Human Capital Services Business Matters
13th November 2008
Watertight Contracts, Terms and Conditions
In this update, we want to give you focus for your next review of employment documents. We take a look at some of the most frequent errors and omissions that crop up in contracts of employment/staff handbooks/policy manuals.
At HCS, we understand that in most organisations a review of contracts and handbooks might be down the list of priorities, but our experience shows that when a complex staffing issue arises, an up to date and well thought through contract and handbook will save you hours of management time.
If you don't have time to do it, then let us review, recommend and update on your behalf. We will make sure you have a watertight set of terms, conditions and documents. Here are some examples of recent omissions or errors we have found:
- No deductions from wages clause. This is a clause that allows you to deduct money from salary if, for example, an employee has been overpaid in salary or in holidays. Without it, you need to seek the express permission of the employee.
- No temporary lay-off clause. This clause is particularly important if your business is likely to be subject to fluctuations in revenue or work. Without it, temporary lay-off is not necessarily an alternative to compulsory redundancy.
- No clause in the notice or holiday paragraph to state that you may require employees to use some or all of their accrued holiday during their notice period. Imagine an employee working a month's notice after being dismissed for poor performance, then having to pay them their accrued holiday when they leave. How much simpler would it be to require them to take holiday during their notice?
- Out of date maternity and adoption policies which can result in difficulties if your are trying to manage an employee in line with out of date practices. Remember, maternity leave entitlements have changed several times in the last few years so if it is a while since you used your policy it may well be out of date!
- Working Time Directive opt out arrangements that do not include the required 5 year review date, or which appear to give the employee no choice about opting back in. Be wary of wording which could be interpreted by a tribunal as an attempt on your part to mislead your employees about their statutory rights.
- No up to date retirement policy - the law on this changed some time ago, but we still see policy manuals that contain no information about managing staff approaching retirement in line with statutory requirements and in relation to decisions around working beyond retirement age.
- Containing a clause that means part time or fixed term workers will be treated differently to full time or permanent staff in a way that could be discriminatory. Consider for example, policies that exclude fixed term workers and/or part-time staff from disciplinary and grievance procedures or from annual performance reviews.
- Including a clause that suggests that the whole handbook or policy manual is contractual. This can make it very difficult to update policies in line with sensible working practices without having to go through time consuming consultation with staff.
If HCS can support you with a simple half page policy, or a complete staff handbook. Give us a call on 0141 776 6456 and you might be surprised how quickly and painlessly these things can be completed for you......leaving you to concentrate on your business.
05 June 2009, Administrator
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