Why is employee management important?
One of the most common reasons for employees leaving their jobs is due to poor management from their employers. The working relationship between an employee and an employer plays a big part in an employee’s performance and disputes between both can have a significant impact on the business.
Since the abolishment of employment tribunal fees in 2017 the number of tribunal claims have increased significantly. It is important that employers avoid litigation or minimise the risk. With the number of employment tribunals on the rise, companies should seek to minimise disputes between employees and employers to keep ET claims to a minimum.
Employers must ensure they comply with legislation and apply fair and reasonable processes. In well managed company’s; employees will feel confident in approaching management to discuss areas of concern with a view of seeking a resolution without litigation.
We have come up with a 5-step guide to managing your employees based on the top 5 reasons for tribunal claims. All the figures mentioned below are based on the financial year of 2018/2019.
Fair working hours
It is important that an employee’s working hours comply with the working time regulations in order to protect their health and safety and well-being. There are various obligations relating to hours of work of employees and the rest breaks between periods of work time. As an employer, you have a responsibility to provide basic rights and protections that are required by law. Employees cannot work more than 48 hours per week, unless they have opted out in certain circumstances.
The working time directive was the top reason for employment tribunal claims with 49,199. In some instances, working hour circumstances may change such as, if the business has extended opening hours, alternative shifts need to be covered or if the overall business hours change. During such changes the company must ensure they follow due process and not breach their contractual obligations.
Paying employees of the same ability and gender the same amount
As set out in the Equality Act 2010, men and women doing the same work must be paid equally. Equal pay was the second highest reason for employment tribunal claims with 26,860. It is important that an employer you comply with your legal duties on equal pay.
Legislation enables employees to claim where there is inequality in value of a person of the opposite sex. The equal pay provisions are linked with sex discrimination. The act not only applies to an employee’s salary but also pension payments, rewards, holiday entitlement and so on.
Equal pay is a key part of a business’s corporate social responsibility. It is an employer’s responsibility to ensure that pay systems within a workplace are free from discrimination and reviewed properly.
Fair pay
Unauthorised Deductions was the third most common reason for claims with 22,151 receipts. An employer cannot make a deduction unless authorised for a valid reason and they must follow terms set out in an employment contract. If the employee disagrees with the employer’s decision, the employee has a right to make a claim through an employment tribunal to get the money back. The Employment Rights Act 1996 protects individuals from having unauthorised deductions from their wages.
As an employer if you are making a deduction from your employee, you must make it clear and let the employee know what the deduction is and why. This way if the employee disagrees, he or she can query the deduction directly with you.
Being fair and reasonable in all processes and actions
An employer must have a good enough reason for dismissing an employee and follow the company’s disciplinary procedure. The aim of any disciplinary procedure is to ensure consistent and fair treatment for all. Disciplinary procedures should follow the ACAS Code of Practice.
All employers must make their rules clear to their employees and make them fully aware of the consequences of poor performance or misconduct. There were 21,251 employment tribunal cases based on unfair dismissal cases and it was the fourth most common reason.
Following the terms set out in an employee’s contract
Breach of contract was the fifth common reason for employment tribunals claims with the number of receipts for the financial year reaching 14,022. As an employer, it is important that you comply with the terms that are set out in an employee’s contract. If you decide to change terms of an employee’s contract you must make them aware of this by consulting with them first.
A contract can be broken if the employer or employee does not follow the terms set out in a contract. For employees, such a breach will entitle them to claim constructive dismissal and seek remedy via an employment tribunal. As an employer it is important that you do everything you can to fulfil the terms of your contract.
Our 5-step guide will help you identify the key pit falls an employer faces and to manage your employees better and handle any issues that may arise. Correct employee management is the key to keeping disputes between employees and employers to a minimum. With the number of employment tribunals on the rise, taking all precautions is crucial.
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