Legal Requirements for a Manager when Hiring and Firing Employees - Speech or Presentation Example

Legal Requirements for a Manager when Hiring and Firing Employees Manager (HR) Ref: HR/001/2014-15 To : All line managers Date: 05/12/2014 MEMO Sub: Legal requirements for a manager when hiring and firing employees As you are aware, we are in the process of hiring 20 employees on temporary basis to manage the additional workload during this summer. Summarized below are the legal requirements that have to be strictly complied with in the process of hiring and firing the employees. Equal Employment Opportunity laws prohibit discrimination on account of caste, creed, ethnicity, gender, sexual orientation, social status or disabilities. This means, “All individuals have a right to an equal chance to be hired, keep a job, get a pro- motion, or receive other work benefit regardless of personal characteristics” (Steen, Noe, Hollenbeck, Gerhart & Wright, 2009, p. 47). Therefore the selection process has to be transparent and afford equal opportunity to all prospective candidates. As stated in the United States Department of Labor website, Title I of the Americans with Disabilities Act prohibits discrimination against qualified individuals with disabilities. Title VII of the Civil Rights Act 1964 as amended prohibits discriminatory practices on account of race, color or national origin. Fair Labor Standards Act (FLSA) sets 14 years as the minimum age for employment and limits the number of hours worked by minors under 16 years (United States Department of Labor). It also stipulates safety requirements for minors (below 18 years). During the course of the selection process, the personal information collected from the individual applicants should be kept strictly confidential and limited to the barest minimum required. Also accuracy of all information provided should be verified, wherever relevant for the selection criteria. The security and privacy of the information should be ensured in conformance with the Privacy Laws. Written test/ Skill test/ Group discussion/ Interview can be conducted to ascertain suitability of the candidates and records of the relative ranking should be maintained for verification in case of any dispute. While making the final selection, the reservation norms for women, minorities and persons with disabilities should be adhered to. The selection list should be published and the selected candidates should be sent offer letters clearly stating the terms and conditions of appointment. A signed duplicate copy of the offer letter should be obtained from the candidate as a token of acceptance. The candidate should be required to execute a legally valid agreement (on stamp paper, and notarized if required by statute). The agreement should clearly state the conditions of appointment including pay, allowances, scope for annual increment based on performance, notice period or monetary compensation in lieu thereof on either side. Induction and Training: The employees should undergo orientation training for understanding the various departmental functions and also to assimilate the value system and culture of the organization. They should also get acquainted with the safety systems and procedures in line with the legal requirements. This should be followed by on the job training to acquire specific skills to perform the job allotted, safely and efficiently. They should also be made to understand clearly that any type of discrimination or harassment on the basis of gender, caste, race or ethnicity will be seriously dealt with. Also the mechanism in place for redressal of grievances should be clearly explained to all concerned. Harassment of women in the workplace has been of serious concern lately and various definitions of what constitutes harassment are being published by the law makers. Special women’s grievance cells are being made mandatory to address such complaints exclusively. Generally, the document which lays down the rules regarding attendance, punctuality, leave, and general conduct and discipline in the workplace is the Certified Standing Orders and every workman should be aware of all the clauses under the same. Hours of Work and Wage Structure: In accordance with the Fair Labor Standards Act (FLSA) it is mandatory to pay the stipulated minimum hourly wages and for overtime work over 40 hours a week, additional wages of at least one and one-half times the hourly wage for each additional hour worked is payable (United States Department of Labor). Leave with pay, vacation, weekend work, night work, shift work etc. are matters of agreement between the employer and employee (or employee’s representative). The principle of natural justice requires that rules apply uniformly to all employees. Any additional payment should be based on performance, skill and experience only and then too the norms should be transparent. Although breaks are not mandatory as per FLSA, short breaks for coffee and snacks are allowed by the employers which count in the working time itself. However lunch break will not count as working time. Nursing mothers must be allowed special paid breaks for expressing breast milk as when she has a necessity to do so. Family and Medical Leave Act (FMLA) provides for job-protected unpaid leave of up to 12 weeks per year for certain family and medical conditions. FLSA requires that detailed record of each employee is maintained by the employer, which should include in addition to personal details, hours worked, wages paid, deductions etc (United States Department of Labor).  Worker Adjustment and Retraining Notification Act (WARN) protects the workers and families by requiring the employers to give 60 day’s advance notice of mass layoffs, unless it is necessitated by natural calamities or other unforeseen circumstances (United States Department of Labor). Regulation on Safety and Health: Occupational Safety and Health (OSH) Act of the US Department of Labor deals with the safety and health conditions in most private industries. The Act is enforced through frequent workplace inspections and investigations. So it is necessary to identify the safety hazards likely to be faced by the new employees also and to incorporate adequate corrective and preventive mechanisms (United States Department of Labor). Regular awareness programs and training in the use of safety gadgets are necessary to ensure total compliance by all sections of employees. Under OSHA, whistle blowers are not to be penalized in any way. Adequacy of work space and rest room space commensurate with the increase in employee strength has to be ensured. Safety committees are required to be constituted comprising representatives of management as well as worker unions to highlight issues of safety for speedy remedial action. Employee Benefits: Retirements plans, Insurance to cover expenses in case of accidents and illnesses and compensation in the event of death or permanent disability are all covered by various Acts administered by Employee Benefits Security Administration (EBSA). Employee Retirement Income Security Act of 1974 (ERISA) sets minimum standards for pension and heath plans in the private industry to protect individuals participating in the plans (United States Department of Labor). Employee separation is an issue which has to be very delicately addressed. Though, the terms and conditions agreed upon provide an exit route for both parties, it is always painful for the employee as he may not be in a position to find alternate employment immediately. Also when there is a partial retrenchment of employees from a group, the management is ethically bound to make public the basis for the decision. Otherwise there is scope for litigation against discrimination. If poor performance is a reason, it should be communicated to the employee (in writing) sufficiently early affording him a chance to improve. If some of the temporary employees recruited are to be offered regular jobs, it should be done through a selection process, giving due consideration to knowledge, performance and experience. It is always better to have a written record of continuous employee evaluation scrutinized and verified at higher levels to avoid victimization. The spirit of the Acts and Rules formulated by the government is to ensure basic minimum protection from unscrupulous employers. Apart from the basic Acts and Rules framed by the Government, many of the rights of the workers are obtained through collective bargaining by the Trade Unions. The Trade Union office bearers have some additional privileges under law. Paid holidays, leave with wages and earned leave are all part of rights garnered through collective bargaining. Model employers provide much more facilities and benefits to their employees. Such proactive gestures on the part of the employers will go a long way in ensuring a congenial atmosphere conducive to long term relationships with less employee turnover and more employee commitment. As managers you should not only look at just complying with the regulations, but work towards building a contented team which will be committed to achieve the long term goals of the organization. References Steen, S. L., Noe, R. A., Hollenbeck, J. R., Gerhart, B & Wright, P. M. (2009). Human Resource Management. Canada: McGraw-Hill Ryerson Limited. United States Department of Labor. http://www.dol.gov/dol/topic/ Read More