The government have agreed and published the annual limits on
compensation that can be awarded via an employment tribunal in
addition to other statutory payments relating to dismissals and
short time working/lay off periods. These increases will take
effect from 1st February 2009.

The increases in compensation and other related costs,
predominately linked to dismissals, whether employees have been
rightly or wrongly dismissed, will place further importance on
making sure that all employers are compliant with employment
legislation.

The limits are changed in accordance with Section 34 of the
Employment Relations Act 1999. This section states, if the retail
price index (RPI) for September of a year is higher (or lower) than
the RPI of the previous September, the Secretary of State is
required to change the limits, by Order, by the amounts of the
increase (or decrease). Therefore the increases made reflect the
increase in the RPI from September 2007 to September 2008.

Here are some of the key increases:

Statutory Daily Guarantee Payment – Increased by £1.10 to £21.50
A “Weeks” pay – Increased by £20.00 to £350.00
Compensatory Award (Unfair Dismissal) – Increased by £3,200 to £66,200

To find out more about the increase go to: www.opsi.gov.uk

Deminos can help you avoid paying these costs by providing your
business with a virtual HR Department that will give you
professional and realistic ways of managing your workforce, with
the added benefit of Employment Tribunal Insurance should a claim
be made against your company.

For further information contact either the Gateshead office on 0191
460 1111 or our London office on 020 7873 2429 and we can provide
you with a quote or arrange to come and discuss your needs.

With Christmas party season here, many employers are now concerned
about the possible disciplinary and grievance issues that may
follow. Ensure that your Christmas party is memorable for all the
right reasons by planning ahead to minimise the risk of any
potential complaints.

Ensure that staff are aware that the party is a work related
activity. Policies such as anti-discrimination, bullying &
harassment will still apply at the party and on the way home
afterwards, and it may be worth bringing them to the attention of
your employees before the party.

Actively discourage employees from driving after the party if they
intend to drink alcohol. Consider this when planning the venue of
the party - is it easily accessible by public transport/ taxis.

If you are supplying free drinks for your employees set a limit as
to the number of drinks allowed per individual and communicate this
before the party. Also ensure that soft drinks are as freely
available as alcoholic drinks.

If employees are attending parties organised by customer/ clients
then ensure they are aware of what standards of behaviour are
expected of them. As they are acting as a representative of the
Company they should treat it as a work related activity.

Prior to the party, communicate with all staff that they could be
subject to disciplinary action if they fail to turn up to work due
to over-indulgence, or if they turn up for work intoxicated.

Remember to invite members of staff who are away from the workplace
due to absences such as maternity/ paternity leave or sick leave.

If grievances are raised or disciplinary situations arise as a
result of the Christmas party, it is important that they are taken
seriously and that proper procedures are followed.

On the whole, remember that this is a great opportunity for your
employees to mix and socialise in a relaxed informal setting as
well as an excellent opportunity for you as an employer to show
your appreciation and thanks for work done over the past year.

To find out more on how Deminos can make sure your contracts,
policies, procedures and practices meet the statutory requirements
ring us today – tomorrow may be too late! Call 0191 460 1111
or e-mail at info@deminos.co.uk

In the final part of our series we are looking at moving forwards
after redundancy.

A redundancy program is only one possible answer to a business
problem and it is very seldom a complete solution. The organisation
needs to ensure that its whole business strategy is reviewed and
that all reasons for lost competitiveness are addressed.

Failing to address workforce issues and driving the company into
bankruptcy thus losing all jobs does not make sense. There are
strategies, falling short of redundancies, which although having an
adverse impact, are better than the alternative and can help your
organisation prepare for the future and become a strong competitor
in your market.

These strategies could include:

Managing Poor Performers – businesses are sometimes very fearful of
managing poor performers from - especially if they have a number of
years service. It will be a fact that these poor performers are
not providing the same productivity output as other members of the
workforce and are therefore ultimately costing your business.
While it may take a number of months to either get the employee
performing to the level expected or manage them out of the
business, it will be time well spent.

Retraining or Redeployment - this should always be explored in
depth. This may be a great opportunity to create a multi-skilled
workforce which may give the organisation an opportunity to take on
additional work in a certain area, where there has been a downturn
in work in another area. It is more cost effective than
compensation, recruitment and induction costs.

If you would like more information on these and other alternatives
that may be available to you then contact us today on 0191 460 1111