Workshop Aims and Contents Aims Contents: By the end of the - - PowerPoint PPT Presentation

Workshop Aims and Contents

Aims By the end of the workshop delegates will understand:

 The key legal requirements when

employing people

 How a simple but effective HR

Framework not only helps stay on the right side of the law but is also key to creating a successful and sustainable business

 The five key ingredients of a good

HR framework Contents:

 Legal Requirements of employers  Common (but costly) issues  Building strong foundations  A HR Framework for small and

medium-sized organisations

Legal Requirements of employers

 There are a number of laws that

regulate the relationship between employers and employees.

 These govern what employers can

expect from employees, what employers can ask employees to do, and employees’ rights at work.

 In addition to these, the Human

Rights Act entitles individuals to defend their rights under the European Convention on Human Rights Rights and responsibilities cover:

 Recruitment  Terms and Conditions (Pay)  Working hours  Time off  Terminations  Equality and discrimination  Data protection  Health and safety  Dispute Resolution  Communication and Consultation

Common (but costly) issues

 Unfair Dismissals  Bullying & Harassment Claims  Discrimination Claims  Right to Work Breaches  National Minimum Wage

Breaches

 Holiday pay breaches

Common (but costly) issues

 Right to Work Checking Breaches - Jail for 5 years and an unlimited fine  Unfair Dismissal - basic award - £15,240 (30 weeks' pay subject to the limit on a

week's pay)

 Unfair dismissal- compensatory award - £83,682 (unlimited for certain

automatically unfair dismissals)

 Failure to give written statement of particulars - £1,016 or £2,032 (two or four

weeks' pay capped at the statutory amount

 National Minimum Wage Breaches - Up to 200% of the underpayments made over

a 6-year period

 Race Discrimination – Unlimited  Equal Pay Claims - Back pay for 6 years  Anti-Slavery and trafficking breaches - 10 years imprisonment and/or an

unlimited fine

Common (but costly) issues

 Health and Safety beaches - 2 years imprisonment and/or unlimited fine  Working Time Directive Breaches - Entitlements claimed for & Limits claimed

against

 Anti-Bribery breaches - 10 years imprisonment and/or an unlimited fine  Change in ET Claims lodged between October to December 2017 compared to the

same quarter in 2016 - increase by 90 per cent

 Percentage of change programmes that fail to deliver due to poor management -

74%

 The second greatest cause of occupational ill-health, causing 45% of days lost -

Work-related stress

 The percentage of new businesses that will experience problems growing because

they don’t understand their organisational culture - 70%

 The cost of British workers quitting their job because of a poor company - £23.6

billion per year

Building Strong foundations

 A simple but effective HR

Framework is the foundation of good people management.

 It will not only help you stay on

the right side of the law.

 It will also help you be a good

employer, which is one of the ingredients of creating a successful and sustainable business.

Why is a HR Framework necessary?

 Legal Requirements  Vicarious Liability  Business Performance  Employees’ Performance and Behaviour  Employee Cooperation  Employee Engagement  Employee Health, safety and Well-Being  Employee Morale and retention

A HR Framework – Five key ingredients

A good HR framework should include:

 Job descriptions and structures  Basic policies and procedures  Contracts of Employment  Handbook  Good leadership and management

These elements need to be aligned to your

• verall strategy to be fully effective.

• 1. Job Descriptions and structure

These are key for two reasons:

 If you haven’t defined the job and

where it sits in the business how can you recruit the right person for it, and then manage them effectively

 People need to have a clear

understanding of their role in a company if they are to make a positive contribution A good job description will include:

 The name of the role  The function/position the role

reports to

 The general tasks and

responsibilities of the role

 specifications such as the

qualifications or skills needed by the person in the

• 2. Basic HR policies and procedures

 HR policies and procedures are written statements about how an organisation

will manage its people.

 They provide foundation and structure to your organisation and are there to

help managers, employees, and customers/clients.

 HR policies are WHAT is to be done and HR procedures outline HOW TO carry

• ut the policies.

 The best policies are written in the context of the individual business.  You are advised to make sure your policies and procedures do not form part of

the contract of employment*

• 3. Contracts of Employment

 Contracts of employment are

legally-binding agreements between an employer and an employee.

 They consist of expressed terms

written into the employment contract and implied terms (unwritten but in existence through custom and practice or how a manager behaves).

 Although employment contracts

are governed by contract law, there are statutory rules which also affect employment contracts.

 A written statement of particulars

must be provided within two months of the employment starting and must contain certain information*.

 Varying contractual terms normally

requires the employee’s

• agreement. If you change them

without consent you will be in breach of the contract.

*Written statement of particulars

Items to be included in the main document:

 names of the employer and employee  date when employment began  date on which the employee’s continuous employment began  scale or rate of remuneration or the method of calculating the remuneration  intervals at which remuneration is paid, that is, weekly, monthly or other specified intervals  terms and conditions relating to hours of work, including any terms and conditions relating to

normal working hours

 terms and conditions relating to entitlement to holidays, including public holidays and holiday

pay, in such a manner as to allow them to be precisely calculated

 job title or a brief description of the type of work the employee is employed to do  place of work or an indication that an employee is required or permitted to work at various

locations.

*Written statement of particulars (Cont’d)

Items that can be provided in instalments:

 terms and conditions relating to incapacity for work due to sickness or injury, including any

provision for sick pay

 terms and conditions relating to pensions and pension schemes  length of notice the employee is required to give and receive to terminate the contract  where the employment is not intended to be permanent, the length it is intended to last, or the

end date if it is for a fixed term

 any collective agreements, which directly affect the terms and conditions of employment,

including where the employer is not a party, the persons by whom they were made

 where the employee is required to work outside the UK for a period of one month or more,

details of the time they are to work abroad, the currency they will be paid in, any additional remuneration payable and any benefits provided by reason of working outside the UK and any terms relating to the employee’s return to the UK.

*Written statement of particulars (Cont’d)

While the Employment Rights Act 1996 states certain items that must be included in the written statement of particulars, employers can refer their employees to their employee handbook or other policies for precise details of issues such as:

 documents relating to disciplinary and grievance rules and procedures  documents relating to sickness and pensions  documents relating to the detail of bonus or commission schemes  collective agreements  other terms that are not mandatory terms (for example, private health care, overtime, holiday

arrangements, retirement)

• 4. Handbook

 An employee handbook, sometimes

known as an employee manual, staff handbook, or company policy manual, is given to employees for their personal reference.

 A good employee handbook contains

several key sections and includes information about company culture, policies, and procedures.

 You are advised to make sure your

handbook does not form part of the contract of employment*

• 5. Good leadership

and management

 Leadership refers to an

individual’s ability to influence, motivate, and enable others to contribute toward organizational

• success. Influence and inspiration

separate leaders from managers, not power and control.

 Management consists of

controlling a group or a set of entities to accomplish a goal.

Next Steps

 Put your HR Framework in place asap  Make sure your structures, documents and processes are easy to understand  Give your employees copies of the relevant documentation on their first day of employment  Train your managers and supervisors so they understand your HR Framework  Periodically review your policies and procedures to ensure they are appropriate and up to date  Add more policies and procedures as you grow – the more people you employ the more policies

and procedures you’ll need

Recommended policies and procedures

To begin with you only need a small number of policies that cover the following areas:

 Managing Employment (Recruitment/Background Checks/Employee

Records/Benefits/Termination)

 Managing Performance and Conduct (Standards of performance / managing misconduct / gross

misconduct/Disciplinary and Appeals process)

 Managing Leave (Short term Sickness/Long Term Sickness/Holidays/Carer

Leave/Maternity/Paternity/Parental/Volunteering etc)

 Equality, Diversity and Inclusion (Fair Treatment, Bullying, Harassment,

Discrimination/Complaints process)

Tel: 07848442276 Email: karen@KDHRSolutions.com Website: www.KDHRSolutions.co.uk