Now the partying is over and the new year is
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well underway, CM reflects on a mixed bag of resolutions companies would be well advised to start contemplating.
E MPLOYMENT
Consider the implications of the forthcoming legislative programme Following the Fairness at Work White Paper the Government will introduce various measures covering both individual and collective employment rights. These are likely to include provisions to: • reduce the qualifying period for unfair dismissal to one year;
+ raise or possibly abolish the limit on unfair dismissal awards; • require employers to recognise trade unions in specified circumstances;
• create a legal right for employees to be accompanied by a colleague or representative during disciplinary procedures; • improve maternity leave entitlement; and • provide an entitlement to parental leave and time off for family reasons. Legislation is also expected to amend Transfer of Undertakings (Protection of Employment) Regulations (TUPE) 1981 and to implement by December 1999 the Posted Workers Directive which protects terms and conditions of workers temporarily working in another member state; and the European Works Councils Directive which requires transnational employers to consult formally with representatives of the workforce at European level.
Prepare for the introduction of the national minimum wage From 1 April this year, a single hourly minimum wage of £3.60 is to apply to UK workers aged 18 and over. This is subject to modifications for apprentices, workers aged 1822 and those who are in the first six months of starting a job with a new employer and who receive accredited training. The rate will apply irrespective of geographical area, sector of the economy, size of undertaking or occupation.
Employers will be obliged to work out whether their workers are receiving at least the minimum wage. Varying reductions must be made from gross pay to arrive at the relevant figure. It is proposed that overtime and shift weighting, unsocial hours payments, tips not paid through payroll, London weighting and other allowances will NOT count towards the minimum wage rate.
Workers will have the right to receive a written statement about the national minimum wage and employers will be obliged to
keep sufficient records to establish that the worker is being remunerated at a rate at least equal to the minimum. Less detailed records may be required for those earning above a specified level. Employers who fail to comply with various aspects of the National Minimum Wage Act 1998, including record keeping provisions, will be committing an offence.
Review your procedures for dealing with appeals against dismissal
From 1 January this year, compensation rules in unfair dismissal cases were revised to allow tribunals to take into account the use of internal appeal procedures (s127A, Employment Rights Act 1996, inserted by Employment Rights (Dispute Resolution) Act 1998).
Where an employer provides a mechanism for appealing against dismissal and gives the employee details of it in writing at the time of dismissal (or within a reasonable period after
wards) and the employee does not appeal, then a tribunal will reduce the compensatory award for unfair dismissal by such amount, if any, as it considers just and equitable. The maximum reduction which may be made is two weeks' pay. Similarly, if the employer prevents an employee from using the appeal procedure, then the compensatory award may be increased by up to two weeks pay.
ACCOUNTING & COMPANY LAW
Consider the potential impact of the euro's introduction on the company's accounting systems and annual accounts.
Although the UK will not adopt the elm in the immediate future, companies should still consider how the introduction of the euro will affect them and make plans to deal with the changes. UITF Abstract 21, accounting issues arising from the proposed introduction of the euro (CSR Vol 21, p180), considers the accounting treatment of costs relating to the introduction of the euro and a number of foreign currency translation issues affecting both individual company accounts and consolidated accounts.
HEALTH St SAFETY
Treat stress as a serious issue Section 2 of the Health and Safety at Work Act 1974 requires employers to "ensure, so far as is reasonably practicable, the health, safety and welfare" of employees at work. This can be taken to extend to the psychological environment, workload and related matters.
Although there is not a concensus yet on how to deal with excessive stress in the workplace, some simple
strategies are available:
4., review sickness absences as a key indicator; 4, consider adopting an employee assistance programme as an additional element of a stressmanagement programme; "a discuss with managers how stresses may be reduced: 4. recognise that stress really is a health and safety and business issue and begin to develop a management approach before reaching crisis point.