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Last year saw the introduction of employment laws that could be significant for small employers, such as tool retailers. Roland Ravenhill looks at the new laws and the upcoming ones.
It certainly seems as if 2004 was the year for new legislation, particularly if you are and employer. But it hasn’t stopped yet and anyone with a small business should be prepared for more new laws, especially in relation to employment, in 2005.
In fact the first changes to the current employment laws started in October last year. We have already covered the disability discrimination regulation in Toolbusiness+Hire, but at the same time as these regulations came into place laws on how to handle dismissal and staff grievances also came into place and it is well worth taking a look at these.
Showing The Door
The significant factor with the new dismissal and grievance procedures is that they apply to all companies no matter how many staff they employ. So small retailers, such as independent tool shops, are very likely to be amongst the groups most in need of paying attention to them. Many larger companies have always had a system of dismissal procedures, mainly to protect themselves against any legal action by disgruntled ex-employees. But to smaller outfits, which may consist of little more that the boss and his one or two members of staff it may have seemed like an unneeded complication. Many bosses in this situation may believe it is their right to be able to say to any employee that has overstepped the mark ‘collect your cards and leave”, this will no longer be the case, legally at least.
The Employment Act 2002 (dispute Resolution) Regulations 2004were introduced on the 1st of October and laid down the minimum statutory disciplinary and grievance procedures required by law.
What the law requires is a number of stages to be passed through, before an employee can be deemed to have been fairly dismissed.
Firstly the employee must be warned that he must improve his behavior, this should occur both as a conversation between the boss and the member of staff and also be supplied in writing. This is a good idea anyway, because wherever the law is concerned anything in writing is a lot more convincing that differing remembered accounts of a conversation.
If the employer still thinks it is necessary to sack the employee, then he must write to him, again outlining the reasons his behavior has not been acceptable. The employee should also then be invited to discuss the situation once again.
This is not the end of the procedure, after this meeting the employee must be informed of the bosses decision and invited to appeal against it, and then a final decision reached.
This is undoubtedly a long winded procedure, and one that is obviously designed mainly to protect the employee, fair enough if you consider the difficulty a dismissal can cause on future employment prospects. It does have some advantages for the employer though. Having followed a set down and formal procedure does lessen the chances of any unfair dismissal action, as well as making the case much clearer if one actually takes place. If you as employer don’t follow the correct procedure now you will automatically be judged to have made an unfair dismissal.
Tribunal Changes
Changes to the way Employment Tribunals work are also worth looking at, briefly at least - for more information visit the websites listed below.
Beginning in April 2006 new forms are introduced and must be used. More significantly there have also been changes to the time limits. An employer is now required to respond within 28 days of a claim form being sent out, previously the timing was 21 days after the employer had received it (which seems a very swings and roundabouts way of doing things!)
It is worth taking note, though as tribunal will have the power to enter judgment in default against any employer that fails to respond in time.
Fixed conciliation periods have also been set down, seven weeks for straight forwards cases and thirteen for more complex ones, after which the tribunal can take place, if no resolution has already been reached.
This is just a very simple summation of the rules and if you think they might affect you it is well worth finding out more, and making sure you have proper legal advice if the need arises.
Discrimination Law - Age
Inspired as much by the spiraling cost of state pensions as anything the government has been developing new rules on age discrimination.
The new rules aren’t set to come into force until April 2006, so look on this as an advance warning, though in fact the proposed rules are unlikely to worry most employers in the tool retail sector unduly. When the new rules come into place it will not be possible to require employees to retire before the age of 65, though they can still be offered retirement as an option. Legislation will also allow for staff to request that they can carry on working beyond retirement age. Industries may be able to set lower retirement ages, but only if they can prove good cause for doing so.
As older employees have long been valued in the tool retail trade for their experience, knowledge and interest these changes are probably only of passing interest to the majority of Toolbusiness+Hire readers, but when the draft regulations are published in May they may throw up even more potential changes.
Discrimination Law - Sex
From October there will also be changes that alter the Sex Discrimination Act’s definition of ‘harassment’, bringing it into line with EC directives. This will also affect the legal status of transexuals recognised as having an acquired gender.
Laws Only
Many new employment laws are being ignored anyway, according to research by the law firm Peninsula.
For most the threat of a tribunal is not sufficient to make them worry about the laws, but this is generally because they have their own systems of dismissal and grievance in place.
So even if you don’t feel concerned enough about the legislation that has been introduced or is being introduced it is worth making sure you are happy that you have taken enough action to keep yourself out of court.
It is also worth checking up on these laws as they reflect the attitudes of the government and law and the way the environment for employers is changing that will have an effect on how you do business if not now then soon.
Useful Websites:
ACAS
www.acas.org.uk
The Department For Trade and Industry
www.dti.gov.uk
