Pavo Employment Law Update

www.hillyermckeown.co.uk

PAVO Employment Seminar10 July 2014Justine Watkinson and Rachel HughesHillyer McKeown Solicitors


Our Employment Law Speakers

Rachel is a Solicitor in our experienced Employment Law Team. She has extensive experience in advising and acting for a diverse range of companies on Tribunal claims, general HR issues such as disciplinaries, grievances, discrimination as well as redundancy (collective and individual), TUPE issues and industrial relations.

Justine is Justine is Head of the Employment Law Team. She has extensive expertise in all areas of employment law, including executive appointments and terminations, drafting of contracts of employment and handbooks, all aspects of business change projects, long term sickness, performance and capability, and discrimination issues.


Today’s Topics

• Effective management of Sickness Absence• Managing disciplinaries• Zero hours contracts v fixed term – what’s all the

fuss?• Brief rights of volunteer workers• Employment Law Update – recent changes to flexible

working• Q&A session


Managing Sickness Absence



Manage the absent employees

• Third sector offer generous sick pay• Often leads to long term or persistent sickness

absence• Encourage/help employees back to work• Sickness absence is not an alternative to annual

leave



What can you do?

• Assess your sickness absence policy• Keep in touch• Welfare Meetings• Obtain medical reports• Assess when the employee can return to work• Return to Work Interviews



Keeping In Touch• Regular telephone calls• Welfare Meetings• Return to Work Interview• Keep a record of all conversations/meetings



Obtaining a medical report• Letter of instruction – get it right!• Set out history• Job description • Specific questions



Persistent Short term absence

• Sickness Absence Trigger Policy• Disability related absence



Summary

• Know where your employees are• Discipline absence where necessary• Get employees back to work


Managing Disciplinaries


Managing Disciplinaries

• Follow ACAS Procedure and/or internal disciplinary procedure

• Essential to properly carry out the procedure

• Deal with any complications

• Seek HR advice where needed


Top Tips toManaging Disciplinaries

• Don’t be hasty to suspend an employee

• A thorough investigation is key

• Anonymised witness statements


Top Tips toManaging Disciplinaries

• Provide the employee with all the evidence

• Sickness absence part way through a disciplinary

• Keep the employee informed

• Keep a paper trail


Zero Hours Contracts



• Entered the UK in 1974 to provide employers with flexibility• Not employees but ‘workers’• Entitled to paid salary and annual leave• Increased use in recent times due to the

recession• No guaranteed hours



Why are they receiving such negative press and government attention?

• No obligation to provide workers with minimum set hours • Exclusivity Clauses• Causes uncertainty for workers and no

guaranteed wage



Why are they receiving such negative press and government attention?

• Used to avoid employer responsibility e.g. no flexible working rights, maternity rights, etc

• Calls the employment figures into question



Why use zero hours contracts?

• Easy access to pool of workers• Flexibility over workforce• Avoid fixed overheads• If not enough work then no requirement for

employer to provide



Why use zero hours contracts?

• Cost effective

• Effective where there is uncertainty of work



• Used by McDonalds, Boots, Weatherspoons, Subway, Sports Direct• The NHS has 100,000 workers on zero hours

contracts • MPs employ 151 staff on zero hours



Case Study - McDonalds• McDonalds admitted that 90% of their staff are

on zero hours contracts

• Almost 83,000 workers with no guaranteed work



Case Study - McDonaldsJustification by McDonalds:

• All have access to benefits e.g. life assurance, employee discounts, training



Case Study - McDonaldsBUT:• All workers subject to an ‘Exclusivity Clause’

• McDonalds say most workers do work 20/30 hours per week so no need to work else where

• Argument this creates ‘mutuality of obligation’



Potential changes

• Labour government want to regulate zero hours contracts • Worker to be automatically entitled to fixed

hours once they have worked regular hours for a 6 month period;


Fixed Term Contracts



What are they?• Often referred to as temporary contracts• Provide employment for fixed period of time or

fixed task/project• After 4 years of continual renewals become

permanent employees



Examples of fixed terms where a contract:• Ends on a fixed date• Covers sickness or maternity leave• Linked to specific funding stream• Completion of a project• Short term seasonal contract



How can you end a fixed term contract early?

• Can insert a ‘break clause’

• Provide for early termination with notice



Why use a fixed term contract?

• Creates certainty• Use for a specific period or task• Guaranteed hours and pay for the employee• Not long term oppose to zero hours


Rights of VolunteersIn Brief


Volunteer Rights

• About 800,000 volunteers in the voluntary sector

• Not subject to standard policies e.g. Disciplinary, Whistle blowing, Maternity

• Job role rather than job description

•No employment rights


Volunteer Rights

• Subject to Equality Opportunities Policy, Diversity, Organisational own requirements

• Volunteers have successfully argued they were employees e.g. Payment

• Mutuality of obligation – is there an obligation on the volunteer to provide work?


Changes to Flexible Working


Flexible Working

• Commencing on 30th June 2014

• Apply to all employees with 26 weeks’ service


Flexible Working

• Duty on employers to consider all requests in a reasonable manner

• The same 8 business reasons for refusing a flexible working request will apply


Flexible Working

Benefits of Flexible Working• Workers on flexible contracts tend to be more emotionally engaged• More satisfied with their work• Improve productivity• Less likely to quit

Study by Kingston University


Aventi

• Fixed fee HR and employment law support

• Insurance protection against Tribunal claims

• Discounted offer for all DVSC members


Thank youAny questions?

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