Don't fall foul of employment law
Nov 27 2002
Managers are devoting an increasing amount of time to employment law issues, according to a recent study from the Economic and Social Research Council.
This shows that 42% of managers have seen the number of unfair dismissal cases grow. Not only are businesses spending more time sorting out employment issues, but one in six of those surveyed said they are spending more money on legal advice compared to three years ago.
More problems could also arise from recent changes in employment legislation. The Employment Act 2002 details a number of new legal precedents employers will have to grapple with over the next 12 months, ranging from the rights of fixed term workers and new mothers to an overhaul of dismissal and disciplinary procedures.
The report accuses employers of being slow to react to the new policies and concludes that “managers still fail to give a high enough priority to improving the family-friendly and employee-friendly practices which would develop motivation and encourage job retention.”
Small business owners should ensure they are fully aware of the changes in employment law – non-compliance can lead to any unfair dismissal award increasing by up to 50%.
But changes in employment law could ultimately benefit employers, according to Keven McCavish, a partner at solicitors Shoosmiths.
“Although the amount of new legislation may look daunting, employers should take heart. Whilst the implementation of new human resource policies and procedures and, in some cases, contracts of employment, will be necessary to ensure compliance, in the long run some of the changes should prove to be extremely advantageous for employers,” says McCavish.