Employment Appraisals are meetings that can be held every three months for the first year of employment and six months thereafter. They help clarify expectations and required standards, assist the development of new and existing staff and help keep a record of experience, training, strengths, and weaknesses.
Managers carry out appraisals to monitor actual performance; deal with problem areas and most importantly gain valuable feedback from employees. They should be conducted in a positive and open manner to help create an effective working relationship between the employee and the employer.
They are extremely useful and necessary during an employee’s probationary period. During the probationary period, performance in doing the job and potential abilities are evaluated to determine suitability for the position and the company. This should be set out in the company’s handbook which outlines the company’s probationary policy.
In a nutshell appraisals help the company:
• Evaluate employee performance during the probationary period
• Praise and encourage individual strengths
• Identify training requirements
• Evaluate suitability for continued employment
The company should provide adequate training and additional assistance if required, should the employee fall short in their duties. It is important to document meetings with employees during their employment and keep a copy of such on their staff file. You will need this documentation should a grievance arise during or after employment and also to refer back to it, if promises or follow up were made. It is important to keep up to date, accurate records, should you find the employee unsuitable and it becomes necessary to dismiss them.
The Small Business, Enterprise and Employment Act 2015 is now an act of law and will amend the current penalty for underpayment of the National Minimum Wage (NMW).
Part 11 of The Small Business, Enterprise and Employment Act 2015 contains measures that amends section 19A of the NMW Act so that the maximum penalty will be determined by the amount owed to each worker and the limit on the penalty will be so the extent to which the amount owed to each individual worker can be taken into account. Previously the maximum fine was just £5,000 for each employee.
Secondary legislation will be introduced to ensure that employers in breach of the NMW regulations will be subject to a fine of up to £20,000 for every underpaid worker.
Most workers in the UK over school leaving age are entitled to be paid at least the NMW. The NMW rates are reviewed each year by the Low Pay commission.
Current NMW rates
- £6.50 for workers 21 and over
- £5.13 18 - 20 yrs
- £3.79 for 16-17 yrs, who are above school leaving age but under 18
- £2.73 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
New NMW rates from 1 October 2015
- £6.70 for workers 21 and over
- £5.30 18 - 20 yrs
- £3.87 for 16-17 yrs, who are above school leaving age but under 18
- £3.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
It is important to note that these rates, which come into force on the 1st October 2015, apply only to pay reference periods beginning on or after that date.
If HMRC finds that an employer hasn’t been paying the correct rates, any arrears have to be paid back immediately. There will also be a penalty and offenders can also be named by the government.
It is the employer’s responsibility to keep records proving that they are paying the minimum wage - most employers use their payroll records as proof. All records have to be kept for 3 years.
It is important that information outlining how much and how often an employee gets paid be shown very clearly in the written statement of particulars. The employer must provide the employee with a copy of this written statement within 2 months of their start date. This is the law!
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All employers need to know how to discipline their employees fairly. Legislation and Codes of Practice place great emphasis on procedural fairness when dealing with grievances. In some instances, a grievance may lead to a constructive dismissal if it is not handled correctly. Mishandling disciplinary issues gives rise to a huge number of employment tribunal claims every year including breach of contract, unfair dismissal and discrimination.
Do you know employer’s in the UK are not legally obliged to follow the Acas statutory Code of Practice on discipline and grievance procedures should it become necessary to dismiss an employee. However, failure to do so can result in any compensation awarded in a subsequent claim brought by the employee being increased by up to 25% for not following fair and consistent procedures.
Employers who have disciplinary procedures in place must put their procedures in writing, and make it easily available to their employees (for example, by giving details in the staff handbook). It should include the procedures followed during the disciplinary process, what performance and behaviour might lead to disciplinary action, and what action your employer might take.
An employer should follow a proper disciplinary process if it believes that an employee may be guilty of misconduct. As far as possible, the aim of the disciplinary procedure should be to improve conduct, rather than simply to punish wrongdoing.
Employers are advised to follow the Acas statutory Code of Practice on discipline and grievance procedures. It provides basic practical guidance to employers, employees and their representatives and sets out principles for handling disciplinary and grievance situations in the workplace. Click here for a detailed overview.
Disciplinary procedures should include the following steps:
1. A letter setting out the issue.
2. A meeting to discuss the issue.
3. A disciplinary decision.
4. A chance to appeal this decision.
Having a well drafted company disciplinary policy and procedure in place is critical for all employers; without the latter in place, defending claims of unfair dismissal or constructive dismissal would be incredibly difficult.
The majority of unfair dismissal claims are lost by employers because they fail to follow fair procedures during the disciplinary process or simply don’t follow any!
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