Howarths - The Letter Of The Law

The

Letter How to trip up in a tribunal

Howarths People and Safety Management

of the Law Winter 2014 /15

Page 3

Charity begins at work Page 7

Fighting fraud in the workplace Page 6

Beware of the stress ‘always on’ technology can create Page 4 / 5

VIEW FROM THE CHAIR

WARNING: Poorly trained staff can seriously damage your business 2014 was a funny old year and far too eventful to summarise in a few short paragraphs, but what did strike a chord with me was a couple of press reports highlighting an apparent lack of interpersonal skills and the correlation between attitude and success. It has always been my philosophy that, in business, both owners and staff should understand and practise their own core values and culture if it is to maintain an impeccable reputation and sustain development but also avoid conflict with customers, clients or third parties. What drew my attention to this notion was a couple of stories reporting two incidents: the first involving Andrew Mitchell, the former government chief whip accused of being rude to the Old Bill because they (allegedly) wouldn’t allow him to ride his pedal cycle through the front gates of Downing Street (oh bless); and the other was the account of the loveable and cuddly David Mellor who (no ‘allegedly’ this time ‘cause the victim recorded the conversation) became high-handed, supercilious, pompous and verbally battered a cabbie for taking a route that Mr. Mellor wasn’t comfortable with. Initially, I was infuriated that people from such a narrow and privileged background had attempted to bully ‘ordinary’ working people trying to earn a shilling.

Now I’m not trying to defend or validate the learned gentlemen’s attitude which is, at best petulant, but my own recent experiences forced me to regret being so smug and judgemental when I too fell foul of ‘ordinary’ working employees who had clearly been trained to exasperate me when I disturbed a receptionist’s daily load attempting to secure a routine medical appointment and, in the second instance, the ‘customer service’ operative who responded to my cries for help after his employer had invited me to ‘contact our

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customer service department’ in the event that I wasn’t satisfied with their ‘duff’ product, only to be met with impoliteness and belligerence by a pleb who had absolutely no intention of being of ‘service’ to me or anyone else. There you see, look how easy it is to use the pleb word when one gets a rush of blood to the head in the face of apathetic employees who, in both cases, were my first personal point of contact with the business. I understood, to some extent, the frustration of said ex-ministers when faced with what they saw as suffocating sanctimonious bureaucracy or discourtesy. Of course I refrained from stooping as low as Messrs Mellor and Mitchell but I confess to having a secret rant in the privacy of my own attic – apparently there is no criminal offence here!

Coincidentally, I was recently asked to identify the best salesperson within our business and my honest answer was: everyone! From our receptionist to the advisory team, everyone promotes our service with a smile in their voice thus communicating that they genuinely care about the service we promise, and, if anyone doesn’t fit in with the Howarths Way or your way, there is a process for either managing an individual into the business (preferred option) or, if necessary managing them out. Don’t let poorly trained staff damage your reputation; it may have taken years to build but only seconds to destroy.

Andy Howarth LL.B (Hons)

EMPLOYMENT LAW

Three ways to lose in an employment tribunal

“Employment law is a waste of time - it only protects employees!”

“Tribunals never find in favour of employers” “I HATE employment law!”

These are just three of the most common complaints of employers and indeed, you may find yourself agreeing with them or even remembering a time when you uttered the very same words. It is unfair that employment law has a bad name amongst employers because in actual fact, if utilised correctly, employment law can be the most powerful weapon in an employer’s armoury when dealing with employee issues. Rarely is it that an employee successfully challenges an employer in an Employment Tribunal who has acted in accordance with the relevant employment laws and often the employer loses their case as a result of their own shortcomings.

The top three ways to lose an Employment Tribunal are:

If you would like further detail about how you can protect your business against Tribunal claims please do not hesitate to contact us on 01274 864 999.

1. Producing detailed internal procedures and then ignoring them.

The majority of employers will have in place policies and procedures that outline the ways in which certain issues will be dealt with. Having policies is one thing and will certainly help an employer’s case in Tribunal, however the policies will have no benefit if the employer then ignores them without good reason.

2. Refusing to allow employees to record meetings.

Tribunals will always allow recordings of meetings to stand as evidence even where the employee has taken the recording without the employer’s knowledge.

Employers who have had ‘off the record chats’ with employees during a meeting which they do not know has been recorded have lost Tribunal cases on the basis of their improper and unreasonable conduct. If an employer knows that the meeting is being recorded, or assumes that it is then they can be certain of what to say and what not to say.

3. Not allowing a third party to accompany employees to meetings.

Although the right of accompaniment extends only to work colleagues and Trade Union representatives, sometimes it is better if an employer allows a third party to a hearing. Often an employee’s case can be driven by a spouse or a parent but they will only have the employee’s version of events. Allowing that third party into a hearing and getting them to listen to the employer’s version of events can be helpful in reducing the risk of a Tribunal claim being presented.

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HEALTH & SAFETY

Ineffective communication is a commonly quoted cause of stress in the workplace; we all know the impact of our bosses or managers not communicating information effectively, being the last to know about something and the damaging effect of the rumour mill.

But have you considered that over-effective communication and the ‘always on’ culture can be just as harmful?

The ‘Helpful-Stressful Cycle’ is where an employer provides a piece of technology or a device to help an individual manage their work load, which is beneficial and productive in the first instance. However, problems can emerge once the workload management benefits are taken over by the pressure to keep up with the employee’s new expanded virtual life. The cycle also becomes a vicious circle, as the more an individual becomes stressed and worried, the more compulsive behaviours such as checking the device every few minutes will occur (can you relate to that?). In extreme cases the most stressed users can experience ‘phantom’ vibrations when in fact there had been no alerts!

Work-related stress accounts for around 40% of all work-related illnesses showing us that stress is a significant workplace hazard that remains largely unaddressed.

The risks from technology, and in particular an “always on” culture, are associated with two of the six identified stress factors, being Demands and Role. Stress from technology is about understanding how far you should go in your role and the demands placed upon you.

If the culture in the company is that of ‘always on’ then this becomes an unwritten role and demand on the employee. This doesn’t just apply to phones but extends to the use of laptops, tablets or other devices provided for work outside of normal working hours as well.

So what can be done? - Stress from all work related avenues, not just the use of technology, should be properly assessed and managed.

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Work/life balance Well we could start by turning it off.

Back before the days of mobile phones and smartphones once an employee left the office for the day no one heard from them till the next morning. Think about what’s the worst that could happen? Is that document really an emergency? Chances are no one is going to check their emails until the morning anyway so why send that email from your phone at 10pm.

Make it a company policy and enforce it.

Some European companies have implemented server shutdowns protecting their employees from being disturbed by work emails outside working hours, therefore removing the temptation to respond. In the US many companies are now adopting a ‘digital Sabbath’ at the weekend.

Employees could be encouraged to monitor their device usage through the use of one of the various apps and programs that are now available. Usage limits can be agreed

Avoid expensive legal bills - it pays to be covered.

e crucial to success and followed up by ensuring you and your employees stick to them.

None of these suggestions will work unless the culture of the company changes too.

This will not happen overnight and requires a management commitment to drive the agreed changes and everyone’s commitment to make them part of what you do. Key players need to be visibly committed to any changes and all employees well informed to ensure their continued uptake.

We can all plan ahead and think about what technology we are using, and what is the actual benefit? What is the purpose of getting more connectivity? If an employee comes into work at 8am after being up until 11pm the night before checking emails, they will not be fresh and ready to take on the challenges of the day. Adequate recovery time is proven to make people more productive.

Composite Legal Expenses are delighted to provide clients of Howarths with the opportunity to purchase legal expenses insurance to complement the service they receive. The cover provided by Composite Legal Expenses provides peace of mind for any client unfortunate to have an employee or ex-employee take action against them through the Employment Tribunal. The policy acts in conjunction with Howarths, who are authorised to provide advice to any insured in the knowledge that should a claim arise and the insured has followed the guidance of Howarths, the policy will provide cover for the legal fees required to defend a claim. Cover is provided for up to £100,000 per claim in respect of legal costs and £100,000 in respect of awards. In the last four years we have assisted Howarths clients with in excess of £120,000 of legal fees and awards.

If you are interested in taking out a policy with Composite Legal Expenses, please contact Tracey Craven at Howarths on 01274 864 999 and she will arrange for a full quotation to be provided.

All clients who have already taken out a policy, need to ensure premiums are paid on time each year.

Any insured will need to avail themselves of the policy terms and conditions, which are available on request and with any quotation. Composite Legal Expenses are authorised and regulated by the Financial Conduct Authority.

Success isn’t just about what you accomplish in your life, it’s about what you inspire others to do 5

EMPLOYMENT LAW

Fraud. How secure is your business?

Do you have an employee who is unwilling to take holiday entitlement, who demonstrates an inconsistency between earnings and lifestyle; displays irrational or unreasonable behaviour and has a reluctance to delegate and involve others in the provision of information? If the answer is yes, then you may have to take steps to investigate fraud!

Pressure to perform, under-staffing and ineffective internal controls, may all be factors contributing to a company executive’s decision to resort to unethical business practices to meet short-term targets.

Asset misappropriation can include fraudulent transfers into bank accounts, theft or alteration of cheques, false or inflated expense claims and fake invoices. Bribery and corruption of public officials and commercial agents, may extend to theft of customer and price lists. Other types of fraud include fraudulent accounting statements, and purchasing fraud which may take the form of a senior buyer favouring a supplier in which they have a financial interest; or authorising orders in return for backhanders.

Do not spoil what you have by desiring what you have not 6

The key steps to take when carrying out an investigation, include: • Assembling the investigation team and agreeing the structure of the investigation • Managing communications and dealing with preliminary issues such as privilege • Considering the insurance implications • Preserving evidence • Preserving assets • Tracing and recovering lost assets • Interviewing witnesses • Considering employment issues • Preparing for potential investigations by regulators and the police • Considering potential liabilities of the company and claims against third parties • De-briefing and holding a lessons learned session.

It is therefore advisable to have fraud prevention measures in place, which could include vetting new employees and third parties; training staff about fraud awareness and prevention, and making employees accountable for any non-compliance; undertaking regular risk assessments and monitoring compliance with policies and procedures; controlling access to buildings and systems and restricting access to sensitive information; creating effective reporting structures.

It is therefore advisable to maintain a clear action plan should evidence of a potential fraud arise, and if /when it does, you should act quickly.

CHARITY

We need your help to help those who need it

Like many organisations, Howarths has a Corporate Social Responsibility (CSR) Policy that defines initiatives to benefit the local community. It’s more than recycling and green issues; it’s about engaging and putting something back whilst generating honest, authentic good news stories that a business can be proud of.

During 2014, with the help of clients, we raised over £5,000 for two local charities, The Forget Me Not Children’s Hospice and Simon On The Streets and over the past 12 months members of our team have pushed the boundaries and taken part in a 15,000ft skydive, sleeping rough on the streets of Leeds and our marketing and legal team went head to head in an Apprentice style task ‘High Street Highjack’ taking over the running of a charity shop for the day. Last but not least we have been collecting Christmas presents for children in Kirklees and Leeds that won’t receive a gift this Christmas and we became one of the first businesses in the region to become a Living Wage Employer.

During 2015 we are looking to support a number of charities and are on the look-out for long term partners who might like to join us in sponsoring one of our chosen charities for the year, Simon On The Streets (SOTS), a charity supporting the homeless in Leeds, Bradford and Huddersfield. Simon On The Streets is an independent charity that works with those who have complex needs and cannot or will not access other services. The focus is on people who are homeless and rootless, especially those with issues related to rough sleeping. The aim of the charity is to bring people leading solitary harmful lives, with little or no vision for a better future, in from the margins of society.

Like you, we are a business and the more we grow the more we are able to put back. As an individual organisation we have done okay this year in raising a small sum of money but collectively we can far surpass last year’s achievement.

We are looking for six companies to work with Howarths as a dedicated group to engage specifically on a joint CSR programme, engaging in initiatives to raise funds for worthy causes.

If this is something that appeals to you, please call us on 01274 864 999 or email Heleena@howarths-uk.com

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Join us at our complimentary workshops in 2015 21-01-2015

Family Friendly Policies

12-2pm

Howarths HQ, Brooke Street, Cleckheaton, BD19 3RR

FREE

04-02-2015

Changing Terms & Conditions

12-2pm

Howarths HQ, Brooke Street, Cleckheaton, BD19 3RR

FREE

24-03-2015

Managing Out Poor Performers

12-2pm

Howarths HQ, Brooke Street, Cleckheaton, BD19 3RR

FREE

16-04-2015

Conducting Grievance Hearings

12-2pm

Howarths HQ, Brooke Street, Cleckheaton, BD19 3RR

FREE

13-05-2015

An Ageing Workforce

12-2pm

Howarths HQ, Brooke Street, Cleckheaton, BD19 3RR

FREE

16-06-2015

Discrimination Awareness

12-2pm

Howarths HQ, Brooke Street, Cleckheaton, BD19 3RR

FREE

ALSO AVAILABLE 22nd-23rd Apr 2015 ‘Employment Law – The Essentials’ (2 day ILM Endorsed Award) £495 +VAT

COMPETITION

The search for ‘dignity’ proves fruitless!!

The answer to last edition’s pop quiz question was hidden away in Andy’s editorial and was a one word song title ‘Dignity’ a song by Deacon Blue, which was the band’s first official release. It is one of their most popular songs and is known for being sung at pub karaoke and it is usually played as the final song at concerts. It received the most public votes for the 1980s songs in the Scotland’s Greatest Album contest run by STV in 2011, and was featured on the 12 track compilation.

Newbury Court, St Johns Place, Brooke Street, Cleckheaton, West Yorkshire BD19 3RR Tel. 01274 864999 Fax. 01274 865100 info@howarths-uk.com www.howarths-uk.com

Since no one actually submitted the correct answer Andy is claiming that he should receive the bottle of Champagne given that he beat you all.

In this issue, we have hidden an album title from 2002. Once again a bottle of Champagne awaits the first entrant to identify it. Simply email your answer to info@howarths-uk.com before 30th January 2015.

Howarths People and Safety Management