How to manage new employees
The recruitment process should not simply stop when a new employee is appointed. The likely success, or failure, of the relationship often depends on how well the employee settles in.
A probation period gives you time to make sure that the selection you made was the right choice.
It's an opportunity to evaluate the new employee's performance, commitment and general suitability for the role, and to take the necessary action I they are failing to meet the requirements.
Probation periods generally last from one to six months, depending on the role, the business, and the business needs.
How to Manage the Probation Period:
- Include probation details in the contract of employment, specifically stating the right to extend the probation and/or dismissing an employee during their probation.
- Clarify any different terms and conditions of employment that apply during probation, e.g. some benefits may not be available until completion of probation, the Disciplinary and Grievance Procedures may not apply. This should generally be stated in the contract of employment.
- Provide the employee with a clear job description.
- Carry out an Induction Process. The induction process should start on the employee’s first day. Induction will give them clear guidance on their role, their role within the organisation and appropriate training where appropriate. A detailed Induction Checklist can be found here.
- Provide training. It is recommended that training be provided on in-house procedures, although they may seem straight-forward to you, they will most likely be totally foreign to your new hire.
- Hold regular update meetings with the employee. Continuously monitor their performance throughout the probation. This will allow you to detect any weakness early on and take suitable remedial action to assist the employee. Don’t leave it to the week before the probation is up to meet with the employee.
- Confirm your intentions with regard to the continuation of the probationary period before the planned expiry. The employee should never be surprised with the probation outcome, there should be regular discussions throughout the probation.
The Outcome
There will be three possible outcomes at the end of the probation period:
They’ve Passed! Congratulations, you’ve found a perfect fit!
Probation Extension! You’re still not sure whether this is the right person or not and need more time to assess them. Employee probation periods should not extend over 12 months.
Termination! After continuous monitoring, you’ve decided that it’s not going to work and that it’s best for everyone to part ways.
Whatever the outcome, a formal letter should be sent to the employee confirming the result of their probation.
For guidance on what to include in such letters, please refer to our sample template probation letters available here.
Best of luck with your new starters!
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Bright Contracts at The Business Show 2014
We took a stand at the recent Business Show 2014 in the Excel in London's docklands.
We took this opportunity to launch our latest product Bright Contracts.
Laura Murphy MCIPD, our in house employment law expert, was thrust in front of a camera and asked to summarise the benefits of Bright Contracts and her overall impression of the Business Show.
She performed very well, given that there was no opportunity for rehearsals!
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
How to manage sickness absence
Managing sick leave can be a challenge for every employer. It is essential that businesses find the balance between supporting those employees who are genuinely sick and minimising unnecessary absences in order to reduce costs. Costs can include:
- Loss of productivity
- Cost of SSP and other company sick pay schemes
- Employing temporary cover
- Paying other employees additional overtime costs
The CIPD’s 2013 Absence Management report, found that absences levels had increased in 2013 from 2012, with an average of 7.6 days per employee. According to the report, the cost to employers averages at £595 per employee.
Managing Absences
Absence levels can be addressed by taking some simple steps:
- Sickness Policy: there should be a policy in place that clearly sets out the procedure that will be followed by both employees and management in cases of absence through illness. The policy should be clearly communicated and consistently implemented. The default company handbook in Bright Contracts contains such a policy.
- Record, Monitor & Measure: monitoring and measuring enable employers to identify trends and recognise points at which absence levels need to be further investigated.
Return to Work Interviews: these are informal meetings between a line manager and an employee on the first day the employee returns to work. Return to work interviews are consistently rated as one of the most effective methods of managing absenteeism levels and it is recommended that they should be included in all sickness absence policies. Templates and guidance on conducting return to work interviews can be found here.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
UK Employment Law Update
The new tax year sees a number of changes in the area of employment law. These include:
Early Conciliation
From 6th April claimants should send their dispute details to ACAS first before going to a tribunal. From 6th May this step will be compulsory. ACAS will endeavour to conciliate a settlement, although both parties may opt not to participate in the process, in which case an Early Conciliation Certificate will be issued and the claim can proceed to tribunal.
Employing Illegal Immigrants
The maximum fine which can be issued to employers found employing individuals who do not have the right to work in the UK has been increased from €10,000 to €12,000.
Financial Penalties on Employers
Tribunals will now have new rights to issue penalties to employers in breach of employment rights maliciously or recklessly. Penalties will be in addition to any compensation due to the employee, they will be payable directly to the Secretary of State and may vary between £100 and £5000.
Removal of Statutory Discrimination Questionnaire
The questionnaire by which an individual can obtain information about potential discrimination from an alleged discriminator is removed.
Statutory Rates and Compensation Increase
From 6th April statutory sick pay (SSP) increased from £86.70 to £87.55. The Percentage Threshold Scheme which allows employers with relatively high levels of sickness absence to recover a percentage of statutory sick pay is also ending.
Statutory maternity pay (SMP), statutory paternity pay (SPP), and statutory adoption pay (SAP) have all increased from £136.78 to £138.18 since 6th April.
For the purpose of calculating statutory redundancy and basic award for compensation, a “weeks” pay has been increase from £450 to £464. The maximum compensatory award from unfair dismissal rose from £74,200 to £76,574.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Employee arrested after payroll theft
UK supermarket giant, Morrisons have hit the headlines over the last week after it was discovered that payroll data belonging to over 100,000 of its 131,000 strong workforce had been stolen by a member of staff.
The information which includes bank details was published online and sent on a disc to a UK newspaper.
The supermarket has confirmed that the information has been removed from the internet and also that no customer details had been accessed by the thief. They’ve also reassured the affected employees that they will not be “financially disadvantaged” as a result of the crime.
The case highlights the risks employers face with regards to confidential information being leaked. It emphasises the need for employers to take proactive steps in protecting their data. It may not be possible for every employer to implement complex data security systems, but at a minimum, employers need to have confidentiality policies in place that prohibit employees from disclosing confidential data. Internet, email, social media and telecommunication policies will also clarify what is expected behaviour for employees across these mediums. Having robust policies in place will enable employers to take appropriate action where inappropriate behaviour occurs.
See also our blog “What to do if you suspect an employee of stealing”.
Bright Contracts - Employment Contracts and Handbooks
UK minimum wage to rise to £6.50 in October, government confirms
The government has approved a rise in the national minimum wage (NMW) to £6.50 an hour in October this year, as recommended by the independent Low Pay Commission (LPC).
This change is expected to boost take home pay for more than one million employees who could see their wage increase by as much as £355 a year..
From the 1st of October 2014 NMW rates will be:
- a 19p (3 per cent) increase in the adult rate (from £6.31 to £6.50 per hour)
- a 10p (2 per cent) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
- a 7p (2 per cent) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
- a 5p (2 per cent) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Draft rules on shared parental leave and pay published - UK
Government calls for employer responses to new regime
The government has published its draft regulations for shared parental leave and pay, with finalised rules scheduled to come into force on the 1st of October 2014. However, law experts are already warning that the proposed rules “look terribly complicated for both employers and employees”. The draft regulations outline new entitlements for mums and dads, or their partners, to receive 'statutory shared parental pay' from their employers.
The proposals detail the conditions that parents must meet to qualify for these payments. They also allow flexibility for parents to change their requirements after their initial claim.This secondary legislation is part of a radical government overhaul of the existing maternity and paternity regime and it will support the primary legislation known as the Children and Families Act once it receives Royal Assent. The rules will allow both parents to share up to 50 weeks' leave, which can be taken at the same time, or separately. Mums will be able to cut short maternity leave and, provided they give at least eight weeks' notice, can make up to three requests to share their maternity leave with their partner after having their child. But if an employer does not agree to discontinuous periods of leave the employee will have to take the leave continuously. Policy makers at the Department for Business Innovation and Skills (Bis) have urged employers, and other stakeholders, to respond to the draft rules, saying they want to make the new system of shared parental leave and pay “as simple to use as possible”.Bis has indicated it intends the changes to take effect for babies born on or after 5 April 2015.
But in response to the publication of the draft, Pattie Walsh, London head of employment at DLA Piper, said: "The much trailed overhaul of the UK's existing maternity and paternity regime has now had some flesh put on the bones with the publication of a series of draft regulations. "The government's aim to allow parents to share a period of parental leave is a laudable one. However, at first blush at least, the regulations which will implement the system look terribly complicated - for both employers and employees. They are due to come into force in October 2014, leaving employers with a relatively short time to prepare new policies and procedures, and will apply to employees expecting a baby on or after 5 April 2015.And she added: "Surprisingly, it appears that only employees with 26 weeks' service will qualify for the right to take shared parental leave in any event."
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
How to Roll out Contracts & Handbooks to Existing Staff
Introducing a contract of employment or a handbook for the first time to current employees, can be a difficult, tricky matter for many employers.
It is an area that many employers put on the long finger, or avoid doing until they have to.
Common reasons for not implementing employee documentation include:
• Lack of time
• Fear that employees will refute the terms of the documents and refuse to sign
• Anxiety that documentation will harm the relationship between management and staff, if the employees feel a new set of rules are being entrust upon then
• A false belief that it will restrict how management deal with employees
However, this does not have to be the case. It is possible to introduce new documentation without spending huge amounts of time, alienating your work force, or causing disruption.
The answer lies in good communications.
To help employers introduce their new Bright Contract’s employee documentation, we’ve created a short video outlining our four step guide to rolling out contracts and handbooks.
Alternatively, read our guide to Introducing Contracts & Handbooks to Existing Staff available here. http://www.brightcontracts.co.uk/docs/hr-guidance/introducing-contracts-handbooks-to-existing-staff/
How to deal with employee absence due to bad weather
The last few weeks has seen the UK and Ireland battle record-breaking storms and floods. This has literally left many employers high and dry. So what do you do if your employee’s can’t attend work due to bad weather?
Employees must attend work unless they are on authorised absence, or if they are unwell. Under their contracts of employment, employees still have to attend work, even in extreme weather conditions. If the workplace remains open during the bad weather and the employee cannot make it in, the employer can treat the absence as un-authorised. In such situations, employers would be well within their rights to refuse to pay an employee who cannot make it into work.
However, employers should consider the impact of deducting pay on productivity and employee morale in the long run in these circumstances, especially if the weather makes it impossible to get to the workplace or the workplace is closed through no fault of the employees. Often in these situations the financial burden is compensated by the positive impact on morale and productivity.
In general, it is recommended that employers try to implement as flexible an approach as possible. Possible options can include:
• Having the employee take time off as annual leave. It should be noted that employers also cannot force their employees to take annual leave unless this is expressly provided for in the employment contract.
• Consider whether the employee can work from home
• Allow the employee to make up the time at a later date
Whatever option you do go with, make sure it is clearly communicated and consistently applied to all staff. It’ll make managing the situation a lot easier when the situation does arise.
Bright Contracts - Employment Contracts and Handbooks
