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Monthly update February 2002
Welcome to BusinessHR's February update. This month our
hot topic is alcohol and drugs - in the news following the
government's recent proposals to decriminalise the use of
cannabis.
We also bring you our usual legal update, warn you of
forthcoming changes, alert you to new developments on
website and finish off with more general information.
Legal update
Increases in statutory payments
If you failed to note our interim newsflash, a
week's pay (for the purposes of calculating
Statutory redundancy pay and basic awards) was increased to
£250 with effect from 1st February 2002, and the upper
limit for an unfair dismissal award was also increased to
£52,600.
Guarantee pay (which is paid when there is a contractual
right or agreement to lay off and where the employer has no
work for the employee to undertake and so requires the employee
to stay at home on a normal working day) is increased to
£17.00 per day (previously £16.70.)
The government has also agreed in principle to increases to
the National Minimum Wage, which should take place from 1st
October 2002. These are planned to be as follows:
-
adult rate:
rises from £4.10 per hour to £4.20 per hour,
-
development rate:
rises from £3.50 per hour to £3.60 per hour.
Fixed Term Workers Directive
Draft regulations have now been produced by the government to
implement the Fixed Term Workers Directive, and the 12 week
consultation period is now under way. The directive aims to
align the terms and conditions of employees on fixed-term
contracts with those of permanent employees.
Terms and conditions extend to training and being
considered for permanent employment.
The initial draft excluded pay and pensions, but the
Government now plans to include both of these within the
scope of the regulations. The CBI is calling for the
government to leave pensions out of the legislation
and argues that the requirement to offer fixed-term
workers the same pension provisions will lead to
unnecessary administrative cost and nearly £100
million in extra pensions payments.
This could also backfire, as in order to treat people
equally, businesses may decide to introduce qualifying
periods for all employees, thereby reducing the number
of people with an occupational pension. Currently, only 20%
of company pension schemes have any qualifying period.
The CBI believes that access to stakeholder pensions is the
best route for fixed term workers, and that company pensions
should be reserved to reward long-term loyalty.
The regulations also propose other rights:
- Workers who have been on fixed-term contracts for
more than four years would have to be given a contract of
indefinite duration at the next renewal.
(Note that this four-year period will only commence once
the Regulations come into force.)
- Workers on fixed-term contracts can demand a letter
of explanation if they receive less favourable treatment.
- The ability to enter into waiver agreements to avoid
redundancy payments will be abolished. Waiver clauses agreed
before 10 July 2002 will remain in force.
The directive must be implemented in the UK by 10 July 2002.
Whilst it is still possible that there may be changes from
these proposals, clients who use fixed term contracts should
look now at their current practices and start to consider
how they will implement any necessary changes. For instance,
are there are any terms which are different, or benefits which
are offered to permanent employees only? Is access to training
and the ability to apply for internal promotion open to fixed
term workers? Should your equal opportunities policy and
training policy be amended to include fixed term workers? etc.
Working Time
A recent report by the TUC, "About Time", declares that the
Working Time Directive, which aimed to limit working hours to
an average of 48 per week, isn't working.
The report reveals that 4M employees work at least 48 hours
each week (350,000 more than a decade ago) with managers and
professional staff working the longest hours. It claims that
one in 25 men work at least 60 hours per week. More than 10%
of these "long hours workers" also fail to take any paid
holiday.
The UK is the only country which allows staff to
opt out of the 48 hour limit.
It seems that an overall reduction in paid overtime generally
is starting to reduce the hours for those who receive this, but
that managers and professional staff (who do not generally
receive extra pay for additional hours) are still tied to their
desks.
The directive is expected to be amended in 2003 and it may
be that the UK loses its right to opt out. However, with
the huge increase in cases of work-related stress, and with
long hours being cited as the major factor responsible for
over half of these, will it be stress that forces employers
to consider their working practices and long-hours culture
rather than legislation on working hours? Stress has now
replaced the common cold as the major reason for ill-health
related absence. The TUC took up 6428 cases of work-related
stress in 2001, as opposed to 516 in 2000 - a 12 fold increase.
Sickness reporting procedures - are yours out of date?
The government has launched a campaign to raise awareness of
common misinterpretation of the current law on doctor's
notes.
Apparently, many employers require their employees to supply
proof that they were ill following every absence
from work and demand the Med3 form for ailments as minor as
headaches. Cabinet Office research has shown that around 2.4
million visits to GPs each year are for sick notes not required
by law. This clearly wastes GP's time, and adds to the
administration tasks.
For the purposes of SSP payments, only absences of more than
seven days in a row (including weekends) need a doctor's
certificate. A self-certification form is required for
absences of more than 3 days.
Research has consistently shown that the standard and
consistent use of "return to work" interviews with the
immediate line manager on return from any sickness absence
is the simplest and most effective way of reducing absence.
The purpose of these meetings is both to demonstrate that
the business does care and does notice the employee's absence,
and also to highlight the effect of the absence on the smooth
running of the business.
If you have no procedure in place, see our policy on absence
and sick pay
/docs/pol/absence/index.html
and also our general guidance on handling absence
/docs/legal/absence.html.
The site also has a standard self-certification of absence
form, /docs/lf/selfcert/index.html
which can be used for all absences, including those ofup to
seven days, and which provides a useful starting point for the
return to work interview.
For more guidance or a review of your procedures, call our
helpline.
New on the website
If you've visited the website in the last couple of days,
you will notice an entire new health and safety section!
If you haven't seen this yet, do take a look and let us
have your feedback. As with employment legislation, we've
tried to make it jargon-free and easily accessible.
The steps you take to manage health and safety in your
workforce will depend largely on the activities undertaken by
your business and the industry sector in which you operate.
Also, it's what actually happens, as opposed to what
your paperwork may claim, which will count!
If you have specific queries re health and safety, please
call our helpline and we can quote you for
on-site specialist consultancy or advice.
More on health and safety...
Care for your mobile female workers
Research by the hotel group, Premier Lodges, showed that 42%
of women who travel on business said that they were worried
about their safety, and almost a third of those questioned
admitted to having been in a threatening situation.
Employers should ensure that all employees (not just the
women) who are sent out on business should be fully trained
in respect of personal safety. Much of this is common sense,
but systems should be put in place, ensuring that journeys
are planned, that a contact person is on hand at all times
in case of emergency, and that the line manager or nominated
person always knows the whereabouts of the employee.
Other steps taken by some employers including issuing mobile
phones for protection, and drawing up lists of recommended
hotels where other employees have felt safe.
and ensure that your mobile equipment meets new requirements.
All mobile equipment, such as fork lift trucks and tractors,
made before 5 December 1998 must meet rigorous new safety
requirements before the end of this year.
The changes (which already apply to new equipment) make it
harder for such vehicles to roll over, and also make it
harder for employees to fall from such vehicles or be hit by
falling objects. Braking, visibility and unauthorised start up
are also covered.
Measures that can be taken to bring existing equipment into
line include the retrospective fitting of
roll-over structures, seat restraints such as lap belts and
seat belts, and visibility aids such as mirrors.
The four-year transitional period for bringing such equipment
up to the new standards expires at the end of this year.
Updated advice from the HSE on first aiders in the workplace
The HSE has revised its basic advice on first aid at work.
This is available in both leafet and poster form, and the aim
is
to keep workers up to date with the latest guidelines from the
Resuscitation Council.
The guidance will help first-aiders in minimising the
consequence of injury until expert help can be obtained and
covers such things as how to resuscitate someone, how to deal
with severe bleeding, broken bones, burns and eye injuries as
well as electric shock.
The advice can also be downloaded from:
www.hse.gov.uk/pubns/indg347.pdf.
This month's hot topic: alcohol and drugs
The nature of your business may make it imperative for any
signs of alcohol or drug mis-use to be identified at an early
stage in order to protect the business, its staff, customers
and
the public.
Alcohol or drug misuse can be categorised in two ways:
Inappropriate behaviour: for example being rowdy after
drinking at the pub at lunchtime, or discrediting the business
after drinking excessively at a business lunch, seminar or
training course. Such incidents would generally be dealt with
as
a disciplinary matter, as the member of staff basically would
be
irresponsible rather than drink-dependent.
Alcohol or drug dependency: An employee's performance,
attendance, punctuality etc may be unsatisfactory as a
consequence of a dependency upon drugs or alcohol, both of
which
are classified as illnesses. This will have obvious
implications
in terms of keeping within the law (some Tribunal decisions
have
placed a heavy burden on the employer in terms of supporting
the
employee's rehabilitation if dismissal is to be deemed fair).
The business should be clear in principle whether it wishes its
policy and procedure to be orientated towards treating
incidents concerning alcohol or drugs as disciplinary issues or
health issues.
The legal position
The Health and Safety at Work Act 1974 (HASAWA) requires the
employer to provide a safe working environment. It also places
a duty on employees to ensure the health and safety both of
themselves, and others.
Therefore, in principle, your business can incorporate whatever
requirements you consider necessary, given the nature of your
business, into an Alcohol and Drugs Policy and Procedure.
It would be reasonable to assert that the employee must follow
the requirements of your policy for you to discharge your duty
under the HASAWA, even if the policy did not form part of the
employee's terms and conditions of employment. This
would be on the basis that the purpose of the policy was to
ensure, and improve, the safety and health of the working
environment.
However, if you decide to go further and introduce a
requirement to undergo testing for drugs or alcohol, the policy
must form part of the employees' terms and conditions of
employment. You then have a contractual right to
require the employee to undergo tests in whatever circumstances
you specify in the policy and procedure. For employees in a
Trade Union recognised by the employer, the policy and
procedure
can be incorporated into their terms and conditions of
employment by collective agreement. This can be achieved by
consulting with, and obtaining the agreement of, the Trade
Union
on behalf of its members. The remaining employees must give
consent on an individual basis for the policy to be binding on
them.
Obviously, there is no problem with screening as part of your
selection process or incorporating the policy into the terms
and
condition of employment of new employees and this could be
actioned immediately after the policy is approved.
Drafting a policy
There are a number of issues for consideration prior to
drafting a policy and procedure on alcohol and drugs.
They include:
- Does the business take the view that dependency on drugs or
alcohol is an illness, and, as such will management take a
sympathetic stance in dealing with such issues or do you take
the line that, due to the nature of your business, you simply
cannot afford to tolerate such problems.
Forexample, if staff are employed as drivers or operating
dangerous machinery?
- To what extent do you feel there is,or potentially
could be,an issue with drug or alcohol abuse?
- Dependent upon the answer to the above, do you wish to
introduce screening taking into account the amount of
management
time in putting this in place, and the expense of
implementation?
- Furthermore, will the benefits of screening outweigh the
possible loss of goodwill from the workforce? Will staff view
the initiative positively or feel their integrity is being
insulted?
The policy should make it clear whether employees are permitted
to use alcohol or other intoxicants during working hours (or
breaks) or whether alcohol or other intoxicants are allowed to
be brought onto the premises. Any such use in the workplace
should be well defined, and set out the consequences of any
breach of the policy in the workplace and at work-related
functions. It should specify what constitutes misconduct in
these circumstances and give details of how such actions will
be
tackled. Businesses can forbid employees to bring any
intoxicating substances to work, including alcohol.
As with any policy, it needs to be seen to be reasonable and
fair, and full consultation prior to implementation, together
with proper communication will assist in its success.
The need to review existing policies
Organisations who already have a drugs and alcohol policy in
place may wish to re-evaluate this in the light of the
potential decriminalisation of cannabis, and possibly to
reconsider the severity of punishment for cannabis-related
incidents. Workers in safety-critical industries will be
unaffected, and in these situations, existing statute and
case law will still allow the employer to take appropriate
disciplinary action against an intoxicated worker.
What is now unclear is whether a tribunal will find the
summary dismissal of someone who has been found using
cannabis in a non-safety critical area to be unfair.
The Human Rights Act gives employees the right to "enjoyment"
of their private life and a recent tribunal (Wilson v David
Lloyd Leisure Centres) found that Wilson was unfairly dismissed
after having been caught smoking cannabis on the premises.
Again, the need for policies to be clear, properly communicated
and consistently applied is stressed.
And finally.......
Increase in union recognition arrangements
Union recognition deals saw a large increase last year - up
by 470. Probably as a direct result of the Employment
Relations
Act 1999, union recognition numbers in 2001 were three times
that of 2000 and there were no instances of derecognition.
The laws surrounding statutory union recognition and the
forthcoming legislation on workplace consultation may catch out
the unwary employer. It is critical to create an effective
partnership process to work with your employees: otherwise you
run the risk of having an alternative, and possibly
unpalatable, agreement imposed on you.
The TUC is currently campaigning to reduce the requirement
for a 40% vote in favour from the entire bargaining unit to
gain statutory recognition to a simple majority of those
voting, and is also opposed to the exclusion of small
businesses (those with fewer than 21 workers).
Paternity leave to be extended to low-paid fathers
Amendments to the Employment Bill will allow lower paid
fathers to benefit from paid paternity leave. Before the
changes, fathers who earn below the Lower Earnings Limit for
National Insurance - currently £72 per week - would not have
been eligible for the paid leave.
The changes to the Income Support regulations will allow
thousands of fathers to top up their existing wages to £130
per week for the two weeks' paternity leave.
Statutory paternity leave will be introduced in April 2003.
Pay increases declining
A recent report states that pay freezes are becoming more
common, and that one in ten wage reviews over the last six
months have recommended a freeze. Workers in the hotel and
engineering sectors have been particularly badly hit by this.
The majority of pay rises this year to date have been between
2% and 3.5%.
Data Protection compliance - free help available!
A new "Guide to Data Protection Auditing" has been issued by
the Information Commissioner's office.
This takes the employer through the full audit process,
includes a beginner's guide to auditing for small businesses,
and should enable employers to identify any weaknesses in their
current procedures.
The guide is in both CD-Rom and online format and is available
free of charge by phoning 01625 545700 or can also be accessed
via www.dataprotection.gov.uk/dpaudit.
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