Maternity Leave Part 2

Gillian Reid continues to answer some tricky questions from employers regarding employment procedures and maternity leave: What do I do about bonuses during an employee's maternity leave? This is a difficult area and the answer depends on the reason for the bonus. If it is to reward work done, payment only has to be made on a pro rata basis for the weeks when the employee was at work plus the two week compulsory maternity leave period immediately after the birth. Other types of bonus - such as a loyalty bonus or a Christmas bonus - will be payable in full. What happens if I need to make a woman on maternity leave redundant? This is permitted but an employee who is at risk of redundancy while on maternity leave has the right to be…

Maternity Leave Part I

The rules regarding maternity leave and pay are complex and employees are increasingly knowledgeable about their rights.  In addition, the rules change on a regular basis, all of which means that it is easy for employers to get it wrong.  This month and next month, we look at some common questions employers ask and provide the answers: What happens to holiday entitlement during maternity leave? Both statutory and contractual annual leave entitlement accrue during maternity leave.  A woman cannot take holiday while on maternity leave but can take it immediately before her maternity leave starts and after it ends.  If holiday cannot be taken in the current holiday year, an employee should be allowed to carry it forward to the next leave year. Can an annual pay rise wait until an employee returns from maternity…

Unlawful Deductions From Pay

Last year 71,300 claims for unauthorised deductions were brought in front of the employment tribunal, the second most common claim brought by employees. The most common examples of unlawful deductions made by employers are: Bonuses - many of the reported cases relate to the payment of bonuses.  The employment tribunals have decided that, if the amount of the unpaid bonus can be quantified, the employee can claim it as an unlawful deduction. Underpayment of commission - if the employee is paid less commission than is due, this may be an unlawful deduction. Tips - if a worker is entitled to tips (or part of a "tronc"), which are not paid, he can bring a claim. Holiday pay - a failure to pay outstanding holiday pay when the employment terminates has been held to be…

Employment Law Changes April 2012

The main change made this month was to increase the qualifying period for employees to claim unfair dismissal from one year to two years. This only applies to new employees who started work on or after 6 April, which means that it is fairly straightforward - anyone already employed before then will retain the one-year qualifying period. Employers will need to check an employee's start date carefully before dismissing him or her to establish whether they have the right to bring a claim or not. The change in the period of qualifying service also applies to the right to a written statement for the reasons for dismissal. The Government has estimated that the number of claims will drop by around 2,000 per year, saving employers around £4.7 million per year. This change was made to…

Sensitive Handling Of Sickness

The CBI estimates that the annual cost to British business of sick days is £13 billion, and the average worker takes seven sick days a year. Twelve per cent of sick days are estimated to be bogus by the CBI. Sickness is a sensitive issue which requires correct handling if you are to avoid any inference that you have been unfair or heavy-handed: on the other hand you cannot be expected to stand back and watch absenteeism decimate the work force and extinguish your profits. Absence through sickness costs businesses a huge amount of money and wastes management time, placing a burden on those employees who conscientiously soldier on. So what can be done? The most important thing is to have an appropriate policy, not a dusty piece of paper lingering in a filing cabinet…

Settlement Agreements Feb 2012

Employers can dismiss employees under one of six potentially fair reasons for dismissal: conduct, capability, redundancy, breach of a statutory enactment, some other substantial reason and retirement. However carefully these dismissals are carried out by the employer, there is always a possibility that an unfair dismissal claim will be brought either because the dismissal is not for a fair reason or because it was not procedurally fair. To circumvent this, the parties can enter into a settlement agreement which effectively waives an employee's right to take their case to an employment tribunal in exchange for a sum of money being paid to the employee.  Settlement agreements can also relate to a number of other claims. Even if the employee has less than 2 years' service, there might still be a risk in dismissing them if their circumstances…

Handling Redundancies

More than 1.3 million workers have lost their jobs during this recession and there are substantial public sector job cuts to come, as the recession continues to bite. Cutting any jobs is usually a last resort and needs to be handled sensitively and carefully as navigating the plethora of employee rights can be a minefield for any employer. Staff with more than one year's employment, may be able to claim unfair dismissal if the redundancy is not genuine or if their employer fails to follow the correct procedures - so it is vitally important to ensure that you do.  If you are at all unsure, then it is best to seek legal advice. For example, staff should be consulted in a series of meetings.  This gives them a chance to come up with suggestions for…

Planning For Adverse Weather

Whether or not we see a repeat of last year's big freeze, it makes sense for employers to ensure that they have a policy regarding adverse weather conditions.  As an employer you need to be clear of your obligations and your employees will welcome clarity regarding what is expected of them. The position for your business will depend upon the particular terms within your employee's contracts of employment.  Key issues that should be set out include: the procedure for reporting to managers obtaining authorisation for an absence working at home the policy on pay; or the use of holiday entitlement or flexi time   Employees who are absent from work due to extreme weather or other travel disruptions are not generally entitled to be paid for lost time, however it is also important…

Owning A Property Jointly

If you are buying, acquiring or holding property jointly with someone else it is important that everyone understands the basis of joint ownership from the beginning. There are two sorts: Joint Tenants and Tenants-in-Common. ("Tenant" does not have its usual meaning of someone paying in rent in either case). Joint Tenants: Joint Tenancy is the form of joint ownership where two or more people own the property together on the basis that: On any sale of the property, the proceeds of sale are automatically divided equally between the parties, regardless of the contributions they may have made to the original purchase price, subsequent improvements etc. If any joint owner dies, his/her share automatically passes to the surviving owner(s). This transfer happens without payment and is not affected by any Will the deceased owner may…

Lasting Power Of Attorney

Who would look after my personal welfare and finances if I were unable to? If you don't know the answer to the above question then you are not alone. We often take for granted the ability to manage our financial affairs, such as paying household bills, mortgages, healthcare costs and give little thought to what might happen if we were unable to manage these tasks anymore. Why would I be unable to manage my affairs? For various reasons such as mental incapacity or physical restrictions, both of which can result from illness, accident or old age. What can I do? Set up a Lasting Power of Attorney ('LPA') - a legal document which allows you to appoint someone you trust (known as an 'Attorney') to act on your behalf if or when the need arises…