Employment Matters Magazine - July 2014

EMPLOYMENTMATTERSTRIBUNAL FEESTHE MINISTRY OF JUSTICE CHANGES TRIBUNAL FEE STRUCTURE

AIRLINE IN HOT WATER OVER TWEETSAVOID CONTROVERSIAL TWEETS WITH SOCIAL MEDIA POLICIES

CHESTER VOLUNTARY ACTIONHILLYER MCKEOWN JOIN IN THE CHARITY’S CENTENARY CELEBRATIONS

www.employment-lawuk.co.uk | ISSUE JULY 2014

FLEXIBLE WORKING? How does the change in flexible working affect businesses, especially those in the voluntary & third sector?

EMPLOYMENT ISSUES IN THE VOLUNTARY SECTORFOCUS

Zero Hours Exclusivity ClausesVince Cable announces ban on

exclusivity clauses in Zero Hours contracts

Nestle to Pay Living WageWe look at Nestle’s announcement to pay contractors the living wage

Holiday Pay to Include CommissionLindsey Kidd comments on the

European Court of Justice’s latest ruling

Interview: John Watkin We Speak to the CEO of the

Denbighshire Voluntary Services Council

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

02

EDITOR’S LETTER

4 EDITOR LETTERRichard Burnett comments on some of this month’s features & issues.

5 TRIBUNAL FEESThe Ministry of Justice announces changes to Tribunal fee remission structure

6 FLEXIBLE WORKINGWe explore what the impact in changes to flexible working means for businesses

8 ZERO HOURS CLAUSESExclusivity clauses banned in Zero Hours contracts

10 AVENTI EMPLOYMENT10 Reasons why you should outsource your HR to Aventi employment solutions

11 PAYING THE LIVING WAGENestle announces it will pay the living wage to all contractors

12 HOLIDAY PAYLindsey Kidd comments on the European Court of Justice’s latest ruling

16 SOCIAL MEDIA POLICYHow to write a social media policy and avoid controversial tweets

18 THE THIRD SECTORRachel Hughes considers how flexible working will affect the Third Sector

19 INTERVIEW: DVSCSarah Lowe speaks to the CEO of the Denbighshire Voluntary Services Council

20 NOT FOR PROFIT LUNCHHillyer McKeown show continued support for the not for profit sector

21 CHARITY SKILLSHAREHillyer McKeown CEO Ray Howard talks about becoming involved in the Chester Voluntary Action Skillshare programme

22 CELEBRATING 100 YEARSHillyer McKeown join with Chester Voluntary Action to celebrate their centenary

06 & 18

contentsEMPLOYMENTMATTERS

19

INTERVIEW:John Watkin

18-22

FOCUS: TheThird Sector

42

56

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

4

Welcome to the July edition of Employment Matters Magazine - a dedicated employment magazine written for employers and business owners.

Focus: The Third Sector

This month, we’re taking a close look at the Third Sector, and the issues currently faced by not-for-profit organisations. In recent months we have and continue to deliver events aimed exclusively at third sector organisations, including our regular Not-For-Profit lunch, hosted alongside McEwan Wallace Chartered Accountants and Natwest Bank. This month’s issue also features an interview with John Watkin, Chief Executive of Denbighshire Voluntary Services Council, who examines the challenges facing the third sector at present and looks at the opportunities for organisations in the future.

Employment UpdatesAlso this month, we report on some important updates in employment law. On 25th June, Business Secretary Vince Cable announced plans to ban exclusivity clauses in zero hour’s contracts, which could have a significant impact on the use of these contracts going forwards. Later in the month saw new laws on flexible working introduced, meaning all employees can now legally request to work flexible hours, providing they have been working at a company for more than six months.

If you haven’t visited our website recently: employment-lawuk.co.uk – you’re missing out! With an array of guides on everything from how to handle last-minute holiday requests, to sample letters for managing sickness absence, and guides on gross misconduct, employee appraisals and more, we have everything you need to manage your staff all in one place.

EMPLOYMENTMATTERS

Welcome

byRICHARD BURNETT Editor

EDITORIAL & FEATURES Employment-lawuk.co.ukT: 0845 366 4416E: [email protected]

Aventi Employment SolutionsMurlain HouseUnion Street ChesterCheshireCH1 1QP

EDITOR’S LETTER

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E J

ULY

2014

5

TRIBUNAL FEES

T he Ministry of Justice announced last month that there will be changes to the employment

tribunal fee remissions structure at Tribunals from Monday 30th June.

The changes will be introduced to simplify the application process, HMCTS says, as part of a continuous review of the remissions system to improve the efficiency of the system.

The changes mean that from 30th June:

• Applicants will no longer need to provide original copies of documents – photocopies will be accepted.

• Applicants won’t be required to tell HMCTS of the exact amount of disposable capital they have. They will, however, need to confirm the relevant threshold that it falls into.

• Bank statements can be presented as printed copies from online banking systems.

• DWP letters can be dated within the last three months (previously, this needed to be dated within the last month).

• A clearer, simpler form now heads up the guidance, with reference to additional notes.

• If some of the information is missing, HMCTS will endeavour to contact the applicant instead of rejecting the claim.

Tribunal Fees The Ministry of Justice Announces Changes to

Tribunal Fee Remission Structure

This information has been released at a time when employment tribunals are being covered extensively in the news, with tribunal statistics lodged between January and March 2014, published by the MOJ on 12th June, quietly replaced with a different set of stats.

Tribunal Summary Statistics

According to the recently released Tribunal statistics from the Ministry of Justice, the number of individual claims and claims brought against an employer by one or more people fell in the first quarter of 2014 by 59% and 72% compared to the same number of claims made in 2013.

Although the number of single claims has been declining for the last five years, the number of single claim cases fell significantly after the introduction of fees in July 2013. The number of single claims then dropped from 10,904 in the second quarter of 2013 to 4,969 the following quarter. This latest report from the Ministry of Justice does however show a 13% increase in single claims from October-December 2013 to January - March 2014.

The current statistics can be viewed here: https://www.gov.uk/government/publications/tribunal-statistics-quarterly-january-to-march-2014.

by RACHEL HUGHESEmployment Solicitor

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

6

New Law Introduced forFlexible WorkingNew law enables employees to put forward a request for flexible working and expect it to be considered “in a reasonable manner”

F rom the 30th June every employee can legally request to work flexible hours, after the government

made amends to the Flexible Working Regulations.

The right to request flexible working was previously reserved only for carers and those looking after children, but the Department for Business, Innovation and Skills estimates that as many as 20 million people will now have the right to request flexible working as a result of this new law.

The changes mean that employees can put forward a request for flexible working and expect it to be considered “in a reasonable manner” by employers.

The move, which affects anyone who has worked for a company for more than six months, has been welcomed by unions.The government expects the news to be particularly appealing to older workers who are approaching retirement and young workers looking for extra training while they work.

Deputy Prime Minister Nick Clegg said of the news: “Modern businesses know that flexible working boosts productivity and staff morale, and helps them keep their top talent so that they can grow.”

“It’s about time we brought working practices bang up-to-date with the needs, and choices, of our modern families.”

Justine Watkinson, Head of Employment Law at Hillyer McKeown, said: “This change is a positive move from the government as it will hopefully open up more opportunities for employees.

“Employers should consider this law in the context of the increased options it offers to employees; by opening up to the idea of flexible working employers could increase the likelihood of them retaining talented workers who may have a family and struggle to commit to full-time work with fixed hours.

“The change could also have a significant impact on employee morale and increase the pool of potential candidates available to employees.”

by SARAH LOWEFeatures Editor

FLEXIBLE WORKING HOURS

“ The change could also have a significant impact on employee morale and increase the pool of potential candidates available to employees.

”

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

8

Exclusivity Clauses Banned in Zero Hours Contracts

I n June Business Secretary Vince Cable announced plans to ban exclusivity clauses in zero hours contracts.

The news means that employees on zero hours contracts will have greater flexibility and be able to look for work for more than one employer.

Exclusively clauses stop an individual employed on these types of contracts from working for another employer, even if there is no guaranteed work.

The ban looks set to benefit an estimated 125,000 workers currently on zero hours contracts and tied in to an exclusivity clause. It is part of a wider bid to clamp down on the much-documented abuses of these types of contracts by less scrupulous employers, and will potentially allow workers to boost their income when hours are rare.

A summary of the business secretary’s announcement is below:

• Although zero hours contracts do have a place in today’s labour market, offering flexibility for students, older people and others seeking work that suits their individual circumstances, it has become clear that some scrupulous employers are abusing the flexibility that these types of contracts offer to the detriment of workers. He said that the government is introducing legislation to clamp

down on these abuses and ensure that workers are treated fairly.

• A consultation was launched into the issue last December (2013) which received more than 36,000 responses. After overwhelming evidence (83% voted in favour of the move), the government is now banning exclusivity contracts in zero hours contracts. In addition, Mr Cable said the government is showing its commitment to increasing the availability of information for workers on these contracts. The Government

will also work alongside unions and businesses to draw up a code of conduct for employers who wish to use zero hours contracts.

• The Government will, Mr Cable said, now consult further on how to prevent rogue employers from evading the exclusivity ban. An example of this could be where employers may instead offer 1 hour fixed contracts to workers.

• Zero hours can help some businesses to tap into specialist skills as and

ZERO HOURS CONTRACTS

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E J

ULY

2014

9

when they are needed, so this must be considered moving forward.

Justine Watkinson, Head of Employment Law at Hillyer McKeown said: “The announcement today in respect of zero hours contracts is interesting and shows that the government is keen to address the concerns raised in relation to these issues.

“Removing the exclusivity clauses in these types of contracts is definitely a positive move and will make these contracts fairer for workers who need to

secure their income streams by seeking other work.

“I do believe that, providing they are used in the right manner by employers who are fair and open about their requirements, these contracts serve a purpose in the current labour market and an outright ban called for by unison is a bridge too far.”

What do you think? Join our ‘Employment Matters Magazine’ LinkedIn group to discuss issues relating to zero hours contracts and other areas of employment law.

“ Removing the exclusivity clauses in these types of contracts is definitely a positive move.

”

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

10

AVENTI EMPLOYMENT

H illyer McKeown have relaunched their fixed fee support service for employers - Aventi Employment

Solutions. We look at 10 reasons why your business needs Aventi Employment Solutions:

01 Support: You will have unlimited access to specialist employment

solicitors who can support all your employment and HR needs with complete and commercially sound legal advice.

02 Protection: Aventi’s unique Legal Expenses cover ensures that your

business is protected from expensive tribunal claims.

03 Improve Cash Flow: Aventi is a fixed fee service so you know exactly

how much it is going to cost and can budget for the financial year knowing that all your employment and HR advice is covered.

04 Save Management Time: Knowing that your Managers have the resource

to resolve employment and HR queries quickly and professionally will allow them to spend more time focusing on the growth and improvement of your business.

05 Compliance: Aventi will keep you and your documentation up to date

with any changes and developments so you have all your ducks in a row! Aventi also offers health and safety support to ensure you fully comply with your H&S obligations.

06 Personal Service: Aventi gives you direct and speedy access to a

specialist employment solicitor who will take the time to get to know you and your business personally. Unlike other schemes Aventi does not have a call centre. Our Aventi Service is delivered by our technically excellent qualified employment solicitors.

10 Reasons Why You Need Aventi Employment Solutions

07 Insurance: Aventi’s unique Legal Expenses cover ensures that your

business is protected from expensive tribunal claims. A key feature is that you are not compelled to take our advice about an issue to be covered by the insurance. The small print with other schemes says you must take advice every step of the way and follow the advice to have the full benefit of the insurance cover; with Aventi Employment Solutions we offer a pragmatic and commercial approach which allows you to run your business as you see fit and still have the benefit of the cover.

08 Legal Privilege: We are solicitors therefore you will never need to

disclose our advice in any court case or tribunal proceedings. Advice given by a non-solicitor or consultant is always subject to disclosure to a court, no matter how damaging the consequences to you and your business.

09 No handcuffs: You will not be tied in to a long contract. We are

so confident that you will benefit from our service and renew, you can take Aventi for just 12 months (unlike other schemes which require a 3 or 5 year commitment).

10 Full Service: Our excellent reputation for quality service is

supported by a full service Commercial Law Firm. As part of Hillyer McKeown LLP we can offer you access to the full range of commercial legal services to complement every aspect of your business, from buying and selling commercial property, to dealing with intellectual property issues, handling commercial disputes, preparing effective terms of business, debt recovery and everything in between.

For more information visit: employment-lawuk.co.uk


LEGAL SOLUTIONSaventi ®

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E J

ULY

2014

11

N estle has become the first major manufacturer to announce that it will pay the living wage to all

staff.

The announcement from the world’s largest food company comes after Dr John Sentamu, the Archbishop of York and chairman of the Living Wage Commission, declared it a “national scandal” that millions of households in the UK are living in poverty despite at least one person working.

Nestle already pays the living wage to its 8,000 employees but the company says it will ensure its 800 contractors are also paid the same wage by 2017.

The definition of a living wage given by the Living Wage Commission, an independent body bringing together business, trade unions and civil society, is “an hourly rate of income calculated according to a basic cost of living in the UK and defined as the minimum amount of money needed to enjoy a basic, but socially acceptable standard of living”.

The commission said that of the 13 million people currently living in poverty in the UK, 6.7 million of these are in a family where at least one person works, and Archbishop Sentamu said the government needed to reduce this number by one million in 2020.Archbishop Sentamu called on the government, currently the biggest employer of low-paid people, to pay its own workers a “living wage”.

The UK living wage is set a different rate throughout the UK to account for the increased cost of living in London. The current living wage for London is £8.80 an hour, and £7.65 an hour for the rest of the UK.

The national minimum wage is, by comparison, significantly lower, standing currently at £6.31 an hour for those aged 21 and over, and £5.03 for people aged 18 to 21.

“We know this is the right thing to do,” Nestle said in a statement, with Fiona Kendrick, Nestle UK & Ireland chief executive, adding that the company was “proud” of its decision.

“As a major UK employer, we know that this is the right thing to do. Not only does it benefit our employees but also the communities they live and work in,” Ms Kendrick said.

Research undertaken by the Living Wage Commission shows there are 712 UK

employers currently accredited as paying a living wage.

Head of Employment Law at Hillyer McKeown, Justine Watkinson, explained why the living wage differs from the statutory national minimum wage.

“The living wage takes into consideration the actual cost of living than the minimum wage does,” Justine said. “The living wage is around 20% higher than the national minimum wage.”

“Having just come out of a recession, some businesses are still finding their feet, and may simply not be able to afford paying a living wage just yet.

“However, it is important that employers ensure staff take home a sensible wage to encourage staff retention and morale.”

As an employer, what do you think of these reports? Join in the conversation on our dedicated LinkedIn group ‘Employment Matters Magazine’.

Nestle Announces it Will Pay Living Wage to all Contractors


PAYING THE LIVING WAGE

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

12

Holiday Pay Needs to Include Commission, Says European Court

FEATURE: HOLIDAY PAY

A ruling by the European court of justice (ECJ) could see workers who lose out on commission payments whilst on holiday being compensated by their employers.

The ECJ says that workers, who would usually be paid commission by the number of sales they make when at work, should be compensated for their loss of earnings whilst on annual leave, otherwise they could be put off taking holidays.

By law, workers in the UK are covered by the Working Time Regulations, which give them a right to 5.6 weeks of paid holiday each year (read our guide at www.employment-lawuk.co.uk/law-holiday-entitlement for more information). However, the ECJ says this pay needs to include an element to cover the commission that a worker would usually earn.

In forming its decision, the ECJ considered the case of Lock v British Gas Trading Limited. Lock, a sales consultant at British Gas Trading, earned commission which made up around 60% of his total pay in respect of successful sales, and the balance was his basic pay. In late December 2011, Lock took two weeks’ annual leave and although he received commission for previous sales that were due during his holiday period, he encountered financial problems in the months following the holiday as he wasn’t able to generate commission for the period in which he was away.

Lock brought a claim based on his lost holiday pay and the employment tribunal (ET) referred the case to the ECJ. The ET requested that the ECJ submit a preliminary ruling on whether the UK and other member states should consider the commission

payments that a worker should have earned whilst on holiday and, if so, how this should be calculated. The ECJ decided that Lock, and other workers in his position, would suffer a financial disadvantage (i.e. a significant reduction in pay) following a holiday.

The court said that in cases where an employee’s total pay is made up of several elements, the holiday pay that employee receives should be analysed to determine the amount of money they should actually be paid when on annual leave. Although in Lock’s case the commission he received fluctuated from month to month, the court decided that it was indeed permanent enough to be regarded as a standard part of his salary.

The ECJ offered no clarification on how holiday pay should be calculated in the above circumstances, deciding instead that it was a matter to be determined by the national courts, on the basis of rules already set out in European case law and the working time directive. UK legislation is likely to be amended to reflect this ruling, with a form of averaging of the previous month’s commission possibly being adopted to determine a worker’s appropriate holiday pay.

Lindsey Kidd, Senior Partner in Hillyer McKeown’s employment team, said “We have been proactively contacting clients who operate a commission scheme on the back of the ECJ decision in Lock –v- British Gas Trading Limited to make them aware of the implications for their business when calculating holiday pay.

“The Court of Justice of the European Union (ECJ) held that commission should be included in the calculation of holiday pay in addition to basic salary. The ECJ agreed with the Advocate General’s opinion which was delivered in December 2013 that remuneration whilst on annual leave should include an amount to reflect commission that would have been earned, if the employee had not taken annual leave.

“The key principle is that employees should not be worse off because they have taken holiday. If they are, the risk is that employees will be deterred from taking their holiday entitlement, which would be contrary to the purpose of the Working Time Directive.

“This decision is likely to have broad repercussions for lots of employers, not only when calculating holiday pay in the future, but it could also result in significant liability for retrospective payments, at least

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E J

ULY

2014

13

in respect of the basic four weeks’ leave entitlement derived from the Directive. This is because technically this is not a change in the law, but merely clarification of it. On that basis the ‘new’ position following the recent ECJ decision has always applied.”So how should the amount be calculated?

Unfortunately the ECJ did not go so far as to say how holiday pay should now be calculated, concluding that the detail of this was something for the UK Courts to determine “on the basis of the rules and criteria set out” by ECJ case law “and in light of the objective pursued” by the Working Time Directive. The ECJ suggested that the focus should be on the average commission earned “over a reference period which is considered to be representative, under national law”. It offered no guidance as to what would be considered ‘representative’.

The Advocate General’s view was that taking an average amount received by the employee over a representative period of for example, the previous 12 months, would be appropriate. However, this is for national courts to determine and further clarification of this issue is, therefore, needed.

The case is now likely to return to the tribunal to consider whether our domestic legislation can be interpreted in line with the ECJ’s decision and, if it can, the level of holiday pay to which the claimant in this particular case was entitled.

Future claims seem inevitable from workers whose remuneration is made up of a basic salary and regular variable components directly linked to their work, for example, commission, if an element of commission has not previously been included within the holiday pay calculation. The risks will arise both where existing pay practices are not amended and potentially in respect of underpaid holiday going back some years.

In the meantime, we are waiting for the EAT’s decision in the cases of Neal v Freightliner Ltd and Fulton v Bear Scotland Ltd which are due to come before the EAT at the very end of July 2014. These deal with the separate but related issue of whether holiday pay should take account of overtime pay. It is anticipated that the outcome will be the same since overtime, like commission, is intrinsically linked to the performance of employment duties. So, if your business also pays overtime, you need to give consideration as to the impact of this on holiday pay.

Going Forward

The tribunal will need to consider whether the Working Time Regulations 1998 (WTR) and, in turn, the week’s pay provisions of the Employment Rights Act 1996 can be interpreted in line with the ECJ’s decision (at least with regard to the four weeks’ leave required by the WTD). Recent history,

particularly in cases concerning sickness and holiday under the WTR 1998 suggests that the tribunal will find a way to make this happen. If not, the WTR may need to be amended to ensure compliance with the Directive.

So, we will need to wait for definitive guidance on how the tribunal approach calculating any payment in respect of commission. However, some businesses are keen to take pre-emptive measures before the position is clarified in the UK tribunal or via amendment to the WTR. The Advocate General stated, by way of example that a reference period of 12 months would appear to be an appropriate solution. However, the ECJ did not repeat this, simply suggesting that the tribunal should use a reference period considered to be representative under national law.

Under the WTR 1998, the usual reference period for workers whose remuneration varies with the amount of work done, and for workers with no normal working hours, is 12 weeks rather than 12 months. It might well be that the tribunal will apply the 12-week reference period for the sake of consistency. “Our recommendation is that businesses should now be reviewing their holiday pay arrangements if they have workers who are entitled to variable payments such as commission to determine whether or not changes may need to be made to them,” said Lindsey.

“ This decision is likely to have broad repercussions for lots of employers, not only when calculating holiday pay in the future, but it could also result in significant liability for retrospective payments

”

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

14

“Whilst the impact of this decision will be unwelcome for lots of employers, it will be easier to manage for businesses that have a relatively ‘flat’ commission base. However, for sales people who generate commission on big or complex deals that take months or even a year or more to complete, the practicalities of managing this decision will be trickier, e.g. to prevent employees from working the system and booking their holidays to fall just after a big commission pay out. Structuring those commission payments will require a lot more thought to avoid windfall holiday payments.

“We anticipate that whatever decision is reached at tribunal level, it will be appealed until we have a judgment at a suitably high binding level.”

Practical considerations

In the meantime, whilst the uncertainty prevails, Hillyer McKeown is recommending to employers that they take steps to calculate potential exposure as a result of this development and are assisting a number of clients with this process. The

impact of the decision should not be underestimated; we understand it has been reported that John Lewis has just had to set aside £50 million to pay miscalculated holiday pay for example.

“We also anticipate that claims for unpaid holiday pay / incorrect holiday pay will become a standard ‘add on’ in actual or threatened tribunal proceedings to gain leverage for the claimant employee,” said Lindsey.

The likelihood of employees bringing a claim depends on how aware the employees are of the fact that holiday pay is/has been paid incorrectly and whether or not they want to do anything about it. This decision has not received a great deal of publicity to date, plus there isn’t currently any definitive guidance on how holiday pay should be calculated. In essence, the ECJ decision means that pay in respect of the statutory minimum holiday of four working weeks holiday per year should include commission where commission forms a normal part of the employee’s pay. However, the decision does not apply to the additional 1.6 weeks’ pay employees receive in the UK in respect

of bank holidays and it also does not include any contractual holiday entitlement over and above the 20 day statutory minimum.

In summary, currently, UK law says that holiday pay is just basic pay (excluding any commission or overtime) and so EU law and UK law are in conflict as this ECJ decision confirms that commission must be taken into account when calculating holiday pay. It seems likely that UK law will change in due course in light of the ECJ’s decision but there has been no guidance on when this might happen. Employers are at risk of retrospective claims from both current and ex-employees.

As a minimum, employers should double-checking whether their commission arrangements do in fact fail to comply with the WTD requirements and then calculate the value of this potential liability. Contact us if you need help with the methodology of calculating the risk and putting in place mitigation strategies.

You can call us on 0845 366 4416 or enquire through our website: Employment-lawuk.co.uk.

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

16

SOCIAL MEDIA POLICY

D utch airline KLM has found itself in hot water after a tweet sent from its official account following

the Netherlands World Cup victory over Mexico went viral last month.

The airline tweeted an image of an airport departures sign alongside a man wearing a sombrero and moustache under the heading ‘Adios Amigos’. However, the tweet was promptly deleted after it went viral.

The airline issued an official apology for the tweet. Marnix Fruitema, director general of KLM in North America, said: “In the best of sportsmanship, we offer our heartfelt apologies to those who have been offended by the comment.”

However, the story brings to light the ever-increasing need for businesses to have a robust social media policy in place to tackle issues with social media sites. Social media policies are still relatively new but are becoming an increasingly important document for businesses to draw on given the steady growth of social

media platforms in recent years. As in the case of KLM, it is vitally important that employees are clear on what they can and cannot say to avoid drawing any negativity to the brand, or worse.

Justine Watkinson, Head of Employment Law at Hillyer McKeown, said: “It is really important that businesses have a social media policy in place to set out what is and isn’t acceptable on social media sites.

“As in the case with KLM, a tweet can go viral within hours, if not minutes and if viewed negatively, this can potentially have a huge impact on an organisation’s image.By setting out a robust social media policy, employers can have peace of mind that their staff are adhering to a clear set of guidelines when they put out a post on any of the large number of social media sites available. “

If you would like some advice on putting together a coherent social media policy, contact myself or my team on 0845 366 4416 or enquire online on our webiste: Employment-lawuk.co.uk.

Be clear about the policy

A social media policy should be set up to help protect a company against liability for the actions of its workers and help line managers to effectively monitor and manage the performance of its workers.

One of the common themes that comes up a lot when I discuss social media policies is to focus on what the employee can do rather than can’t do. This goes against the usual structure of policies which ordinarily focus on what should not be done, however it seems more beneficial to list what is acceptable in this case due to the long list this may lead to.

Be responsible for your content

Your organisation and its representatives must take full responsibility for what they write. It is important to exercise good judgement – refrain from posting comments that might be interpreted as demeaning or inflammatory.


Dutch Airline in Hot Water Over Controversial Tweet

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

18

S taff now have the right to ask for flexi-time under regulations brought out in time for the summer holiday season.

The new rules are likely to prove popular with workers who want to sunbathe while they field phone calls, but for employers they create a cloudy outlook. Aventi employment experts warn the right to ask for flexible working presents problems for those running small to medium-sized enterprises. Employment solicitor Rachel Hughes said: “Previously, workers with children under 17 had a legal right to request flexible working but that has now been extended to everyone.

“Employers must be careful that they don’t fall foul of these provisions. For example, if several staff members ask for flexible hours, allowing some to work flexibly and not invites others it raises the possibility of discrimination.

“There have already been findings of discrimination over selection of staff for home working, for example last year a female worker successfully claimed she was discriminated against when she was refused flexible working at the same time that a male colleague was granted it.”

Rachel added that employers will also need to update their staff handbooks to reflect the changes. Previous tribunal cases have involved claims of unfair treatment from different workers who were parents. The new rules open the possibility that granting flexible time to parents ahead of workers who do not have children may in itself be judged discriminatory.

The rule changes, which took effect on June 30, come during a period when the number of people working from home has reached its highest level since records began.

Data from the Office for National Statistics showed that in the first three months of this year, 4.2 million of Britain’s 30.2 million workers did so from home, a rate of 13.9%.

All employees with more than 26 weeks’ service now have the statutory right to ask for flexible working. This may take various forms, including part-time working, working from home or job sharing.

Employers have a duty to deal with requests ‘reasonably’ and within a ‘reasonable time’. They must have a “sound business reason” for rejecting a request. Employees can make one request for flexible working within any 12-month period.

The Advisory, Conciliation and Arbitration Service (ACAS) has drawn up a code for employers on how to handle requests, available at their website.

It says employers should consider introducing a right to request policy, which may form part of the staff handbook.

The Aventi team can help you with your flexible working policy and save your business from the damage of discrimination claims too. Call 08444 177 177 for details of our packages.

bySARAH LOWE Features Editor

Focus: The Third SectorFollowing on from her successful Third Sector update seminars, Rachel Hughes warns that employers must consider all flexible working requests fairly in light of new law extending the right for employees to request flexible working hours from their employers.

FEATURE: THIRD SECTOR

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E J

ULY

2014

19


Interview WithJohn WatkinSarah Lowe speaks to the Chief Executive Officer of the Denbighshire Voluntary Services Council (DVSC)

1.John, when did you join the DVSC & what does a typical day entail for you?

DVSC started up back in 1996 and I joined in 2008 as CEO. The organisation has changed very much since then. At our core, we exist to develop, promote and support third sector organisations and provide our members with information and support as and when they need it. Each day, I work with our members and partners to ensure that we are delivering the best possible service – identifying the current needs of our members today and pre-empting their needs for the future. I just need to ensure that we continue to grow and help people in the best way we can as times get tougher.

2.What is your biggest challenge? We are facing cuts from the Welsh

Government at the moment which is very difficult because costs just keep on rising in this sector. As an organisation we must continue to look for new projects, new contracts and new opportunities in general – it is a bit of a rollercoaster but so far we have managed to do it.

3.How do you identify new opportunities? We utilise websites such as sell2wales,

but most of all we ensure that we are constantly in touch with our members to see which areas they need support with and how we can work with them and our partners to ensure that we deliver these services to them. We’ve built strong relationships with the county council, health board, fire and police services. We have a similar number of members as other voluntary services in the region so we want to ensure that we are delivering the best possible service to them and understanding their needs.

4.What have you been working on? As always, we are constantly looking to

identify ways in which we can find the money we need to fund projects. We have been delivering lots of training programmes to our members such as events like the employment law update Hillyer McKeown is delivering to our members free-of-charge on 2nd July. Where employment issues are a problem for our members, we feel confident in referring them to Hillyer McKeown for accurate and detailed advice.

5.You have a total of 50 staff at DVSC – how does Aventi help you day-to-day?

Our purpose is to support other third sector organisations so to us, it is really important that we set an example to our members in how to manage staff effectively. We take this role very seriously. We need to make sure that we have all of the correct terms and conditions in place, communicate the right procedures to staff and engage with them in the right way. Aventi is a very good product – it gives us peace-of-mind so we can be sure that we are doing all of the above in the correct way. We have recruited additional members of staff over the past 12 months and it’s crucial to us that the staff know they are valued in our organisation. It’s also really important to consider what could happen if you don’t have a product like Aventi in place. We have been with Aventi for a year now and I really value the service – challenges will be thrown at us and we need to make sure we handle them effectively or it could end up costing us a lot of money.

6.What are the positives happening in the third sector at the moment?

The sector is evolving and I think achieving the most positive outcomes to the potential challenges discussed will come as a result of moving with that change. It’s about innovation and looking for opportunities that benefit the local community. This is a huge positive in itself – if we don’t evolve then we won’t move forwards as a sector. Across the UK I know local authorities for example are struggling to maintain a strong, effective library service and for some authorities they are turning to the community/Third Sector for help in securing volunteers to operate the libraries, rather than see reduced hours of working or even outright closure. This is co-production, local empowerment at its best. When we are approached, we look to our members and partners to see if there is anything we can do. Third sector groups look to us to advocate on their behalf and we do, and will continue to do, all we can to help them.

Employment Seminars

Hillyer McKeown teamed up with DVSC to deliver a free employment update to their members on 2nd July . Solicitors Justine Watkinson and Rachel Hughes presented on a range of topics including:

• Management of sickness absence

• Managing disciplinaries

• Zero hours vs fixed term contracts

• The rights of volunteer workers

• Changes to flexible working

Hillyer McKeown will be teaming up with PAVO on the 10th of July to deliver an update to their members. To book your place, visit: Employment-lawuk.co.uk.

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

20

H illyer McKeown were delighted to host a lunch for the Not for Profit sector last month with

McEwan Wallace Chartered Accountants and NatWest.

The event was held at Blackburne House, Liverpool from 12pm – 2pm and consisted of an informal lunch, which provided attendees with an open forum for discussion.

Claire Dove OBE, CEO of Blackburne House, spoke about how she has successfully drawn upon her entrepreneurial skills to grow Blackburne House into an award-winning and phenomenally successful social business. Claire is also Chair of the Social Enterprise Coalition (SEC), the umbrella body for social enterprise in the UK.

Claire was joined at the event by fellow speaker Carol McLachlan of WorkSmartPlayHard (pictured) who spoke about the latest thinking on leadership

versus management, analysing just what it takes to be an effective leader in the twenty first century.

Rachel Hughes, Associate Solicitor at Hillyer McKeown, also spoke at the event, focusing specifically on the use of zero hours contracts in the Not for Profit sector. Zero hours contracts have received a lot of negative coverage lately and Rachel discussed why this is, whilst looking at case studies of well-known organisations that use the contracts.

The lunch follows on from a number of successful Not for Profit events run by Hillyer McKeown, Natwest and McEwan Wallace in 2013, which proved to be very popular.

If you work in the Not for Profit or Third sectors and have a question on employment law, contact our experienced team on 0845 366 4416 or enquire online: www.employment-lawuk.co.uk.


Hillyer McKeown Host Not For Profit Lunch


Not for profit lunch speaker Carol McLachlan

EMPL

OYM

ENTM

ATTE

RS •

ISSU

E J

ULY

2014

21

Ray Howard, CEO at Hillyer McKeown, has recently become involved in the Chester Voluntary Action (CVA) Skillshare programme, an initiative matching up local professionals with community and voluntary groups that require our services and those of others.

Collaborations through Skillshare have helped to create more successful and sustainable community and voluntary organisations across the local community, by providing a range of support services such as accounting, law and marketing.Ray’s primary role at Hillyer McKeown is to provide strategic guidance as well as to deliver sustainable expansion and development plans for the firm.

Ray said of his involvement in Skillshare: “For the past 20 years, I’ve focused on supporting small businesses with the emphasis on transforming businesses across a wide range of sectors and in many cases helping them secure funding for growth.

“I’ve helped established businesses achieve sustainable growth and have supported start-ups that have spun out of a number of Universities. These experiences have given me a unique skill set which I now use to support local charities in the community. I’m happy to pass on my expertise to help charities achieve growth and move forward more efficiently”.

Trafford Mill, a Grade II Listed Building currently applying for a charitable status, is a project that Ray has been advising on, helping the company with their lease. In the future, he may also help them to write a business plan.

“I can provide guidelines to help charities know what questions they need to think about when writing their business plan,” Ray said.

“I’m happy to offer ideas and support, but its important charities take ownership of writing their own business plan, as they know better than anyone what they’re about. I’m happy to act as a soundboard and give an unbiased opinion to help charities understand what they should try to achieve and the best way to do it. I give options and suggestions; I don’t tell them what to do.”

Skillshare has so far supported nearly 100 community and voluntary groups in and around Chester and, Ray says, helps businesses to demonstrate their commitment to the local community.

“I don’t ask or expect anything from SkillShare,” Ray said. “Our involvement will hopefully help people to realise that as a business we care about the local community and can actually help and contribute”.

Want to read more about Skillshare? Visit www.chesterva.org.uk/services/skillshare for more information.

bySARAH LOWE Features Editor

Local Charity SkillshareSarah Lowe speaks to Hillyer McKeown’s CEO Ray Howard about his involvement with Chester Voluntary Action and Hillyer McKeown’s support of their Skillshare programme.


EMPL

OYM

ENTM

ATTE

RS •

ISSU

E JU

LY 2

014

22

O n 12th August, Hillyer McKeown’s employment solicitors Justine Watkinson and Rachel Hughes will be joining Chester Voluntary Action (CVA) at a special centenary

event hosted by the Lord Mayor of Chester Councillor Bob Rudd at the Town Hall.

The event will celebrate CVA’s work and achievements over the past 100 years which have helped shape the development of many of the local charities including CAB, Samaritans and Chester Aid to the Homeless, and social services which continue to be provided today.

Special tribute will also be made to all the volunteers past and present who have made such a significant and enduring contribution to the local community.

CVA was set up in 1914 days after the outbreak of WW1 as the ‘Council of Social Welfare’ to coordinated the provision of vital assistance on the home front and provided relief aid to support families whose main breadwinner was away in the services, wounded or killed, and those affected by unemployment arising from the disruption of trade.

CVA continues to support local voluntary and community organisations by providing a wide range of advice and support services to its 380+ members around governance and funding, and also specialist services such as its Volunteer Centre and Skillshare initiative.

This vital support enables local charities and voluntary groups to become stronger, more effective, efficient, and sustainable, and therefore be better able to successfully deliver vital quality front-line services for some of the most vulnerable people in our community.

Find out more about Chester Voluntary Action, visit: Chesterva.org.uk


Celebrating 100 Years in ChesterEmployment Lawyers Hillyer McKeown join Chester Voluntary Action to celebrate their work and achievements over the past 100 years


Documents

Employment Matters Magazine - July 2014