As we enter 2019, many employers will be contemplating their new year to do list. The start of a new year often brings with it a revived sense of determination, hope and sense of starting afresh.
With major developments in employment law introduced last year and further changes expected in 2019, now is the perfect time to ensure that your employment contracts, policies and procedures are fit for purpose, up to date and legally compliant.
Why is it so important to have legally sound employment documentation in place?
Employers are currently required to provide their employees, whose employment is to continue for more than one month, with a written statement of certain terms of their employment by no later than two months after their employment begins. In the event that an employer fails to do so, employees are entitled to make a complaint to an Employment Tribunal and employers may be liable to pay the employee two to four weeks’ pay in compensation.
As we reported last month, the government has recently published The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018, which are due to come into force next year (6th April 2020). These provide that workers, as well as employees, will have the right to a written statement of terms which must be provided on or before the first day of employment, rather than within two months of employment starting. Having appropriate terms and conditions ready to issue to new starters at the outset is therefore key.
There has been a recent flurry of high-profile employment cases concerning employment status, particularly in relation to the gig economy. Courts have held that many individuals engaged as ‘self-employed contractors’ by companies such as Deliveroo and Uber are, in reality, workers, entitling them to a range of employment benefits and protections, including national minimum wage and holiday pay.
In light of the above, employers need to risk assess their contracts now more than ever and make sure that these accurately reflect the reality of individuals’ roles and working arrangements.
Moreover, the abolition of Employment Tribunal fees has seen an increase in employment tribunal claims, reflecting a renewed willingness in employees to turn to litigation as a solution to their employment problems. Even when claims are resolved without the need for a substantive Employment Tribunal hearing, employers are still likely to expend significant time and legal fees dealing with these matters, and the potential disruption to the business can be great.
Having clear employment contracts, policies and procedures in place mitigates the risk of confusion and of workplace disputes arising. They provide employers and employees with a clear understanding of the terms governing the employment relationship, guidance and the expectations on both parties. As they say, prevention is better than cure and it is no surprise that the employment contract and policies are usually the first line of defence when issues do arise.
Robust employment policies and procedures are essential for any organisation. The right policies can safeguard an employer’s rights, minimise risks to the business and pave the way for a sound employer and employee relationship.
How Nelsons Can Help
Our employment law solicitors work with organisations of all types to put in place tailored contracts, policies and procedures which provide direction both for managers and employees, and help ensure there is fairness and less scope for workplace disputes.
If you want to spend this year focusing on running your business instead of firefighting employee relations issues, why not contact a member of our employment team to get your documentation in order now. For further information, please call 0800 024 1976 or contact us via our online form.