Employing people: a handbook for small firms [4Mb] - Acas

76 Pages·2010·4.66 MB·English

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Acas can help
with your
employment relations needs
Every year Acas helps employers and employees from thousands of
workplaces. That means we keep right up to date with today’s
employment relations issues – such as discipline and grievance handling,
preventing discrimination and communicating effectively in workplaces.
Make the most of our practical experience for your organisation – find out
what we can do for you.
We inform
We answer your questions, give you the facts you need and talk through
your options. You can then make informed decisions. Contact us to keep
on top of what employment rights legislation means in practice – before it
gets on top of you. Call our helpline 08457 47 47 47 or visit our website
www.acas.org.uk
We advise and guide
We give you practical know-how on setting up and keeping good
relations in your organisation. Look at our publications on the website
or ask our helpline to put you in touch with your local Acas adviser.
Our Equality Direct helpline 08456 00 34 44 advises on equality issues,
such as discrimination.
We train
From a two-hour session on the key points of new legislation or employing
people to courses specially designed for people in your organisation,
we offer training to suit you. Look on the website for what is coming up in
your area and to book a place or talk to your local Acas office about our
tailored services.
We work with you
We offer hands-on practical help and support to tackle issues in your
business with you. This might be through one of our well-known
problem-solving services. Or a programme we have worked out together
to put your business firmly on track for effective employment relations.
You will meet your Acas adviser and discuss exactly what is needed before
giving any go-ahead.
Employing People:
a handbook for small firms
Did you know?
Acas has a range of services and products aimed at
helping employers and managers in small businesses
– many of which are free. These include leaflets and
booklets offering advice. Go to www.acas.org.uk
for more information. You will also find on our website
e-learning packages that can be dipped into wherever
and whenever you have a few minutes to spare.
We also deliver training on good practice in
employment relations as well as updates on new
employment legislation especially designed for small
businesses. These are held locally all around the
country and can be booked and paid for online. For
more details go to www.acas.org.uk/training
Contents
Introduction 5

Employing people – just common sense? 5

1 Planning employment needs 6

getting the right information 6

making employment decisions 7

2 Recruiting people 8

how to avoid bad recruitment 8

getting the right person 9

3 The employment contract 12

What is an employment contract? 12

does an employment contract need to be in writing? 13

What are implied terms? 14

statutory rights 14

how can a contract be altered? 22

how can a contract be ended? 23

further advice 23

4 Pay 24

how much should firms pay? 25

Payment systems 26

Time rated payment systems 26

incentive payment systems 26

method of pay – cash or cashless pay? 27

What are the problems? 27

how can problems be overcome? 28

further advice 28

5 Training 29

induction training for new recruits 30

acas training 31

6 Rules and procedures key points 32

What should rules cover? 33

breaking company rules 34

mediation 34

making known employee grievances 36

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7 Unfair dismissal 38

What is a dismissal? 38

What is a fair dismissal? 39

further information 40

8 Controlling labour costs – absence and employee turnover 41

absence 41

What affects absence levels? 42

What is the size of the problem? 42

Employee turnover 43

What can be done? 44

further information 44

9 Workplace communications 45

What do employees need to know? 45

how can employees be kept informed? 46

10 Employee representation 48

Why have employee representation? 48

What forms can employee representation take? 49

Trade unions 50

recognition 50

representation rights 51

What is collective bargaining? 51

What statutory rights arise when unions are recognised? 52

reaching agreement 52

making collective bargaining arrangements clear 52

The subjects of negotiations 53

resolving outstanding differences 53

Employment relations training 54

11 Appendix 55

Examples and forms 56

Acas publications 69

Acas training 70

imPlEmEnTing ThE job EvaluaTionc socnhTEEmnETs 3
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introduction

Employing people – just common sense?
Employing people seems a perfectly These problems can be overcome by
straightforward matter: hire them, a small investment of time
then set them to work. Many small and resources. Small firms can have a
firms consider that they have number of ‘natural’ advantages:
insufficient time or resources to
devote to employment issues. • close personal relationships
But as this guide shows, sensible between employer and employee
employment practices can help small
firms to be more effective, more • an understanding of individual
profitable, to grow and to create more employees’ problems resulting from
jobs. regular face-to-face contact
Employees are most firms’ greatest • being able to act and react quickly
asset so it is worth spending some to events.
time and effort over them. Employing
people can, if handled badly, cost We hope to build on these benefits
the employer time, money or lost by showing how good employment
profitability through: practices can help:
• recruiting unsuitable employees • small firms to anticipate
employment problems and so
• inadequate training improve managing the business
• low morale and motivation • employees to know where they
stand – what they can and cannot
• high absence levels and turnover of do, what they can expect from their
employees employer and what their employer
can expect from them.
• ineffective management
and supervision This handbook has been written to
assist the busy small firm, deal with
• too many dismissals. the most important employment
areas and operate simple but effective
employment practices.
EmimPPlloEyminEngT PinEgo TPhlEE j–o jbu sEvTa clouamTmioonn s scEhnEsmEE ? 3 5
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Planning
employment needs
Key questions
• how can firms get the right information?
• When should decisions about employing people
be made?
getting the right
A card index for each employee
information
could contain information on:
Personnel records
Even in the smallest firms, new jobs • personal details – name,
are created and employees retire sex, date of birth, address,
or leave for other jobs. Changes in education, qualifications, previous
the workforce can cause serious experience, tax code, National
disruption unless some attempt is Insurance number, emergency
made to plan for them. By keeping contact, details of any job-
up-to-date employee information related disability.
on personnel records, firms can
make sure that unexpected changes • employment details – date
to their employment needs are employment began, date present
kept to a minimum. They can also job started, job title, basic pay,
provide other useful information for overtime and other premiums.
managing the business. Personnel
records kept on a card index system • absence details – sickness,
can be effective for small firms lateness, authorised,
but there are also computerised unauthorised.

systems that may be suitable. Users
of some personal computerised • details of accidents
information (which can include
personnel records) have to register • details of disciplinary action
with the Information Commissioner –
visit www.ico.org.uk. • training details.
6 EmPloying PEoPlE: a handbook for small firms
To avoid unnecessary duplication Small Business Service.
of some of the information on this Tel [phone],
list, the written statement of major www.businesslink.gov.uk. 1
terms and conditions of employment
(see pp 12-23 on the Employment The most important employment
contract) could be attached to each planning decision for small firms is
employee’s record form. to get right the size and composition
of their workforce.
Records such as these can be
the basis for management The costs of overstaffing or of a few
information on: redundancies are often substantial
to a small firm and insufficient
• the age, sex, grade and length of employees to meet demand can
service of employees mean lost sales opportunities and
revenue.
• timekeeping, absence levels and
employee turnover It is important to try to anticipate
employment needs not just for
• total wage and salaries bill. next month, but for next year
and if possible for still further
The Appendix to this handbook ahead. So look at changes in
contains an example of how to set demand. Are employment needs
out a personnel record form suitable the same throughout the year or
for a card index system. are there ‘peaks’ and ‘troughs’?
Do employment needs vary over
a monthly, weekly or even daily
making employment period? For instance, a shop may
decisions find that it needs more staff on
Good planning, done well in Saturdays or over the lunch period.
advance, is as important in avoiding A decision to employ full-time or
employment problems as it is in part-time staff should take account
avoiding other business problems of such variations.
such as shortage of materials,
space, capacity or case flow. It
helps if employment decisions are
not taken in haste, in particular since
job losses could result. Impartial
advice about starting and running a
business can be obtained from the
imPlEmEnTingPl TahnEn jinogb EEvmaPlluoaTyimonE nsTc hnEEmEdEs 3 7
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recruiting people

Key questions
• What are the effects of bad recruitment?

• are new employees necessary?

• What is the job?

• how can applicants be attracted?

• Would an application form help selection?

• Which is the best way to interview?

• What use can be made of references?

Hiring employees, if done badly, can how to avoid bad
be costly. It can lead to: recruitment
A few simple steps can help avoid
• poor performance these problems. First ask whether
the firm really needs new employees
• unnecessary training – can existing employees do the
job or be trained for it? If new
• increased supervision employees are needed, would part-
time workers be more suitable? Find
• wasted management time out what are the job’s tasks; then
draw up a job description to help
• higher absence and get a clear idea of the job. This will
employee turnover contain the major parts of the job
and its main purpose. The Appendix
• lower morale. to this handbook contains two
examples of job descriptions – one
for a ‘white collar’ worker and one
for a manual worker.

8 EmPloying PEoPlE: a handbook for small firms