BANNED
This practice has always been controversial, and in my career, has only been utilised as a last resource where an agreement cannot be made by all parties concerned in relation to the terms and conditions.
Currently, there is a draft code of practice that takes into consideration the Trade Unions Act and Labour Relations (Consolidation) Act 1992 (TULRCA). Therefore, this is likely to be approved in the next few weeks. A legal update will be published when the wording of the code of practice has been agreed.
If you are currently facing a fire and rehire situation with your employees, please contact our legal advisors to help you with the process.
TRADE UNION RIGHTS IN RESPECT OF RECOGNITION AND MEMBERSHIP ARE TO BE STRONGER
This is another area where we will have to wait and see what happens. It will be interesting to see what is proposed for companies who recognise unions, and the companies who do not accept union interface. When more information is available, we will send out a legal update.
EMPLOYERS HAVE TO “REASONABLY” ACCOMMODATE FLEXIBLE WORKING FROM DAY ONE
This isn’t a change, because from 6th April 2024, employees could make a statutory flexible working request for permanent changes to their contract from their first day of employment.
IT WILL BE UNLAWFUL TO DISMISS A WOMAN DURING THE FIRST SIX MONTHS AFTER SHE RETURNS FROM MATERNITY LEAVE (WITH CERTAIN EXCEPTIONS)
The key element to this point is the certain exceptions. We would envisage the exceptions to be events such as the closing down of the company, gross misconduct, etc. Again, a legal update will be provided as soon as we receive the full information on this topic.
More details about new law changes will be published as we receive them but for now, follow our legal updates. Now is the opportunity for employers to consider any changes they might want to make and prepare for when the government establishes new laws.
Remember, you can always contact Lawgistics for guidance and support – tel: 01480 455500 / [email protected]
