Employment Law and Corporate Sustainability - Assignment Example

Employment Law and Corporate Sustainability Introduction At any office there are a number of rules and regulations that govern a country. The laws and regulations govern several organizations giving them the right criteria of working at the offices. Staffs have the right to be protected by the government in case of work termination, redundancy or retrenchment. This gives a clear picture on the terms and conditions that govern different organizations. There are a number of urgencies and organizations that protect employees at any company. At the same time, organizations are also protected when they abide by the law of a specific country. Importantly, the laws are not the same in all the companies rather they differ depending on the cultural, political and economical factors of the countries. Main Body Activity One The employment law entails the relation between employees, employers, trade unions and the government. The employment law in relation to employees constitutes their rights at work. For instance in the UK Employment law; employment contracts, unfair dismissal, the Working Time Regulations, flexible working rights and equality aspects are outlined. With respect to the law, an employee is able to figure out the rights at work and how to acquire legal advice when discriminated against or unfairly dismissed from work. The UK employment law enables employers to comply with it thus treat their employees fairly and lawfully. Pauls dismissal due to his misbehavior is a controversial issue since other people may support or oppose the act. The employment law of UK outlines the procedure to be followed when an employee is to be sacked. As an HR manager in the store where Paul works, I will effectively advise the General Manager on what to do. This is because Paul has presented an unfair dismissal claim to his Employment Tribunal Office. The course of action to be taken by the organization should therefore comply with the UK employment law. The organization should have considered Pauls source of the misconduct in order to proceed with the dismissal. A thorough and effective investigation was to be carried out before the dismissal. Therefore, Paul has a right to claim for the unfair dismissal to the local Employment Tribunal Office. The organization should have issued Paul a notice or warning before the dismissal. It did not follow the correct procedure of dismissal despite Paul involving himself into fighting which is considered fair enough for dismissal. According to the UK employment law, the organization should have carried out a proper investigation about Pauls misconduct instead of issuing him an immediate a dismissal (SARGEANT, 2011). According to the UK employment law, there are outlined terms of procedure to be followed when issuing an employees dismissal. Each and every employer in any organization should follow the regulations by taking into consideration the procedure. The organization should have followed a correct dismissal process according to the UK employment law. It should have suspended Paul while they carry out an investigation then follow the procedure of the disciplinary. The organization should have followed the Acas Code of practice on Discipline and Grievance in relation to the UK law. The Disciplinary and Grievance procedures were to be taken into consideration by the organization before Pauls dismissal. Pauls dismissal is a wrongful one since the organization dismissed him without issuing the agreed period of notice. Pauls notice would be of up to four weeks. This is because it is stated in the UK employment law that a statutory minimum notice should be a week for each completed year of service of an employee (WILSON, 2011). Paul had worked for the organization for four years on a full time basis. Under the Acas Code of practice on Discipline and Grievance, he is entitled to filing a claim with the Employment Tribunal. The company stands to lose a lot if this matter is not handled immediately with diligence. If his claims are justified, the company could lose a lot of money as compensation. In the event of unfair dismissal, the tribunal strikes a balance in computation of compensation whereby, it balances the age of the employee and the length of service. this is also accompanied with a top-end award of over £70,000. The management has to act quickly to avert the loses. The management should have obliged with the law of the United Kingdom when handling Pauls case. The management should have warned him before firing him. It should also have made it clear to him the nature of the accusations leveled against him. Paul also did not get furnished adequately with evidence against him. This should have been done prior to a disciplinary hearing which he had a right to before been dismissed. The management thus failed to operate an appropriate system of warnings. Moreover, he did not get a disciplinary hearing. The matter is very sensitive given the course of action Paul has taken. In addition, the organization stands to lose a substantial amount of money. It is thus highly recommended that the organization looks for an alternative to substitute the tribunal proceedings. It is still possible to avert the case since Paul just filed his accusations. This will in turn minimize stress and also costs to be incurred on both Pauls part and also the organization. The two parties can look for a compromise agreement. The organization should promptly propose a legally binding covenant which warrants compensation to Paul in exchange for him withdrawing the tribunal claim leveled against it. For Paul to validate this proposal, he should involve an independent legal adviser to guide him before sealing the agreement. If this option is taken, the organization will incur a lesser cost. The cost incurred will be that of drafting the agreement and the small compensation to be paid to Paul. It will also include a small fee to contribute to Pauls legal fees. The costs may add up but compared to the costs incurred during a tribunal defense process, it is the lesser of the two evils: even in the vent that the organization wins in the tribunal, it will still pay for its own legal fees. The recommended alternative method is a COT3. A COT3 involves reaching an agreement through the Advisory, Conciliation and Arbitration Service (ACAS). In this case, Paul is not obliged to solicit for legal assistance. it will in turn reduce the costs compared to a compromise agreement. ACAS will help draft the documentation. Involving the right and appropriate external yet impartial support may be all it takes to solve the disputes fast and avoid lengthy and costly legal processes. Using such alternative methods, it is possible to find a favorable solution for the two parties within a day. It is thus deemed to be more effective in avoiding hefty costs and time consuming processes. Activity Two The company wishes to expand its business territories and invest in the United Kingdom. In light of the current success of the Sleep-well Holdings, it is recommended that the longstanding policies continued to be implemented. The entity will acquire a sequence of five motels which are 100-room units each. However, turnover of staff is currently is very high. Recruitment of staff will be conducted through job centers and advertisements in the local dailies. The core reason of the business’ success is minimizing the staffing costs and paying the staffs a highly reasonable hourly pay. The key feature of the human resource strategy has always been the policy of recruiting employees to undertake various operational roles. This has seen the entity thrive than its rivals as staffs are only deployed when they are needed. The management is therefore keen on adopting the same policies and highly flexible working practices in the new operations in the United Kingdom. The Canadian chain of motel operations has been efficient since the staff were offered live-in accommodations. There are various reasons why this policy thrived. Firstly, the employees do not have to commute to work. Thus, the employees will be working on shifts. Therefore, it will be easy to deploy the staff when the motels are at their busiest. Secondly, it is easy to operate an on-call system. Off-duty staff will be designated as being on-call for certain durations of the week. When on-call, they must not leave the motel premises and can be called upon to work for short periods if need be. Additionally, staff members are fit for the work since they are more flexible unlike older people who have family commitments (BASSI, 2011). Also, the most attracted work force is the group of school leavers especially because of the accommodation offered. Moreover, it is easier to staff the motels early in the morning and late at night where live-in accommodation is offered. A completely reviewed pay structure will be introduced for all new recruits. New staff will have a lower hourly rate than those existing. However, to motivate staff commitment, there will be opportunities for outstanding staff to earn more. Important to note, there are strict attendance requirements to be enforced. There will be no scope for managers to sanction requests for greater work flexibility. It is of great essence that the policies employed in the new chain of motels concur with the laws and regulations laid by the government. They should neither violate the working time regulations, the national minimum wage, the Equality Act nor the family friendly entitlements. To start with, the government has laid regulations on the working time. The law states that staffs should not work for over 48 hours weekly on average unless they chose to. However, the employer is allowed to set the normal working hours which will be clearly stated in the employment contract. It is therefore recommended that this directive should be adhered to. The staffs will only work overtime if the opt to. It is of essence that these should be observed in the drafting of the contract in order to have the motels running smoothly. If need be, the hourly rates for working overtime can be increased to encourage staffs to work overtime hence minimize the number of staff. The national minimum wage in the United Kingdom depends on an individual’s age and whether or not one is an apprentice. One has to at least have attained the school leaving age to be entitled to it. The current rates are as follows: for those aged twenty one and above are entitled to a minimum wage of £ 6.50, those aged between 18 and 20 are entitled to a minimum of £5.13, those who are aged below 18 are entitled to a minimum of £3.79 and the minimum wage for an apprentice is £2.73. The apprentices’ rates apply only to those aged sixteen to eighteen and also those age 19 and above yet are in their first year. All other apprentices fall under their respective age category. The school leaver who will be recruited will be paid based on their age. This will also be stipulated in the employment contract. There is an Equality Act in the United Kingdom. This act has been created to protect people from discrimination in their place of work and the wider society. It protects staff from any ‘Protected Characteristics’ at their place of work. For instance, staffs are protected from discrimination based on age, sex, race, religion, sexual orientation and pregnancy among many others. The management is advised to ensure all staffs are treated equally regardless of age to ensure smooth running of the motels. The opportunities offered to the staff should be awarded fairly (MCKEEVER, 2011). There are also family friendly entitlements for the staff. The standardized rate of Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay is £128.73 per week. However, if the person’s earning is less than the given amount, they are entitled to a 90% of the earnings. The lower earnings limit is £102 per week. However, staff will have no entitlement to Statutory Paternity Pay, Statutory Maternity Pay and Statutory Adoption Pay if they earn below the earning limit. The management has to put into considerations these entitlements. The management is advised to look into each of these government policies. Employment law is very essential in establishing corporate stability. It is thus highly recommended that the Canadian policies should be modified to work together with the government’s laws. This in turn will see the chain of motel-like operations flourish just like those in Canada. Activity Three The cleaning service division at the airport requires transferring regulations regarding to the outsourcing of the employees especially when the Cleaning Service Division is going to be under the new private sector. This will make the employees not to have a negative publicity towards the new decisions that are about to be made concerning the new contract to the employees by the new private sector. First, there should be an alert to the employees alerting them concerning the level of awareness to their protection regarding the new transfer changes. The transfer regulations should be well explained and presented to the employees. The employees should be protected by using the acquired rights directives. With the transfer of the employees to be under the new private sector, a number of transfer regulations will be considered. This includes the assets to be transferred to the new private sector. Another point to be considered is the nature of the new business whether it resembles the old business. Sometimes the customers’ contracts in the business can be transferred to the new private sector. The main major point to consider on is whether the employees to be transferred are connected to the economic entity in the business. With the case, not all the employees have managed been transferred. The last point to consider is whether the Cleansing service Division is going to operate on the same manner as the previous one. There are also a number of questions the staffs will be asking concerning their legal rights in the business. What protection can be offered to the affected staffs? Except the pension rights, the employees should be given rights concerning the transfer process of the business to the new private sector. The rights can include the prior service, rights and entitlements, benefits realized from the collective agreements and many more. Another question is on whom the employees should be contacting and consults regarding to the new changes at the airport (SCHMEISSER, KRIMPHOVE & POPP 2013). In order to come up with a successful redundant position in the firm, the contractor should be able to organize an organizational chart that has the financial records and act as proof to the staffs that might be affected incase they get retrenched or given another position in the company. The contractor should first of all avoid unjust dismissal of the staff in the firm. In order to come up with a position that will be declared redundant, the contractor must consider the possible skills that might be needed in the seat. If the seat is not available, can the firm be affected? Incase the firm needs a recovery to the seat, can it be easy to have it back? It is recommended that the contractor choose a position that is less of a contribution to the firm before declaring it redundant. It should also have the least safety, be compliance and have less income. The selection of the staffs by the contractor should be fair enough. This should include the performance of the staffs to be retrenched including transparency when interviewing them. All the staffs to be chosen should be kept to date with all the latest information concerning the retrenchment. This will also help the contractor to build trust and respect to the staffs in question by communicating to them with respect and good communication skills. When selecting the best staff to be retrenched, the contractor should focus on the awards and agreements accomplished by the staffs respectively. For the agreements and performances of the staffs, the contractor should check on the workplace policies and contracts and see whether any staff has got notice periods and problems. The staff with most errors shall be eliminated first. The contractor should also get familiar with the old staff in the firm and have a good relationship with them. With the fair work act, if more than fifteen staffs have been made redundant, there shall be a record kept in the firm records. The contractor should decide on whether the staffs should decide for themselves as to who chooses to retrench or decides to retrench the staffs. With the act of voluntarily, the staff will feel being in control and feel protected (DESSLER, 2000). At the end of the day, some staffs needs to be declared redundant by the contractor. This is a left offer rump that needs to be cleared. The first part is to ensure that all the staffs that have been sent away are given the best farewell ever. This should be accompanied by a notice period before the day of execution. The notice should be sufficient to them and be given a package of redundancy. The staffs should be settled with entitlements that bear their last day contribution to the firm. They should be awarded with an employment separation certificate that clearly shows the reason for the termination. With the final pay to the redundant staffs, they should be given their final pay. This includes outstanding wages that have the penalty rates and the allowances. Conclusion In conclusion, the country is the one responsible with the laws that govern all the organizations that are in the same country. In most cases, employees are the ones to be protected more because they are the less identified by most of the contractors. Discrimination at work is not allowed at work which may lead to termination of work. Staffs are also entitled to protect each other as long as they are working on the same roof. Redundancy and retrenchment of workers is quite a problem to most of contractors. There should be the right procedures to be followed when contractors terminate employees from organizations. The right compensation should also be offered to the employees that have been terminated from work. The terms and conditions applied in some organization can be altered and be changed in case an organization needs to transfer its ownership. References BASSI, L. J. (2011). Good company business success in the worthiness era. San Francisco, CA, Berrett-Koehler Publishers. http://www.books24x7.com/marc.asp?bookid=42617. CHEESEMAN, H. R. (2010). Business law: legal environment, online commerce, business ethics, and international issues. Upper Saddle River, N.J., Pearson Prentice Hall. DESSLER, G. (2000). Human resource management. Upper Saddle River, NJ, Prentice Hall. IZA/OECD WORKSHOP "ECONOMIC CRISIS, RISING UNEMPLOYMENT AND POLICY RESPONSES: WHAT DOES IT MEAN FOR THE INCOME DISTRIBUTION?", IMMERVOLL, H., PEICHL, A., & TATSIRAMOS, K. (2011). Who loses in the downturn? economic crisis, employment and income distribution. Bingley, UK, Emerald. http://site.ebrary.com/id/10468923. MCKEEVER, M. P. (2011). How to write a business plan. Berkeley, Calif, Nolo. LABOUR RESEARCH DEPARTMENT. (1996). Labour Research Department publications books and pamphlets. London, World Microfilms Publications. SEDERA, D., AHMAD, M. N., & ZAKARIA, N. H. (2013). Ontology-Based Knowledge Management for Enterprise Systems. SCHMEISSER, W., KRIMPHOVE, D., & POPP, R. (2013). International Human Resource Management and International Labour Law a Human Resource Management Accounting Approach. München, De Gruyter. http://public.eblib.com/choice/publicfullrecord.aspx?p=1344935. SARGEANT, M. (2011). Age discrimination ageism in employment and service provision. Farnham, Gower. http://public.eblib.com/choice/publicfullrecord.aspx?p=797518. WILSON, J. P. (2011). The Routledge encyclopaedia of UK education, training, and employment: from the earliest statutes to the present day. London, Routledge Taylor & Francis. Read More