BENCHMARK NEWSLETTER - CANDIDATES - SEPTEMBER 2009
Economic Recovery.... 
The Times newspaper recently reported that Britain appears to be on the verge of economic recovery. Official figures showed that Britain’s factories and utilities increased their output by 0.5 per cent in June, turning in their strongest showing since October 2007. Halifax said that house prices rose by 1.1 per cent last month, the second rise in three months, suggesting that the worst of the housing slump was over. Confidence in a wider economic rebound was fuelled by the crucial survey of services businesses, which make up two thirds of the economy. This optimism has also been emphasised by the steep gains on the stock market over the past month or so.
So hopefully things are looking more optimistic for British businesses than a few months earlier. However, this is no time for owner/managers to be complacent and they would be wise to consider the following suggestions;
- Stepping back from the day to day operational management of the business and taking a more strategic view of the business and the operational context going forward
- Delegating authority to their managers, defining their roles clearly and making them far more accountable for their actions
- Taking decisive action to address employee under performance and absence issues
- Taking time out with the rest of the management team to hold an off-site strategic planning or ‘brainstorming’ session. Using this as an opportunity to review the last year (the successes, failures and ‘lessons learned’), the current operating market, opportunities (and threats!) and agree a SMART operational plan for the next year (or possibly longer!)
- Setting up an employee forum to identify ways in which the organisation can continue to improve its systems and the way that it operates. Rewarding employees for great suggestions!
- Identifying and rewarding those key employees who have shown loyalty and a willingness to work hard over the last year. This reward can be in the form of financial (actual e.g. pay rise, one-off payment or deferred e.g. equity, share options, year-end bonus, performance related pay), praise, training, work social event or possible promotion
- Carrying out appraisals and identifying training/coaching that will help the individual to carry out their role in a more flexible and efficient manner. There are a variety of Government grants available to fund training at all levels
- Giving a ‘state of nation’ address to all employees and sub contractors setting out the strategy for the next year and emphasising the important role that each individual plays in this plan
- Identifying those competitors who may be struggling and targeting their customers and ‘poaching’ their key people
- Being positive, but realistic about the future and ‘leading by example’
The recession may not be over yet, but a re-energised and focussed management team and workforce is likely to make the most of any opportunity that comes its way.
Finally a quote from Steve Jobs, the founder of Apple Computers;
A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.
Should you require any help in planning or introducing any of the above suggestions, please contact me. Government grants may be available to fund certain projects.
Martyn Potter
HR and Strategy Consultant
PKF (UK) LLP
--------------------------------------------------------------------------------
Employment Law...what you need to know! 
Proposals for a Temporary Workers Directive (“the Directive”) were first tabled by the European Commission in March 2002 and have been under consideration ever since. On 5 December 2008, the Directive was published and the UK has until December 2010 to implement the Directive into UK law.
On 8 May 2009, the Government commenced a period of consultation over the Directive in order to seek an agreement on the terms Directive.
On 20 May 2008, the Government, TUC and CBI reached an agreement under which agency workers would be entitled to equal treatment with permanent employees after 12 weeks' employment. In this context, equal treatment means that the agency worker will be entitled to at least the basic working and employment conditions to which they would have been entitled if they had been recruited directly by the Company.
It is suggested that, after 12 weeks, equal treatment might include holiday pay (and time off in relation to public and bank holidays); payment of overtime; shift allowances; unsocial hours premiums; and those bonuses which relate directly to personal and individual performance (for example, piece-work bonus), but excluding other forms of bonus (for example, profit share, share participation or car allowances). Occupational pension schemes would be excluded as they reflect the longer-term relationship between an employer and permanent staff.
The Association of Recruitment Consultancies (ARC), which was formed in March 2009 to represent recruitment firms' interests, disagrees with the 12-week qualifying period for all temporary agency workers and is calling for a two-tier system.
ARC's proposal is for a 12 month qualifying period for equal treatment where "non-vulnerable" workers are concerned. These are workers who earn one-and-a-half times the National Minimum Wage (such as, workers in the IT or financial management industries). The result would be a split qualifying period of 12 weeks for "vulnerables" and 12 months for "non-vulnerables".
ARC reports that its proposal has the support of the Institute of Directors representing some 50,000 directors and the Federation of Small Businesses representing 250,000 businesses.
However, it would appear that the Recruitment and Employment Confederation is not in favour of ARC's proposal, which it believes is "unworkable".
It therefore remains to be seen whether any amendments to the 12-week qualifying period will feature in the Government's legislative proposals following the consultation.
The Scope of the Directive: Who is Covered
The Directive will apply to any agency which supplies workers to a Company for temporary work (as opposed to an employment agency which finds permanent employment for individuals).
The 12-Week Qualifying Period
It is proposed that the 12-week qualifying period would start again if and when the agency worker starts a different role with the same Company. However, minor changes in responsibilities or job title would not have the same effect.
The Government is also proposing that, where the worker is undertaking the same role ("in the same job") with a Company, a short break between assignments should not mean that the 12-week qualifying period starts again.
It suggests setting a minimum break between assignments in the same job which would have the effect of breaking the service of the employee so the qualifying period would start again. It suggests one week would be too short.
Pregnant women and nursing mothers
The Government proposes to extend health and safety protections applicable to pregnant and new mothers who are agency workers to include:
(1) The right to a temporary adjustment of working conditions or working hours or the offer of suitable alternative work to remove any risk to their health and safety. This will include cases where the worker's GP or midwife provides a medical certificate stating that the worker cannot continue night work due to risks to her health and safety. The Government recognises that there may be costs associated with this, but anticipates that agencies could offer alternative work if a placement was unsafe.
(2) Where the employer has explored all the options but cannot find a way of removing the risk, the right to be suspended from work on full pay.
(3) The right to reasonable paid time off to attend ante-natal appointments recommended by a midwife or medical practitioner.
(4) The right to alternative work or suspension will continue as long as the woman continues to be employed or the risk has ended.
Liability for equal treatment
The Government has decided to make agencies solely responsible for ensuring equal treatment of its staff when they are placed with a Company. However, it is likely that agencies will be able to avoid liability if they can prove they have taken reasonable steps to obtain accurate information from the Company regarding an agency worker's equal treatment package. If the agency has done this in good faith, but the Company has failed to provide the agency with accurate or complete information, liability will pass to the Company.
Agency workers must be able to obtain sufficient information to decide if they are receiving their equal treatment rights. The Government proposes that agency workers who believe they are not receiving equal treatment may ask certain questions of an agency and this must be provided by the agency within 21 days. The Government is considering publishing a template as part of the guidance which agencies could use to respond to such requests.
Access to employment vacancies
The Directive states that temporary agency workers should be informed of any vacant posts within a Company to give them the same opportunity as other workers in that Company to find permanent employment.
The Government anticipates that Companies will have to:
(1) Display lists of vacancies where all permanent employees and agency workers would reasonably be expected to see them.
(2) Ensure that agency workers are included on circulation lists if vacancies are e-mailed to all permanent members of staff.
(3) Ensure that agency workers are told of the Company's recruitment arrangements when they start the assignments, including how often vacancies would normally be advertised and what the typical deadlines for applying are.
This right applies from the start of the assignment and is not subject to the 12-week qualifying period. The Government suggests that it should not apply in situations where a Company needs to redeploy surplus permanent staff in order to avoid redundancies.
Access to training
The Directive requires the UK to take measures to improve agency workers' access to training and child-care facilities in temporary work agencies, even in the periods between their assignments, in order to enhance their career development and employability.
The Government believes that it already complies with these obligations through existing information and guidance, the Skills Pledge and Train to Gain. It has invited views on how it can encourage greater use of those resources.
Dispute Resolution and Tribunals
The Government considers that, if a worker believes that they are not receiving equal treatment after the 12-week qualifying period they should first contact the agency. It is talking to ACAS about the possibility of pre and post-tribunal claims conciliation. The Government’s consultation closed on 31 July 2009. Government will now publish its response before undertaking further consultation on Directive.
Louise is an Employment Law Specialist at Taylor & Emmet LLP Solicitors. She has extensive experience in advising individuals and companies in relation to a wide range of employment law issues.
--------------------------------------------------------------------------------
Dates for your Diary...
4th October: Neurocare 4 Peaks of Edale Sponsored Walk
Edale Train Station: 10.00am - 5.00pm
www.neurocare.org.uk / emma@neurocare.org.uk24th
9th October: JCI Annual Dinner
Holiday Inn Sheffield: 7.00pm onwards
www.jcisheffield.org.uk
17th October: Sheffield Chamber Networking After Hours
Sheffield Assay Office: 6pm onwards
www.scci.org.uk
24th October: Beer n Bangers evening
Whirlow Hall Farm: 7pm onwards
www.whirlowhallfarm.co.uk
30th October: Sheffield Chamber Green Business Club
Venue TBC: 7am - 8.30am
www.scci.org.uk
23rd November: An evening with Michael Palin
City Hall: 7pm onwards
www.whirlowhallfarm.co.uk
--------------------------------------------------------------------------------
Final thoughts from Benchmark...
Final Thoughts from Benchmark Director Louisa...