The Downturn Time to Recruit
To succeed in today’s tough climate, businesses need to have the right people on board. The recession has made firms examine who they need and who they do not, to give themselves the best chance of survival. The economic climate has focused minds on results. Those firms who routinely monitor employees’ performance have been using employees’ performance to carry out successful redundancy procedures to get themselves in shape to grow once more.
However, there are a good many ‘bear traps’ along the way. To dismiss established workers, a company must comply with procedures especially where performance is involved. Poor perform- ance of itself should not attract summary dismissal. In general, the law requires that workers are given a chance to improve, and only dismissed after monitoring, evaluation, and warnings along the way. This process often takes months. In a recession, where work has reduced, an em- ployer may rate employees according to their skills and performance and dismiss within weeks, those who score least.
If firms are preparing for the upturn, this is also a good time to recruit skilled staff to fit in with the re-structured profile. When recruiting, employers need to work to their business plan and focus on the business needs. The right person is a valuable asset, and the package offered must suit both parties in the long run.
A contract of employment is vital for every business, and is a legal requirement after 8 weeks employment. Treating anyone badly for asking for a contract is likely to result in an expensive claim against the employer. Employers are advised to get a tailor made contract which sets out the obligations between them and their workforce. Explicit terms should govern pay, place of work and job title, bonuses, performance, notice and probationary periods but can also cover restricting the use of computers and company information; soliciting clients or workers if their employment is terminated and confidentiality.
Implied terms are not written down but understood between the parties to cover mutual trust and confidence, the fact that an employer is vicariously liable for the employee’s actions in the course of their employment, and that employer must provide a safe working environment. Workers are entitled to have their grievances addressed, be protected from bullying and discrimination and for consistency in relation to pay. An employer should not make negative comments unjustifiably about an employee, nor apply disciplinary procedures except where entirely justified. Similarly, an employee’s implied obligations include being loyal to their employer, carrying out reasonable instructions, completing work with due diligence and care and skill and taking reasonable care of colleagues. Breaches of terms which are written or implied can be equally serious and can bring the contract to an end.
Stones Solicitors has a dedicated employment law team and can advise on all aspects of em- ployment law and human resources.
Terry Falcao is a Partner and Head of the Employment Law Team at Stones Solicitors, Linacre House, Southernhay Gardens, Exeter, EX1 1UG. Tel: 01392 666 861, email: terryfalcao@stones-solicitors.co.uk Web www.stones-solicitors.co.uk
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