Training and performance management policies
In this guide:
- Set up employment policies for your business
- Advantages of employment policies
- Employment policies: what types should I use?
- Working time and time off policies
- Equality and diversity workplace policies
- Health and safety workplace policies
- Disciplinary, grievance, bullying and harassment policies
- Workplace policies to help you protect your assets
- Anti-bribery policies
- Training and performance management policies
- Pay, rewards and benefits policies
- Managing personal relationships at work
- Writing and communicating staff policies
Advantages of employment policies
Why it’s beneficial to have employment policies in place in your business.
There are many advantages to having suitable employment policies in place. For example, setting standards within your business can help with healthy workplace relations.
Benefits of having employment policies
Other advantages of having employment policies can include:
- a reduction in the need for disciplinary and legal action
- increased productivity and morale
- better employee retention
- employees know what is expected of them
- protection from breaches of employment legislation
- a framework where a delegation of decision-making is equitably agreed upon can maintain morale
- providing a means of communicating information to new employees
Clear policy making can also be positive for your business' reputation externally, eg among clients and the local community.
Having suitable policies in place can also make it easier to attract new staff.
To access templates for workplace policies that you can download, tailor, and use, see HR documents and templates.
Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
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Employment policies: what types should I use?
A list of the common types of employment policies that employers can set up.
The employment policies that you have will depend on the size and nature of your business. For example, if your staff operate machinery, it may be a good idea to implement a specific staff policy on drugs and alcohol use. If most of your staff use computers most of the time, you should have an email and internet acceptable use policy.
Common types of employment policies
Type of Employment policy Further Information Maternity/paternity/adoption/parental bereavement policy Statutory leave and pay entitlements Working time and time off policy Working time Equality and diversity workplace policy Diversity, equality, and inclusion in the workplace Health and safety policy Health and safety Pay policy Staff pay Bullying and harassment policy Bullying and harassment Rewards, benefits and expenses policy Expenses and benefits Discipline/dismissal and grievance policy Dismissing employees Redundancy policy Redundancy, restructures, and change Measures to improve performance or manage change Bribery policy Anti-bribery policies Policies on the use of company facilities, eg email, internet, and phone use Other key HR policies and templates Training and development policy Performance management and staff training templates Policy of right of search/social media usage Policies to help you protect your assets Patents and copyrights policy Patents, trademarks, copyright, and design Confidential information policy UK General Data Protection Regulation (UK GDPR) Policies on whistleblowing/protected disclosures Policies to help you protect your assets Smoking, drugs, and alcohol policies Workplace policies on smoking, drugs, and alcohol Sickness absence policy Absence and sickness policies: what to include Flexible working policy Flexible working: the law and best practice Hybrid working policy Hybrid working - employer guidance
To access employment policy templates that you can download, tailor, and use for your business, see HR documents and templates.Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
Employment policies: legal requirements
Note that it is a legal requirement to set out your health and safety policy in writing if you have five or more employees. It is also a legal requirement to set out your disciplinary rules and discipline and grievance procedures in writing.
If, following an assessment, there is a risk that someone performing services for your business might carry out acts of bribery, you will need to have a procedure in place to prevent such acts. Read more on anti-bribery policies.
Communicating your employment policies
A workplace policy can be part of your employee/company handbook or you could set it out in a separate document. However, for your discipline and grievance policies, you must either set them out in a written statement of main terms and conditions of employment or refer in a written statement to a place where the employee can read them, eg the company intranet.
You should make staff aware that your employment policies exist, particularly during the induction process - see induction programme: what to include, and make sure workers can easily access them if necessary, eg by having them pinned up on a noticeboard or put on the company intranet.
Employment policies: contractual status
Workplace policies generally aren't contractually binding unless they expressly state otherwise.
However, terms of some employment policies could be seen as contractually binding through custom and practice, ie where workers follow certain working practices or receive certain benefits over a significant period of time, and ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
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Working time and time off policies
Polices covering leave and absence, working hours, and overtime.
A policy on working time and time off should cover a number of areas.
Leave and absence
Occasionally, your workers will want or need time off.
In certain circumstances, you are legally obliged to give your workers time off, eg to take annual leave, attend health and safety training, time off for dependants, and carry out trade union duties. See parental leave and time off for dependants and allowing time off work.
In other circumstances, you can use your discretion, eg requests involving moving house or looking after a sick relative. However, having policies in place that pre-empt these types of requests will ensure that you deal with such matters consistently.
Working hours
Workers aged 18 years old or above may only work an average of 48 hours per week averaged out over a 17-week period (other limits apply for younger workers). However, they have the right to sign an opt-out agreement, which allows them to work more than this.
It's a good idea to manage these working hours and keep appropriate records. See hours, rest breaks, and the working week.
Overtime
You are not obliged to offer overtime to your workers or require them to work it. However, any overtime policy should still set out the rules on overtime. This is particularly important if your workers have come to expect regular overtime - they could claim it had become a contractual entitlement through custom and practice.
Rates of overtime pay should be agreed with employees, as no minimum statutory levels apply, although you should ensure that workers are paid at least the national minimum wage for all hours worked. See how to manage overtime.
Work-life balance
Encouraging work-life balance is important for your business. To achieve this, and as they are statutory rights, you should definitely have policies on:
- parental leave
- flexible working
- maternity, adoption, and paternity leave and pay
See how to promote good work/life balance in your business.
To access templates that you can download, tailor, and use, see time off work policies and procedures.
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Equality and diversity workplace policies
How promoting equality and diversity policies can benefit your business and create an open, communicative workplace.
Workers are protected from discrimination on a wide range of grounds, eg gender, sexual orientation, and age. See how to prevent discrimination and value diversity.
Business benefits of promoting diversity
Many successful businesses go much further and actively promote diversity in both their strategic and human resources policies. If you value everyone as an individual, research shows that diversity can help stimulate creative interaction, motivate employees, and improve business performance.
If you do not yet have an equality and diversity policy in place, you could find it a useful management and recruitment tool. It should:
- explain your business' stance on diversity
- show how you intend to achieve a diverse working environment
- describe how managers and staff can participate in the business's commitment to diversity both within and outside the organisation
It's therefore important that workers contribute to the policy-making process. You can do this by asking them for their views on, for example:
- promoting good relationships in the workplace between individuals, managers, teams, and employers
- treating all workers fairly
- valuing and respecting differences
- understanding workers' needs to balance work and family commitments
- how to communicate with individuals through formal and informal communication channels
Equality guidance for small businesses
The Equality Commission supports businesses and helps to promote good practice in equality, diversity, and inclusion. Read the Equality Commission guidance for small businesses.
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Health and safety workplace policies
Legal obligations and best practices when writing health and safety policies.
If you have five or more employees, you must by law have a written health and safety policy. The health and safety policy should set out:
- your general approach and objectives in relation to health and safety
- the arrangements you have in place for managing health and safety in your business
However, good health and safety practice means that you should not only have such a policy but also manage it in a way that benefits your business, workers, clients, and local community.
Write a health and safety policy for your business.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on health and safety.
Policies to promote staff well-being
To promote the health and well-being of your staff, you also might want to consider policies on specific health-related issues, such as:
- stress at work - see how to deal with stress
- smoking, drugs, and alcohol - see workplace policies on smoking, drugs, and alcohol
To back up your health and safety policies, you may decide to introduce a range of facilities promoting good health amongst your workforce, eg gym access deals (dependant on gym contract terms), advice on how to give up smoking, alcohol or drugs counselling, and routine health check-ups.
The benefits for your business can include the improved overall health of your workers, and improved morale and productivity. See what you need to do about health and safety.
Consultation on health and safety matters
You're required by law to consult your employees on health and safety issues in the workplace and to make them aware of what's in your policy. See how to provide health and safety training and information.
However, you may decide to encourage them to get involved more fully in the process. This could involve devising safety rules, as well as giving useful feedback on how effectively policies are working.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
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Disciplinary, grievance, bullying and harassment policies
The legal requirement to have written workplace disciplinary and grievance policies.
You are required by law to set out your disciplinary rules and disciplinary and grievance procedures, in writing.
It's also common for employers to have a separate bullying and harassment policy for their workplace.
Discipline and grievance policies
You must tell each employee about:
- your disciplinary rules
- your disciplinary/dismissal and grievance procedure
- the name of the person to whom they should appeal if they are unhappy about a disciplinary or dismissal decision, or to seek redress for a grievance
This information can be included in the employee's written statement or the written statement may refer the employee to a document where they can read it, eg in a staff handbook - see Invest Northern Ireland Employers' Handbook.
If you fail to issue this information in writing, and one of your employees makes an industrial tribunal case against you and wins, you may have to pay up to four weeks' wages on top of any other compensation the tribunal may award.
It's important that your disciplinary rules give examples of the types of behaviour that qualify as gross misconduct, eg fighting, bullying, and stealing. If you find that an employee has committed an act of gross misconduct, you could be entitled to dismiss them summarily without notice or pay in lieu of notice. You should ensure that you comply with the statutory dismissal procedures and the LRA Code of Practice on Discipline and Grievance even when dismissing for gross misconduct.
Read more on disciplinary procedures, hearings, and appeals, handling grievances, and dismissing employees.
To access templates that you can download, tailor, and use, see grievance and disciplinary procedures and templates.
Employment document toolkit
If you require further help with drawing up your disciplinary and grievance policies, the Labour Relations Agency (LRA) has a free employment document toolkit. Once you have registered you can get access to their free core employment guides to help you build documents, policies, and procedures for your own organisation.
Bullying and harassment policies
Bullying and harassment are conduct issues and therefore would normally fall under your disciplinary policy. However, many employers have a separate bullying and harassment policy given that such behaviour:
- needs dealing with sensitively
- can amount to gross misconduct
- may involve unlawful discrimination
There is no legislation that is specifically designed to address workplace bullying. However, bullying can be successfully challenged through existing legislation, ie civil, criminal, and employment law.
You have a legal duty to protect the health and safety of your workers. Bullying can also lead to a breakdown in trust and confidence between you and the alleged victim, leading to the employee resigning and claiming constructive dismissal.
Sexual harassment and harassment on the grounds of sex, disability, race, sexual orientation, religion/belief, and age are unlawful. Even if a worker harasses a colleague, the victim can make a discrimination claim against you.
You should have a clear policy on bullying and harassment so that staff understands that it's unacceptable. The policy should also include a procedure for dealing with claims of harassment or bullying should they arise.
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Workplace policies to help you protect your assets
Policies that should help to protect your physical property, intellectual property, branding, reputation, and image.
It makes good business sense to have workplace policies on issues such as:
- intellectual property
- confidentiality
- social media usage
- use of company facilities
- dress and appearance
- whistleblowing
- the right to search
These help you protect both your tangible and intangible business assets, which, once lost, may be difficult to regain.
Policies on intellectual property protection and confidentiality
If you design products or create other original output, eg music or printed matter, it is important to protect your intellectual property.
Therefore you need a workplace policy that states that:
- any original product or material developed in the course of an employee's work remains the property of the business
- employees have a duty to keep company information confidential
If you intend to rely on any kind of penalty clauses, you should always seek legal advice.
Read more on protecting intellectual property.
Social media workplace policy
The use of social media at work presents responsibilities regarding employees using various sites. Having a written social media policy for your business provides clear guidelines for employees.
Read more on managing employee use of social media. Read the Labour Relations Agency's advice on social media and the employment relationship.
Policies on dress and appearance
You are entitled to set out a code covering how you expect employees to dress and generally present themselves. This is particularly important where there are health and safety issues involved, eg in factories, building sites, or kitchens.
However, you must ensure that these codes are non-discriminatory, particularly in relation to gender and religion/belief. Read the Fair Employment Code of Practice from the Equality Commission.
Policy on the use of company facilities
It's a good idea to set up clear policies about the use of company facilities. In particular, you should have a policy on the use of the internet, email, and telephone.
Most email and internet policies aim to strike a balance between business and personal use. Setting out boundaries will help to minimise the risk of:
- having to take disciplinary action against staff
- a third party taking legal action against you
- harm to your IT system
- leakage of confidential information
In addition, if you intend to monitor staff usage of company facilities then you should carry out an impact assessment in advance of this.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
Read more on monitoring and security of staff.
Whistleblowing policies
It is a good idea to have a policy on making protected disclosures - or 'whistleblowing'. This is because it will encourage workers to raise concerns about illegal activities and bad business practices internally - and prevent your business from receiving negative publicity.
Note that you do not need to treat the making of a protected disclosure as a grievance unless:
- the disclosure relates to a matter that the employee could raise as a grievance with you
- the employee intends for the disclosure to constitute the raising of a grievance
Read more on whistleblowing - qualifying disclosures.
Also see discipline, grievance, bullying, and harassment policies.
Right-to-search policies
You may only search an employee if this is allowed under their terms and conditions of employment.
Therefore, if you have a right-to-search policy, you should state that it is contractual. It is also important to remember that you should get an employee's consent before conducting a search.
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Anti-bribery policies
How to set up anti-bribery policies, and when your business may require them.
Your business may need to have a procedure in place to prevent acts of bribery.
You will only need such a procedure if - following an assessment - there is a risk that an agent, subsidiary or other person performing services for your business might carry out such acts.
Under UK law, there is a general offence of bribery, and of bribing a foreign official. Bribery is defined as giving someone financial or other advantages to induce them to perform their functions or activities improperly or to reward them for having already done so.
In addition, there is an offence relating to failure by a business to prevent a person associated with it from committing the above offences on its behalf in order to win business, keep business or gain a business advantage for the organisation.
You will have a statutory defence to the last of these offences if your business has adequate procedures in place to prevent bribery on your behalf.
Preventing bribery
To prevent bribery - and have a defence in case a charge of bribery is made against you - you should:
- assess whether your business is at risk and, if so, the level of that risk
- have an anti-bribery policy in place containing procedures proportionate to the risk you have identified, the scope and size of your business, and the country/countries in which you do business
- use due diligence to assess who you are dealing with and who you appoint to represent you
- communicate, train and raise awareness among employees and business partners
- monitor and review your procedures
Anti-bribery policy
Your anti-bribery policy should:
- include a clear prohibition of the offer, gift or acceptance of bribes
- detail the procedures that should be followed during business transactions
- give guidance on the provision of gifts, hospitality or expenses that may influence the outcome of business transactions
- provide guidance on political and charitable donations, including a prohibition of the payment of donations to political parties or charities that are directly linked to obtaining new business or gaining a business advantage
- require that any donations made in good faith are publicly disclosed
Note that the following are not considered acts of bribery:
- providing genuine business hospitality
- carrying out proportionate and reasonable promotional activities
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Training and performance management policies
Implement training policies and appraisal systems to encourage and develop the skills of your employees.
Having a training policy in place will enable you to plug any skills shortages in your workplace. This is beneficial to employees and will also have a positive impact on business performance.
A training policy can be implemented to allow employees to perform their current role more effectively or support them through a change in role.
You should ensure that your training policy is appropriate. This can be achieved by assessing whether it fits with your business plan and through discussions with employees, eg you may decide to offer training in-house for specific tasks, general company guidance for new starters, or refresher training for existing employees. Develop a staff training plan.
Performance management
Implementing an appraisal system is another way of improving your business performance. It represents a good opportunity to discuss with individual employees both their strengths and weaknesses, areas for development, and agree on new aims and objectives with them.
Businesses commonly carry out appraisals within a few months of a new employee starting or changing role within the business. For established employees, you may decide to use the appraisal system once or twice per year.
Some of the benefits of having appraisal-related performance targets are that employees understand what is expected of them and how these fit into the wider aims of the business. Targets are also a way of gaining useful feedback and ideas on how your business can be more effective in the future. Read more on managing staff performance.
To access templates that you can download, tailor and use, see performance management and staff training templates.
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Pay, rewards and benefits policies
Setting the right pay rates for your employees and establishing policies around rewards and benefits.
Pay is a key aspect of your relationship with your employees. Setting the right pay rates for your business will likely take into account your need to attract talented employees and retain those that you have already. Above all, pay rewards should be fair, and the process transparent. See how to set the right pay rates.
You may decide to implement a results-related pay system, such as commission or bonuses. These are provided by your business in addition to basic pay and can be used to reward employees who perform at a high level:
- commission is calculated based on the performance of an individual or a team
- bonuses may be connected to the performance of the entire business
Depending on the sector in which your business operates, eg in the catering trade, setting up a tips and gratuities system may be more appropriate. There are some circumstances when tips and gratuities can count towards the national minimum wage. See guidance on tips at work. For further advice on this, you may wish to contact HMRC.
You should be aware that there are certain types of business expenses that are tax deductible and others that are not. They may need to be disclosed to the relevant authorities. Read more on expenses and benefits.
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Managing personal relationships at work
Issues to consider on intimate personal or family relationships in the workplace.
Many personal relationships begin with people meeting at work, and many of these lead to long-term partnerships. This should not be viewed as a problem in itself, but it's important to recognise that relationships at work can cause a number of issues for both employers and the workforce.
Why have a workplace relationships policy?
Any employment policy about relationships at work is intended to ensure that staff don't commit - and are not open to allegations of acts of:
- inappropriate behaviour, including harassment
- favouritism
- abuse of authority
- conflict of interest
It is also intended to ensure that all employees feel confident of fair and consistent treatment without the fear that a relationship will influence their or other employees' treatment or wider working relationships.
Depending on the size of your business, you may also want to extend the policy to cover other types of relationships, such as those between relatives or family members.
Some companies go so far as to specify in employment contracts that employees can't form an intimate relationship with someone they work with, although this is probably unnecessary in most workplaces.
What types of relationships would a policy cover?
For the purposes of creating a policy, 'intimate relationships' or 'close personal or family relationships' apply to those relationships between people in the same team or department, or between a line manager and one of their team that could potentially be problematic. It does not refer to a straightforward friendship between colleagues.
Issues that could arise include the following:
- If one of the couple is the other's manager, what happens if disciplinary action has to be taken against the employee? Who will do the employee appraisals or performance reviews?
- Does either of the couple have any financial responsibilities, such as authorising expense claims or overtime payments, or deciding pay rates or increases?
- What happens when the employee applies for a post for which the manager would be conducting the interviews? Or when someone related to an existing employee applies for a job? (Conflicts of interest should, where possible, be avoided. This would minimise tribunal risks.)
General policy on relationships at work: what might it cover?
If you choose to have a policy about personal relationships at work, it should clarify the behaviour you expect from employees, eg that the relationship shouldn't affect their work and that there should be no favouritism or preferential treatment, particularly where one employee is more senior than the other.
You may wish to include guidance on what to do if an employee involved in recruitment is aware that a partner, relative, or even a close friend has applied for a job. You could state that they should declare this at the earliest opportunity.
Depending on the position and the employee's own role, you should consider:
- any potential conflict of interest
- how an appointment might affect the working environment
- any resulting risks that the relationship might cause
- what steps could be taken to address these matters
Remember that it can be a positive thing to have friends and family working together, as well as considering the potential risks.
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Writing and communicating staff policies
How to create staff policies and communicate them to your staff.
When writing staff policies the main steps are:
- Preparing - collecting information (anonymous staff views can be sought via a survey or series of surveys), opinions, and examining the options. Policies are more likely to be accepted if staff are involved in drawing them up. Involve unions, especially if you have collective agreements that specify they should be consulted, or existing elected employee representatives. Alternatively, set up a joint working group.
- Developing - policies should suit the specific needs of the business.
- Implementing - inform staff and provide training.
- Reviewing - this is to check that the policy is being used and is not damaging the business.
Check that your workplace policies are not unlawfully discriminatory, eg in relation to pay or dress/appearance.
Employment document toolkit
If in doubt, or if you require additional help with drawing up your employment documentation, the Labour Relations Agency (LRA) has a free employment document toolkit. Once registered you can access their free core employment guides to help you build documents, policies, and procedures for your own organisation. Find out about the free employment document toolkit.
How should policies be communicated to staff?
You could inform your staff of workplace policies by:
- displaying them on noticeboards where staff can easily read them
- adding details of them to the company network or intranet
- communicating in presentations
- including in a staff handbook
- including in a collective agreement with a union
- emailing details of your policies to staff
- sending as a written letter to the staff
- consider including any new policy as an item on team meeting agendas
- including in a staff induction programme
Making changes to workplace policies
If you wish to make a change to a policy, you will need the employee to agree to the changes, unless their contract allows you to make such variations without such agreement (typically terms in relation to working hours, place of work, and duties).
If you fail to get employees' agreement, they may be entitled to sue for breach of contract, or resign and claim constructive dismissal. Ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
Introducing new workplace policies
If you are planning to introduce a new policy in your workplace, you should consider the following:
- What is the purpose of the policy?
- Have you consulted with managers, workers, and their representatives?
- Has someone been given overall responsibility for the policy?
- How are you going to communicate the policy to all workers?
- Have you given workers enough notice about the new policy?
- Have you thought through the potential cost of the policy?
- Does the policy change anyone's employment contract?
- How are you going to monitor and maintain the policy?
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Health and safety workplace policies
In this guide:
- Set up employment policies for your business
- Advantages of employment policies
- Employment policies: what types should I use?
- Working time and time off policies
- Equality and diversity workplace policies
- Health and safety workplace policies
- Disciplinary, grievance, bullying and harassment policies
- Workplace policies to help you protect your assets
- Anti-bribery policies
- Training and performance management policies
- Pay, rewards and benefits policies
- Managing personal relationships at work
- Writing and communicating staff policies
Advantages of employment policies
Why it’s beneficial to have employment policies in place in your business.
There are many advantages to having suitable employment policies in place. For example, setting standards within your business can help with healthy workplace relations.
Benefits of having employment policies
Other advantages of having employment policies can include:
- a reduction in the need for disciplinary and legal action
- increased productivity and morale
- better employee retention
- employees know what is expected of them
- protection from breaches of employment legislation
- a framework where a delegation of decision-making is equitably agreed upon can maintain morale
- providing a means of communicating information to new employees
Clear policy making can also be positive for your business' reputation externally, eg among clients and the local community.
Having suitable policies in place can also make it easier to attract new staff.
To access templates for workplace policies that you can download, tailor, and use, see HR documents and templates.
Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
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Employment policies: what types should I use?
A list of the common types of employment policies that employers can set up.
The employment policies that you have will depend on the size and nature of your business. For example, if your staff operate machinery, it may be a good idea to implement a specific staff policy on drugs and alcohol use. If most of your staff use computers most of the time, you should have an email and internet acceptable use policy.
Common types of employment policies
Type of Employment policy Further Information Maternity/paternity/adoption/parental bereavement policy Statutory leave and pay entitlements Working time and time off policy Working time Equality and diversity workplace policy Diversity, equality, and inclusion in the workplace Health and safety policy Health and safety Pay policy Staff pay Bullying and harassment policy Bullying and harassment Rewards, benefits and expenses policy Expenses and benefits Discipline/dismissal and grievance policy Dismissing employees Redundancy policy Redundancy, restructures, and change Measures to improve performance or manage change Bribery policy Anti-bribery policies Policies on the use of company facilities, eg email, internet, and phone use Other key HR policies and templates Training and development policy Performance management and staff training templates Policy of right of search/social media usage Policies to help you protect your assets Patents and copyrights policy Patents, trademarks, copyright, and design Confidential information policy UK General Data Protection Regulation (UK GDPR) Policies on whistleblowing/protected disclosures Policies to help you protect your assets Smoking, drugs, and alcohol policies Workplace policies on smoking, drugs, and alcohol Sickness absence policy Absence and sickness policies: what to include Flexible working policy Flexible working: the law and best practice Hybrid working policy Hybrid working - employer guidance
To access employment policy templates that you can download, tailor, and use for your business, see HR documents and templates.Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
Employment policies: legal requirements
Note that it is a legal requirement to set out your health and safety policy in writing if you have five or more employees. It is also a legal requirement to set out your disciplinary rules and discipline and grievance procedures in writing.
If, following an assessment, there is a risk that someone performing services for your business might carry out acts of bribery, you will need to have a procedure in place to prevent such acts. Read more on anti-bribery policies.
Communicating your employment policies
A workplace policy can be part of your employee/company handbook or you could set it out in a separate document. However, for your discipline and grievance policies, you must either set them out in a written statement of main terms and conditions of employment or refer in a written statement to a place where the employee can read them, eg the company intranet.
You should make staff aware that your employment policies exist, particularly during the induction process - see induction programme: what to include, and make sure workers can easily access them if necessary, eg by having them pinned up on a noticeboard or put on the company intranet.
Employment policies: contractual status
Workplace policies generally aren't contractually binding unless they expressly state otherwise.
However, terms of some employment policies could be seen as contractually binding through custom and practice, ie where workers follow certain working practices or receive certain benefits over a significant period of time, and ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
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Working time and time off policies
Polices covering leave and absence, working hours, and overtime.
A policy on working time and time off should cover a number of areas.
Leave and absence
Occasionally, your workers will want or need time off.
In certain circumstances, you are legally obliged to give your workers time off, eg to take annual leave, attend health and safety training, time off for dependants, and carry out trade union duties. See parental leave and time off for dependants and allowing time off work.
In other circumstances, you can use your discretion, eg requests involving moving house or looking after a sick relative. However, having policies in place that pre-empt these types of requests will ensure that you deal with such matters consistently.
Working hours
Workers aged 18 years old or above may only work an average of 48 hours per week averaged out over a 17-week period (other limits apply for younger workers). However, they have the right to sign an opt-out agreement, which allows them to work more than this.
It's a good idea to manage these working hours and keep appropriate records. See hours, rest breaks, and the working week.
Overtime
You are not obliged to offer overtime to your workers or require them to work it. However, any overtime policy should still set out the rules on overtime. This is particularly important if your workers have come to expect regular overtime - they could claim it had become a contractual entitlement through custom and practice.
Rates of overtime pay should be agreed with employees, as no minimum statutory levels apply, although you should ensure that workers are paid at least the national minimum wage for all hours worked. See how to manage overtime.
Work-life balance
Encouraging work-life balance is important for your business. To achieve this, and as they are statutory rights, you should definitely have policies on:
- parental leave
- flexible working
- maternity, adoption, and paternity leave and pay
See how to promote good work/life balance in your business.
To access templates that you can download, tailor, and use, see time off work policies and procedures.
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Equality and diversity workplace policies
How promoting equality and diversity policies can benefit your business and create an open, communicative workplace.
Workers are protected from discrimination on a wide range of grounds, eg gender, sexual orientation, and age. See how to prevent discrimination and value diversity.
Business benefits of promoting diversity
Many successful businesses go much further and actively promote diversity in both their strategic and human resources policies. If you value everyone as an individual, research shows that diversity can help stimulate creative interaction, motivate employees, and improve business performance.
If you do not yet have an equality and diversity policy in place, you could find it a useful management and recruitment tool. It should:
- explain your business' stance on diversity
- show how you intend to achieve a diverse working environment
- describe how managers and staff can participate in the business's commitment to diversity both within and outside the organisation
It's therefore important that workers contribute to the policy-making process. You can do this by asking them for their views on, for example:
- promoting good relationships in the workplace between individuals, managers, teams, and employers
- treating all workers fairly
- valuing and respecting differences
- understanding workers' needs to balance work and family commitments
- how to communicate with individuals through formal and informal communication channels
Equality guidance for small businesses
The Equality Commission supports businesses and helps to promote good practice in equality, diversity, and inclusion. Read the Equality Commission guidance for small businesses.
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Health and safety workplace policies
Legal obligations and best practices when writing health and safety policies.
If you have five or more employees, you must by law have a written health and safety policy. The health and safety policy should set out:
- your general approach and objectives in relation to health and safety
- the arrangements you have in place for managing health and safety in your business
However, good health and safety practice means that you should not only have such a policy but also manage it in a way that benefits your business, workers, clients, and local community.
Write a health and safety policy for your business.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on health and safety.
Policies to promote staff well-being
To promote the health and well-being of your staff, you also might want to consider policies on specific health-related issues, such as:
- stress at work - see how to deal with stress
- smoking, drugs, and alcohol - see workplace policies on smoking, drugs, and alcohol
To back up your health and safety policies, you may decide to introduce a range of facilities promoting good health amongst your workforce, eg gym access deals (dependant on gym contract terms), advice on how to give up smoking, alcohol or drugs counselling, and routine health check-ups.
The benefits for your business can include the improved overall health of your workers, and improved morale and productivity. See what you need to do about health and safety.
Consultation on health and safety matters
You're required by law to consult your employees on health and safety issues in the workplace and to make them aware of what's in your policy. See how to provide health and safety training and information.
However, you may decide to encourage them to get involved more fully in the process. This could involve devising safety rules, as well as giving useful feedback on how effectively policies are working.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
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Disciplinary, grievance, bullying and harassment policies
The legal requirement to have written workplace disciplinary and grievance policies.
You are required by law to set out your disciplinary rules and disciplinary and grievance procedures, in writing.
It's also common for employers to have a separate bullying and harassment policy for their workplace.
Discipline and grievance policies
You must tell each employee about:
- your disciplinary rules
- your disciplinary/dismissal and grievance procedure
- the name of the person to whom they should appeal if they are unhappy about a disciplinary or dismissal decision, or to seek redress for a grievance
This information can be included in the employee's written statement or the written statement may refer the employee to a document where they can read it, eg in a staff handbook - see Invest Northern Ireland Employers' Handbook.
If you fail to issue this information in writing, and one of your employees makes an industrial tribunal case against you and wins, you may have to pay up to four weeks' wages on top of any other compensation the tribunal may award.
It's important that your disciplinary rules give examples of the types of behaviour that qualify as gross misconduct, eg fighting, bullying, and stealing. If you find that an employee has committed an act of gross misconduct, you could be entitled to dismiss them summarily without notice or pay in lieu of notice. You should ensure that you comply with the statutory dismissal procedures and the LRA Code of Practice on Discipline and Grievance even when dismissing for gross misconduct.
Read more on disciplinary procedures, hearings, and appeals, handling grievances, and dismissing employees.
To access templates that you can download, tailor, and use, see grievance and disciplinary procedures and templates.
Employment document toolkit
If you require further help with drawing up your disciplinary and grievance policies, the Labour Relations Agency (LRA) has a free employment document toolkit. Once you have registered you can get access to their free core employment guides to help you build documents, policies, and procedures for your own organisation.
Bullying and harassment policies
Bullying and harassment are conduct issues and therefore would normally fall under your disciplinary policy. However, many employers have a separate bullying and harassment policy given that such behaviour:
- needs dealing with sensitively
- can amount to gross misconduct
- may involve unlawful discrimination
There is no legislation that is specifically designed to address workplace bullying. However, bullying can be successfully challenged through existing legislation, ie civil, criminal, and employment law.
You have a legal duty to protect the health and safety of your workers. Bullying can also lead to a breakdown in trust and confidence between you and the alleged victim, leading to the employee resigning and claiming constructive dismissal.
Sexual harassment and harassment on the grounds of sex, disability, race, sexual orientation, religion/belief, and age are unlawful. Even if a worker harasses a colleague, the victim can make a discrimination claim against you.
You should have a clear policy on bullying and harassment so that staff understands that it's unacceptable. The policy should also include a procedure for dealing with claims of harassment or bullying should they arise.
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Workplace policies to help you protect your assets
Policies that should help to protect your physical property, intellectual property, branding, reputation, and image.
It makes good business sense to have workplace policies on issues such as:
- intellectual property
- confidentiality
- social media usage
- use of company facilities
- dress and appearance
- whistleblowing
- the right to search
These help you protect both your tangible and intangible business assets, which, once lost, may be difficult to regain.
Policies on intellectual property protection and confidentiality
If you design products or create other original output, eg music or printed matter, it is important to protect your intellectual property.
Therefore you need a workplace policy that states that:
- any original product or material developed in the course of an employee's work remains the property of the business
- employees have a duty to keep company information confidential
If you intend to rely on any kind of penalty clauses, you should always seek legal advice.
Read more on protecting intellectual property.
Social media workplace policy
The use of social media at work presents responsibilities regarding employees using various sites. Having a written social media policy for your business provides clear guidelines for employees.
Read more on managing employee use of social media. Read the Labour Relations Agency's advice on social media and the employment relationship.
Policies on dress and appearance
You are entitled to set out a code covering how you expect employees to dress and generally present themselves. This is particularly important where there are health and safety issues involved, eg in factories, building sites, or kitchens.
However, you must ensure that these codes are non-discriminatory, particularly in relation to gender and religion/belief. Read the Fair Employment Code of Practice from the Equality Commission.
Policy on the use of company facilities
It's a good idea to set up clear policies about the use of company facilities. In particular, you should have a policy on the use of the internet, email, and telephone.
Most email and internet policies aim to strike a balance between business and personal use. Setting out boundaries will help to minimise the risk of:
- having to take disciplinary action against staff
- a third party taking legal action against you
- harm to your IT system
- leakage of confidential information
In addition, if you intend to monitor staff usage of company facilities then you should carry out an impact assessment in advance of this.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
Read more on monitoring and security of staff.
Whistleblowing policies
It is a good idea to have a policy on making protected disclosures - or 'whistleblowing'. This is because it will encourage workers to raise concerns about illegal activities and bad business practices internally - and prevent your business from receiving negative publicity.
Note that you do not need to treat the making of a protected disclosure as a grievance unless:
- the disclosure relates to a matter that the employee could raise as a grievance with you
- the employee intends for the disclosure to constitute the raising of a grievance
Read more on whistleblowing - qualifying disclosures.
Also see discipline, grievance, bullying, and harassment policies.
Right-to-search policies
You may only search an employee if this is allowed under their terms and conditions of employment.
Therefore, if you have a right-to-search policy, you should state that it is contractual. It is also important to remember that you should get an employee's consent before conducting a search.
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Anti-bribery policies
How to set up anti-bribery policies, and when your business may require them.
Your business may need to have a procedure in place to prevent acts of bribery.
You will only need such a procedure if - following an assessment - there is a risk that an agent, subsidiary or other person performing services for your business might carry out such acts.
Under UK law, there is a general offence of bribery, and of bribing a foreign official. Bribery is defined as giving someone financial or other advantages to induce them to perform their functions or activities improperly or to reward them for having already done so.
In addition, there is an offence relating to failure by a business to prevent a person associated with it from committing the above offences on its behalf in order to win business, keep business or gain a business advantage for the organisation.
You will have a statutory defence to the last of these offences if your business has adequate procedures in place to prevent bribery on your behalf.
Preventing bribery
To prevent bribery - and have a defence in case a charge of bribery is made against you - you should:
- assess whether your business is at risk and, if so, the level of that risk
- have an anti-bribery policy in place containing procedures proportionate to the risk you have identified, the scope and size of your business, and the country/countries in which you do business
- use due diligence to assess who you are dealing with and who you appoint to represent you
- communicate, train and raise awareness among employees and business partners
- monitor and review your procedures
Anti-bribery policy
Your anti-bribery policy should:
- include a clear prohibition of the offer, gift or acceptance of bribes
- detail the procedures that should be followed during business transactions
- give guidance on the provision of gifts, hospitality or expenses that may influence the outcome of business transactions
- provide guidance on political and charitable donations, including a prohibition of the payment of donations to political parties or charities that are directly linked to obtaining new business or gaining a business advantage
- require that any donations made in good faith are publicly disclosed
Note that the following are not considered acts of bribery:
- providing genuine business hospitality
- carrying out proportionate and reasonable promotional activities
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Training and performance management policies
Implement training policies and appraisal systems to encourage and develop the skills of your employees.
Having a training policy in place will enable you to plug any skills shortages in your workplace. This is beneficial to employees and will also have a positive impact on business performance.
A training policy can be implemented to allow employees to perform their current role more effectively or support them through a change in role.
You should ensure that your training policy is appropriate. This can be achieved by assessing whether it fits with your business plan and through discussions with employees, eg you may decide to offer training in-house for specific tasks, general company guidance for new starters, or refresher training for existing employees. Develop a staff training plan.
Performance management
Implementing an appraisal system is another way of improving your business performance. It represents a good opportunity to discuss with individual employees both their strengths and weaknesses, areas for development, and agree on new aims and objectives with them.
Businesses commonly carry out appraisals within a few months of a new employee starting or changing role within the business. For established employees, you may decide to use the appraisal system once or twice per year.
Some of the benefits of having appraisal-related performance targets are that employees understand what is expected of them and how these fit into the wider aims of the business. Targets are also a way of gaining useful feedback and ideas on how your business can be more effective in the future. Read more on managing staff performance.
To access templates that you can download, tailor and use, see performance management and staff training templates.
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Pay, rewards and benefits policies
Setting the right pay rates for your employees and establishing policies around rewards and benefits.
Pay is a key aspect of your relationship with your employees. Setting the right pay rates for your business will likely take into account your need to attract talented employees and retain those that you have already. Above all, pay rewards should be fair, and the process transparent. See how to set the right pay rates.
You may decide to implement a results-related pay system, such as commission or bonuses. These are provided by your business in addition to basic pay and can be used to reward employees who perform at a high level:
- commission is calculated based on the performance of an individual or a team
- bonuses may be connected to the performance of the entire business
Depending on the sector in which your business operates, eg in the catering trade, setting up a tips and gratuities system may be more appropriate. There are some circumstances when tips and gratuities can count towards the national minimum wage. See guidance on tips at work. For further advice on this, you may wish to contact HMRC.
You should be aware that there are certain types of business expenses that are tax deductible and others that are not. They may need to be disclosed to the relevant authorities. Read more on expenses and benefits.
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Managing personal relationships at work
Issues to consider on intimate personal or family relationships in the workplace.
Many personal relationships begin with people meeting at work, and many of these lead to long-term partnerships. This should not be viewed as a problem in itself, but it's important to recognise that relationships at work can cause a number of issues for both employers and the workforce.
Why have a workplace relationships policy?
Any employment policy about relationships at work is intended to ensure that staff don't commit - and are not open to allegations of acts of:
- inappropriate behaviour, including harassment
- favouritism
- abuse of authority
- conflict of interest
It is also intended to ensure that all employees feel confident of fair and consistent treatment without the fear that a relationship will influence their or other employees' treatment or wider working relationships.
Depending on the size of your business, you may also want to extend the policy to cover other types of relationships, such as those between relatives or family members.
Some companies go so far as to specify in employment contracts that employees can't form an intimate relationship with someone they work with, although this is probably unnecessary in most workplaces.
What types of relationships would a policy cover?
For the purposes of creating a policy, 'intimate relationships' or 'close personal or family relationships' apply to those relationships between people in the same team or department, or between a line manager and one of their team that could potentially be problematic. It does not refer to a straightforward friendship between colleagues.
Issues that could arise include the following:
- If one of the couple is the other's manager, what happens if disciplinary action has to be taken against the employee? Who will do the employee appraisals or performance reviews?
- Does either of the couple have any financial responsibilities, such as authorising expense claims or overtime payments, or deciding pay rates or increases?
- What happens when the employee applies for a post for which the manager would be conducting the interviews? Or when someone related to an existing employee applies for a job? (Conflicts of interest should, where possible, be avoided. This would minimise tribunal risks.)
General policy on relationships at work: what might it cover?
If you choose to have a policy about personal relationships at work, it should clarify the behaviour you expect from employees, eg that the relationship shouldn't affect their work and that there should be no favouritism or preferential treatment, particularly where one employee is more senior than the other.
You may wish to include guidance on what to do if an employee involved in recruitment is aware that a partner, relative, or even a close friend has applied for a job. You could state that they should declare this at the earliest opportunity.
Depending on the position and the employee's own role, you should consider:
- any potential conflict of interest
- how an appointment might affect the working environment
- any resulting risks that the relationship might cause
- what steps could be taken to address these matters
Remember that it can be a positive thing to have friends and family working together, as well as considering the potential risks.
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Writing and communicating staff policies
How to create staff policies and communicate them to your staff.
When writing staff policies the main steps are:
- Preparing - collecting information (anonymous staff views can be sought via a survey or series of surveys), opinions, and examining the options. Policies are more likely to be accepted if staff are involved in drawing them up. Involve unions, especially if you have collective agreements that specify they should be consulted, or existing elected employee representatives. Alternatively, set up a joint working group.
- Developing - policies should suit the specific needs of the business.
- Implementing - inform staff and provide training.
- Reviewing - this is to check that the policy is being used and is not damaging the business.
Check that your workplace policies are not unlawfully discriminatory, eg in relation to pay or dress/appearance.
Employment document toolkit
If in doubt, or if you require additional help with drawing up your employment documentation, the Labour Relations Agency (LRA) has a free employment document toolkit. Once registered you can access their free core employment guides to help you build documents, policies, and procedures for your own organisation. Find out about the free employment document toolkit.
How should policies be communicated to staff?
You could inform your staff of workplace policies by:
- displaying them on noticeboards where staff can easily read them
- adding details of them to the company network or intranet
- communicating in presentations
- including in a staff handbook
- including in a collective agreement with a union
- emailing details of your policies to staff
- sending as a written letter to the staff
- consider including any new policy as an item on team meeting agendas
- including in a staff induction programme
Making changes to workplace policies
If you wish to make a change to a policy, you will need the employee to agree to the changes, unless their contract allows you to make such variations without such agreement (typically terms in relation to working hours, place of work, and duties).
If you fail to get employees' agreement, they may be entitled to sue for breach of contract, or resign and claim constructive dismissal. Ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
Introducing new workplace policies
If you are planning to introduce a new policy in your workplace, you should consider the following:
- What is the purpose of the policy?
- Have you consulted with managers, workers, and their representatives?
- Has someone been given overall responsibility for the policy?
- How are you going to communicate the policy to all workers?
- Have you given workers enough notice about the new policy?
- Have you thought through the potential cost of the policy?
- Does the policy change anyone's employment contract?
- How are you going to monitor and maintain the policy?
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Equality and diversity workplace policies
In this guide:
- Set up employment policies for your business
- Advantages of employment policies
- Employment policies: what types should I use?
- Working time and time off policies
- Equality and diversity workplace policies
- Health and safety workplace policies
- Disciplinary, grievance, bullying and harassment policies
- Workplace policies to help you protect your assets
- Anti-bribery policies
- Training and performance management policies
- Pay, rewards and benefits policies
- Managing personal relationships at work
- Writing and communicating staff policies
Advantages of employment policies
Why it’s beneficial to have employment policies in place in your business.
There are many advantages to having suitable employment policies in place. For example, setting standards within your business can help with healthy workplace relations.
Benefits of having employment policies
Other advantages of having employment policies can include:
- a reduction in the need for disciplinary and legal action
- increased productivity and morale
- better employee retention
- employees know what is expected of them
- protection from breaches of employment legislation
- a framework where a delegation of decision-making is equitably agreed upon can maintain morale
- providing a means of communicating information to new employees
Clear policy making can also be positive for your business' reputation externally, eg among clients and the local community.
Having suitable policies in place can also make it easier to attract new staff.
To access templates for workplace policies that you can download, tailor, and use, see HR documents and templates.
Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
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Employment policies: what types should I use?
A list of the common types of employment policies that employers can set up.
The employment policies that you have will depend on the size and nature of your business. For example, if your staff operate machinery, it may be a good idea to implement a specific staff policy on drugs and alcohol use. If most of your staff use computers most of the time, you should have an email and internet acceptable use policy.
Common types of employment policies
Type of Employment policy Further Information Maternity/paternity/adoption/parental bereavement policy Statutory leave and pay entitlements Working time and time off policy Working time Equality and diversity workplace policy Diversity, equality, and inclusion in the workplace Health and safety policy Health and safety Pay policy Staff pay Bullying and harassment policy Bullying and harassment Rewards, benefits and expenses policy Expenses and benefits Discipline/dismissal and grievance policy Dismissing employees Redundancy policy Redundancy, restructures, and change Measures to improve performance or manage change Bribery policy Anti-bribery policies Policies on the use of company facilities, eg email, internet, and phone use Other key HR policies and templates Training and development policy Performance management and staff training templates Policy of right of search/social media usage Policies to help you protect your assets Patents and copyrights policy Patents, trademarks, copyright, and design Confidential information policy UK General Data Protection Regulation (UK GDPR) Policies on whistleblowing/protected disclosures Policies to help you protect your assets Smoking, drugs, and alcohol policies Workplace policies on smoking, drugs, and alcohol Sickness absence policy Absence and sickness policies: what to include Flexible working policy Flexible working: the law and best practice Hybrid working policy Hybrid working - employer guidance
To access employment policy templates that you can download, tailor, and use for your business, see HR documents and templates.Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
Employment policies: legal requirements
Note that it is a legal requirement to set out your health and safety policy in writing if you have five or more employees. It is also a legal requirement to set out your disciplinary rules and discipline and grievance procedures in writing.
If, following an assessment, there is a risk that someone performing services for your business might carry out acts of bribery, you will need to have a procedure in place to prevent such acts. Read more on anti-bribery policies.
Communicating your employment policies
A workplace policy can be part of your employee/company handbook or you could set it out in a separate document. However, for your discipline and grievance policies, you must either set them out in a written statement of main terms and conditions of employment or refer in a written statement to a place where the employee can read them, eg the company intranet.
You should make staff aware that your employment policies exist, particularly during the induction process - see induction programme: what to include, and make sure workers can easily access them if necessary, eg by having them pinned up on a noticeboard or put on the company intranet.
Employment policies: contractual status
Workplace policies generally aren't contractually binding unless they expressly state otherwise.
However, terms of some employment policies could be seen as contractually binding through custom and practice, ie where workers follow certain working practices or receive certain benefits over a significant period of time, and ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
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Working time and time off policies
Polices covering leave and absence, working hours, and overtime.
A policy on working time and time off should cover a number of areas.
Leave and absence
Occasionally, your workers will want or need time off.
In certain circumstances, you are legally obliged to give your workers time off, eg to take annual leave, attend health and safety training, time off for dependants, and carry out trade union duties. See parental leave and time off for dependants and allowing time off work.
In other circumstances, you can use your discretion, eg requests involving moving house or looking after a sick relative. However, having policies in place that pre-empt these types of requests will ensure that you deal with such matters consistently.
Working hours
Workers aged 18 years old or above may only work an average of 48 hours per week averaged out over a 17-week period (other limits apply for younger workers). However, they have the right to sign an opt-out agreement, which allows them to work more than this.
It's a good idea to manage these working hours and keep appropriate records. See hours, rest breaks, and the working week.
Overtime
You are not obliged to offer overtime to your workers or require them to work it. However, any overtime policy should still set out the rules on overtime. This is particularly important if your workers have come to expect regular overtime - they could claim it had become a contractual entitlement through custom and practice.
Rates of overtime pay should be agreed with employees, as no minimum statutory levels apply, although you should ensure that workers are paid at least the national minimum wage for all hours worked. See how to manage overtime.
Work-life balance
Encouraging work-life balance is important for your business. To achieve this, and as they are statutory rights, you should definitely have policies on:
- parental leave
- flexible working
- maternity, adoption, and paternity leave and pay
See how to promote good work/life balance in your business.
To access templates that you can download, tailor, and use, see time off work policies and procedures.
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Equality and diversity workplace policies
How promoting equality and diversity policies can benefit your business and create an open, communicative workplace.
Workers are protected from discrimination on a wide range of grounds, eg gender, sexual orientation, and age. See how to prevent discrimination and value diversity.
Business benefits of promoting diversity
Many successful businesses go much further and actively promote diversity in both their strategic and human resources policies. If you value everyone as an individual, research shows that diversity can help stimulate creative interaction, motivate employees, and improve business performance.
If you do not yet have an equality and diversity policy in place, you could find it a useful management and recruitment tool. It should:
- explain your business' stance on diversity
- show how you intend to achieve a diverse working environment
- describe how managers and staff can participate in the business's commitment to diversity both within and outside the organisation
It's therefore important that workers contribute to the policy-making process. You can do this by asking them for their views on, for example:
- promoting good relationships in the workplace between individuals, managers, teams, and employers
- treating all workers fairly
- valuing and respecting differences
- understanding workers' needs to balance work and family commitments
- how to communicate with individuals through formal and informal communication channels
Equality guidance for small businesses
The Equality Commission supports businesses and helps to promote good practice in equality, diversity, and inclusion. Read the Equality Commission guidance for small businesses.
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Health and safety workplace policies
Legal obligations and best practices when writing health and safety policies.
If you have five or more employees, you must by law have a written health and safety policy. The health and safety policy should set out:
- your general approach and objectives in relation to health and safety
- the arrangements you have in place for managing health and safety in your business
However, good health and safety practice means that you should not only have such a policy but also manage it in a way that benefits your business, workers, clients, and local community.
Write a health and safety policy for your business.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on health and safety.
Policies to promote staff well-being
To promote the health and well-being of your staff, you also might want to consider policies on specific health-related issues, such as:
- stress at work - see how to deal with stress
- smoking, drugs, and alcohol - see workplace policies on smoking, drugs, and alcohol
To back up your health and safety policies, you may decide to introduce a range of facilities promoting good health amongst your workforce, eg gym access deals (dependant on gym contract terms), advice on how to give up smoking, alcohol or drugs counselling, and routine health check-ups.
The benefits for your business can include the improved overall health of your workers, and improved morale and productivity. See what you need to do about health and safety.
Consultation on health and safety matters
You're required by law to consult your employees on health and safety issues in the workplace and to make them aware of what's in your policy. See how to provide health and safety training and information.
However, you may decide to encourage them to get involved more fully in the process. This could involve devising safety rules, as well as giving useful feedback on how effectively policies are working.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
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Disciplinary, grievance, bullying and harassment policies
The legal requirement to have written workplace disciplinary and grievance policies.
You are required by law to set out your disciplinary rules and disciplinary and grievance procedures, in writing.
It's also common for employers to have a separate bullying and harassment policy for their workplace.
Discipline and grievance policies
You must tell each employee about:
- your disciplinary rules
- your disciplinary/dismissal and grievance procedure
- the name of the person to whom they should appeal if they are unhappy about a disciplinary or dismissal decision, or to seek redress for a grievance
This information can be included in the employee's written statement or the written statement may refer the employee to a document where they can read it, eg in a staff handbook - see Invest Northern Ireland Employers' Handbook.
If you fail to issue this information in writing, and one of your employees makes an industrial tribunal case against you and wins, you may have to pay up to four weeks' wages on top of any other compensation the tribunal may award.
It's important that your disciplinary rules give examples of the types of behaviour that qualify as gross misconduct, eg fighting, bullying, and stealing. If you find that an employee has committed an act of gross misconduct, you could be entitled to dismiss them summarily without notice or pay in lieu of notice. You should ensure that you comply with the statutory dismissal procedures and the LRA Code of Practice on Discipline and Grievance even when dismissing for gross misconduct.
Read more on disciplinary procedures, hearings, and appeals, handling grievances, and dismissing employees.
To access templates that you can download, tailor, and use, see grievance and disciplinary procedures and templates.
Employment document toolkit
If you require further help with drawing up your disciplinary and grievance policies, the Labour Relations Agency (LRA) has a free employment document toolkit. Once you have registered you can get access to their free core employment guides to help you build documents, policies, and procedures for your own organisation.
Bullying and harassment policies
Bullying and harassment are conduct issues and therefore would normally fall under your disciplinary policy. However, many employers have a separate bullying and harassment policy given that such behaviour:
- needs dealing with sensitively
- can amount to gross misconduct
- may involve unlawful discrimination
There is no legislation that is specifically designed to address workplace bullying. However, bullying can be successfully challenged through existing legislation, ie civil, criminal, and employment law.
You have a legal duty to protect the health and safety of your workers. Bullying can also lead to a breakdown in trust and confidence between you and the alleged victim, leading to the employee resigning and claiming constructive dismissal.
Sexual harassment and harassment on the grounds of sex, disability, race, sexual orientation, religion/belief, and age are unlawful. Even if a worker harasses a colleague, the victim can make a discrimination claim against you.
You should have a clear policy on bullying and harassment so that staff understands that it's unacceptable. The policy should also include a procedure for dealing with claims of harassment or bullying should they arise.
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Workplace policies to help you protect your assets
Policies that should help to protect your physical property, intellectual property, branding, reputation, and image.
It makes good business sense to have workplace policies on issues such as:
- intellectual property
- confidentiality
- social media usage
- use of company facilities
- dress and appearance
- whistleblowing
- the right to search
These help you protect both your tangible and intangible business assets, which, once lost, may be difficult to regain.
Policies on intellectual property protection and confidentiality
If you design products or create other original output, eg music or printed matter, it is important to protect your intellectual property.
Therefore you need a workplace policy that states that:
- any original product or material developed in the course of an employee's work remains the property of the business
- employees have a duty to keep company information confidential
If you intend to rely on any kind of penalty clauses, you should always seek legal advice.
Read more on protecting intellectual property.
Social media workplace policy
The use of social media at work presents responsibilities regarding employees using various sites. Having a written social media policy for your business provides clear guidelines for employees.
Read more on managing employee use of social media. Read the Labour Relations Agency's advice on social media and the employment relationship.
Policies on dress and appearance
You are entitled to set out a code covering how you expect employees to dress and generally present themselves. This is particularly important where there are health and safety issues involved, eg in factories, building sites, or kitchens.
However, you must ensure that these codes are non-discriminatory, particularly in relation to gender and religion/belief. Read the Fair Employment Code of Practice from the Equality Commission.
Policy on the use of company facilities
It's a good idea to set up clear policies about the use of company facilities. In particular, you should have a policy on the use of the internet, email, and telephone.
Most email and internet policies aim to strike a balance between business and personal use. Setting out boundaries will help to minimise the risk of:
- having to take disciplinary action against staff
- a third party taking legal action against you
- harm to your IT system
- leakage of confidential information
In addition, if you intend to monitor staff usage of company facilities then you should carry out an impact assessment in advance of this.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
Read more on monitoring and security of staff.
Whistleblowing policies
It is a good idea to have a policy on making protected disclosures - or 'whistleblowing'. This is because it will encourage workers to raise concerns about illegal activities and bad business practices internally - and prevent your business from receiving negative publicity.
Note that you do not need to treat the making of a protected disclosure as a grievance unless:
- the disclosure relates to a matter that the employee could raise as a grievance with you
- the employee intends for the disclosure to constitute the raising of a grievance
Read more on whistleblowing - qualifying disclosures.
Also see discipline, grievance, bullying, and harassment policies.
Right-to-search policies
You may only search an employee if this is allowed under their terms and conditions of employment.
Therefore, if you have a right-to-search policy, you should state that it is contractual. It is also important to remember that you should get an employee's consent before conducting a search.
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Anti-bribery policies
How to set up anti-bribery policies, and when your business may require them.
Your business may need to have a procedure in place to prevent acts of bribery.
You will only need such a procedure if - following an assessment - there is a risk that an agent, subsidiary or other person performing services for your business might carry out such acts.
Under UK law, there is a general offence of bribery, and of bribing a foreign official. Bribery is defined as giving someone financial or other advantages to induce them to perform their functions or activities improperly or to reward them for having already done so.
In addition, there is an offence relating to failure by a business to prevent a person associated with it from committing the above offences on its behalf in order to win business, keep business or gain a business advantage for the organisation.
You will have a statutory defence to the last of these offences if your business has adequate procedures in place to prevent bribery on your behalf.
Preventing bribery
To prevent bribery - and have a defence in case a charge of bribery is made against you - you should:
- assess whether your business is at risk and, if so, the level of that risk
- have an anti-bribery policy in place containing procedures proportionate to the risk you have identified, the scope and size of your business, and the country/countries in which you do business
- use due diligence to assess who you are dealing with and who you appoint to represent you
- communicate, train and raise awareness among employees and business partners
- monitor and review your procedures
Anti-bribery policy
Your anti-bribery policy should:
- include a clear prohibition of the offer, gift or acceptance of bribes
- detail the procedures that should be followed during business transactions
- give guidance on the provision of gifts, hospitality or expenses that may influence the outcome of business transactions
- provide guidance on political and charitable donations, including a prohibition of the payment of donations to political parties or charities that are directly linked to obtaining new business or gaining a business advantage
- require that any donations made in good faith are publicly disclosed
Note that the following are not considered acts of bribery:
- providing genuine business hospitality
- carrying out proportionate and reasonable promotional activities
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Training and performance management policies
Implement training policies and appraisal systems to encourage and develop the skills of your employees.
Having a training policy in place will enable you to plug any skills shortages in your workplace. This is beneficial to employees and will also have a positive impact on business performance.
A training policy can be implemented to allow employees to perform their current role more effectively or support them through a change in role.
You should ensure that your training policy is appropriate. This can be achieved by assessing whether it fits with your business plan and through discussions with employees, eg you may decide to offer training in-house for specific tasks, general company guidance for new starters, or refresher training for existing employees. Develop a staff training plan.
Performance management
Implementing an appraisal system is another way of improving your business performance. It represents a good opportunity to discuss with individual employees both their strengths and weaknesses, areas for development, and agree on new aims and objectives with them.
Businesses commonly carry out appraisals within a few months of a new employee starting or changing role within the business. For established employees, you may decide to use the appraisal system once or twice per year.
Some of the benefits of having appraisal-related performance targets are that employees understand what is expected of them and how these fit into the wider aims of the business. Targets are also a way of gaining useful feedback and ideas on how your business can be more effective in the future. Read more on managing staff performance.
To access templates that you can download, tailor and use, see performance management and staff training templates.
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Pay, rewards and benefits policies
Setting the right pay rates for your employees and establishing policies around rewards and benefits.
Pay is a key aspect of your relationship with your employees. Setting the right pay rates for your business will likely take into account your need to attract talented employees and retain those that you have already. Above all, pay rewards should be fair, and the process transparent. See how to set the right pay rates.
You may decide to implement a results-related pay system, such as commission or bonuses. These are provided by your business in addition to basic pay and can be used to reward employees who perform at a high level:
- commission is calculated based on the performance of an individual or a team
- bonuses may be connected to the performance of the entire business
Depending on the sector in which your business operates, eg in the catering trade, setting up a tips and gratuities system may be more appropriate. There are some circumstances when tips and gratuities can count towards the national minimum wage. See guidance on tips at work. For further advice on this, you may wish to contact HMRC.
You should be aware that there are certain types of business expenses that are tax deductible and others that are not. They may need to be disclosed to the relevant authorities. Read more on expenses and benefits.
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Managing personal relationships at work
Issues to consider on intimate personal or family relationships in the workplace.
Many personal relationships begin with people meeting at work, and many of these lead to long-term partnerships. This should not be viewed as a problem in itself, but it's important to recognise that relationships at work can cause a number of issues for both employers and the workforce.
Why have a workplace relationships policy?
Any employment policy about relationships at work is intended to ensure that staff don't commit - and are not open to allegations of acts of:
- inappropriate behaviour, including harassment
- favouritism
- abuse of authority
- conflict of interest
It is also intended to ensure that all employees feel confident of fair and consistent treatment without the fear that a relationship will influence their or other employees' treatment or wider working relationships.
Depending on the size of your business, you may also want to extend the policy to cover other types of relationships, such as those between relatives or family members.
Some companies go so far as to specify in employment contracts that employees can't form an intimate relationship with someone they work with, although this is probably unnecessary in most workplaces.
What types of relationships would a policy cover?
For the purposes of creating a policy, 'intimate relationships' or 'close personal or family relationships' apply to those relationships between people in the same team or department, or between a line manager and one of their team that could potentially be problematic. It does not refer to a straightforward friendship between colleagues.
Issues that could arise include the following:
- If one of the couple is the other's manager, what happens if disciplinary action has to be taken against the employee? Who will do the employee appraisals or performance reviews?
- Does either of the couple have any financial responsibilities, such as authorising expense claims or overtime payments, or deciding pay rates or increases?
- What happens when the employee applies for a post for which the manager would be conducting the interviews? Or when someone related to an existing employee applies for a job? (Conflicts of interest should, where possible, be avoided. This would minimise tribunal risks.)
General policy on relationships at work: what might it cover?
If you choose to have a policy about personal relationships at work, it should clarify the behaviour you expect from employees, eg that the relationship shouldn't affect their work and that there should be no favouritism or preferential treatment, particularly where one employee is more senior than the other.
You may wish to include guidance on what to do if an employee involved in recruitment is aware that a partner, relative, or even a close friend has applied for a job. You could state that they should declare this at the earliest opportunity.
Depending on the position and the employee's own role, you should consider:
- any potential conflict of interest
- how an appointment might affect the working environment
- any resulting risks that the relationship might cause
- what steps could be taken to address these matters
Remember that it can be a positive thing to have friends and family working together, as well as considering the potential risks.
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Writing and communicating staff policies
How to create staff policies and communicate them to your staff.
When writing staff policies the main steps are:
- Preparing - collecting information (anonymous staff views can be sought via a survey or series of surveys), opinions, and examining the options. Policies are more likely to be accepted if staff are involved in drawing them up. Involve unions, especially if you have collective agreements that specify they should be consulted, or existing elected employee representatives. Alternatively, set up a joint working group.
- Developing - policies should suit the specific needs of the business.
- Implementing - inform staff and provide training.
- Reviewing - this is to check that the policy is being used and is not damaging the business.
Check that your workplace policies are not unlawfully discriminatory, eg in relation to pay or dress/appearance.
Employment document toolkit
If in doubt, or if you require additional help with drawing up your employment documentation, the Labour Relations Agency (LRA) has a free employment document toolkit. Once registered you can access their free core employment guides to help you build documents, policies, and procedures for your own organisation. Find out about the free employment document toolkit.
How should policies be communicated to staff?
You could inform your staff of workplace policies by:
- displaying them on noticeboards where staff can easily read them
- adding details of them to the company network or intranet
- communicating in presentations
- including in a staff handbook
- including in a collective agreement with a union
- emailing details of your policies to staff
- sending as a written letter to the staff
- consider including any new policy as an item on team meeting agendas
- including in a staff induction programme
Making changes to workplace policies
If you wish to make a change to a policy, you will need the employee to agree to the changes, unless their contract allows you to make such variations without such agreement (typically terms in relation to working hours, place of work, and duties).
If you fail to get employees' agreement, they may be entitled to sue for breach of contract, or resign and claim constructive dismissal. Ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
Introducing new workplace policies
If you are planning to introduce a new policy in your workplace, you should consider the following:
- What is the purpose of the policy?
- Have you consulted with managers, workers, and their representatives?
- Has someone been given overall responsibility for the policy?
- How are you going to communicate the policy to all workers?
- Have you given workers enough notice about the new policy?
- Have you thought through the potential cost of the policy?
- Does the policy change anyone's employment contract?
- How are you going to monitor and maintain the policy?
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Working time and time off policies
In this guide:
- Set up employment policies for your business
- Advantages of employment policies
- Employment policies: what types should I use?
- Working time and time off policies
- Equality and diversity workplace policies
- Health and safety workplace policies
- Disciplinary, grievance, bullying and harassment policies
- Workplace policies to help you protect your assets
- Anti-bribery policies
- Training and performance management policies
- Pay, rewards and benefits policies
- Managing personal relationships at work
- Writing and communicating staff policies
Advantages of employment policies
Why it’s beneficial to have employment policies in place in your business.
There are many advantages to having suitable employment policies in place. For example, setting standards within your business can help with healthy workplace relations.
Benefits of having employment policies
Other advantages of having employment policies can include:
- a reduction in the need for disciplinary and legal action
- increased productivity and morale
- better employee retention
- employees know what is expected of them
- protection from breaches of employment legislation
- a framework where a delegation of decision-making is equitably agreed upon can maintain morale
- providing a means of communicating information to new employees
Clear policy making can also be positive for your business' reputation externally, eg among clients and the local community.
Having suitable policies in place can also make it easier to attract new staff.
To access templates for workplace policies that you can download, tailor, and use, see HR documents and templates.
Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
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Employment policies: what types should I use?
A list of the common types of employment policies that employers can set up.
The employment policies that you have will depend on the size and nature of your business. For example, if your staff operate machinery, it may be a good idea to implement a specific staff policy on drugs and alcohol use. If most of your staff use computers most of the time, you should have an email and internet acceptable use policy.
Common types of employment policies
Type of Employment policy Further Information Maternity/paternity/adoption/parental bereavement policy Statutory leave and pay entitlements Working time and time off policy Working time Equality and diversity workplace policy Diversity, equality, and inclusion in the workplace Health and safety policy Health and safety Pay policy Staff pay Bullying and harassment policy Bullying and harassment Rewards, benefits and expenses policy Expenses and benefits Discipline/dismissal and grievance policy Dismissing employees Redundancy policy Redundancy, restructures, and change Measures to improve performance or manage change Bribery policy Anti-bribery policies Policies on the use of company facilities, eg email, internet, and phone use Other key HR policies and templates Training and development policy Performance management and staff training templates Policy of right of search/social media usage Policies to help you protect your assets Patents and copyrights policy Patents, trademarks, copyright, and design Confidential information policy UK General Data Protection Regulation (UK GDPR) Policies on whistleblowing/protected disclosures Policies to help you protect your assets Smoking, drugs, and alcohol policies Workplace policies on smoking, drugs, and alcohol Sickness absence policy Absence and sickness policies: what to include Flexible working policy Flexible working: the law and best practice Hybrid working policy Hybrid working - employer guidance
To access employment policy templates that you can download, tailor, and use for your business, see HR documents and templates.Employment document toolkit
The Labour Relations Agency (LRA) also has a free employment document toolkit, once employers are registered they can unlock free core employment guides to help them build documents, policies, and procedures for their own organisation.
Employment policies: legal requirements
Note that it is a legal requirement to set out your health and safety policy in writing if you have five or more employees. It is also a legal requirement to set out your disciplinary rules and discipline and grievance procedures in writing.
If, following an assessment, there is a risk that someone performing services for your business might carry out acts of bribery, you will need to have a procedure in place to prevent such acts. Read more on anti-bribery policies.
Communicating your employment policies
A workplace policy can be part of your employee/company handbook or you could set it out in a separate document. However, for your discipline and grievance policies, you must either set them out in a written statement of main terms and conditions of employment or refer in a written statement to a place where the employee can read them, eg the company intranet.
You should make staff aware that your employment policies exist, particularly during the induction process - see induction programme: what to include, and make sure workers can easily access them if necessary, eg by having them pinned up on a noticeboard or put on the company intranet.
Employment policies: contractual status
Workplace policies generally aren't contractually binding unless they expressly state otherwise.
However, terms of some employment policies could be seen as contractually binding through custom and practice, ie where workers follow certain working practices or receive certain benefits over a significant period of time, and ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
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Working time and time off policies
Polices covering leave and absence, working hours, and overtime.
A policy on working time and time off should cover a number of areas.
Leave and absence
Occasionally, your workers will want or need time off.
In certain circumstances, you are legally obliged to give your workers time off, eg to take annual leave, attend health and safety training, time off for dependants, and carry out trade union duties. See parental leave and time off for dependants and allowing time off work.
In other circumstances, you can use your discretion, eg requests involving moving house or looking after a sick relative. However, having policies in place that pre-empt these types of requests will ensure that you deal with such matters consistently.
Working hours
Workers aged 18 years old or above may only work an average of 48 hours per week averaged out over a 17-week period (other limits apply for younger workers). However, they have the right to sign an opt-out agreement, which allows them to work more than this.
It's a good idea to manage these working hours and keep appropriate records. See hours, rest breaks, and the working week.
Overtime
You are not obliged to offer overtime to your workers or require them to work it. However, any overtime policy should still set out the rules on overtime. This is particularly important if your workers have come to expect regular overtime - they could claim it had become a contractual entitlement through custom and practice.
Rates of overtime pay should be agreed with employees, as no minimum statutory levels apply, although you should ensure that workers are paid at least the national minimum wage for all hours worked. See how to manage overtime.
Work-life balance
Encouraging work-life balance is important for your business. To achieve this, and as they are statutory rights, you should definitely have policies on:
- parental leave
- flexible working
- maternity, adoption, and paternity leave and pay
See how to promote good work/life balance in your business.
To access templates that you can download, tailor, and use, see time off work policies and procedures.
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Equality and diversity workplace policies
How promoting equality and diversity policies can benefit your business and create an open, communicative workplace.
Workers are protected from discrimination on a wide range of grounds, eg gender, sexual orientation, and age. See how to prevent discrimination and value diversity.
Business benefits of promoting diversity
Many successful businesses go much further and actively promote diversity in both their strategic and human resources policies. If you value everyone as an individual, research shows that diversity can help stimulate creative interaction, motivate employees, and improve business performance.
If you do not yet have an equality and diversity policy in place, you could find it a useful management and recruitment tool. It should:
- explain your business' stance on diversity
- show how you intend to achieve a diverse working environment
- describe how managers and staff can participate in the business's commitment to diversity both within and outside the organisation
It's therefore important that workers contribute to the policy-making process. You can do this by asking them for their views on, for example:
- promoting good relationships in the workplace between individuals, managers, teams, and employers
- treating all workers fairly
- valuing and respecting differences
- understanding workers' needs to balance work and family commitments
- how to communicate with individuals through formal and informal communication channels
Equality guidance for small businesses
The Equality Commission supports businesses and helps to promote good practice in equality, diversity, and inclusion. Read the Equality Commission guidance for small businesses.
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Health and safety workplace policies
Legal obligations and best practices when writing health and safety policies.
If you have five or more employees, you must by law have a written health and safety policy. The health and safety policy should set out:
- your general approach and objectives in relation to health and safety
- the arrangements you have in place for managing health and safety in your business
However, good health and safety practice means that you should not only have such a policy but also manage it in a way that benefits your business, workers, clients, and local community.
Write a health and safety policy for your business.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on health and safety.
Policies to promote staff well-being
To promote the health and well-being of your staff, you also might want to consider policies on specific health-related issues, such as:
- stress at work - see how to deal with stress
- smoking, drugs, and alcohol - see workplace policies on smoking, drugs, and alcohol
To back up your health and safety policies, you may decide to introduce a range of facilities promoting good health amongst your workforce, eg gym access deals (dependant on gym contract terms), advice on how to give up smoking, alcohol or drugs counselling, and routine health check-ups.
The benefits for your business can include the improved overall health of your workers, and improved morale and productivity. See what you need to do about health and safety.
Consultation on health and safety matters
You're required by law to consult your employees on health and safety issues in the workplace and to make them aware of what's in your policy. See how to provide health and safety training and information.
However, you may decide to encourage them to get involved more fully in the process. This could involve devising safety rules, as well as giving useful feedback on how effectively policies are working.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
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Disciplinary, grievance, bullying and harassment policies
The legal requirement to have written workplace disciplinary and grievance policies.
You are required by law to set out your disciplinary rules and disciplinary and grievance procedures, in writing.
It's also common for employers to have a separate bullying and harassment policy for their workplace.
Discipline and grievance policies
You must tell each employee about:
- your disciplinary rules
- your disciplinary/dismissal and grievance procedure
- the name of the person to whom they should appeal if they are unhappy about a disciplinary or dismissal decision, or to seek redress for a grievance
This information can be included in the employee's written statement or the written statement may refer the employee to a document where they can read it, eg in a staff handbook - see Invest Northern Ireland Employers' Handbook.
If you fail to issue this information in writing, and one of your employees makes an industrial tribunal case against you and wins, you may have to pay up to four weeks' wages on top of any other compensation the tribunal may award.
It's important that your disciplinary rules give examples of the types of behaviour that qualify as gross misconduct, eg fighting, bullying, and stealing. If you find that an employee has committed an act of gross misconduct, you could be entitled to dismiss them summarily without notice or pay in lieu of notice. You should ensure that you comply with the statutory dismissal procedures and the LRA Code of Practice on Discipline and Grievance even when dismissing for gross misconduct.
Read more on disciplinary procedures, hearings, and appeals, handling grievances, and dismissing employees.
To access templates that you can download, tailor, and use, see grievance and disciplinary procedures and templates.
Employment document toolkit
If you require further help with drawing up your disciplinary and grievance policies, the Labour Relations Agency (LRA) has a free employment document toolkit. Once you have registered you can get access to their free core employment guides to help you build documents, policies, and procedures for your own organisation.
Bullying and harassment policies
Bullying and harassment are conduct issues and therefore would normally fall under your disciplinary policy. However, many employers have a separate bullying and harassment policy given that such behaviour:
- needs dealing with sensitively
- can amount to gross misconduct
- may involve unlawful discrimination
There is no legislation that is specifically designed to address workplace bullying. However, bullying can be successfully challenged through existing legislation, ie civil, criminal, and employment law.
You have a legal duty to protect the health and safety of your workers. Bullying can also lead to a breakdown in trust and confidence between you and the alleged victim, leading to the employee resigning and claiming constructive dismissal.
Sexual harassment and harassment on the grounds of sex, disability, race, sexual orientation, religion/belief, and age are unlawful. Even if a worker harasses a colleague, the victim can make a discrimination claim against you.
You should have a clear policy on bullying and harassment so that staff understands that it's unacceptable. The policy should also include a procedure for dealing with claims of harassment or bullying should they arise.
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Workplace policies to help you protect your assets
Policies that should help to protect your physical property, intellectual property, branding, reputation, and image.
It makes good business sense to have workplace policies on issues such as:
- intellectual property
- confidentiality
- social media usage
- use of company facilities
- dress and appearance
- whistleblowing
- the right to search
These help you protect both your tangible and intangible business assets, which, once lost, may be difficult to regain.
Policies on intellectual property protection and confidentiality
If you design products or create other original output, eg music or printed matter, it is important to protect your intellectual property.
Therefore you need a workplace policy that states that:
- any original product or material developed in the course of an employee's work remains the property of the business
- employees have a duty to keep company information confidential
If you intend to rely on any kind of penalty clauses, you should always seek legal advice.
Read more on protecting intellectual property.
Social media workplace policy
The use of social media at work presents responsibilities regarding employees using various sites. Having a written social media policy for your business provides clear guidelines for employees.
Read more on managing employee use of social media. Read the Labour Relations Agency's advice on social media and the employment relationship.
Policies on dress and appearance
You are entitled to set out a code covering how you expect employees to dress and generally present themselves. This is particularly important where there are health and safety issues involved, eg in factories, building sites, or kitchens.
However, you must ensure that these codes are non-discriminatory, particularly in relation to gender and religion/belief. Read the Fair Employment Code of Practice from the Equality Commission.
Policy on the use of company facilities
It's a good idea to set up clear policies about the use of company facilities. In particular, you should have a policy on the use of the internet, email, and telephone.
Most email and internet policies aim to strike a balance between business and personal use. Setting out boundaries will help to minimise the risk of:
- having to take disciplinary action against staff
- a third party taking legal action against you
- harm to your IT system
- leakage of confidential information
In addition, if you intend to monitor staff usage of company facilities then you should carry out an impact assessment in advance of this.
To access templates that you can download, tailor, and use, see other key HR policies and templates.
Read more on monitoring and security of staff.
Whistleblowing policies
It is a good idea to have a policy on making protected disclosures - or 'whistleblowing'. This is because it will encourage workers to raise concerns about illegal activities and bad business practices internally - and prevent your business from receiving negative publicity.
Note that you do not need to treat the making of a protected disclosure as a grievance unless:
- the disclosure relates to a matter that the employee could raise as a grievance with you
- the employee intends for the disclosure to constitute the raising of a grievance
Read more on whistleblowing - qualifying disclosures.
Also see discipline, grievance, bullying, and harassment policies.
Right-to-search policies
You may only search an employee if this is allowed under their terms and conditions of employment.
Therefore, if you have a right-to-search policy, you should state that it is contractual. It is also important to remember that you should get an employee's consent before conducting a search.
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Anti-bribery policies
How to set up anti-bribery policies, and when your business may require them.
Your business may need to have a procedure in place to prevent acts of bribery.
You will only need such a procedure if - following an assessment - there is a risk that an agent, subsidiary or other person performing services for your business might carry out such acts.
Under UK law, there is a general offence of bribery, and of bribing a foreign official. Bribery is defined as giving someone financial or other advantages to induce them to perform their functions or activities improperly or to reward them for having already done so.
In addition, there is an offence relating to failure by a business to prevent a person associated with it from committing the above offences on its behalf in order to win business, keep business or gain a business advantage for the organisation.
You will have a statutory defence to the last of these offences if your business has adequate procedures in place to prevent bribery on your behalf.
Preventing bribery
To prevent bribery - and have a defence in case a charge of bribery is made against you - you should:
- assess whether your business is at risk and, if so, the level of that risk
- have an anti-bribery policy in place containing procedures proportionate to the risk you have identified, the scope and size of your business, and the country/countries in which you do business
- use due diligence to assess who you are dealing with and who you appoint to represent you
- communicate, train and raise awareness among employees and business partners
- monitor and review your procedures
Anti-bribery policy
Your anti-bribery policy should:
- include a clear prohibition of the offer, gift or acceptance of bribes
- detail the procedures that should be followed during business transactions
- give guidance on the provision of gifts, hospitality or expenses that may influence the outcome of business transactions
- provide guidance on political and charitable donations, including a prohibition of the payment of donations to political parties or charities that are directly linked to obtaining new business or gaining a business advantage
- require that any donations made in good faith are publicly disclosed
Note that the following are not considered acts of bribery:
- providing genuine business hospitality
- carrying out proportionate and reasonable promotional activities
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Training and performance management policies
Implement training policies and appraisal systems to encourage and develop the skills of your employees.
Having a training policy in place will enable you to plug any skills shortages in your workplace. This is beneficial to employees and will also have a positive impact on business performance.
A training policy can be implemented to allow employees to perform their current role more effectively or support them through a change in role.
You should ensure that your training policy is appropriate. This can be achieved by assessing whether it fits with your business plan and through discussions with employees, eg you may decide to offer training in-house for specific tasks, general company guidance for new starters, or refresher training for existing employees. Develop a staff training plan.
Performance management
Implementing an appraisal system is another way of improving your business performance. It represents a good opportunity to discuss with individual employees both their strengths and weaknesses, areas for development, and agree on new aims and objectives with them.
Businesses commonly carry out appraisals within a few months of a new employee starting or changing role within the business. For established employees, you may decide to use the appraisal system once or twice per year.
Some of the benefits of having appraisal-related performance targets are that employees understand what is expected of them and how these fit into the wider aims of the business. Targets are also a way of gaining useful feedback and ideas on how your business can be more effective in the future. Read more on managing staff performance.
To access templates that you can download, tailor and use, see performance management and staff training templates.
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Pay, rewards and benefits policies
Setting the right pay rates for your employees and establishing policies around rewards and benefits.
Pay is a key aspect of your relationship with your employees. Setting the right pay rates for your business will likely take into account your need to attract talented employees and retain those that you have already. Above all, pay rewards should be fair, and the process transparent. See how to set the right pay rates.
You may decide to implement a results-related pay system, such as commission or bonuses. These are provided by your business in addition to basic pay and can be used to reward employees who perform at a high level:
- commission is calculated based on the performance of an individual or a team
- bonuses may be connected to the performance of the entire business
Depending on the sector in which your business operates, eg in the catering trade, setting up a tips and gratuities system may be more appropriate. There are some circumstances when tips and gratuities can count towards the national minimum wage. See guidance on tips at work. For further advice on this, you may wish to contact HMRC.
You should be aware that there are certain types of business expenses that are tax deductible and others that are not. They may need to be disclosed to the relevant authorities. Read more on expenses and benefits.
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Managing personal relationships at work
Issues to consider on intimate personal or family relationships in the workplace.
Many personal relationships begin with people meeting at work, and many of these lead to long-term partnerships. This should not be viewed as a problem in itself, but it's important to recognise that relationships at work can cause a number of issues for both employers and the workforce.
Why have a workplace relationships policy?
Any employment policy about relationships at work is intended to ensure that staff don't commit - and are not open to allegations of acts of:
- inappropriate behaviour, including harassment
- favouritism
- abuse of authority
- conflict of interest
It is also intended to ensure that all employees feel confident of fair and consistent treatment without the fear that a relationship will influence their or other employees' treatment or wider working relationships.
Depending on the size of your business, you may also want to extend the policy to cover other types of relationships, such as those between relatives or family members.
Some companies go so far as to specify in employment contracts that employees can't form an intimate relationship with someone they work with, although this is probably unnecessary in most workplaces.
What types of relationships would a policy cover?
For the purposes of creating a policy, 'intimate relationships' or 'close personal or family relationships' apply to those relationships between people in the same team or department, or between a line manager and one of their team that could potentially be problematic. It does not refer to a straightforward friendship between colleagues.
Issues that could arise include the following:
- If one of the couple is the other's manager, what happens if disciplinary action has to be taken against the employee? Who will do the employee appraisals or performance reviews?
- Does either of the couple have any financial responsibilities, such as authorising expense claims or overtime payments, or deciding pay rates or increases?
- What happens when the employee applies for a post for which the manager would be conducting the interviews? Or when someone related to an existing employee applies for a job? (Conflicts of interest should, where possible, be avoided. This would minimise tribunal risks.)
General policy on relationships at work: what might it cover?
If you choose to have a policy about personal relationships at work, it should clarify the behaviour you expect from employees, eg that the relationship shouldn't affect their work and that there should be no favouritism or preferential treatment, particularly where one employee is more senior than the other.
You may wish to include guidance on what to do if an employee involved in recruitment is aware that a partner, relative, or even a close friend has applied for a job. You could state that they should declare this at the earliest opportunity.
Depending on the position and the employee's own role, you should consider:
- any potential conflict of interest
- how an appointment might affect the working environment
- any resulting risks that the relationship might cause
- what steps could be taken to address these matters
Remember that it can be a positive thing to have friends and family working together, as well as considering the potential risks.
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Writing and communicating staff policies
How to create staff policies and communicate them to your staff.
When writing staff policies the main steps are:
- Preparing - collecting information (anonymous staff views can be sought via a survey or series of surveys), opinions, and examining the options. Policies are more likely to be accepted if staff are involved in drawing them up. Involve unions, especially if you have collective agreements that specify they should be consulted, or existing elected employee representatives. Alternatively, set up a joint working group.
- Developing - policies should suit the specific needs of the business.
- Implementing - inform staff and provide training.
- Reviewing - this is to check that the policy is being used and is not damaging the business.
Check that your workplace policies are not unlawfully discriminatory, eg in relation to pay or dress/appearance.
Employment document toolkit
If in doubt, or if you require additional help with drawing up your employment documentation, the Labour Relations Agency (LRA) has a free employment document toolkit. Once registered you can access their free core employment guides to help you build documents, policies, and procedures for your own organisation. Find out about the free employment document toolkit.
How should policies be communicated to staff?
You could inform your staff of workplace policies by:
- displaying them on noticeboards where staff can easily read them
- adding details of them to the company network or intranet
- communicating in presentations
- including in a staff handbook
- including in a collective agreement with a union
- emailing details of your policies to staff
- sending as a written letter to the staff
- consider including any new policy as an item on team meeting agendas
- including in a staff induction programme
Making changes to workplace policies
If you wish to make a change to a policy, you will need the employee to agree to the changes, unless their contract allows you to make such variations without such agreement (typically terms in relation to working hours, place of work, and duties).
If you fail to get employees' agreement, they may be entitled to sue for breach of contract, or resign and claim constructive dismissal. Ultimately it will be up to an Industrial Tribunal to decide on the contractual nature of policies.
Introducing new workplace policies
If you are planning to introduce a new policy in your workplace, you should consider the following:
- What is the purpose of the policy?
- Have you consulted with managers, workers, and their representatives?
- Has someone been given overall responsibility for the policy?
- How are you going to communicate the policy to all workers?
- Have you given workers enough notice about the new policy?
- Have you thought through the potential cost of the policy?
- Does the policy change anyone's employment contract?
- How are you going to monitor and maintain the policy?
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Putting together an employee's written statement of employment
In this guide:
- The employment contract
- What a contract of employment is
- The written statement of employment
- The principal statement in the employment contract
- Putting together an employee's written statement of employment
- Implied terms of an employment contract
- How to change an existing contract of employment
- Employee enforcement of the right to a written statement of employment
- Breach of employment contract claims
What a contract of employment is
The various documents and agreements that can form part of a contract of employment.
The terms of a contract of employment may be oral, written, implied, or a mixture of all three.
Where to find terms of a contract of employment
The terms of a contract of employment can be found in a variety of places, such as:
- the original job advertisement
- written correspondence, eg letters, and emails, between you and the employee
- the principal statement
- the written statement of employment
- other written agreements
- oral agreements
- your company policies
- an employee/company handbook
- legislation and case law
Terms through custom and practice
Certain terms of employment may become established or implied in the contract of employment by custom and practice. They may, for example, be regularly adopted within a trade or industry in which the employee works. In the absence of any express or written terms of employment, this is often the only way that an employee can establish their entitlement to important contractual rights. For a term to be implied by custom and practice it must be:
- reasonable - fair and not arbitrary or capricious
- certain - clear to all and not capable of being interpreted in different ways by different people
- notorious - well known to all to whom it relates and should have been in existence for a considerably longer period of time
Terms that could be viewed as implied by custom and practice could include the provision of transport to work, rest breaks, finishing times, commissions, entitlements to overtime payments etc, where these terms are not clearly expressed elsewhere. An oral contract is as binding as a written one, though its terms may be more difficult to prove.
If you want to include provisions specific to the individual, you can state these either orally or in writing. However, stating them in writing may prevent disagreements in the future.
If you issue a written contract, it should reflect those terms and conditions that are currently in place on the date of issue, unless you have agreed on changes. If you have agreed to changes, you should include a term in the written contract stating that it replaces all previous discussions/correspondence in relation to terms of employment.
If you do not have any kind of written contract of employment with an employee, you must - at the very least - issue them with a written statement of employment.
If you have some kind of written contract of employment with an employee, you do not need to issue a written statement as well - provided that the contract contains all the items required in a written statement.
Read more on putting together an employee's written statement of employment.
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The written statement of employment
Who is entitled to a written statement of employment, when you should issue it, and how it should be presented.
The written statement of employment is not a contract in itself but is that part of the employment contract that must be provided in writing. In the case of a dispute you can use the written statement of employment as evidence of an employee's terms and conditions.
Who is entitled to receive a written statement of employment?
All employees - ie individuals working under a contract of service - are entitled to receive a written statement of employment if their employment is going to last for one month or more.
Individuals who are not employees - eg independent contractors, freelancers, casual workers, and some agency workers - are not entitled to a written statement of employment.
When to issue a new employee's written statement of employment
You must give all the required particulars within two months of the date when the employee's employment begins.
If during the first two months, an employee leaves the UK to work abroad for more than one month, you must give them a written statement of employment before they leave.
Presenting a written statement of employment
The written statement of employment can consist of one or more documents and must set out certain employment particulars. You have to put some of these particulars in a single document, known as the principal statement.
You can set out the remaining particulars in either this document or other documents - see putting together an employee's written statement of employment.
If the written statement is made up of more than one document, you do not have to give the employee all the documents at the same time. This allows you to put certain particulars in documents such as the employee handbook, which the employee can access and refer to when they want.
You can also download our template for a written statement of employment (PDF, 84K) which you can then print off and complete in your own time.
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The principal statement in the employment contract
The particulars of employment that must be put together in a single document.
You can set out an employee's written statement of employment in one or more documents.
What employers must include in the principal statement
However, either that document or one of those documents - known as the principal statement - must contain all the information listed below as a minimum:
- The legal name of the employer company - it is a good idea also to include the trading name, if different.
- The legal name of the employee.
- The date the current employment began.
- Any earlier date upon which employment with a previous employer began which is treated as 'continuous' with the current employment.
- The employee's pay, or how it is calculated, and the intervals at which it will be paid - eg weekly or monthly.
- The employee's hours of work.
- Entitlement to holidays - including public holidays - and holiday pay. The information must be accurate enough to allow precise calculation of accrued entitlement.
- The job title or a brief description of the work.
- The address of the employee's place of work. If they will be working in more than one place then you should indicate this along with the employer's address.
For information on what else you must include in a written statement of employment, see putting together an employee's written statement of employment.
Template for a written statement of employment
You can also download our template for a written statement of employment (PDF, 239K) which you can then print off and tailor to your organisation.
The Labour Relations Agency (LRA) has a free Employment Document Toolkit. Once employers are registered they can unlock the LRA's free core employment guides to help them build documents, policies, and procedures for their own organisation. Find out about the free Employment Document Toolkit.
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Putting together an employee's written statement of employment
The minimum details that a written statement of employment must contain over and above what is included in the principal statement.
You can set out an employee's written statement of employment in one or more documents.
Either that document or one of those documents must contain - at the very least - certain information and is known as the principal statement.
In addition to the information that you must put in the principal statement, employers must also give the employee information under the following headings.
Sickness, injury and sick pay
Include terms and conditions relating to sickness or injury including any sick pay provisions.
Alternatively, you can refer to another document containing this information - eg the staff/company handbook - which is accessible to the employee.
See absence and sickness policies: what to include.
Period of employment
Include details of where the employment is not intended to be permanent, the period for which it is expected to continue, or if it is a fixed-term contract, the date when it is to end.
Notice periods
Include the length of notice required from both parties.
Rather than stating specific terms, you can refer to the relevant legislation - see how to issue the correct periods of notice.
Collective agreements
Include details of any collective agreements with trade unions that directly affect the terms and conditions of employment including, where the employer is not a party, the persons by whom they were made.
Pensions
Include any terms relating to pensions and pension schemes. All employers must provide eligible workers with a qualifying workplace pension, known as automatic enrolment. Know your legal obligations on pensions.
Dismissal, disciplinary and grievance procedures
Include some details in the written statement itself. These are:
- the name or job title of the person the employee should apply to in order to resolve a grievance, and how they should make this application
- the name or job title of the person the employee should apply to if they're dissatisfied with any disciplinary decision or decision to dismiss them, and how this application should be made
Some other details that must be included can be either set out in the written statement itself or referred to in another document that the employee can access easily, such as a staff/company handbook. These are:
- the disciplinary rules that you have
- the disciplinary procedures that you have
- the steps that follow an application to resolve a grievance and/or if the employee is dissatisfied with a disciplinary or dismissal decision
For more information on dismissal, disciplinary, and grievance issues, see our guides on dismissing employees, disciplinary procedures, hearings and appeals, and handling grievances.
Employment outside the UK
Include details of any terms relating to employment outside the UK for more than a month.
If a new employee will normally work in the UK but you need them to work outside the UK for more than a month at a time, the written statement you give them must include the following details:
- the currency in which they will be paid
- the period they will be working outside the UK
- terms relating to their return to the UK
- any additional pay or benefits provided by reason of being required to work outside the UK
Whether the written statement is made up of one or more than one document, you must give it to the employee within two months of the start of their employment.
For more information on working outside the UK, see international business travel: employer responsibilities.
Where there are no details to be given under any heading, you should say so.
Template for a written statement of employment
You can download our template for a written statement of employment (PDF, 239K) which you can then print off and complete in your own time.
The Labour Relations Agency (LRA) has a free Employment Document Toolkit. Once employers are registered they can unlock the LRA's free core employment guides to help them build documents, policies, and procedures for their own organisation. Find out about the free Employment Document Toolkit.
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Implied terms of an employment contract
Contracts of employment contain some terms and conditions that apply even if they are not written down.
As well as the oral and/or written terms you actually agree with your employee, an employment contract can also include implied terms.
Implied terms include:
- your duty to provide a secure, safe, and healthy environment for the employee
- the employee's duty of honesty and loyal service
- implied duty of mutual trust and confidence between you and the employee
- a term too obvious to need stating, eg that your employee will not steal from you and that you will pay the employee reasonable wages for the work you have employed them to do
- any terms that are necessary to make the contract workable, eg that someone employed as a driver will have a valid driving licence
Some terms and conditions may become implied because you have consistently done something over a significant period, eg made enhanced redundancy payments to redundant employees. This is known as custom and practice. See what a contract of employment is for further information on terms through custom and practice.
The law also imposes some terms automatically, such as the right to a minimum of 5.6 weeks' paid annual leave, the right to be paid at least the National Minimum Wage or National Living Wage rate (age dependant), and the right not to be unlawfully discriminated against.
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How to change an existing contract of employment
Getting an employee to agree to a change in their terms and conditions of employment.
If you want to change an employee's terms and conditions of employment, you will need to get their agreement first. Otherwise, the employee may be entitled to sue for breach of contract, or resign and claim constructive dismissal.
Changes to the written statement of employment
You must tell the employee in writing about any changes to the written statement no later than one month after you have made the change. A change to the statement will still require the employee's agreement.
If the change results from the employee being required to work outside the UK for more than a month, and they will be leaving within a month of the change, you should tell them in writing before they leave.
In most cases, the notification must contain explicit particulars of the change.
However, you may tell the employee about changes to certain particulars such as those listed below by referring to some other document to which the employee has reasonable access:
- entitlement to sick leave, including any entitlement to sick pay
- pensions and pension schemes
- disciplinary rules and disciplinary or dismissal procedures
- any further steps that follow from making an application under the employer's disciplinary, dismissal, or grievance procedures
Changes to employment contracts via collective agreements
The terms of a collective agreement are sometimes incorporated into employees' employment contracts.
If - following agreement with the employees' representatives - you change some of these terms, you should inform the employees concerned - ideally in writing.
However, if the changes affect the terms of the written statement of employment, you must inform the employees individually in writing - and must do this within one month of the changes coming into effect.
What information is an employee entitled to receive when there is a change of employer?
When there is a change of employer, a new and full written statement of employment of employment particulars must normally be given to employees within two months.
However, there are some exceptions. You don't need to give a new statement if the name of the business changes without any change in the employer's identity, or if the identity changes in circumstances where the employee can continue their employment, as long as there is no other change in terms and conditions.
However, you must give individual written notification of the change at the earliest opportunity, and at least within one month of when it occurs.
If the change of employer is a result of a business transfer, the terms and conditions of the transferring employees may not usually be changed by the new employer. For more information on employees' rights during and after business transfers, see responsibilities to employees if you buy or sell a business.
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Employee enforcement of the right to a written statement of employment
How an employee can enforce their rights in relation to receiving a written statement of employment.
An employee may refer the matter to an Industrial Tribunal where they have:
- not received a written statement of employment particulars
- received a written statement of employment that does not comply with the legal requirements
- not received notification of a change to those particulars
- received notification of a change that does not comply with the legal requirements
A claim for failure to provide a written statement of employment can only be brought when the deadline for providing it, two months after the start of employment or one month after a change in terms, has expired.
If you have given the employee a written statement - or notification of a change to it - but you disagree over the accuracy of the particulars recorded, then either you or the employee may refer the matter to a tribunal.
In either case, the tribunal will determine what particulars the employee should have been given. These particulars will have the effect as if you had included them in the written statement of employment, or notification of a change to it, in the first place.
Compensation for failure to issue a written statement of employment
If your employee succeeds in another (unrelated) employment claim, eg unfair dismissal, the tribunal can also award them compensation for your failure to give them a written statement of employment or an accurate or complete statement of change to it - as long as there are no exceptional circumstances that would make this unjust.
The amount of compensation will be two or four weeks' pay (at the tribunal's discretion). A week's pay for this purpose is subject to a statutory limit.
Note that the Labour Relations Agency's (LRA) statutory arbitration scheme cannot accept a claim of failure to provide or update a written statement on its own, as a sole claim, though it may be considered by an LRA arbitrator if it is part of another claim (eg unfair dismissal) or claims under the scheme. The LRA arbitration scheme explained.
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Breach of employment contract claims
Claims and counter-claims arising out of a failure to observe employment contractual terms and conditions.
If an employee suffers a loss through your failure to observe the terms of their contract of employment, they may make a claim for breach of contract.
Breach of employment contract claims in Industrial tribunals
An industrial tribunal can only hear a breach of contract claim if the claim either:
- arises on termination of the employee's employment
- is outstanding on the termination of the employee's employment
The claim must also not relate to:
- personal injury
- a term imposing an obligation of confidence
- a term which is a covenant in restraint of trade
- a term relating to intellectual property, eg copyright, rights in performances, moral rights, design rights, registered designs, patents, and trademarks
- a term either requiring you to provide the employee with living accommodation or imposing a duty relating to the provision of living accommodation
These rules apply to both employee claims and employer counter-claims.
Awards for breach of employment contract claims
The tribunal may award an employee damages for their loss, eg a payment of arrears of wages, holiday pay, or pay in lieu of notice.
Any award for damages is limited to £25,000.
If the employee wishes to claim more, they cannot first seek £25,000 from an Industrial Tribunal and then go on to seek the balance from a civil court.
Making a counter-claim
You may make a counter-claim to the tribunal if you suffer a loss through the employee's failure to observe the terms of their contract of employment.
However, you can only do this if the employee has already presented a tribunal claim and has not since withdrawn or settled it. If the dismissed employee withdraws their breach of contract claim after you have made a claim, your claim can still be considered by the Industrial Tribunal/arbitrator.
Time limits for making a tribunal claim
An employee has three months after the date of their termination of employment to make a breach of contract claim to an Industrial Tribunal. This is irrespective of whether or not an internal appeals procedure is being used.
You may make a counter-claim at any time up to six weeks after you receive a copy of the employee's original application (the ET1 (NI) form).
The tribunal can extend the three-month limit where it considers it reasonable and where it is satisfied that it was not reasonably practicable for the complaint to be made within the specified time.
However, the six-week period for counter-claims cannot be extended.
The Labour Relations Agency Arbitration Scheme
Certain claims to industrial tribunals in Northern Ireland can also, as an alternative, be resolved through arbitration using the Labour Relations Agency (LRA) Arbitration Scheme.
See employment-related tribunal claims: LRA Arbitration Scheme.
Contractual claims outside the tribunal system
Certain types of contractual claims can only be resolved by bringing a claim to the civil courts. These are:
- claims for damages in respect of personal injuries
- claims arising during the course of the employee's employment
- where you want to present a contractual claim against an employee but the employee themself has not presented a claim to a tribunal
Civil courts can hear claims up to six years after the breach of contract occurred and there is no cap on the amount of damages they can award.
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TUPE transfers: the impact on employee relations
In this guide:
- Responsibilities to employees if you buy or sell a business
- TUPE legislation in Northern Ireland
- Your responsibilities to employees transferred into your business
- What is meant by a TUPE transfer
- The transfer of employee liability information
- Your responsibilities to employees transferred out of your business
- Changing terms and conditions after a business transfer
- Dismissal before or after a business transfer
- Informing and consulting employees about business transfers
- Transfers of insolvent businesses
- TUPE transfers: the impact on employee relations
TUPE legislation in Northern Ireland
Employer guidance on TUPE legislation in Northern Ireland.
On 6 April 2006, the revised Transfer of Undertakings (Protection of Employment) Regulations 2006 (the "2006 Regulations") (S.I. 2006/246) and the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (the "SPC Regulations") (S.R. 2006 No. 177) came into operation.
Northern Ireland TUPE legislation
The legislation.gov.uk website presents the legislation in detail:
- Transfer of Undertakings (Protection of Employment) Regulations 2006
- Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006
The 2006 Regulations made UK-wide provision for the treatment of employees, and related matters, on the transfer of a business or undertaking, so that when all or part of a business is bought or sold, the terms and conditions of the employees who transfer in the sale may be preserved.
The 2006 Regulations also implemented certain service provision change elements, but within those regulations, these elements apply in Great Britain only. Separate regulations, namely the SPC Regulations, were required for Northern Ireland, as Great Britain did not have the necessary powers to legislate on this matter for Northern Ireland.
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Your responsibilities to employees transferred into your business
You take over certain responsibilities when an employee is transferred into your business.
Employees who transfer to your employment do so on their pre-existing terms and conditions and with their continuous employment preserved. This also applies to employees who have already transferred on a previous transfer.
You also take over responsibility/liability for any:
- outstanding disciplinary and grievance situations
- ongoing industrial tribunal claims
- any potential legal actions which may be brought
- collective agreements in force at the time of the transfer, which means that you must continue to recognise the recognised trade union(s) that the staff transferring are members of
Occupational pension and share-option schemes
You do not have to offer transferred employees who are members of - or eligible to join - an occupational pension scheme (OPS) exactly the same pension rights.
However, you must still offer those employees a minimum level of occupational pension provision.
You can opt to provide access to an OPS or make employer contributions to a stakeholder pension scheme. If you choose a stakeholder or a defined contribution scheme, you will have to match the employee's contributions up to 6%. This can be increased if both parties agree.
All employers have to provide their employees with a workplace pension scheme. To read more about these obligations, see automatic enrolment into a workplace pension.
If you don't take over the previous business' shares, you won't be able to provide such shares to your staff. If the previous employer had share or share-option schemes, you must provide equivalent schemes.
Note that if you buy a privatised (previously public sector) undertaking, or win a contract to provide a service to a central or local government organisation, the government expects you to have pension arrangements that are broadly comparable with that enjoyed by the previously public-sector employees.
Changes to terms and conditions
Don't change transferred employees' terms and conditions if the reason for the change is either the transfer itself, eg to match those of your existing staff, or reasons connected to the transfer.
If you change an employee's terms and conditions in this way, this could amount to a breach of contract. The employee may then be able to resign and claim constructive dismissal.
If, however, the change is unconnected with the transfer, you should handle it like any other change of contract where there is provision for change in the contract or where change has been brought about by mutual agreement. For more information, see changing terms and conditions after a transfer and how to change an employee's terms of employment.
Labour Relations Agency (LRA) advice on agreeing and changing contracts of employment.
Information and consultation
Even if you are taking on transferred employees, you must still inform and consult representatives of your existing employees who may be affected by the transfer.
In addition, you must give details to the previous employer of any action, step, or arrangement you intend to take that will affect the transferring employees. There are no set timescales, however, you must do this before the transfer takes place with adequate time for consultation.
See informing and consulting employees about business transfers.
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What is meant by a TUPE transfer
What is and what is not included as a transfer for the purposes of TUPE.
A 'relevant transfer', ie a transfer to which the Transfer of Undertakings (Protection of Employment) Regulations 2006 and/or the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (known collectively as TUPE) apply - occurs when:
- An economic entity is one which is stable and is transferred from one business (part or undertaking) to another, ie the entity is sold as a going concern and retains its identity after the transfer. This is known as a business transfer (standard transfer).
- A client engages a contractor to do work on its behalf or reassigns such a contract, including bringing the work in-house - this is known as a service provision change (extended transfer).
An economic entity
An economic entity is defined as an organised grouping of resources, eg a grouping of employees and assets such as premises and computer equipment that has the objective of pursuing an economic activity. Some transfers will qualify as both a business transfer and as a service provision change, eg outsourcing a service will often meet both definitions.
Examples of business transfers
- Sale of the whole or part of a business where the business continues in a similar format.
- Merger of two businesses.
Service provision change
Examples of service provision changes are where:
- a business contracts its security arrangements to an outside security business (outsourcing)
- a business decides to hire its own staff to provide catering to replace an outside catering business (in-sourcing)
- the contract to clean a client's premises is transferred from one cleaning contractor to another
TUPE applies equally to relevant transfers of large and small businesses, and to public and private undertakings. This means there would be a relevant transfer if you sold your business or if your business bought and operated another business.
Note that TUPE generally applies to second and subsequent transfers of the same undertaking. This means that, if you sell a business or part of a business that you previously bought or relinquish a contract that you previously took over, the employees you took over will now transfer to the new employer - as per the Court of Justice of the European Union (CJEU) interpretation of TUPE.
When TUPE does not apply
Not all transfers are relevant transfers. TUPE does not apply when:
- A client buys services from a contractor on a one-off basis - rather than the two parties entering into an ongoing relationship for the provision of the service.
- There is a transfer of share takeover - when a company's shares are sold to new shareholders, there is no transfer of the business - the same company continues to be the employer.
- A business transfers assets only - then there is no transfer of a business as a going concern eg if the equipment is sold.
- There is a transfer of an undertaking situated outside the UK - although similar provisions apply in the European Union.
- There is a change in business identity - if the work or organisational structure changes radically.
Whether TUPE applies in any particular case depends on all relevant circumstances. In the event of a dispute, only an industrial tribunal or a higher court can decide this.
Where TUPE applies, existing employees of the undertaking transferred automatically become employees of the business that takes the undertaking over. It is unlikely that agency workers fall within the definition of 'employee' for the purposes of TUPE ie they do not automatically transfer, it seems, on current law.
If you think you may become involved in a transfer situation to which TUPE applies, you should consider obtaining legal advice, as the legislation in this area can be complex. Choose a solicitor for your business.
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The transfer of employee liability information
The information you must provide to the new employer when you transfer employees out of your business.
When you transfer employees from your business, you must provide certain information about the employees who are transferring to the new employer. This is known as employee liability information.
The aim of this information is to give the new employer time to understand their obligations towards the transferred employees.
You must provide all information in writing not less than 14 days before the relevant transfer. This can be as electronic files as long as the new employer can readily access the information.
If there is not much information to pass on, eg because only a few employees are transferring, you can provide the information by telephone. Consider asking the new employer which method they would prefer. It would be prudent to keep a full record of all such information, either way.
You can provide the information in stages. However, you must have given all the information before - ideally at least two weeks before - the completion of the transfer. You can also provide the information via a third party if you wish.
You cannot agree with the new employer not to supply this information.
If you do not provide employee liability information, the new employer can make a complaint to an industrial tribunal. This could lead to a compensatory award for any loss the new employer incurs due to not having the information. Compensation is usually at least £500 per employee affected.
The information you must provide
You must provide:
- identity and ages of the employees who will transfer
- their statements of employment particulars
- details of any collective agreements that apply
- details of any formal disciplinary action taken in the past two years to which the statutory disciplinary and dismissal procedures apply
- details of any employee grievances raised in the past two years to which the LRA Code of Practice on Disciplinary and Grievance Procedures applies
- instances of any legal actions against you in the past two years by the transferring employees and any potential legal actions that may be brought
If any of this information changes before the transfer is complete, you must provide the changes in writing to the new employer.
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Your responsibilities to employees transferred out of your business
What you have to do if all or some of your employees transfer to another employer.
You have important responsibilities to your employees if they are transferred out of your business.
Who transfers?
Those who transfer are employees employed by the transferor and assigned to the organised grouping of resources that are going to be transferred.
Therefore those who cannot transfer are:
- those only temporarily assigned to the organised grouping
- the self-employed
- independent contractors
However, an employee can still transfer even if they don't spend all their time working for the grouping to be transferred.
Information and consultation
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 and/or the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (known collectively as TUPE), you are required to inform and consult the representatives of those employees affected by the transfer. Inform and consult your employees.
Affected employees are not just those who are going to transfer - other employees in the business may be affected by the transfer and have a right to be informed and consulted too.
See informing and consulting employees about business transfers.
Refusal to transfer
If an employee refuses to transfer with a business, they have not been dismissed but have effectively resigned. This means that they lose the right to claim certain employment rights.
See resignations connected with a business transfer.
Employee liability information
When employees transfer out of your business, you must give the new employer certain information about those employees. See the transfer of employee liability information.
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Changing terms and conditions after a business transfer
When you can change employees' terms and conditions of employment following a business transfer.
In a business transfer situation, employees' existing terms and conditions are transferred to the new employer from the start of the new employment.
Employees should therefore not be disadvantaged by a transfer, ie by having less favourable terms and conditions in their new roles.
Economic, technical or organisational reason
If you are the new employer, you can only vary a contract for a reason related to the transfer if it's an economic, technical, or organisational (ETO) reason entailing changes in the workforce.
There is no legal definition of an ETO reason. However, it might relate to, for example:
- the profitability or market performance of your business - an economic reason
- the nature of the equipment or production processes which you operate - a technical reason
- the management or organisational structure of your business - an organisational reason
Note that you can't vary the contracts of the transferred employees in order to harmonise their terms and conditions with those of your existing employees in equivalent roles or grades. A pay cut does not count as an ETO. The transfer of a business subject to insolvency proceedings is a different matter, however - it is covered below. However, you could change terms and conditions - by agreement - if the changes are positive, eg fewer working hours or additional holiday entitlement.
Changing terms and conditions over time
After a certain period, eg six months, you might be tempted to consider it 'safe' to vary the contracts of the transferred employees as the reason for the change cannot have been by reason of the transfer.
However, there is no set period for this and no 'rule of thumb' used by the courts or specified in the regulations to define a period of time after which it is safe to assume that the transfer will not impact directly or indirectly on the employer's actions.
Changing terms and conditions after the transfer of an insolvent business
Note that there is greater flexibility to change terms and conditions if the business being transferred is insolvent - see transfers of insolvent businesses.
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Dismissal before or after a business transfer
Continuity of employment, dismissals, and the ETO defence for a business transfer.
Employees who transfer have their continuity of employment preserved. This means that those who had, for example, 18 months of service with their previous employer have - at the time of the transfer - 18 months' service with the new employer.
This is important as it means that employees with enough continuous employment maintain their right to claim certain employment protection rights, eg the right to claim unfair dismissal (one year's continuous employment). Employees also have the right to claim a statutory redundancy payment (two years). See continuous employment and employee rights.
Dismissals before the business transfer
An employee still transfers if they would have been employed in the undertaking immediately before the transfer had they not been unfairly dismissed - either because of the transfer or for a reason connected with the transfer.
The employee will be able to lodge a complaint at the Industrial Tribunal for unfair dismissal against either the previous or the new employer - as long as they have at least one year's continuous employment.
The Labour Relations Agency (LRA) provides an alternative to the Industrial Tribunal under the LRA Arbitration Scheme. Under the scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.
Employers do, however, have the 'ETO defence' - see below.
Dismissals after the business transfer
If you dismiss a transferred employee either because of the transfer or a reason connected with it, their dismissal is automatically unfair.
In certain circumstances, individuals may require at least one year's continuous employment.
The LRA Arbitration Scheme can again provide an alternative to the Industrial Tribunal.
Employers do, however, have the 'ETO defence' - see below.
The ETO defence
If there is an economic, technical or organisational (ETO) reason entailing changes in the workforce, a Transfer of Undertakings (Protection of Employment) Regulations 2006 and/or Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (known collectively as TUPE)-related dismissal may be fair.
However, even with this defence, the dismissing employer must still follow a fair dismissal procedure. See dismissing employees.
ETO reasons are narrow in practice and effectively amount to a genuine redundancy situation, eg insolvency of the transferred undertaking.
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Informing and consulting employees about business transfers
Which workplace representatives you must consult and what you should tell them.
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 and the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006, (collectively known as TUPE), you are required to inform and consult the appropriate workplace representatives of those employees affected by the transfer.
Affected employees are not just those who are going to transfer - other employees in either business may be affected by the transfer and have a right to be informed and consulted too.
Which representatives must I inform and consult?
The appropriate representatives who you must inform and consult are either:
- Representatives of a trade union you have recognised for the purposes of collective bargaining - if there is one. See work effectively with trade unions.
- Employee representatives appointed by the affected employees specifically for the purpose of being informed and consulted on the transfer or who have already been appointed for a different purpose and are suitable for this purpose too. For information on arranging the election of employee representatives, see employee representatives during business transfers.
If you have a pre-existing information and consultation (I&C) agreement in place, you have a duty to inform and consult employees or their representatives on - among other things - changes to the workforce. This means that you may have to inform and consult when planning to buy or sell a business.
However, you do not have to inform and consult at the same time under both TUPE and the I&C legislation - you can choose instead to 'opt out' of your I&C agreement and consult under the transfer legislation only.
What to tell TUPE representatives
The appropriate representatives must be informed of:
- the fact that the transfer is taking place, and when and why it will happen
- the legal, economic, and social implications for affected employees
- any actions, steps, or arrangements the employer envisages taking in relation to affected employees, eg redundancies, relocation, or changes to terms and conditions, or the fact that no measures will be taken
- any actions, steps, or arrangements the new employer envisages taking in relation to employees who will transfer - if the employer is the selling employer
- information relating to the use of agency workers, including the total number of agency workers engaged, the areas of the business in which they work, and the type of work they do
You must consider and respond to any representations made by the appropriate representatives, stating your reasons if you reject any of them.
When to give information to TUPE representatives
You must provide information to representatives long enough before the transfer date to give reasonable time for consultation.
The consultation must be undertaken with a view to seeking their agreement.
Rights of TUPE representatives
Representatives have the right to have:
- access to the affected employees
- access to facilities to enable them to carry out their duties, eg a phone line or office
- time off with pay to carry out representative duties
Representatives may be eligible for reinstatement or compensation if unfairly dismissed or treated detrimentally because of their status or actions as representatives.
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Transfers of insolvent businesses
What happens in situations where employees are being transferred as part of an insolvent business.
If you are transferring a business that is subject to insolvency proceedings and you owe money to the employees to be transferred, the responsibility to pay the full amount of the money owed does not transfer to the new employer.
Redundancy Payments Service
The new employer is only responsible for the amount left after the employees have been paid from the Redundancy Payments Service (RPS). If you require further information or advice with an ongoing redundancy claim, you can call the Redundancy Payments Service Helpline on 028 9025 7562.
They should be able to make a claim through the RPS for:
- arrears of pay
- holiday pay - for days taken but not paid
They will not be able to claim statutory redundancy pay or pay in lieu of notice as - post-transfer - their job will not have ended.
For general advice on redundancies, you can get help from the Labour Relations Agency (LRA) Helpline on Tel 03300 555 300.
Permitted variations
You or the new employer - or the insolvency practitioner - can reduce pay and establish other less favourable terms and conditions after the transfer. These are known as permitted variations.
However, certain conditions must be met when doing this:
- the permitted variation must be agreed with you or the new employer - or the insolvency practitioner - and the appropriate representatives, ie trade union representatives if an independent trade union is recognised for collective bargaining purposes or, if not, elected employee representatives
- the agreement must be in writing and signed by each of the representatives or other authorised persons
- before the agreement is signed, the employer must provide all the affected employees with a copy of the agreement and any guidance the employees may need to understand it
You should also consider the following:
- any new terms and conditions agreed in a permitted variation must not breach other statutory entitlements, eg agreed pay rates must not be set below the national minimum wage
- any permitted variation must be made with the intention of safeguarding employment opportunities by ensuring the survival of the business - or part of it
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TUPE transfers: the impact on employee relations
Some negative effects of business transfers and how good staff relations and open communication can have a positive impact.
Transferring employees between businesses can affect staff morale. The result is often discontentment, not just in those transferred but also in staff left behind in the old business and existing employees in the new business.
Other effects on employees
If the process is not handled sensitively, the effects can include:
- feelings of displacement in the employees transferred
- anxiety among their ex-workmates who feel they might be next
- resentment among new workmates who distrust the reason the new employees have been introduced and may resent the fact that they have different terms and conditions
- a feeling of insecurity that may be common to all
However, if both employers know and meet their responsibilities fully and communicate openly throughout the process, then good relations can be maintained with all employees concerned.
Research shows that effective consultation can lead to better decision-making and smoother implementation of decisions and proposals, boosting productivity. This is because if employees feel they have input into decision-making, they will be more satisfied and motivated at work. See employee engagement.
You should be especially careful to emphasise the positive benefits of the sale or purchase and try to show how the prospects for all will be improved by the changes.
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Dismissal before or after a business transfer
In this guide:
- Responsibilities to employees if you buy or sell a business
- TUPE legislation in Northern Ireland
- Your responsibilities to employees transferred into your business
- What is meant by a TUPE transfer
- The transfer of employee liability information
- Your responsibilities to employees transferred out of your business
- Changing terms and conditions after a business transfer
- Dismissal before or after a business transfer
- Informing and consulting employees about business transfers
- Transfers of insolvent businesses
- TUPE transfers: the impact on employee relations
TUPE legislation in Northern Ireland
Employer guidance on TUPE legislation in Northern Ireland.
On 6 April 2006, the revised Transfer of Undertakings (Protection of Employment) Regulations 2006 (the "2006 Regulations") (S.I. 2006/246) and the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (the "SPC Regulations") (S.R. 2006 No. 177) came into operation.
Northern Ireland TUPE legislation
The legislation.gov.uk website presents the legislation in detail:
- Transfer of Undertakings (Protection of Employment) Regulations 2006
- Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006
The 2006 Regulations made UK-wide provision for the treatment of employees, and related matters, on the transfer of a business or undertaking, so that when all or part of a business is bought or sold, the terms and conditions of the employees who transfer in the sale may be preserved.
The 2006 Regulations also implemented certain service provision change elements, but within those regulations, these elements apply in Great Britain only. Separate regulations, namely the SPC Regulations, were required for Northern Ireland, as Great Britain did not have the necessary powers to legislate on this matter for Northern Ireland.
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Your responsibilities to employees transferred into your business
You take over certain responsibilities when an employee is transferred into your business.
Employees who transfer to your employment do so on their pre-existing terms and conditions and with their continuous employment preserved. This also applies to employees who have already transferred on a previous transfer.
You also take over responsibility/liability for any:
- outstanding disciplinary and grievance situations
- ongoing industrial tribunal claims
- any potential legal actions which may be brought
- collective agreements in force at the time of the transfer, which means that you must continue to recognise the recognised trade union(s) that the staff transferring are members of
Occupational pension and share-option schemes
You do not have to offer transferred employees who are members of - or eligible to join - an occupational pension scheme (OPS) exactly the same pension rights.
However, you must still offer those employees a minimum level of occupational pension provision.
You can opt to provide access to an OPS or make employer contributions to a stakeholder pension scheme. If you choose a stakeholder or a defined contribution scheme, you will have to match the employee's contributions up to 6%. This can be increased if both parties agree.
All employers have to provide their employees with a workplace pension scheme. To read more about these obligations, see automatic enrolment into a workplace pension.
If you don't take over the previous business' shares, you won't be able to provide such shares to your staff. If the previous employer had share or share-option schemes, you must provide equivalent schemes.
Note that if you buy a privatised (previously public sector) undertaking, or win a contract to provide a service to a central or local government organisation, the government expects you to have pension arrangements that are broadly comparable with that enjoyed by the previously public-sector employees.
Changes to terms and conditions
Don't change transferred employees' terms and conditions if the reason for the change is either the transfer itself, eg to match those of your existing staff, or reasons connected to the transfer.
If you change an employee's terms and conditions in this way, this could amount to a breach of contract. The employee may then be able to resign and claim constructive dismissal.
If, however, the change is unconnected with the transfer, you should handle it like any other change of contract where there is provision for change in the contract or where change has been brought about by mutual agreement. For more information, see changing terms and conditions after a transfer and how to change an employee's terms of employment.
Labour Relations Agency (LRA) advice on agreeing and changing contracts of employment.
Information and consultation
Even if you are taking on transferred employees, you must still inform and consult representatives of your existing employees who may be affected by the transfer.
In addition, you must give details to the previous employer of any action, step, or arrangement you intend to take that will affect the transferring employees. There are no set timescales, however, you must do this before the transfer takes place with adequate time for consultation.
See informing and consulting employees about business transfers.
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What is meant by a TUPE transfer
What is and what is not included as a transfer for the purposes of TUPE.
A 'relevant transfer', ie a transfer to which the Transfer of Undertakings (Protection of Employment) Regulations 2006 and/or the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (known collectively as TUPE) apply - occurs when:
- An economic entity is one which is stable and is transferred from one business (part or undertaking) to another, ie the entity is sold as a going concern and retains its identity after the transfer. This is known as a business transfer (standard transfer).
- A client engages a contractor to do work on its behalf or reassigns such a contract, including bringing the work in-house - this is known as a service provision change (extended transfer).
An economic entity
An economic entity is defined as an organised grouping of resources, eg a grouping of employees and assets such as premises and computer equipment that has the objective of pursuing an economic activity. Some transfers will qualify as both a business transfer and as a service provision change, eg outsourcing a service will often meet both definitions.
Examples of business transfers
- Sale of the whole or part of a business where the business continues in a similar format.
- Merger of two businesses.
Service provision change
Examples of service provision changes are where:
- a business contracts its security arrangements to an outside security business (outsourcing)
- a business decides to hire its own staff to provide catering to replace an outside catering business (in-sourcing)
- the contract to clean a client's premises is transferred from one cleaning contractor to another
TUPE applies equally to relevant transfers of large and small businesses, and to public and private undertakings. This means there would be a relevant transfer if you sold your business or if your business bought and operated another business.
Note that TUPE generally applies to second and subsequent transfers of the same undertaking. This means that, if you sell a business or part of a business that you previously bought or relinquish a contract that you previously took over, the employees you took over will now transfer to the new employer - as per the Court of Justice of the European Union (CJEU) interpretation of TUPE.
When TUPE does not apply
Not all transfers are relevant transfers. TUPE does not apply when:
- A client buys services from a contractor on a one-off basis - rather than the two parties entering into an ongoing relationship for the provision of the service.
- There is a transfer of share takeover - when a company's shares are sold to new shareholders, there is no transfer of the business - the same company continues to be the employer.
- A business transfers assets only - then there is no transfer of a business as a going concern eg if the equipment is sold.
- There is a transfer of an undertaking situated outside the UK - although similar provisions apply in the European Union.
- There is a change in business identity - if the work or organisational structure changes radically.
Whether TUPE applies in any particular case depends on all relevant circumstances. In the event of a dispute, only an industrial tribunal or a higher court can decide this.
Where TUPE applies, existing employees of the undertaking transferred automatically become employees of the business that takes the undertaking over. It is unlikely that agency workers fall within the definition of 'employee' for the purposes of TUPE ie they do not automatically transfer, it seems, on current law.
If you think you may become involved in a transfer situation to which TUPE applies, you should consider obtaining legal advice, as the legislation in this area can be complex. Choose a solicitor for your business.
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The transfer of employee liability information
The information you must provide to the new employer when you transfer employees out of your business.
When you transfer employees from your business, you must provide certain information about the employees who are transferring to the new employer. This is known as employee liability information.
The aim of this information is to give the new employer time to understand their obligations towards the transferred employees.
You must provide all information in writing not less than 14 days before the relevant transfer. This can be as electronic files as long as the new employer can readily access the information.
If there is not much information to pass on, eg because only a few employees are transferring, you can provide the information by telephone. Consider asking the new employer which method they would prefer. It would be prudent to keep a full record of all such information, either way.
You can provide the information in stages. However, you must have given all the information before - ideally at least two weeks before - the completion of the transfer. You can also provide the information via a third party if you wish.
You cannot agree with the new employer not to supply this information.
If you do not provide employee liability information, the new employer can make a complaint to an industrial tribunal. This could lead to a compensatory award for any loss the new employer incurs due to not having the information. Compensation is usually at least £500 per employee affected.
The information you must provide
You must provide:
- identity and ages of the employees who will transfer
- their statements of employment particulars
- details of any collective agreements that apply
- details of any formal disciplinary action taken in the past two years to which the statutory disciplinary and dismissal procedures apply
- details of any employee grievances raised in the past two years to which the LRA Code of Practice on Disciplinary and Grievance Procedures applies
- instances of any legal actions against you in the past two years by the transferring employees and any potential legal actions that may be brought
If any of this information changes before the transfer is complete, you must provide the changes in writing to the new employer.
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Your responsibilities to employees transferred out of your business
What you have to do if all or some of your employees transfer to another employer.
You have important responsibilities to your employees if they are transferred out of your business.
Who transfers?
Those who transfer are employees employed by the transferor and assigned to the organised grouping of resources that are going to be transferred.
Therefore those who cannot transfer are:
- those only temporarily assigned to the organised grouping
- the self-employed
- independent contractors
However, an employee can still transfer even if they don't spend all their time working for the grouping to be transferred.
Information and consultation
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 and/or the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (known collectively as TUPE), you are required to inform and consult the representatives of those employees affected by the transfer. Inform and consult your employees.
Affected employees are not just those who are going to transfer - other employees in the business may be affected by the transfer and have a right to be informed and consulted too.
See informing and consulting employees about business transfers.
Refusal to transfer
If an employee refuses to transfer with a business, they have not been dismissed but have effectively resigned. This means that they lose the right to claim certain employment rights.
See resignations connected with a business transfer.
Employee liability information
When employees transfer out of your business, you must give the new employer certain information about those employees. See the transfer of employee liability information.
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Changing terms and conditions after a business transfer
When you can change employees' terms and conditions of employment following a business transfer.
In a business transfer situation, employees' existing terms and conditions are transferred to the new employer from the start of the new employment.
Employees should therefore not be disadvantaged by a transfer, ie by having less favourable terms and conditions in their new roles.
Economic, technical or organisational reason
If you are the new employer, you can only vary a contract for a reason related to the transfer if it's an economic, technical, or organisational (ETO) reason entailing changes in the workforce.
There is no legal definition of an ETO reason. However, it might relate to, for example:
- the profitability or market performance of your business - an economic reason
- the nature of the equipment or production processes which you operate - a technical reason
- the management or organisational structure of your business - an organisational reason
Note that you can't vary the contracts of the transferred employees in order to harmonise their terms and conditions with those of your existing employees in equivalent roles or grades. A pay cut does not count as an ETO. The transfer of a business subject to insolvency proceedings is a different matter, however - it is covered below. However, you could change terms and conditions - by agreement - if the changes are positive, eg fewer working hours or additional holiday entitlement.
Changing terms and conditions over time
After a certain period, eg six months, you might be tempted to consider it 'safe' to vary the contracts of the transferred employees as the reason for the change cannot have been by reason of the transfer.
However, there is no set period for this and no 'rule of thumb' used by the courts or specified in the regulations to define a period of time after which it is safe to assume that the transfer will not impact directly or indirectly on the employer's actions.
Changing terms and conditions after the transfer of an insolvent business
Note that there is greater flexibility to change terms and conditions if the business being transferred is insolvent - see transfers of insolvent businesses.
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Dismissal before or after a business transfer
Continuity of employment, dismissals, and the ETO defence for a business transfer.
Employees who transfer have their continuity of employment preserved. This means that those who had, for example, 18 months of service with their previous employer have - at the time of the transfer - 18 months' service with the new employer.
This is important as it means that employees with enough continuous employment maintain their right to claim certain employment protection rights, eg the right to claim unfair dismissal (one year's continuous employment). Employees also have the right to claim a statutory redundancy payment (two years). See continuous employment and employee rights.
Dismissals before the business transfer
An employee still transfers if they would have been employed in the undertaking immediately before the transfer had they not been unfairly dismissed - either because of the transfer or for a reason connected with the transfer.
The employee will be able to lodge a complaint at the Industrial Tribunal for unfair dismissal against either the previous or the new employer - as long as they have at least one year's continuous employment.
The Labour Relations Agency (LRA) provides an alternative to the Industrial Tribunal under the LRA Arbitration Scheme. Under the scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.
Employers do, however, have the 'ETO defence' - see below.
Dismissals after the business transfer
If you dismiss a transferred employee either because of the transfer or a reason connected with it, their dismissal is automatically unfair.
In certain circumstances, individuals may require at least one year's continuous employment.
The LRA Arbitration Scheme can again provide an alternative to the Industrial Tribunal.
Employers do, however, have the 'ETO defence' - see below.
The ETO defence
If there is an economic, technical or organisational (ETO) reason entailing changes in the workforce, a Transfer of Undertakings (Protection of Employment) Regulations 2006 and/or Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006 (known collectively as TUPE)-related dismissal may be fair.
However, even with this defence, the dismissing employer must still follow a fair dismissal procedure. See dismissing employees.
ETO reasons are narrow in practice and effectively amount to a genuine redundancy situation, eg insolvency of the transferred undertaking.
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Informing and consulting employees about business transfers
Which workplace representatives you must consult and what you should tell them.
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 and the Service Provision Change (Protection of Employment) Regulations (Northern Ireland) 2006, (collectively known as TUPE), you are required to inform and consult the appropriate workplace representatives of those employees affected by the transfer.
Affected employees are not just those who are going to transfer - other employees in either business may be affected by the transfer and have a right to be informed and consulted too.
Which representatives must I inform and consult?
The appropriate representatives who you must inform and consult are either:
- Representatives of a trade union you have recognised for the purposes of collective bargaining - if there is one. See work effectively with trade unions.
- Employee representatives appointed by the affected employees specifically for the purpose of being informed and consulted on the transfer or who have already been appointed for a different purpose and are suitable for this purpose too. For information on arranging the election of employee representatives, see employee representatives during business transfers.
If you have a pre-existing information and consultation (I&C) agreement in place, you have a duty to inform and consult employees or their representatives on - among other things - changes to the workforce. This means that you may have to inform and consult when planning to buy or sell a business.
However, you do not have to inform and consult at the same time under both TUPE and the I&C legislation - you can choose instead to 'opt out' of your I&C agreement and consult under the transfer legislation only.
What to tell TUPE representatives
The appropriate representatives must be informed of:
- the fact that the transfer is taking place, and when and why it will happen
- the legal, economic, and social implications for affected employees
- any actions, steps, or arrangements the employer envisages taking in relation to affected employees, eg redundancies, relocation, or changes to terms and conditions, or the fact that no measures will be taken
- any actions, steps, or arrangements the new employer envisages taking in relation to employees who will transfer - if the employer is the selling employer
- information relating to the use of agency workers, including the total number of agency workers engaged, the areas of the business in which they work, and the type of work they do
You must consider and respond to any representations made by the appropriate representatives, stating your reasons if you reject any of them.
When to give information to TUPE representatives
You must provide information to representatives long enough before the transfer date to give reasonable time for consultation.
The consultation must be undertaken with a view to seeking their agreement.
Rights of TUPE representatives
Representatives have the right to have:
- access to the affected employees
- access to facilities to enable them to carry out their duties, eg a phone line or office
- time off with pay to carry out representative duties
Representatives may be eligible for reinstatement or compensation if unfairly dismissed or treated detrimentally because of their status or actions as representatives.
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Transfers of insolvent businesses
What happens in situations where employees are being transferred as part of an insolvent business.
If you are transferring a business that is subject to insolvency proceedings and you owe money to the employees to be transferred, the responsibility to pay the full amount of the money owed does not transfer to the new employer.
Redundancy Payments Service
The new employer is only responsible for the amount left after the employees have been paid from the Redundancy Payments Service (RPS). If you require further information or advice with an ongoing redundancy claim, you can call the Redundancy Payments Service Helpline on 028 9025 7562.
They should be able to make a claim through the RPS for:
- arrears of pay
- holiday pay - for days taken but not paid
They will not be able to claim statutory redundancy pay or pay in lieu of notice as - post-transfer - their job will not have ended.
For general advice on redundancies, you can get help from the Labour Relations Agency (LRA) Helpline on Tel 03300 555 300.
Permitted variations
You or the new employer - or the insolvency practitioner - can reduce pay and establish other less favourable terms and conditions after the transfer. These are known as permitted variations.
However, certain conditions must be met when doing this:
- the permitted variation must be agreed with you or the new employer - or the insolvency practitioner - and the appropriate representatives, ie trade union representatives if an independent trade union is recognised for collective bargaining purposes or, if not, elected employee representatives
- the agreement must be in writing and signed by each of the representatives or other authorised persons
- before the agreement is signed, the employer must provide all the affected employees with a copy of the agreement and any guidance the employees may need to understand it
You should also consider the following:
- any new terms and conditions agreed in a permitted variation must not breach other statutory entitlements, eg agreed pay rates must not be set below the national minimum wage
- any permitted variation must be made with the intention of safeguarding employment opportunities by ensuring the survival of the business - or part of it
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TUPE transfers: the impact on employee relations
Some negative effects of business transfers and how good staff relations and open communication can have a positive impact.
Transferring employees between businesses can affect staff morale. The result is often discontentment, not just in those transferred but also in staff left behind in the old business and existing employees in the new business.
Other effects on employees
If the process is not handled sensitively, the effects can include:
- feelings of displacement in the employees transferred
- anxiety among their ex-workmates who feel they might be next
- resentment among new workmates who distrust the reason the new employees have been introduced and may resent the fact that they have different terms and conditions
- a feeling of insecurity that may be common to all
However, if both employers know and meet their responsibilities fully and communicate openly throughout the process, then good relations can be maintained with all employees concerned.
Research shows that effective consultation can lead to better decision-making and smoother implementation of decisions and proposals, boosting productivity. This is because if employees feel they have input into decision-making, they will be more satisfied and motivated at work. See employee engagement.
You should be especially careful to emphasise the positive benefits of the sale or purchase and try to show how the prospects for all will be improved by the changes.
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Working effectively with employee representatives
In this guide:
- Working with non-union representatives
- Employee representatives
- Employee representatives during collective redundancy situations
- Employee representatives during business transfers
- Pension representatives
- Representation for workforce agreements
- Ongoing information and consultation arrangements
- Ongoing consultation on health and safety matters
- Employment-protection rights for employee representatives
- Working effectively with employee representatives
Employee representatives
Understand the role of employee representatives and situations when you may need to consult them on issues affecting your workforce.
What is an employee representative?
Employee representatives may be chosen by their fellow employees or appointed by management. The roles of employee representatives vary but most:
- receive information from and give information to management
- pass on information more widely within the workforce
- are consulted by management over certain workplace matters
Employee representatives operate mainly in businesses that:
- do not recognise a trade union for collective bargaining purposes
- recognise a trade union in respect of some, but not all, of their employees
Why consult employee representatives?
Most of the legal duties to consult employee representatives arise in one-off situations such as large-scale redundancies or business transfers. Therefore, if you do not recognise a trade union, you may not have employee representatives in place at times when those one-off events are not occurring.
However, some businesses have employee representatives in place on a permanent and ongoing basis so that they:
- will not have to arrange for employee representatives to be elected when a legal duty arises
- can inform and consult their workforce about business performance or workplace issues
- can build trust through better workforce communications
- can improve staff engagement and productivity, which in turn can help prevent disputes
When to consult employee representatives
You must consult employee representatives:
- in collective redundancy situations - see employee representatives during collective redundancy situations
- where the employer proposes to dismiss and re-engage 20 or more employees as a result of contract variation
- when employees are transferred from one employer to another - see employee representatives during business transfers
- on certain changes to occupational and personal pension schemes - see pension representatives
In these situations, if you don't already have employee representatives, you will have to arrange for them to be elected - although you don't need to 'force' employees to elect them.
You may also need to consult employee representatives on workforce agreements concerning:
- maternity and parental leave schemes
- the use of successive fixed-term contracts
- working time, eg for daily and weekly rest periods, and rest breaks during the working day
See representation for workforce agreements.
Ongoing consultation with employee representatives
You may have to set up an ongoing information and consultation arrangement with elected employee representatives. This might be not only on a national level but also across the European Union.
However, you only have to do this if the relevant employees make a valid request for such an arrangement.
Read more on ongoing information and consultation arrangements.
Note that you also have a duty to carry out ongoing consultation with employees or their representatives on health and safety matters - see ongoing consultation on health and safety matters.
Voluntary ongoing consultation with employee representatives
If you don't have to inform and consult, you can still come to a voluntary agreement with employee representatives on ways in which they can:
- make employees' views known to management
- help strengthen both management's and employees' understanding of workplace issues and other matters affecting the business
- help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations
Examples of voluntary arrangements with employee representatives include:
- individual informal discussions or formal group meetings
- works councils, eg joint consultative committees and joint working parties where representatives of employers consult employee representatives for their views before making decisions - this could be through regular discussion of matters of mutual concern or by meeting to consider and resolve specific business issues
Representation of individual employees
In non-unionised settings, a worker may want to choose an employee representative to act as their companion because that person may be more familiar with the tasks associated with the role of spokesperson.
Alternatively, they may choose a companion who is either a full-time official employed by a union or a lay union official who has been reasonably certified in writing by their union as having experience of or as having received training in, acting as a worker's companion at disciplinary or grievance hearings. The union official can be from any trade union, regardless of whether that union is recognised by you.
Read more on disciplinary procedures, hearings, and appeals, and handling grievances.
Read the Labour Relations Agency's (LRA's) Code of Practice on Disciplinary and Grievance Procedures.
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Employee representatives during collective redundancy situations
Consulting employee representatives when you are planning to make 20 or more employees redundant.
If a collective redundancy situation arises, you have a legal duty to consult elected employee representatives where:
- you don't recognise an independent trade union
- you recognise an independent trade union (or more than one trade union) to bargain on behalf of a group of employees but some of the employees you plan to make redundant don't belong to that group
You must also consult union representatives where you recognise an independent trade union and where at least one of the employees you plan to make redundant is part of the bargaining group for which the union is recognised.
What is a collective redundancy situation?
A collective redundancy situation is where you plan to make 20 or more employees redundant at one establishment within a 90-day period.
For more information on redundancies in general, see redundancy: the options.
Which employee representatives you should consult with
It is your responsibility to ensure that consultation is offered to appropriate employee representatives.
In some cases, you may need to arrange elections to select employees to carry out this task.
However, if you already work with employee representatives in other capacities - eg where you regularly consult employee representatives in works councils, committees, etc - you may be able to use some or all of them for this purpose and avoid elections.
Where you arrange elections, but no employee wishes to stand, you will have to consult all the affected employees individually.
If there are existing representatives, their remit and method of election or appointment must give them suitable authority from the affected employees. For example, where redundancies are to take place among sales staff, you could not inform and consult a committee of managers set up to consider the operation of a staff canteen.
However, it would be appropriate for you to inform and consult:
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly engage with more generally about the business's financial position and/or personnel matters
Arranging the election of employee representatives
If the employee representatives are to be elected specifically for the redundancy consultation, certain election conditions must be met.
When arranging to elect employee representatives, you must:
- make such arrangements as are reasonably practical to ensure that the election is fair
- determine the number of representatives to be elected so that there are enough representatives to represent the interests of all the affected employees, taking into account the number and classes of those employees
- determine whether the affected employees should be represented either by representatives of all the affected employees or by representatives of particular classes of those employees
- before the election, determine the employee representatives' term of office so that it is long enough to enable relevant information to be given and consultations to be completed
- ensure that the candidates for election as employee representatives are affected employees on the date of the election
- ensure that no affected employee is unreasonably excluded from standing for election
- ensure that all affected employees on the date of the election are entitled to vote for employee representatives
- ensure that the employees entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be representatives for particular classes of employees, for as many candidates as there are representatives to be elected to represent their particular class of employee
- hold the election in a way to ensure that, so far as is reasonably practicable, those voting do so in secret, and the votes given at the election are accurately counted
If an elected employee representative ceases to act as one and, as a result, certain employees are no longer represented, you must hold another election satisfying the rules set out at 1, 5, 6, and 9 above.
The law does not state how many representatives you must elect or the exact process for choosing them. However, you need to consider whether:
- the employees have enough time to nominate and consider candidates
- the employees - including any employees absent from work for whatever reason - can freely choose who to vote for
- the arrangements adequately cover all the classes of employees who may be affected by the redundancy situation and provide a reasonable balance between the interests of the different groups
- you have any normal custom and practice in your business for arranging and holding such elections and, if so, whether you have a good reason to depart from it, if you think you need to
Where you give affected employees a genuine opportunity to elect representatives, but the employees fail to do so, you must provide relevant information to all affected employees individually.
Rights of employee representatives
Employee representatives in redundancy situations have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you.
See employment-protection rights for employee representatives.
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Employee representatives during business transfers
Consulting employee representatives when employees are transferring from one employer to another.
If you are involved in a business transfer or service provision change - either because you are transferring employees to another employer or because you are receiving employees from another employer - you are responsible for informing and consulting the employees concerned.
You must consult elected employee representatives during such a transfer if:
- you don't recognise an independent trade union
- you recognise an independent trade union (or more than one trade union) to bargain on behalf of a group of employees but some of the employees affected by the transfer don't belong to that group
You must also consult union representatives where an independent trade union is recognised and where at least one employee affected by the transfer belongs to the bargaining group for which the union is recognised.
For more information on business transfers in general, see responsibilities to employees if you buy or sell a business.
Which employee representatives you should consult with
It is your responsibility to ensure that consultation is offered to appropriate employee representatives.
In some cases, you may need to arrange elections to select employees to carry out this task. However, if you already work with employee representatives in other capacities - eg where you regularly consult employee representatives in works councils, committees, etc - you may be able to use some or all of them for this purpose and avoid elections.
Where you arrange elections, but no employee wishes to stand, you will have to consult all the affected employees individually.
For more information on business transfers and the obligation to inform and consult when employees are being transferred to a new employer, see responsibilities to employees if you buy or sell a business.
If there are existing representatives, their remit and method of election or appointment must give them suitable authority from the affected employees. For example, if the affected employees are all located at one site, it would clearly not be enough to inform and consult representatives based solely at another site - even if they are part of the same business.
However, it would be appropriate for you to inform and consult:
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly inform or consult with more generally about the business's financial position and/or personnel matters
Arranging the election of employee representatives
If the employee representatives are to be specially elected, certain election conditions must be met.
When arranging to elect employee representatives, you must:
- make such arrangements as are reasonably practical to ensure that the election is fair
- determine the number of representatives to be elected so that there are enough representatives to represent the interests of all the affected employees, taking into account the number and classes of those employees
- determine whether the affected employees should be represented either by representatives of all the affected employees or by representatives of particular classes of those employees
- before the election, determine the employee representatives' term of office so that it is long enough to enable relevant information to be given and consultations to be completed
- ensure that the candidates for election as employee representatives are affected employees on the date of the election
- ensure that no affected employee is unreasonably excluded from standing for election
- ensure that all affected employees on the date of the election are entitled to vote for employee representatives
- ensure that the employees entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be representatives for particular classes of employees, for as many candidates as there are representatives to be elected to represent their particular class of employee
- hold the election in a way to ensure that, so far as is reasonably practicable, those voting do so in secret, and the votes given at the election are accurately counted
If an elected employee representative ceases to act as one and, as a result, certain employees are no longer represented, you must hold another election satisfying the rules set out at 1, 5, 6, and 9 above.
The law does not state how many representatives you must elect or the exact process for choosing them. However, you need to consider whether:
- the employees have enough time to nominate and consider candidates
- the employees - including any employees absent from work for whatever reason - can freely choose who to vote for
- the arrangements adequately cover all the classes of employees who may be affected by the transfer and provide a reasonable balance between the interests of the different groups
- you have any normal custom and practice for arranging and holding such elections and, if so, whether you have a good reason to depart from it, if you think you need to
Where you give affected employees a genuine opportunity to elect representatives, but the employees fail to do so, you must provide relevant information to all affected employees individually.
Right of employee representatives
Employee representatives in transfer situations have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Pension representatives
Consulting employee representatives on pension matters.
If you operate an occupational pension scheme (OPS) or make direct payments to a personal pension scheme (PPS), you may have to consult employees and/or their representatives if you wish to change certain scheme conditions or arrangements.
Consulting representatives on changes to an OPS or PPS
You have a legal duty to consult with representatives if certain changes are proposed to any OPS you offer to your staff.
Such changes might be:
- an increase in the normal pension age
- closure of the OPS to some or all new members
- increasing member contributions in some or all cases
- stopping future accruals in the OPS to some or all members
If you make direct payments to a PPS, you must consult representatives where you propose to:
- stop making contributions for some or all members
- reduce your contribution for some or all members
- require some or all members to increase their contributions
You must consult with the representatives of as many affected members as is reasonably practicable.
Subject to that requirement, you could choose to work with one or more of the following:
- previously elected pensions representatives
- representatives of a recognised independent trade union - read more on recognising and derecognising a trade union
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly inform or consult with more generally about business and/or personnel issues
You could also choose to consult directly with employees if provision is made for this in the terms of a pre-existing committee of employees or an agreement you negotiate with any of the types of representative listed.
If you don't already have any such representatives in place, you should arrange for them to be elected.
Election of representatives
The legislation sets out a number of other requirements for election eg
- The requirements of this paragraph are that-
(a) the employer must make such arrangements as are reasonably practicable to ensure that the election is fair;
(b) the employer must determine the number of representatives to be elected so that there are sufficient representatives to represent the interests of active members and the interests of prospective members;
(c) the employer must determine whether the active and prospective members should be represented by representatives of all such members or by representatives of particular descriptions of such members;
(d) before the election, the employer must determine the term of office as representative of active and prospective members;
(e) the candidates for election must be active or prospective members of the scheme on the date of the election;
(f) no active or prospective member may unreasonably be excluded from standing for election;
(g) all active or prospective members on the date of the election are entitled to vote for member representatives;
(h) the members entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be classes of representative for particular descriptions of member, may vote for as many candidates as there are representatives to be elected to represent their particular description of member;
(i) the election is conducted so as to secure that-
(i) so far as is reasonably practicable, those voting do so in secret, and
(ii) the votes given at the election are accurately counted.
2. Where, after an election of representatives satisfying the requirements of paragraph (1) has been held-
(a) one of those elected ceases to act as a representative, and
(b) the active or prospective members (or any description of them) are no longer represented, those members must elect another representative by an election satisfying the requirements of paragraph (1)(a), (e), (f), and (i)
3. The relevant employer must from time to time review the number of representatives determined under paragraph (1)(b) and the number of representatives elected must be adjusted accordingly (whether by members electing one or more other representatives by an election satisfying the requirements of paragraph (1)(a), (e), (f) and (i), by not holding an election under paragraph (2) or otherwise).
You must ensure that:
- candidates for the election are prospective or active members of the scheme on the date of the election
- the number of pension representatives is proportionate to the number of affected prospective and active pension scheme members employed by you, eg one representative per 50 affected or prospective members
Note that if some of the affected members are not represented by a representative, you must consult with those members individually.
Rights of pension representatives
Pension representatives have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you.
See employment-protection rights for employee representatives.
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Representation for workforce agreements
Negotiating with employees on working hours, parental leave, and the use of successive fixed-term contracts.
The law allows for you to negotiate workforce agreements on certain matters.
A workforce agreement is an agreement between an employer and its employees whose terms and conditions of employment are not covered by a collective agreement. A collective agreement is made between the employer and an independent trade union recognised by that employer.
Workforce agreements on working hours
The Working Time Regulations (Northern Ireland) 2016 set maximum working hours, minimum rest breaks and minimum paid annual leave.
You can agree by voluntary agreement with your workforce to vary certain aspects of the regulations, such as rights to rest periods and breaks.
The 48-hour week working-time limit cannot be varied by workforce agreement though individuals can choose to agree to work beyond the 48-hour limit. This agreement is generally referred to as an opt-out and must be in writing and signed by each individual worker affected.
Read more on hours, rest breaks and the working week.
Workforce agreements on parental leave schemes
Employees with young or disabled children are entitled to take unpaid time off to look after those children.
The law sets out certain minimum conditions for parental leave, but you can agree - via a workforce agreement - your own parental leave scheme with your employees.
Read more on agreeing a workplace parental leave scheme.
Workforce agreements on the use of successive fixed-term contracts
If a fixed-term employee has their contract renewed (or is re-engaged on a new fixed-term contract) when they already have a period of four or more years of continuous employment, the renewal or new contract automatically becomes a permanent contract.
However, employers and representatives of employees may agree - via a workforce agreement - objective reasons for fixed-term contracts renewed beyond four years to remain fixed term.
Any agreement may also limit the use of successive fixed-term contracts by applying one or more of the following:
- a limit on the number of successive fixed-term contracts
- a limit on the total duration of successive fixed-term contracts
- a list of permissible objective reasons justifying renewals of fixed-term contracts
For example, representatives of employees in an industry where it is traditional for employees to work on fixed-term contracts may agree with the employer that the nature of the work is an objective reason for continuing to renew fixed-term contracts beyond the four-year limit.
Read more on understanding fixed-term employment contracts.
Electing representatives for workforce agreements
If there are no pre-existing representatives in place, you must arrange to elect employee representatives to negotiate the workforce agreement with you.
To do this, you should:
- decide on the number of representatives to be elected
- ensure candidates are members of the workforce on the date of the election or, in the case of a group, a member of the group to whom the agreement is to apply
- allow each employee a vote for each representative to be elected to represent them
- ensure as far as is reasonably practicable that they are elected by secret ballot
- ensure that the votes are counted fairly and accurately
Rights of representatives for workforce agreements
Such employee representatives have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Ongoing information and consultation arrangements
Representatives for negotiating and running national and transnational information and consultation arrangements.
Depending on the size and geographical scope of your business, you may have to set up an ongoing information and consultation (I&C) arrangement with your employees.
Ongoing I&C on a national level - the Information and Consultation of Employees (ICE) Regulations (Northern Ireland) 2005
As long as they make a valid request, employees of organisations with 50 or more employees have the right to negotiate an I&C agreement with their employer.
If you receive a valid employee request, you must make arrangements for employees to elect or appoint negotiating representatives. They will negotiate with you to reach an I&C agreement.
As part of the I&C agreement, you may decide to inform and consult your employees through I&C representatives. I&C representatives do not necessarily have to be the same individuals as the negotiating representatives.
If you do want I&C representatives, you should agree with the negotiating representatives:
- how many I&C representatives there will be
- who they will represent
- how they may be replaced
- how long they will serve for
- how they will be appointed or elected
- whether anyone other than an employee may be an I&C representative
Read more on how to inform and consult your employees.
Ongoing I&C on a transnational level - European works councils
European works councils (EWCs) are a particular type of works council used by larger companies with sites in more than one European Union (EU) member state, to inform and consult their employees about transnational issues.
Read more on European Works Councils.
Rights of employee representatives
Employee representatives elected or appointed under the ICE Regulations, or as Special Negotiating Body (SNB) or EWC representatives, have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Ongoing consultation on health and safety matters
Representatives of employee safety and their employment rights.
If you recognise an independent trade union for collective bargaining purposes, it is entitled to appoint union safety representatives at the workplace.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on trade union representation relating to safety matters.
However, if you have employees who are not represented by trade union safety representatives, you must consult the employees directly and in good time about health and safety issues.
Alternatively, you must consult any employee representatives - called representatives of employee safety (RoES) - who are elected for this purpose.
Download the HSE guide to consulting employees on health and safety (PDF, 137K).
Employment-protection rights for RoES
A RoES has the right:
- not to be subject to a detriment or to be dismissed because of their activities (or proposed activities) as a RoES - any dismissal in these circumstances is automatically unfair
- to a reasonable amount of paid time off during working hours to perform their functions or undergo any training - this right also applies to a candidate standing for election as a RoES
- to receive the necessary training as is reasonable under the circumstances - you must pay any reasonable costs for such training, including travel and subsistence costs
You must also provide a RoES with the facilities and assistance they may reasonably require for carrying out their duties.
What facilities and assistance are appropriate will vary according to the circumstances. Communication systems vary from workplace to workplace, and it might be appropriate for you to provide the representative with workspace, access to telephone, the internet, email, etc in order to carry out their duties.
Tribunal claims for a RoES if their rights are infringed
A RoES (or candidate in an election to become such a representative) who is dismissed or subjected to a detriment as a result of their activities may lodge a complaint with the Industrial Tribunal.
If the tribunal/arbitrator finds that you:
- dismissed the employee unfairly, an order of reinstatement or re-engagement may be made or alternatively, an award of compensation
- subjected the employee to a detriment, an order to award compensation may be made
A RoES (or candidate in an election to become such a representative) may also lodge a complaint with the Industrial Tribunal if you infringed their right to reasonable paid time off.
If the tribunal/arbitrator finds that you:
- unreasonably refused a RoES or candidate paid time off, a declaration to that effect will be made and the individual will be awarded an amount equal to the pay they would have been entitled to if you hadn't refused them that time off
- failed to pay a RoES or candidate the appropriate amount for paid time off, an order to pay the amount due shall be made
A tribunal/arbitrator will not normally consider any such claim unless it is made within three months of the date when the alleged infringement occurred.
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Employment-protection rights for employee representatives
What employee representatives are entitled to do and have, and what may happen if you deny them these entitlements.
Certain employment-protection rights apply to employee representatives who have been elected for the purposes of information and consultation:
- during a collective redundancy or business transfer situation - see employee representatives during collective redundancy situations and employee representatives during business transfers
- as representatives of employee safety - see ongoing consultation on health and safety matters
- on proposed changes to occupational and personal pension schemes operated by the employer - see pension representatives
- under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- as part of a European works council or special negotiating body - see the page in this guide on ongoing information and consultation arrangements
Employment protection rights
These rights are as follows:
- The right to reasonable paid time off to carry out their duties. The law does not specify the amount of time off that it is reasonable to allow since this will vary according to the circumstances. You should pay the representative at the appropriate hourly rate for the period of absence from work. You can calculate this by dividing the amount of a week's pay by the number of normal working hours in the week.
- The right not to be subject to a detriment or to be dismissed because of their activities (or proposed activities) as an employee representative - any dismissal in these circumstances is automatically unfair.
In addition, representatives of employee safety and those employee representatives dealing with collective redundancies and business transfers have rights to time off to be trained in their duties. They are also entitled to access office equipment and other workplace facilities to assist them in undertaking their roles.
Employee representatives elected for the purposes of negotiating a workforce agreement have the right not to be subjected to a detriment or be dismissed because of their activities or proposed activities - see representation for workforce agreements.
Such representatives do not have the statutory right to paid time off to carry out their duties. However, it's good practice to give them this right anyway.
Note that these employment-protection rights also apply - as appropriate - to those who are candidates in an election to become an employee representative.
Offering discretionary rights to employee representatives
You should consider allowing employee representatives access to office equipment or other workplace facilities to carry out their work effectively.
What is appropriate will vary according to the circumstances. Communication systems vary from workplace to workplace, and it might be appropriate for you to provide the representative with workspace, access to telephone, the internet, email, etc in order to carry out their duties.
You should also consider giving employee representatives paid time off to be trained in their representative roles.
Other representatives - eg those who are consulted voluntarily by employers - have no statutory rights, though it may be in your interest to allow such representatives access to facilities and the time off to perform their duties.
Read Labour Relations Agency (LRA) guidance on non-union representation in the workplace.
Tribunal claims for employee representatives if their rights are infringed
Employee representatives - or candidates in an election to become a representative - who are dismissed or subjected to a detriment as a result of their activities may lodge a complaint with the Industrial Tribunal.
A tribunal/arbitrator will not normally consider such a claim unless it is made within three months of the date when the alleged infringement occurred.
If the tribunal/arbitrator finds that you:
- dismissed the employee unfairly, an order of reinstatement or re-engagement may be made, or alternatively, an award of compensation
- unreasonably refused a representative or candidate paid time off, a declaration to that effect will be made and the individual will be awarded an amount equal to the pay to which they would have been entitled to if you had not refused the time off
- failed to pay a representative or candidate the appropriate amount for paid time off, an order to pay the amount due shall be made
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Working effectively with employee representatives
Working with employee representatives to improve business performance and avoid disputes.
One of the main benefits of working with employee representatives is that it can create a sense of trust between management and employees. If you can do this, it will improve business performance and can help prevent disputes.
The arrangements you use will depend on the size of your business and the type of consultation. However, it's important to aim for a balanced relationship and make roles clear. For example:
- Set out your expectations of the representatives' day-to-day role, identifying which issues are within the scope of consultation.
- Works/staff councils should have a constitution including their terms of reference and procedure for electing representatives. You should commit time and resources to enable it to operate, such as meeting or training facilities.
It's also important to meet your legal obligations and enable individual representatives to do their job well. Read more on employment-protection rights for employee representatives.
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Ongoing consultation on health and safety matters
In this guide:
- Working with non-union representatives
- Employee representatives
- Employee representatives during collective redundancy situations
- Employee representatives during business transfers
- Pension representatives
- Representation for workforce agreements
- Ongoing information and consultation arrangements
- Ongoing consultation on health and safety matters
- Employment-protection rights for employee representatives
- Working effectively with employee representatives
Employee representatives
Understand the role of employee representatives and situations when you may need to consult them on issues affecting your workforce.
What is an employee representative?
Employee representatives may be chosen by their fellow employees or appointed by management. The roles of employee representatives vary but most:
- receive information from and give information to management
- pass on information more widely within the workforce
- are consulted by management over certain workplace matters
Employee representatives operate mainly in businesses that:
- do not recognise a trade union for collective bargaining purposes
- recognise a trade union in respect of some, but not all, of their employees
Why consult employee representatives?
Most of the legal duties to consult employee representatives arise in one-off situations such as large-scale redundancies or business transfers. Therefore, if you do not recognise a trade union, you may not have employee representatives in place at times when those one-off events are not occurring.
However, some businesses have employee representatives in place on a permanent and ongoing basis so that they:
- will not have to arrange for employee representatives to be elected when a legal duty arises
- can inform and consult their workforce about business performance or workplace issues
- can build trust through better workforce communications
- can improve staff engagement and productivity, which in turn can help prevent disputes
When to consult employee representatives
You must consult employee representatives:
- in collective redundancy situations - see employee representatives during collective redundancy situations
- where the employer proposes to dismiss and re-engage 20 or more employees as a result of contract variation
- when employees are transferred from one employer to another - see employee representatives during business transfers
- on certain changes to occupational and personal pension schemes - see pension representatives
In these situations, if you don't already have employee representatives, you will have to arrange for them to be elected - although you don't need to 'force' employees to elect them.
You may also need to consult employee representatives on workforce agreements concerning:
- maternity and parental leave schemes
- the use of successive fixed-term contracts
- working time, eg for daily and weekly rest periods, and rest breaks during the working day
See representation for workforce agreements.
Ongoing consultation with employee representatives
You may have to set up an ongoing information and consultation arrangement with elected employee representatives. This might be not only on a national level but also across the European Union.
However, you only have to do this if the relevant employees make a valid request for such an arrangement.
Read more on ongoing information and consultation arrangements.
Note that you also have a duty to carry out ongoing consultation with employees or their representatives on health and safety matters - see ongoing consultation on health and safety matters.
Voluntary ongoing consultation with employee representatives
If you don't have to inform and consult, you can still come to a voluntary agreement with employee representatives on ways in which they can:
- make employees' views known to management
- help strengthen both management's and employees' understanding of workplace issues and other matters affecting the business
- help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations
Examples of voluntary arrangements with employee representatives include:
- individual informal discussions or formal group meetings
- works councils, eg joint consultative committees and joint working parties where representatives of employers consult employee representatives for their views before making decisions - this could be through regular discussion of matters of mutual concern or by meeting to consider and resolve specific business issues
Representation of individual employees
In non-unionised settings, a worker may want to choose an employee representative to act as their companion because that person may be more familiar with the tasks associated with the role of spokesperson.
Alternatively, they may choose a companion who is either a full-time official employed by a union or a lay union official who has been reasonably certified in writing by their union as having experience of or as having received training in, acting as a worker's companion at disciplinary or grievance hearings. The union official can be from any trade union, regardless of whether that union is recognised by you.
Read more on disciplinary procedures, hearings, and appeals, and handling grievances.
Read the Labour Relations Agency's (LRA's) Code of Practice on Disciplinary and Grievance Procedures.
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Employee representatives during collective redundancy situations
Consulting employee representatives when you are planning to make 20 or more employees redundant.
If a collective redundancy situation arises, you have a legal duty to consult elected employee representatives where:
- you don't recognise an independent trade union
- you recognise an independent trade union (or more than one trade union) to bargain on behalf of a group of employees but some of the employees you plan to make redundant don't belong to that group
You must also consult union representatives where you recognise an independent trade union and where at least one of the employees you plan to make redundant is part of the bargaining group for which the union is recognised.
What is a collective redundancy situation?
A collective redundancy situation is where you plan to make 20 or more employees redundant at one establishment within a 90-day period.
For more information on redundancies in general, see redundancy: the options.
Which employee representatives you should consult with
It is your responsibility to ensure that consultation is offered to appropriate employee representatives.
In some cases, you may need to arrange elections to select employees to carry out this task.
However, if you already work with employee representatives in other capacities - eg where you regularly consult employee representatives in works councils, committees, etc - you may be able to use some or all of them for this purpose and avoid elections.
Where you arrange elections, but no employee wishes to stand, you will have to consult all the affected employees individually.
If there are existing representatives, their remit and method of election or appointment must give them suitable authority from the affected employees. For example, where redundancies are to take place among sales staff, you could not inform and consult a committee of managers set up to consider the operation of a staff canteen.
However, it would be appropriate for you to inform and consult:
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly engage with more generally about the business's financial position and/or personnel matters
Arranging the election of employee representatives
If the employee representatives are to be elected specifically for the redundancy consultation, certain election conditions must be met.
When arranging to elect employee representatives, you must:
- make such arrangements as are reasonably practical to ensure that the election is fair
- determine the number of representatives to be elected so that there are enough representatives to represent the interests of all the affected employees, taking into account the number and classes of those employees
- determine whether the affected employees should be represented either by representatives of all the affected employees or by representatives of particular classes of those employees
- before the election, determine the employee representatives' term of office so that it is long enough to enable relevant information to be given and consultations to be completed
- ensure that the candidates for election as employee representatives are affected employees on the date of the election
- ensure that no affected employee is unreasonably excluded from standing for election
- ensure that all affected employees on the date of the election are entitled to vote for employee representatives
- ensure that the employees entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be representatives for particular classes of employees, for as many candidates as there are representatives to be elected to represent their particular class of employee
- hold the election in a way to ensure that, so far as is reasonably practicable, those voting do so in secret, and the votes given at the election are accurately counted
If an elected employee representative ceases to act as one and, as a result, certain employees are no longer represented, you must hold another election satisfying the rules set out at 1, 5, 6, and 9 above.
The law does not state how many representatives you must elect or the exact process for choosing them. However, you need to consider whether:
- the employees have enough time to nominate and consider candidates
- the employees - including any employees absent from work for whatever reason - can freely choose who to vote for
- the arrangements adequately cover all the classes of employees who may be affected by the redundancy situation and provide a reasonable balance between the interests of the different groups
- you have any normal custom and practice in your business for arranging and holding such elections and, if so, whether you have a good reason to depart from it, if you think you need to
Where you give affected employees a genuine opportunity to elect representatives, but the employees fail to do so, you must provide relevant information to all affected employees individually.
Rights of employee representatives
Employee representatives in redundancy situations have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you.
See employment-protection rights for employee representatives.
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Employee representatives during business transfers
Consulting employee representatives when employees are transferring from one employer to another.
If you are involved in a business transfer or service provision change - either because you are transferring employees to another employer or because you are receiving employees from another employer - you are responsible for informing and consulting the employees concerned.
You must consult elected employee representatives during such a transfer if:
- you don't recognise an independent trade union
- you recognise an independent trade union (or more than one trade union) to bargain on behalf of a group of employees but some of the employees affected by the transfer don't belong to that group
You must also consult union representatives where an independent trade union is recognised and where at least one employee affected by the transfer belongs to the bargaining group for which the union is recognised.
For more information on business transfers in general, see responsibilities to employees if you buy or sell a business.
Which employee representatives you should consult with
It is your responsibility to ensure that consultation is offered to appropriate employee representatives.
In some cases, you may need to arrange elections to select employees to carry out this task. However, if you already work with employee representatives in other capacities - eg where you regularly consult employee representatives in works councils, committees, etc - you may be able to use some or all of them for this purpose and avoid elections.
Where you arrange elections, but no employee wishes to stand, you will have to consult all the affected employees individually.
For more information on business transfers and the obligation to inform and consult when employees are being transferred to a new employer, see responsibilities to employees if you buy or sell a business.
If there are existing representatives, their remit and method of election or appointment must give them suitable authority from the affected employees. For example, if the affected employees are all located at one site, it would clearly not be enough to inform and consult representatives based solely at another site - even if they are part of the same business.
However, it would be appropriate for you to inform and consult:
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly inform or consult with more generally about the business's financial position and/or personnel matters
Arranging the election of employee representatives
If the employee representatives are to be specially elected, certain election conditions must be met.
When arranging to elect employee representatives, you must:
- make such arrangements as are reasonably practical to ensure that the election is fair
- determine the number of representatives to be elected so that there are enough representatives to represent the interests of all the affected employees, taking into account the number and classes of those employees
- determine whether the affected employees should be represented either by representatives of all the affected employees or by representatives of particular classes of those employees
- before the election, determine the employee representatives' term of office so that it is long enough to enable relevant information to be given and consultations to be completed
- ensure that the candidates for election as employee representatives are affected employees on the date of the election
- ensure that no affected employee is unreasonably excluded from standing for election
- ensure that all affected employees on the date of the election are entitled to vote for employee representatives
- ensure that the employees entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be representatives for particular classes of employees, for as many candidates as there are representatives to be elected to represent their particular class of employee
- hold the election in a way to ensure that, so far as is reasonably practicable, those voting do so in secret, and the votes given at the election are accurately counted
If an elected employee representative ceases to act as one and, as a result, certain employees are no longer represented, you must hold another election satisfying the rules set out at 1, 5, 6, and 9 above.
The law does not state how many representatives you must elect or the exact process for choosing them. However, you need to consider whether:
- the employees have enough time to nominate and consider candidates
- the employees - including any employees absent from work for whatever reason - can freely choose who to vote for
- the arrangements adequately cover all the classes of employees who may be affected by the transfer and provide a reasonable balance between the interests of the different groups
- you have any normal custom and practice for arranging and holding such elections and, if so, whether you have a good reason to depart from it, if you think you need to
Where you give affected employees a genuine opportunity to elect representatives, but the employees fail to do so, you must provide relevant information to all affected employees individually.
Right of employee representatives
Employee representatives in transfer situations have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Pension representatives
Consulting employee representatives on pension matters.
If you operate an occupational pension scheme (OPS) or make direct payments to a personal pension scheme (PPS), you may have to consult employees and/or their representatives if you wish to change certain scheme conditions or arrangements.
Consulting representatives on changes to an OPS or PPS
You have a legal duty to consult with representatives if certain changes are proposed to any OPS you offer to your staff.
Such changes might be:
- an increase in the normal pension age
- closure of the OPS to some or all new members
- increasing member contributions in some or all cases
- stopping future accruals in the OPS to some or all members
If you make direct payments to a PPS, you must consult representatives where you propose to:
- stop making contributions for some or all members
- reduce your contribution for some or all members
- require some or all members to increase their contributions
You must consult with the representatives of as many affected members as is reasonably practicable.
Subject to that requirement, you could choose to work with one or more of the following:
- previously elected pensions representatives
- representatives of a recognised independent trade union - read more on recognising and derecognising a trade union
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly inform or consult with more generally about business and/or personnel issues
You could also choose to consult directly with employees if provision is made for this in the terms of a pre-existing committee of employees or an agreement you negotiate with any of the types of representative listed.
If you don't already have any such representatives in place, you should arrange for them to be elected.
Election of representatives
The legislation sets out a number of other requirements for election eg
- The requirements of this paragraph are that-
(a) the employer must make such arrangements as are reasonably practicable to ensure that the election is fair;
(b) the employer must determine the number of representatives to be elected so that there are sufficient representatives to represent the interests of active members and the interests of prospective members;
(c) the employer must determine whether the active and prospective members should be represented by representatives of all such members or by representatives of particular descriptions of such members;
(d) before the election, the employer must determine the term of office as representative of active and prospective members;
(e) the candidates for election must be active or prospective members of the scheme on the date of the election;
(f) no active or prospective member may unreasonably be excluded from standing for election;
(g) all active or prospective members on the date of the election are entitled to vote for member representatives;
(h) the members entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be classes of representative for particular descriptions of member, may vote for as many candidates as there are representatives to be elected to represent their particular description of member;
(i) the election is conducted so as to secure that-
(i) so far as is reasonably practicable, those voting do so in secret, and
(ii) the votes given at the election are accurately counted.
2. Where, after an election of representatives satisfying the requirements of paragraph (1) has been held-
(a) one of those elected ceases to act as a representative, and
(b) the active or prospective members (or any description of them) are no longer represented, those members must elect another representative by an election satisfying the requirements of paragraph (1)(a), (e), (f), and (i)
3. The relevant employer must from time to time review the number of representatives determined under paragraph (1)(b) and the number of representatives elected must be adjusted accordingly (whether by members electing one or more other representatives by an election satisfying the requirements of paragraph (1)(a), (e), (f) and (i), by not holding an election under paragraph (2) or otherwise).
You must ensure that:
- candidates for the election are prospective or active members of the scheme on the date of the election
- the number of pension representatives is proportionate to the number of affected prospective and active pension scheme members employed by you, eg one representative per 50 affected or prospective members
Note that if some of the affected members are not represented by a representative, you must consult with those members individually.
Rights of pension representatives
Pension representatives have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you.
See employment-protection rights for employee representatives.
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Representation for workforce agreements
Negotiating with employees on working hours, parental leave, and the use of successive fixed-term contracts.
The law allows for you to negotiate workforce agreements on certain matters.
A workforce agreement is an agreement between an employer and its employees whose terms and conditions of employment are not covered by a collective agreement. A collective agreement is made between the employer and an independent trade union recognised by that employer.
Workforce agreements on working hours
The Working Time Regulations (Northern Ireland) 2016 set maximum working hours, minimum rest breaks and minimum paid annual leave.
You can agree by voluntary agreement with your workforce to vary certain aspects of the regulations, such as rights to rest periods and breaks.
The 48-hour week working-time limit cannot be varied by workforce agreement though individuals can choose to agree to work beyond the 48-hour limit. This agreement is generally referred to as an opt-out and must be in writing and signed by each individual worker affected.
Read more on hours, rest breaks and the working week.
Workforce agreements on parental leave schemes
Employees with young or disabled children are entitled to take unpaid time off to look after those children.
The law sets out certain minimum conditions for parental leave, but you can agree - via a workforce agreement - your own parental leave scheme with your employees.
Read more on agreeing a workplace parental leave scheme.
Workforce agreements on the use of successive fixed-term contracts
If a fixed-term employee has their contract renewed (or is re-engaged on a new fixed-term contract) when they already have a period of four or more years of continuous employment, the renewal or new contract automatically becomes a permanent contract.
However, employers and representatives of employees may agree - via a workforce agreement - objective reasons for fixed-term contracts renewed beyond four years to remain fixed term.
Any agreement may also limit the use of successive fixed-term contracts by applying one or more of the following:
- a limit on the number of successive fixed-term contracts
- a limit on the total duration of successive fixed-term contracts
- a list of permissible objective reasons justifying renewals of fixed-term contracts
For example, representatives of employees in an industry where it is traditional for employees to work on fixed-term contracts may agree with the employer that the nature of the work is an objective reason for continuing to renew fixed-term contracts beyond the four-year limit.
Read more on understanding fixed-term employment contracts.
Electing representatives for workforce agreements
If there are no pre-existing representatives in place, you must arrange to elect employee representatives to negotiate the workforce agreement with you.
To do this, you should:
- decide on the number of representatives to be elected
- ensure candidates are members of the workforce on the date of the election or, in the case of a group, a member of the group to whom the agreement is to apply
- allow each employee a vote for each representative to be elected to represent them
- ensure as far as is reasonably practicable that they are elected by secret ballot
- ensure that the votes are counted fairly and accurately
Rights of representatives for workforce agreements
Such employee representatives have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Ongoing information and consultation arrangements
Representatives for negotiating and running national and transnational information and consultation arrangements.
Depending on the size and geographical scope of your business, you may have to set up an ongoing information and consultation (I&C) arrangement with your employees.
Ongoing I&C on a national level - the Information and Consultation of Employees (ICE) Regulations (Northern Ireland) 2005
As long as they make a valid request, employees of organisations with 50 or more employees have the right to negotiate an I&C agreement with their employer.
If you receive a valid employee request, you must make arrangements for employees to elect or appoint negotiating representatives. They will negotiate with you to reach an I&C agreement.
As part of the I&C agreement, you may decide to inform and consult your employees through I&C representatives. I&C representatives do not necessarily have to be the same individuals as the negotiating representatives.
If you do want I&C representatives, you should agree with the negotiating representatives:
- how many I&C representatives there will be
- who they will represent
- how they may be replaced
- how long they will serve for
- how they will be appointed or elected
- whether anyone other than an employee may be an I&C representative
Read more on how to inform and consult your employees.
Ongoing I&C on a transnational level - European works councils
European works councils (EWCs) are a particular type of works council used by larger companies with sites in more than one European Union (EU) member state, to inform and consult their employees about transnational issues.
Read more on European Works Councils.
Rights of employee representatives
Employee representatives elected or appointed under the ICE Regulations, or as Special Negotiating Body (SNB) or EWC representatives, have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Ongoing consultation on health and safety matters
Representatives of employee safety and their employment rights.
If you recognise an independent trade union for collective bargaining purposes, it is entitled to appoint union safety representatives at the workplace.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on trade union representation relating to safety matters.
However, if you have employees who are not represented by trade union safety representatives, you must consult the employees directly and in good time about health and safety issues.
Alternatively, you must consult any employee representatives - called representatives of employee safety (RoES) - who are elected for this purpose.
Download the HSE guide to consulting employees on health and safety (PDF, 137K).
Employment-protection rights for RoES
A RoES has the right:
- not to be subject to a detriment or to be dismissed because of their activities (or proposed activities) as a RoES - any dismissal in these circumstances is automatically unfair
- to a reasonable amount of paid time off during working hours to perform their functions or undergo any training - this right also applies to a candidate standing for election as a RoES
- to receive the necessary training as is reasonable under the circumstances - you must pay any reasonable costs for such training, including travel and subsistence costs
You must also provide a RoES with the facilities and assistance they may reasonably require for carrying out their duties.
What facilities and assistance are appropriate will vary according to the circumstances. Communication systems vary from workplace to workplace, and it might be appropriate for you to provide the representative with workspace, access to telephone, the internet, email, etc in order to carry out their duties.
Tribunal claims for a RoES if their rights are infringed
A RoES (or candidate in an election to become such a representative) who is dismissed or subjected to a detriment as a result of their activities may lodge a complaint with the Industrial Tribunal.
If the tribunal/arbitrator finds that you:
- dismissed the employee unfairly, an order of reinstatement or re-engagement may be made or alternatively, an award of compensation
- subjected the employee to a detriment, an order to award compensation may be made
A RoES (or candidate in an election to become such a representative) may also lodge a complaint with the Industrial Tribunal if you infringed their right to reasonable paid time off.
If the tribunal/arbitrator finds that you:
- unreasonably refused a RoES or candidate paid time off, a declaration to that effect will be made and the individual will be awarded an amount equal to the pay they would have been entitled to if you hadn't refused them that time off
- failed to pay a RoES or candidate the appropriate amount for paid time off, an order to pay the amount due shall be made
A tribunal/arbitrator will not normally consider any such claim unless it is made within three months of the date when the alleged infringement occurred.
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Employment-protection rights for employee representatives
What employee representatives are entitled to do and have, and what may happen if you deny them these entitlements.
Certain employment-protection rights apply to employee representatives who have been elected for the purposes of information and consultation:
- during a collective redundancy or business transfer situation - see employee representatives during collective redundancy situations and employee representatives during business transfers
- as representatives of employee safety - see ongoing consultation on health and safety matters
- on proposed changes to occupational and personal pension schemes operated by the employer - see pension representatives
- under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- as part of a European works council or special negotiating body - see the page in this guide on ongoing information and consultation arrangements
Employment protection rights
These rights are as follows:
- The right to reasonable paid time off to carry out their duties. The law does not specify the amount of time off that it is reasonable to allow since this will vary according to the circumstances. You should pay the representative at the appropriate hourly rate for the period of absence from work. You can calculate this by dividing the amount of a week's pay by the number of normal working hours in the week.
- The right not to be subject to a detriment or to be dismissed because of their activities (or proposed activities) as an employee representative - any dismissal in these circumstances is automatically unfair.
In addition, representatives of employee safety and those employee representatives dealing with collective redundancies and business transfers have rights to time off to be trained in their duties. They are also entitled to access office equipment and other workplace facilities to assist them in undertaking their roles.
Employee representatives elected for the purposes of negotiating a workforce agreement have the right not to be subjected to a detriment or be dismissed because of their activities or proposed activities - see representation for workforce agreements.
Such representatives do not have the statutory right to paid time off to carry out their duties. However, it's good practice to give them this right anyway.
Note that these employment-protection rights also apply - as appropriate - to those who are candidates in an election to become an employee representative.
Offering discretionary rights to employee representatives
You should consider allowing employee representatives access to office equipment or other workplace facilities to carry out their work effectively.
What is appropriate will vary according to the circumstances. Communication systems vary from workplace to workplace, and it might be appropriate for you to provide the representative with workspace, access to telephone, the internet, email, etc in order to carry out their duties.
You should also consider giving employee representatives paid time off to be trained in their representative roles.
Other representatives - eg those who are consulted voluntarily by employers - have no statutory rights, though it may be in your interest to allow such representatives access to facilities and the time off to perform their duties.
Read Labour Relations Agency (LRA) guidance on non-union representation in the workplace.
Tribunal claims for employee representatives if their rights are infringed
Employee representatives - or candidates in an election to become a representative - who are dismissed or subjected to a detriment as a result of their activities may lodge a complaint with the Industrial Tribunal.
A tribunal/arbitrator will not normally consider such a claim unless it is made within three months of the date when the alleged infringement occurred.
If the tribunal/arbitrator finds that you:
- dismissed the employee unfairly, an order of reinstatement or re-engagement may be made, or alternatively, an award of compensation
- unreasonably refused a representative or candidate paid time off, a declaration to that effect will be made and the individual will be awarded an amount equal to the pay to which they would have been entitled to if you had not refused the time off
- failed to pay a representative or candidate the appropriate amount for paid time off, an order to pay the amount due shall be made
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Working effectively with employee representatives
Working with employee representatives to improve business performance and avoid disputes.
One of the main benefits of working with employee representatives is that it can create a sense of trust between management and employees. If you can do this, it will improve business performance and can help prevent disputes.
The arrangements you use will depend on the size of your business and the type of consultation. However, it's important to aim for a balanced relationship and make roles clear. For example:
- Set out your expectations of the representatives' day-to-day role, identifying which issues are within the scope of consultation.
- Works/staff councils should have a constitution including their terms of reference and procedure for electing representatives. You should commit time and resources to enable it to operate, such as meeting or training facilities.
It's also important to meet your legal obligations and enable individual representatives to do their job well. Read more on employment-protection rights for employee representatives.
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Ongoing information and consultation arrangements
In this guide:
- Working with non-union representatives
- Employee representatives
- Employee representatives during collective redundancy situations
- Employee representatives during business transfers
- Pension representatives
- Representation for workforce agreements
- Ongoing information and consultation arrangements
- Ongoing consultation on health and safety matters
- Employment-protection rights for employee representatives
- Working effectively with employee representatives
Employee representatives
Understand the role of employee representatives and situations when you may need to consult them on issues affecting your workforce.
What is an employee representative?
Employee representatives may be chosen by their fellow employees or appointed by management. The roles of employee representatives vary but most:
- receive information from and give information to management
- pass on information more widely within the workforce
- are consulted by management over certain workplace matters
Employee representatives operate mainly in businesses that:
- do not recognise a trade union for collective bargaining purposes
- recognise a trade union in respect of some, but not all, of their employees
Why consult employee representatives?
Most of the legal duties to consult employee representatives arise in one-off situations such as large-scale redundancies or business transfers. Therefore, if you do not recognise a trade union, you may not have employee representatives in place at times when those one-off events are not occurring.
However, some businesses have employee representatives in place on a permanent and ongoing basis so that they:
- will not have to arrange for employee representatives to be elected when a legal duty arises
- can inform and consult their workforce about business performance or workplace issues
- can build trust through better workforce communications
- can improve staff engagement and productivity, which in turn can help prevent disputes
When to consult employee representatives
You must consult employee representatives:
- in collective redundancy situations - see employee representatives during collective redundancy situations
- where the employer proposes to dismiss and re-engage 20 or more employees as a result of contract variation
- when employees are transferred from one employer to another - see employee representatives during business transfers
- on certain changes to occupational and personal pension schemes - see pension representatives
In these situations, if you don't already have employee representatives, you will have to arrange for them to be elected - although you don't need to 'force' employees to elect them.
You may also need to consult employee representatives on workforce agreements concerning:
- maternity and parental leave schemes
- the use of successive fixed-term contracts
- working time, eg for daily and weekly rest periods, and rest breaks during the working day
See representation for workforce agreements.
Ongoing consultation with employee representatives
You may have to set up an ongoing information and consultation arrangement with elected employee representatives. This might be not only on a national level but also across the European Union.
However, you only have to do this if the relevant employees make a valid request for such an arrangement.
Read more on ongoing information and consultation arrangements.
Note that you also have a duty to carry out ongoing consultation with employees or their representatives on health and safety matters - see ongoing consultation on health and safety matters.
Voluntary ongoing consultation with employee representatives
If you don't have to inform and consult, you can still come to a voluntary agreement with employee representatives on ways in which they can:
- make employees' views known to management
- help strengthen both management's and employees' understanding of workplace issues and other matters affecting the business
- help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations
Examples of voluntary arrangements with employee representatives include:
- individual informal discussions or formal group meetings
- works councils, eg joint consultative committees and joint working parties where representatives of employers consult employee representatives for their views before making decisions - this could be through regular discussion of matters of mutual concern or by meeting to consider and resolve specific business issues
Representation of individual employees
In non-unionised settings, a worker may want to choose an employee representative to act as their companion because that person may be more familiar with the tasks associated with the role of spokesperson.
Alternatively, they may choose a companion who is either a full-time official employed by a union or a lay union official who has been reasonably certified in writing by their union as having experience of or as having received training in, acting as a worker's companion at disciplinary or grievance hearings. The union official can be from any trade union, regardless of whether that union is recognised by you.
Read more on disciplinary procedures, hearings, and appeals, and handling grievances.
Read the Labour Relations Agency's (LRA's) Code of Practice on Disciplinary and Grievance Procedures.
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Employee representatives during collective redundancy situations
Consulting employee representatives when you are planning to make 20 or more employees redundant.
If a collective redundancy situation arises, you have a legal duty to consult elected employee representatives where:
- you don't recognise an independent trade union
- you recognise an independent trade union (or more than one trade union) to bargain on behalf of a group of employees but some of the employees you plan to make redundant don't belong to that group
You must also consult union representatives where you recognise an independent trade union and where at least one of the employees you plan to make redundant is part of the bargaining group for which the union is recognised.
What is a collective redundancy situation?
A collective redundancy situation is where you plan to make 20 or more employees redundant at one establishment within a 90-day period.
For more information on redundancies in general, see redundancy: the options.
Which employee representatives you should consult with
It is your responsibility to ensure that consultation is offered to appropriate employee representatives.
In some cases, you may need to arrange elections to select employees to carry out this task.
However, if you already work with employee representatives in other capacities - eg where you regularly consult employee representatives in works councils, committees, etc - you may be able to use some or all of them for this purpose and avoid elections.
Where you arrange elections, but no employee wishes to stand, you will have to consult all the affected employees individually.
If there are existing representatives, their remit and method of election or appointment must give them suitable authority from the affected employees. For example, where redundancies are to take place among sales staff, you could not inform and consult a committee of managers set up to consider the operation of a staff canteen.
However, it would be appropriate for you to inform and consult:
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly engage with more generally about the business's financial position and/or personnel matters
Arranging the election of employee representatives
If the employee representatives are to be elected specifically for the redundancy consultation, certain election conditions must be met.
When arranging to elect employee representatives, you must:
- make such arrangements as are reasonably practical to ensure that the election is fair
- determine the number of representatives to be elected so that there are enough representatives to represent the interests of all the affected employees, taking into account the number and classes of those employees
- determine whether the affected employees should be represented either by representatives of all the affected employees or by representatives of particular classes of those employees
- before the election, determine the employee representatives' term of office so that it is long enough to enable relevant information to be given and consultations to be completed
- ensure that the candidates for election as employee representatives are affected employees on the date of the election
- ensure that no affected employee is unreasonably excluded from standing for election
- ensure that all affected employees on the date of the election are entitled to vote for employee representatives
- ensure that the employees entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be representatives for particular classes of employees, for as many candidates as there are representatives to be elected to represent their particular class of employee
- hold the election in a way to ensure that, so far as is reasonably practicable, those voting do so in secret, and the votes given at the election are accurately counted
If an elected employee representative ceases to act as one and, as a result, certain employees are no longer represented, you must hold another election satisfying the rules set out at 1, 5, 6, and 9 above.
The law does not state how many representatives you must elect or the exact process for choosing them. However, you need to consider whether:
- the employees have enough time to nominate and consider candidates
- the employees - including any employees absent from work for whatever reason - can freely choose who to vote for
- the arrangements adequately cover all the classes of employees who may be affected by the redundancy situation and provide a reasonable balance between the interests of the different groups
- you have any normal custom and practice in your business for arranging and holding such elections and, if so, whether you have a good reason to depart from it, if you think you need to
Where you give affected employees a genuine opportunity to elect representatives, but the employees fail to do so, you must provide relevant information to all affected employees individually.
Rights of employee representatives
Employee representatives in redundancy situations have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you.
See employment-protection rights for employee representatives.
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Employee representatives during business transfers
Consulting employee representatives when employees are transferring from one employer to another.
If you are involved in a business transfer or service provision change - either because you are transferring employees to another employer or because you are receiving employees from another employer - you are responsible for informing and consulting the employees concerned.
You must consult elected employee representatives during such a transfer if:
- you don't recognise an independent trade union
- you recognise an independent trade union (or more than one trade union) to bargain on behalf of a group of employees but some of the employees affected by the transfer don't belong to that group
You must also consult union representatives where an independent trade union is recognised and where at least one employee affected by the transfer belongs to the bargaining group for which the union is recognised.
For more information on business transfers in general, see responsibilities to employees if you buy or sell a business.
Which employee representatives you should consult with
It is your responsibility to ensure that consultation is offered to appropriate employee representatives.
In some cases, you may need to arrange elections to select employees to carry out this task. However, if you already work with employee representatives in other capacities - eg where you regularly consult employee representatives in works councils, committees, etc - you may be able to use some or all of them for this purpose and avoid elections.
Where you arrange elections, but no employee wishes to stand, you will have to consult all the affected employees individually.
For more information on business transfers and the obligation to inform and consult when employees are being transferred to a new employer, see responsibilities to employees if you buy or sell a business.
If there are existing representatives, their remit and method of election or appointment must give them suitable authority from the affected employees. For example, if the affected employees are all located at one site, it would clearly not be enough to inform and consult representatives based solely at another site - even if they are part of the same business.
However, it would be appropriate for you to inform and consult:
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly inform or consult with more generally about the business's financial position and/or personnel matters
Arranging the election of employee representatives
If the employee representatives are to be specially elected, certain election conditions must be met.
When arranging to elect employee representatives, you must:
- make such arrangements as are reasonably practical to ensure that the election is fair
- determine the number of representatives to be elected so that there are enough representatives to represent the interests of all the affected employees, taking into account the number and classes of those employees
- determine whether the affected employees should be represented either by representatives of all the affected employees or by representatives of particular classes of those employees
- before the election, determine the employee representatives' term of office so that it is long enough to enable relevant information to be given and consultations to be completed
- ensure that the candidates for election as employee representatives are affected employees on the date of the election
- ensure that no affected employee is unreasonably excluded from standing for election
- ensure that all affected employees on the date of the election are entitled to vote for employee representatives
- ensure that the employees entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be representatives for particular classes of employees, for as many candidates as there are representatives to be elected to represent their particular class of employee
- hold the election in a way to ensure that, so far as is reasonably practicable, those voting do so in secret, and the votes given at the election are accurately counted
If an elected employee representative ceases to act as one and, as a result, certain employees are no longer represented, you must hold another election satisfying the rules set out at 1, 5, 6, and 9 above.
The law does not state how many representatives you must elect or the exact process for choosing them. However, you need to consider whether:
- the employees have enough time to nominate and consider candidates
- the employees - including any employees absent from work for whatever reason - can freely choose who to vote for
- the arrangements adequately cover all the classes of employees who may be affected by the transfer and provide a reasonable balance between the interests of the different groups
- you have any normal custom and practice for arranging and holding such elections and, if so, whether you have a good reason to depart from it, if you think you need to
Where you give affected employees a genuine opportunity to elect representatives, but the employees fail to do so, you must provide relevant information to all affected employees individually.
Right of employee representatives
Employee representatives in transfer situations have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Pension representatives
Consulting employee representatives on pension matters.
If you operate an occupational pension scheme (OPS) or make direct payments to a personal pension scheme (PPS), you may have to consult employees and/or their representatives if you wish to change certain scheme conditions or arrangements.
Consulting representatives on changes to an OPS or PPS
You have a legal duty to consult with representatives if certain changes are proposed to any OPS you offer to your staff.
Such changes might be:
- an increase in the normal pension age
- closure of the OPS to some or all new members
- increasing member contributions in some or all cases
- stopping future accruals in the OPS to some or all members
If you make direct payments to a PPS, you must consult representatives where you propose to:
- stop making contributions for some or all members
- reduce your contribution for some or all members
- require some or all members to increase their contributions
You must consult with the representatives of as many affected members as is reasonably practicable.
Subject to that requirement, you could choose to work with one or more of the following:
- previously elected pensions representatives
- representatives of a recognised independent trade union - read more on recognising and derecognising a trade union
- representatives already elected or appointed under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- a pre-existing committee of employees, such as a works council or staff forum, that you regularly inform or consult with more generally about business and/or personnel issues
You could also choose to consult directly with employees if provision is made for this in the terms of a pre-existing committee of employees or an agreement you negotiate with any of the types of representative listed.
If you don't already have any such representatives in place, you should arrange for them to be elected.
Election of representatives
The legislation sets out a number of other requirements for election eg
- The requirements of this paragraph are that-
(a) the employer must make such arrangements as are reasonably practicable to ensure that the election is fair;
(b) the employer must determine the number of representatives to be elected so that there are sufficient representatives to represent the interests of active members and the interests of prospective members;
(c) the employer must determine whether the active and prospective members should be represented by representatives of all such members or by representatives of particular descriptions of such members;
(d) before the election, the employer must determine the term of office as representative of active and prospective members;
(e) the candidates for election must be active or prospective members of the scheme on the date of the election;
(f) no active or prospective member may unreasonably be excluded from standing for election;
(g) all active or prospective members on the date of the election are entitled to vote for member representatives;
(h) the members entitled to vote may vote for as many candidates as there are representatives to be elected to represent them or, if there are to be classes of representative for particular descriptions of member, may vote for as many candidates as there are representatives to be elected to represent their particular description of member;
(i) the election is conducted so as to secure that-
(i) so far as is reasonably practicable, those voting do so in secret, and
(ii) the votes given at the election are accurately counted.
2. Where, after an election of representatives satisfying the requirements of paragraph (1) has been held-
(a) one of those elected ceases to act as a representative, and
(b) the active or prospective members (or any description of them) are no longer represented, those members must elect another representative by an election satisfying the requirements of paragraph (1)(a), (e), (f), and (i)
3. The relevant employer must from time to time review the number of representatives determined under paragraph (1)(b) and the number of representatives elected must be adjusted accordingly (whether by members electing one or more other representatives by an election satisfying the requirements of paragraph (1)(a), (e), (f) and (i), by not holding an election under paragraph (2) or otherwise).
You must ensure that:
- candidates for the election are prospective or active members of the scheme on the date of the election
- the number of pension representatives is proportionate to the number of affected prospective and active pension scheme members employed by you, eg one representative per 50 affected or prospective members
Note that if some of the affected members are not represented by a representative, you must consult with those members individually.
Rights of pension representatives
Pension representatives have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you.
See employment-protection rights for employee representatives.
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Representation for workforce agreements
Negotiating with employees on working hours, parental leave, and the use of successive fixed-term contracts.
The law allows for you to negotiate workforce agreements on certain matters.
A workforce agreement is an agreement between an employer and its employees whose terms and conditions of employment are not covered by a collective agreement. A collective agreement is made between the employer and an independent trade union recognised by that employer.
Workforce agreements on working hours
The Working Time Regulations (Northern Ireland) 2016 set maximum working hours, minimum rest breaks and minimum paid annual leave.
You can agree by voluntary agreement with your workforce to vary certain aspects of the regulations, such as rights to rest periods and breaks.
The 48-hour week working-time limit cannot be varied by workforce agreement though individuals can choose to agree to work beyond the 48-hour limit. This agreement is generally referred to as an opt-out and must be in writing and signed by each individual worker affected.
Read more on hours, rest breaks and the working week.
Workforce agreements on parental leave schemes
Employees with young or disabled children are entitled to take unpaid time off to look after those children.
The law sets out certain minimum conditions for parental leave, but you can agree - via a workforce agreement - your own parental leave scheme with your employees.
Read more on agreeing a workplace parental leave scheme.
Workforce agreements on the use of successive fixed-term contracts
If a fixed-term employee has their contract renewed (or is re-engaged on a new fixed-term contract) when they already have a period of four or more years of continuous employment, the renewal or new contract automatically becomes a permanent contract.
However, employers and representatives of employees may agree - via a workforce agreement - objective reasons for fixed-term contracts renewed beyond four years to remain fixed term.
Any agreement may also limit the use of successive fixed-term contracts by applying one or more of the following:
- a limit on the number of successive fixed-term contracts
- a limit on the total duration of successive fixed-term contracts
- a list of permissible objective reasons justifying renewals of fixed-term contracts
For example, representatives of employees in an industry where it is traditional for employees to work on fixed-term contracts may agree with the employer that the nature of the work is an objective reason for continuing to renew fixed-term contracts beyond the four-year limit.
Read more on understanding fixed-term employment contracts.
Electing representatives for workforce agreements
If there are no pre-existing representatives in place, you must arrange to elect employee representatives to negotiate the workforce agreement with you.
To do this, you should:
- decide on the number of representatives to be elected
- ensure candidates are members of the workforce on the date of the election or, in the case of a group, a member of the group to whom the agreement is to apply
- allow each employee a vote for each representative to be elected to represent them
- ensure as far as is reasonably practicable that they are elected by secret ballot
- ensure that the votes are counted fairly and accurately
Rights of representatives for workforce agreements
Such employee representatives have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Ongoing information and consultation arrangements
Representatives for negotiating and running national and transnational information and consultation arrangements.
Depending on the size and geographical scope of your business, you may have to set up an ongoing information and consultation (I&C) arrangement with your employees.
Ongoing I&C on a national level - the Information and Consultation of Employees (ICE) Regulations (Northern Ireland) 2005
As long as they make a valid request, employees of organisations with 50 or more employees have the right to negotiate an I&C agreement with their employer.
If you receive a valid employee request, you must make arrangements for employees to elect or appoint negotiating representatives. They will negotiate with you to reach an I&C agreement.
As part of the I&C agreement, you may decide to inform and consult your employees through I&C representatives. I&C representatives do not necessarily have to be the same individuals as the negotiating representatives.
If you do want I&C representatives, you should agree with the negotiating representatives:
- how many I&C representatives there will be
- who they will represent
- how they may be replaced
- how long they will serve for
- how they will be appointed or elected
- whether anyone other than an employee may be an I&C representative
Read more on how to inform and consult your employees.
Ongoing I&C on a transnational level - European works councils
European works councils (EWCs) are a particular type of works council used by larger companies with sites in more than one European Union (EU) member state, to inform and consult their employees about transnational issues.
Read more on European Works Councils.
Rights of employee representatives
Employee representatives elected or appointed under the ICE Regulations, or as Special Negotiating Body (SNB) or EWC representatives, have certain rights, which - if you breach them - could lead to an industrial tribunal claim against you. See employment-protection rights for employee representatives.
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Ongoing consultation on health and safety matters
Representatives of employee safety and their employment rights.
If you recognise an independent trade union for collective bargaining purposes, it is entitled to appoint union safety representatives at the workplace.
Read Health and Safety Executive for Northern Ireland (HSENI) guidance on trade union representation relating to safety matters.
However, if you have employees who are not represented by trade union safety representatives, you must consult the employees directly and in good time about health and safety issues.
Alternatively, you must consult any employee representatives - called representatives of employee safety (RoES) - who are elected for this purpose.
Download the HSE guide to consulting employees on health and safety (PDF, 137K).
Employment-protection rights for RoES
A RoES has the right:
- not to be subject to a detriment or to be dismissed because of their activities (or proposed activities) as a RoES - any dismissal in these circumstances is automatically unfair
- to a reasonable amount of paid time off during working hours to perform their functions or undergo any training - this right also applies to a candidate standing for election as a RoES
- to receive the necessary training as is reasonable under the circumstances - you must pay any reasonable costs for such training, including travel and subsistence costs
You must also provide a RoES with the facilities and assistance they may reasonably require for carrying out their duties.
What facilities and assistance are appropriate will vary according to the circumstances. Communication systems vary from workplace to workplace, and it might be appropriate for you to provide the representative with workspace, access to telephone, the internet, email, etc in order to carry out their duties.
Tribunal claims for a RoES if their rights are infringed
A RoES (or candidate in an election to become such a representative) who is dismissed or subjected to a detriment as a result of their activities may lodge a complaint with the Industrial Tribunal.
If the tribunal/arbitrator finds that you:
- dismissed the employee unfairly, an order of reinstatement or re-engagement may be made or alternatively, an award of compensation
- subjected the employee to a detriment, an order to award compensation may be made
A RoES (or candidate in an election to become such a representative) may also lodge a complaint with the Industrial Tribunal if you infringed their right to reasonable paid time off.
If the tribunal/arbitrator finds that you:
- unreasonably refused a RoES or candidate paid time off, a declaration to that effect will be made and the individual will be awarded an amount equal to the pay they would have been entitled to if you hadn't refused them that time off
- failed to pay a RoES or candidate the appropriate amount for paid time off, an order to pay the amount due shall be made
A tribunal/arbitrator will not normally consider any such claim unless it is made within three months of the date when the alleged infringement occurred.
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Employment-protection rights for employee representatives
What employee representatives are entitled to do and have, and what may happen if you deny them these entitlements.
Certain employment-protection rights apply to employee representatives who have been elected for the purposes of information and consultation:
- during a collective redundancy or business transfer situation - see employee representatives during collective redundancy situations and employee representatives during business transfers
- as representatives of employee safety - see ongoing consultation on health and safety matters
- on proposed changes to occupational and personal pension schemes operated by the employer - see pension representatives
- under the Information and Consultation of Employees Regulations (Northern Ireland) 2005 - see ongoing information and consultation arrangements
- as part of a European works council or special negotiating body - see the page in this guide on ongoing information and consultation arrangements
Employment protection rights
These rights are as follows:
- The right to reasonable paid time off to carry out their duties. The law does not specify the amount of time off that it is reasonable to allow since this will vary according to the circumstances. You should pay the representative at the appropriate hourly rate for the period of absence from work. You can calculate this by dividing the amount of a week's pay by the number of normal working hours in the week.
- The right not to be subject to a detriment or to be dismissed because of their activities (or proposed activities) as an employee representative - any dismissal in these circumstances is automatically unfair.
In addition, representatives of employee safety and those employee representatives dealing with collective redundancies and business transfers have rights to time off to be trained in their duties. They are also entitled to access office equipment and other workplace facilities to assist them in undertaking their roles.
Employee representatives elected for the purposes of negotiating a workforce agreement have the right not to be subjected to a detriment or be dismissed because of their activities or proposed activities - see representation for workforce agreements.
Such representatives do not have the statutory right to paid time off to carry out their duties. However, it's good practice to give them this right anyway.
Note that these employment-protection rights also apply - as appropriate - to those who are candidates in an election to become an employee representative.
Offering discretionary rights to employee representatives
You should consider allowing employee representatives access to office equipment or other workplace facilities to carry out their work effectively.
What is appropriate will vary according to the circumstances. Communication systems vary from workplace to workplace, and it might be appropriate for you to provide the representative with workspace, access to telephone, the internet, email, etc in order to carry out their duties.
You should also consider giving employee representatives paid time off to be trained in their representative roles.
Other representatives - eg those who are consulted voluntarily by employers - have no statutory rights, though it may be in your interest to allow such representatives access to facilities and the time off to perform their duties.
Read Labour Relations Agency (LRA) guidance on non-union representation in the workplace.
Tribunal claims for employee representatives if their rights are infringed
Employee representatives - or candidates in an election to become a representative - who are dismissed or subjected to a detriment as a result of their activities may lodge a complaint with the Industrial Tribunal.
A tribunal/arbitrator will not normally consider such a claim unless it is made within three months of the date when the alleged infringement occurred.
If the tribunal/arbitrator finds that you:
- dismissed the employee unfairly, an order of reinstatement or re-engagement may be made, or alternatively, an award of compensation
- unreasonably refused a representative or candidate paid time off, a declaration to that effect will be made and the individual will be awarded an amount equal to the pay to which they would have been entitled to if you had not refused the time off
- failed to pay a representative or candidate the appropriate amount for paid time off, an order to pay the amount due shall be made
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Working effectively with employee representatives
Working with employee representatives to improve business performance and avoid disputes.
One of the main benefits of working with employee representatives is that it can create a sense of trust between management and employees. If you can do this, it will improve business performance and can help prevent disputes.
The arrangements you use will depend on the size of your business and the type of consultation. However, it's important to aim for a balanced relationship and make roles clear. For example:
- Set out your expectations of the representatives' day-to-day role, identifying which issues are within the scope of consultation.
- Works/staff councils should have a constitution including their terms of reference and procedure for electing representatives. You should commit time and resources to enable it to operate, such as meeting or training facilities.
It's also important to meet your legal obligations and enable individual representatives to do their job well. Read more on employment-protection rights for employee representatives.
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