Call us on:  0808 172 93 22

5 minutes with Floyd Graham

SJB18326

1)   How has employment law changed over the last 5 years?

Employment law has changed in emphasis. There appears to be a focus on clarifying and simplifying legislation, whilst at the same time striving to make it easier for contentious matters to be resolved without the need for following a full legal process through to resolution by the Courts. With the right support, employers can now create the right blend of performance optimisation and risk management to suit their organisations.

2) How many employees do businesses need to have before they have an employment law strategy?

Even employers with only one employee have employment law obligations and mistakes can be costly! The strategy should focus on legal compliance first, followed closely by achieving enough lawful flexibility to manage the business profitably and efficiently.

3) What advice would you give our readers who need to reduce their headcount over the next 6 – 12 months?

Plan properly to ensure that you do not end up keeping the employees you should be losing and losing the employees that you need to keep! A bit of effort in the planning stage, and the right guidance will ensure that your selection decisions work for your business and that your process will withstand any objective scrutiny. It is important that exiting employees, and those being retained, accept that fair processes have been adopted as this is a crucial part of managing risk.

4) What advice would you give our readers that are planning to increase head count over the next 12 – 18 months? 

Firstly, evaluate and streamline your operational infrastructure to ensure that the increase in headcount adds value and does not just fill a vacancy that has arisen. Next ensure that your recruitment and selection process is capable of selecting the right candidates for the role not just in terms of competence, but also in terms of team fit. Miss-hires are costly! Lastly, spend some time getting the “on boarding” process right, after all your new recruit is not the only one who needs to make a good impression!

5) Finally, one of our readers has 35 employees. They have a member of staff who has been with them for 10 years, who has made significant career progression and is now Sales Director. However, the Managing Director has noticed a “different” person in the last 12 months and believes it would be in the best interest of the company for the Sales Director to leave. How does the Managing Director achieve this as quickly, cost effectively and amicably as possible?

As an advisor, I would be focused on establishing the reason for the change, after all for 9 of those 10 years he has been a good employee and has an invaluable historic working knowledge of the business. The reason could be linked to domestic circumstances, ill-health or becoming disillusioned with the work environment. An accurate assessment of the reason will greatly assist the decision on which “legal tools” are chosen to remove him. Commerciality and risk are the twin stools on which most removal strategies are based.

The law now permits the option of having a protected discussion with the employee to explain the Company’s position and to allow the employee to state his. If the differences are irreconcilable, a protected discussion is generally quicker than a formal process, but can be a more costly option. It is likely that a dismissal on performance grounds is likely to be contentious unless supported by significant evidence. If this option is chosen, great emphasis needs to be placed not only on the reason but also the process, which should be vetted beforehand to ensure that it is legally compliant. This is generally a longer route. Lastly, it may be less contentious and faster to restructure that part of the operation for which this employee is responsible and remove him on this ground. Again, if speed is of the essence, this option may be the most suitable. I note that the employee is a Sales Director and therefore prior to dismissing him, consideration should be given to safeguarding the business against post dismissal competition from him and protecting confidential information.

Updated: by FG Solicitors
Call us on:  0808 172 93 22

5 MINUTES WITH FLOYD GRAHAM

SJB18326

1)   How has employment law changed over the last 5 years?

Employment law has changed in emphasis. There appears to be a focus on clarifying and simplifying legislation, whilst at the same time striving to make it easier for contentious matters to be resolved without the need for following a full legal process through to resolution by the Courts. With the right support, employers can now create the right blend of performance optimisation and risk management to suit their organisations.

2) How many employees do businesses need to have before they have an employment law strategy?

Even employers with only one employee have employment law obligations and mistakes can be costly! The strategy should focus on legal compliance first, followed closely by achieving enough lawful flexibility to manage the business profitably and efficiently.

3) What advice would you give our readers who need to reduce their headcount over the next 6 – 12 months?

Plan properly to ensure that you do not end up keeping the employees you should be losing and losing the employees that you need to keep! A bit of effort in the planning stage, and the right guidance will ensure that your selection decisions work for your business and that your process will withstand any objective scrutiny. It is important that exiting employees, and those being retained, accept that fair processes have been adopted as this is a crucial part of managing risk.

4) What advice would you give our readers that are planning to increase head count over the next 12 – 18 months? 

Firstly, evaluate and streamline your operational infrastructure to ensure that the increase in headcount adds value and does not just fill a vacancy that has arisen. Next ensure that your recruitment and selection process is capable of selecting the right candidates for the role not just in terms of competence, but also in terms of team fit. Miss-hires are costly! Lastly, spend some time getting the “on boarding” process right, after all your new recruit is not the only one who needs to make a good impression!

5) Finally, one of our readers has 35 employees. They have a member of staff who has been with them for 10 years, who has made significant career progression and is now Sales Director. However, the Managing Director has noticed a “different” person in the last 12 months and believes it would be in the best interest of the company for the Sales Director to leave. How does the Managing Director achieve this as quickly, cost effectively and amicably as possible?

As an advisor, I would be focused on establishing the reason for the change, after all for 9 of those 10 years he has been a good employee and has an invaluable historic working knowledge of the business. The reason could be linked to domestic circumstances, ill-health or becoming disillusioned with the work environment. An accurate assessment of the reason will greatly assist the decision on which “legal tools” are chosen to remove him. Commerciality and risk are the twin stools on which most removal strategies are based.

The law now permits the option of having a protected discussion with the employee to explain the Company’s position and to allow the employee to state his. If the differences are irreconcilable, a protected discussion is generally quicker than a formal process, but can be a more costly option. It is likely that a dismissal on performance grounds is likely to be contentious unless supported by significant evidence. If this option is chosen, great emphasis needs to be placed not only on the reason but also the process, which should be vetted beforehand to ensure that it is legally compliant. This is generally a longer route. Lastly, it may be less contentious and faster to restructure that part of the operation for which this employee is responsible and remove him on this ground. Again, if speed is of the essence, this option may be the most suitable. I note that the employee is a Sales Director and therefore prior to dismissing him, consideration should be given to safeguarding the business against post dismissal competition from him and protecting confidential information.