Views on Ending Contracts

1. Views on Ending Contracts Over a million of people have their contracts ended in the UK each year (DTI 1999) Contracts are ended due to redundancy, retirement, & dismissal 10% of dismissed workers who qualify bring claims through an employment tribunal Employers must take careful account of the law otherwise face costly fines

2. Types of Dismissal Claims • Wrongful dismissal – way dismissed breaches terms and conditions • Constructive dismissal – where someone feels forced to resign as a direct result of their employer’s actions • Unfair dismissal – most common and occurs where dismissal falls short of expectations laid down in law

3. Unfair Dismissal • Unfair dismissal law dates from 1971 and has been amended a number of times • Latest changes came (2004) provide strong incentives to employers and employees to exhaust the internal disciplinary and grievance procedures • In most circumstances employees who have completed a year’s continuous service with their employer can bring a claim

4. Role of ACAS • Officers of ACAS will often help parties to reach a settlement before the case comes to tribunal • ACAS offer help and conciliation

5. Questions a Tribunal Asks • Was the reason for the dismissal one which is lawful and legitimate? • Did the employer act reasonably in carrying out the dismissal?

6. Automatically Unfair Reasons List has grown over years. Following are just a few examples • On grounds of sex, marital status or gender reassignment • Racial grounds • Grounds of religion or beliefs • Being a part time worker • Refusing to work on Sundays (retail workers)

7. Legislation Covering Dismissal • Trade Union and Labour Relations (Consolidation) Act 1992 • Employment Rights Act 1996 • Working Time Regulations 1998 • Public Interest Disclosure Act 1998 • National Minimum Wage Act 1998 • Tax Credits Act 1999 • Employment Relations Act 1999 • Employment Act 2002

8. Transfer of Undertakings Dismissals for this will be judged as unfair unless it can be shown that the dismissals were for economic, technical, or organisational reasons

9. Three Step Procedure Dismissal will be judged as unfair where businesses have not followed the following procedure • Employer sends employee a letter setting out the nature of the circumstances • Employer invites employee to a meeting to discuss issues and where both parties put across their views and outcome communicated • Employee exercises right to appeal

10. Potentially Fair Reasons • Lack of capability or qualifications • Misconduct • Redundancy • Statutory bar • Some other substantial reason • Dismissals arising from official industrial action after eight weeks have passed

11. Determining Reasonableness (1 of 2) • Was the decision reasonable in the circumstances? • Was the dismissal carried out in line with the procedure?

12. Determining Reasonableness (2 of 2) • Attention paid to consistency of treatment • Higher standards are expected of large employers • Attention paid to adherence to procedures laid down by law

13. Typical Procedural Defects • No chance given to staff member to give an explanation • Dismissal without any prior disciplinary hearing • No procedure in cases involving senior staff • Procedure did not comply with respondent’s own rules • Unwillingness to have a procedure due to disliking formality • No chance for staff member to rectify shortcomings (Earnshaw,1997)

14. Lack of Capability or Qualifications • The law recognises that mistakes in the selection process can be made so dismissal can be a remedy for this • To be fair at least one warning has to be given and a reasonable opportunity to improve is given

15. Probation and Termination • Has the employer shown that reasonable steps were taken to maintain the appraisal of the probationer through the probationary period? • Was there any guidance by advice or warning when it would have been useful or fair to provide it? • Did an appropriate person make an honest effort to determine whether the probationer came up to the required standard?

16. Qualifications • Have they been misrepresented? • Can employee acquire the necessary qualifications?

17. Health Capability Potentially fair to dismiss someone on the grounds of ill health which renders them incapable of performing their contract Employers are expected to take into account medical advice available to them Normally prolonged absence through sickness is required for dismissal to be judged fair

18. Misconduct • Gross misconduct – offence committed that is sufficiently serious to justify summary dismissal • Ordinary misconduct – involves lesser transgressions

19. Documenting Standards of Conduct • Establish and communicate standards expected • Clear definitions of what is regarded as sackable misconduct • Communicating procedures to follow

20. Redundancy • Dismissal for redundancy is protected by compensation for genuine redundancy • Consultation must take place before the redundancy

21. Written Statement of Reasons • Employees have a right by law to obtain a written statement of reasons for their dismissal, if dismissed after completing 1 year’s continuous service • Statement must be provided by employer within 14 days

22. Constructive Dismissal • Occurs when management behaviour causes the employee to resign • Employer’s conduct must amount to a significant breach • These cases are harder for employees to win and easier for employers to defend

23. Compensation For Dismissal • Reinstatement • Re-engagement • Basic award based on employee’s age and length of service • Compensatory awards • Additional awards • Special awards

24. Wrongful Dismissal • Taken to employment tribunals where the claim is less than £25,000 • Others taken to the county court • Concerned with breaches of contract

25. Retirement • Employer usually has plenty of notice of this and can plan accordingly • Some retirees can continue to work part time after retirement • Early retirement a widespread method of slimming payrolls

26. Retirement & Pension Arrangements • Nature of pension arrangements are critical to early retirement strategies • Early retirements are often voluntary so financial arrangements have to be acceptable

27. Summary (1 of 2) • A minority of dismissals are reported to tribunals • Small minority of dismissals are in favour of ex-employee • Lack of capability, misconduct, redundancy, statutory bar are all main grounds for employee dismissal

28. Summary (2 of 2) • Law dictates that certain procedures are followed • Constructive dismissal can be claimed if an employee resigns due to unreasonable behaviour by the employer

29. Focus on Skills II:Purposes of the Selection Interview • To collect information to predict how applicants will perform in role • To provide information to applicants • To give applicants a fair hearing

30. Validity of the Selection Interview • Extensive criticism – unreliable, invalid, and subjective • Criticism directed towards decisions made • Recent research indicates validity much greater than previously believed (McDaniel et al, 1994) providing interview well structured

31. Interview Strategy • Frank and fair strategy • Problem solving strategy • Biographical strategy • Stress strategy

32. Number of Interviews & Interviewers • Individual interview • Sequential interviews • Panel interviews

33. Selection Interview Sequence • Preparation • Reception • Setting • Interview

34. Preparation • Preliminaries – job analysis, recruitment and shortlisting complete • Interviewers brief themselves – study of job description, candidate specs, competencies, etc. • Time tabling of interviews

35. Reception • Who will greet • Introductions • Dealing with administration - travel expenses for example

36. Setting • Suitable for private conversation • Remove barriers to free flow of conversation • Take measures to avoid interruptions • Clarity of where candidate is to sit

37. Interview Structure • Opening • Middle • Closing

38. Opening the Interview Objectives – to put candidates at ease and develop rapport and set the scene Activities: • Greet candidate by name • Introduce interviewers • Explain interview process • Outline purpose • Obtain candidates’ assent

39. Middle of the Interview Objectives – to collect and provide information Activities: • Ask questions with a structure • Listen to responses • Answer questions asked by candidate • Collect and record data • Checkpoints for understanding

40. The Closure of the Interview Objectives – to close interview and confirm further actions Activities: • Summarise interview • Check candidate has no more questions to ask • Indicate what next steps are

41. Collecting Information • Simple observations of candidates • Body language • From listening to what is said • From questions posed and answered • Recording information

42. Summary • The selection interview remains a central feature of the recruitment & selection process • Typical interviews are frank, friendly, problem solving events • Features – opening, data gathering, checkpoints, closure • Types of questions asked – closed, open, probes and reflection • Avoid multiple, leading or taboo questions