Three beliefs that top the new list of inaccuracies include companies’ not needing contracts of employment, that employers can hire and fire as they wish and that they can never dismiss sick or pregnant employees.
Stephens Scown, which has offices in Exeter, Truro and St Austell, says that many businesses in the region are being distracted by difficult trading conditions and taking their eye off the ball when it comes to their own workforces.
The regional law firm says adhering to formal procedures will avoid inconsistent treatment of employees which often causes dissatisfaction in the workplace.
Terry Falcão, Head of Employment at Stephens Scown (pictured), says: “By making any of these wrong assumptions about employment law, you are really risking expensive legal action which could damage or ultimately destroy your business – it just isn’t worth it. Remembering that your workforce is likely to be your greatest asset and expense in times of economic turmoil, it is absolutely essential to minimise the less obvious dangers to your business.”
The full list of the top ten wrong and expensive assumptions made by businesses in the West Country includes:
1. Not needing contracts of employment
2. It can hire and fire as it wishes or
3. It can never dismiss sick or pregnant employees
4. It can handle things informally and this works better than formal procedures
5. It does not have any disabled employees or does not need to make any adjustments for disabled employees
6. It has employees who never cross the line with banter
7. It does not need to control access to the internet
8. It can change employees’ hours and rates of pay without their consent
9. It can ignore or punish employees who complain about health and safety breaches, breaches of their contracts or breaches of the law by the company and;
10. It can dismiss difficult employees, call it redundancy and no one will notice.
If you employ even one person, they must be given a written contract within two months of their start date. Terry says contracts do not have to be complicated: “They must, however, contain basic information such as the start date, job title, rate of pay, place of work and hours. You can use contracts to your advantage by including protections for your business, such as confidentiality, setting up in competition or working for a rival.”
Terry adds: “It is essential to have the right procedures in place for grievance and disciplinary issues, dealing with poor performance, absence, the internet and health and safety. Employees’ entitlements have grown exponentially over the last 20 years, especially in relation to disability, pregnancy and family-friendly rights – as an employer, you need to be aware of those rights.”
Each year a raft of new employment regulations are introduced – in 2011, legal changes have been made in relation to the abolition of the default retirement age, changes to maternity and paternity provisions and equal treatment for agency workers.
Since the Equality Act 2010, there have been significant changes in relation to carers’ rights and discrimination and case law has altered the rights of those on long-term sickness absence.
The New Year sees the introduction of auto-enrolment in the Government’s new pension scheme – the National Employment Savings Trust. Employers will be automatically making contributions to employees’ pensions from October 2012.
Terry adds: “Because employment law changes so frequently, it is crucial that employers are able to comply. Whilst employers cannot expect to keep up with the changes, it is not complicated nor expensive to have the necessary HR support and advice early on from expert local professionals. It will ultimately save you money, help you to attract and retain good staff and avoid employment claims.”
Ends
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