Do
employers need to give their employees a written contract of employment?
Employment contracts do not have to be in writing to be binding.
If an employee is working for an employer and being paid, there
is a contract between them. The problem of course is to know what
its terms are. This can be pretty important in the event of a
dispute. A properly drafted written contract minimises the risk
of misunderstandings and legal claims. In any event, the Employment
Rights Act 1996 requires employers to confirm the main contract
terms to their employees in writing within two months of the start
of employment. Failure to do so can result in financial penalties.
Kelear Consulting can advise on appropriate contract terms and
draft contracts of employment customised to suit the employer’s
particular business.
Do
employers need to have written employment procedures?
Employers must give their employees details of their written disciplinary,
grievance and dismissal procedures to comply with the Employment
Rights Act 1996. There is, however, no legal requirement for these
procedures to be contractual and there are a number of legal reasons
why it is better for the employer if they are not. Employment
procedures provide a framework for both parties to follow during
employment and so help to clarify the employment relationship.
Kelear Consulting can draft employment procedures and customise
these to suit the employer’s particular business.
Why
can’t employers just dismiss an employee who has behaved
badly?
They can – but they may face time-consuming and expensive
breach of contract, unfair dismissal, discrimination and other
employment claims if they fail to comply with the appropriate
legal requirements in respect of the dismissal. Since October
2004, an employer who dismisses an employee who is eligible to
bring an unfair dismissal claim without going through the statutory
dismissal and disciplinary procedures introduced by the Employment
Act 2002 is likely to have an automatically unfair dismissal on
their hands and increased compensation to pay too. Kelear Consulting
can provide advice on how to dismiss employees fairly without
breaking the law.
Can
employers dismiss an employee who refuses to agree to a change
in the terms of employment?
Yes – but if the employee is eligible to bring an unfair
dismissal claim, the employer must reasonably believe that the
contract change is needed for business reasons and must normally
go through the Employment Act 2002 statutory dismissal and disciplinary
procedures. Otherwise, the dismissal will be unfair and this could
be expensive. Kelear Consulting can advise on how to proceed in
these situations and avoid successful unfair dismissal claims.
When
do employers need to consult collectively as well as individually
in a redundancy situation and how does this affect the timing
of dismissals?
Employers are required to consult collectively with trade unions,
if recognised or with elected employee representatives if no trade
unions are recognised, where they propose to dismiss 20 or more
employees from one establishment within 90 days. The length of
consultation is either 30 or 90 days depending on the number of
employees the employer proposes to dismiss. In a 2005 case, the
European Court of Justice held that an employer who gave employees
notice of dismissal prior to the conclusion of collective consultation
would breach the collective consultation requirements for redundancy.
In most cases this will mean that no notices of dismissal can
lawfully be given before the 30 or 90 days are up. As failure
to consult collectively can result in an award of up to 90 days
pay for each affected employee, getting it wrong can be expensive.
Kelear Consulting can advise how to get it right and avoid costly
claims.
If
employers only use self-employed workers and temps do they avoid
the risk of employment tribunal claims?
Not necessarily. Some employment rights such as statutory holidays
under the Working Time Regulations and the National Minimum Wage
apply to non-employees not genuinely running their own business
if they provide services personally. Some contract workers and
temps may be regarded by the tribunals and courts as employees
anyway. Kelear Consulting can advise on the employment status
of a particular individual and what that means in respect of legal
risks for the employer.