26 March 2007

NEWS

Independent Review Recommends Repeal of Statutory Dispute Resolution Procedures

The DTI has published the Report of the Gibbons Review into the statutory dispute resolution procedures.  The Report recommends that the statutory procedures should be repealed and be replaced with clear, simple, non-prescriptive guidelines.  Read more

Government Will Not Appeal High Court's Decision on Sex Discrimination Regulations 

An Equal Opportunities' Commission (EOC) spokesperson has confirmed that the Government will not be appealing the High Court's ruling that the UK's discrimination laws do not adequately implement the European Equal Treatment Directive.  Read more

Female Leaders Set Up to Fail

A report from the Chartered Institute of Personnel and Development (CIPD) has suggested that women are facing a hidden form of discrimination as they are only appointed to very senior positions in times of crisis and poor performance.  Read more

Employers Failing to Prepare for Business Disruption

A study by the Chartered Management Institute (CMI) has revealed that less than half of UK organisations are preparing for business disruption, despite fears of upheaval caused by extreme weather conditions and staff loss.  Read more

CBI Gives Cautious Welcome to Proposal for Workplace Training Until 18

The Director-General of the CBI, Richard Lambert, has welcomed the Government's proposals to raise the age for young people to stay in education and training but says that the detail is crucial. Read more

Employers Should Police Poor Spelling and Grammar at Work

A Department for Education and Skills survey has revealed that four in ten employers regulate workplace flirting and the chewing of gum more actively than bad spelling.  Read more

LEGISLATION

Smoke-Free Regulations 2007

Further regulations have been published in connection with the smoke-free provisions of the Health Act 2006 banning smoking in enclosed public places.  Read more

CASES

There are no new cases to report this week.

NEXT HR NETWORK EVENT

Our next HR Network Event will be our Workshops on New TUPE: one year on which are taking place in April.  A full list of HR Network workshops and seminars is available here.

FEEDBACK

Please let us know what topics are of interest to you by emailing HRnetwork@pinsentmasons.com.   This will help us to shape future editions of this Briefing and HR Network events.

NEWS

Independent Review Recommends Repeal of Statutory Dispute Resolution Procedures

The DTI has published the Report of the Gibbons Review into the statutory dispute resolution procedures.  The Report recommends that the statutory procedures should be repealed and be replaced with clear, simple, non-prescriptive guidelines.

Other key recommendations include that the government should:

• ensure that employment tribunals take into account the reasonableness of behaviour and procedure when making awards and cost orders;
• introduce a simple process to settle monetary disputes over wages, redundancy pay and holiday pay without the need for tribunal hearings;
• increase the quality of advice to potential claimants and respondents though an adequately resourced helpline and through the internet;
• offer a free early dispute resolution service, including mediation where appropriate;
• offer incentives to use early resolution techniques by giving tribunals the discretion to take account of the parties' efforts to settle when making awards and cost orders;
• abolish fixed conciliation periods for ACAS conciliation;
• simplify tribunal Claim and Response Forms, removing the necessity for unnecessary and legalistic detail and encouraging claimants to give a succinct statement or estimate of loss;
• unify time limits for bringing tribunal claims and the grounds for an extension.

Michael Gibbons, author of the Report, said: "In conducting this Review I was struck by the overwhelming consensus that the intentions of the 2004 Dispute Resolution Regulations were sound and there was a genuine attempt to keep them simple. However they have had unintended consequences which have outweighed their benefits. I have therefore made recommendations today to bring about effective resolution of disputes as early as possible."

Mr Darling welcomed the review.  He said: "Workplace disputes are expensive and wasteful for employers and stressful for employees.  We want to find the best way to reduce the numbers, get them solved earlier, and keep the system fair for everybody."

Following the Report, the Government has issued a Consultation Paper, "Resolving disputes in the workplace", and is seeking views of businesses, individuals, trade unions, representative bodies and other interested parties on the recommendations made by the Gibbons Review. 

The consultation will close on 20 June 2007.  (DTI Press Release, 21 March 2007and the Gibbon Report)

To view a copy of the Gibbons Report click here.

To view a copy of the consultation document click here.  Back

Government Will Not Appeal High Court's Decision on Sex Discrimination Regulations 

An Equal Opportunities' Commission (EOC) spokesperson has confirmed that the Government will not be appealing the High Court's ruling that the UK's discrimination laws do not adequately implement the European Equal Treatment Directive.

As reported in our Briefing last week, the High Court upheld the EOC's challenge to the sex discrimination regulations and ordered the government to make plans to remedy the position.

The Secretary of State for Communities and Local Government will now consider as soon as reasonably practicable what amended regulations are required and will consult the EOC before introducing such regulations.  (PLC Employment, 22 March 2007)

To view last week's Briefing, click here.  Back

Female Leaders Set Up to Fail

A report from the Chartered Institute of Personnel and Development (CIPD) has suggested that women are facing a hidden form of discrimination as they are only appointed to very senior positions in times of crisis and poor performance. 

The research "Women in the boardroom: the risks of being at the top" was carried out by Exeter University and indicates that women who are appointed as business leaders are at greater risk of failing than their male counterparts because they are more likely to be appointed in times of business crisis.  CIPD Diversity Adviser, Dianah Worman, said: "Female leaders are all too often set up to fail.  Due to limited opportunities open to female leaders, many are forced to take the more difficult jobs in organisations with a history of poor performance, perpetuating the myth that women are poor performers in senior positions, and covering up the true extent of discrimination for the most desirable senior management positions."

Ms Worman believes that this hidden discrimination in the appointment of women to senior positions is a disadvantage to businesses as well as the women themselves.  She said: "The growth in the number of successful small businesses owned by women goes someway to indicate their business and leadership capabilities and highlights the talent other large organisations are missing.  So old fashioned attitudes are not only unfair and discriminatory towards women but they leave organisations shooting themselves in the foot."

"It is in the best interests of business to take action to enable achievement rather than sitting back and hoping for the best – organisations need to open their doors to the leadership capabilities of both halves of the population, regardless of the performance of the organisation."  (CIPD Press Release, 19 March 2007)  Back

Employers Failing to Prepare for Business Disruption

A study by the Chartered Management Institute (CMI) has revealed that less than half of UK organisations are preparing for business disruption, despite fears of upheaval caused by extreme weather conditions and staff loss.

The 2007 Business Continuity Management Survey questioned 1,257 public and private sector managers and found that, despite 78 per cent believing that business continuity is of high importance to their senior management team, only 48 per cent of their organisations have a business continuity plan (BCP) covering critical areas.

Where BCPs do exist, they are often inadequate to deal with the perceived threats to the business.  One example is "damage to brand".  Although 49 per cent of BCPs recognised this as a major threat, only 35 per cent focused on safeguarding reputation in the BCP. 

The director of marketing and corporate affairs at CMI, Jo Causon, said that businesses need to adopt a varied approach to business continuity management taking account of vital elements of their business ranging from the buildings to the workers.  She said: "Protecting an organisation's infrastructure is, of course, vital to its sustainability.  However, technology is nothing without the people who can use it, and unless organisations balance the need to safeguard buildings with the need to secure their workforce, any attempt at business continuity management will remain unfinished and inadequate."  (Personnel Today, 21 March 2007)  Back

CBI Gives Cautious Welcome to Proposal for Workplace Training Until 18

The Director-General of the CBI, Richard Lambert, has welcomed the Government's proposals to raise the age for young people to stay in education and training but says that the detail is crucial. 

Gordon Brown has confirmed that the Government proposes to make school or workplace training mandatory until the age 18.

Mr Lambert said: "This is a necessary step.  With nearly half of all businesses dissatisfied with school-leavers' literacy, numeracy and employability skills, raising the education and training leaving age should ensure more young people succeed in the workplace.  Unemployment must not be an option for a teenager in the modern world."

Mr Lambert stressed the need for a cautious approach to the implementation of the proposal.  He believes that attention to detail is essential if the implementation is to be successful.  He said: "The success of this initiative will rely on getting the details right.  Many firms already offer good on-the-job training and we need to ensure the qualifications system captures this.  Equally, 16 and 17 year olds disaffected with the formal education system might be put off taking a job if the training reminds them too much of school."

"It is vital employers are able to offer training towards qualifications that meet the needs of both business and young people.  High quality careers advice is also essential so that teenagers are fully aware of the options open to them, what is expected of them and the value of training."  (CBI Press Release, 22 March 2007)  Back

Employers Should Police Poor Spelling and Grammar at Work

A Department for Education and Skills survey has revealed that four in ten employers regulate workplace flirting and the chewing of gum more actively than bad spelling.

Of the employers surveyed, half complained that one in four applications for job vacancies contained errors.  One common error was mixing up "their", "they're" and "there".  In addition, one in five of the employers said that they had seen an increasing use of "ain't" and "gonna" in applications. 

The skills minister, Phil Hope, believes that employers should be making efforts to curb bad spelling and grammar by their workers.  He said: "Employers have a vital role to play in encouraging and supporting staff to brush up their skills.  They must do more to police poor spelling and grammar in the workplace as this is the first step in tackling the problem and raising standards.  Concerns around the level of reading, writing and maths skills should be right up there with managing absence and staff morale."  (Personnel Today, 22 March 2007)  Back

LEGISLATION

Smoke-Free Regulations 2007

Further regulations have been published in connection with the smoke-free provisions of the Health Act 2006 banning smoking in enclosed public places.

The Smoke-free (Vehicle Operators and Penalty Notices) Regulations 2007 apply in England and identify those persons who are under a duty to stop people from smoking in a smoke-free vehicle and sets out the forms of fixed penalty notices for failing to display no smoking signs and for smoking in a smoke-free place.

The Smoke-free (Exemptions and Vehicles) Regulations 2007 apply in England and contain certain exemptions from the duty for premises to be smoke-free and outline when enclosed vehicles must be smoke-free. 

The exemptions include, amongst others, certain private dwellings, designated bedrooms in hotels, guest houses and similar establishments, when the artistic integrity of a performance requires the performer to be exempt, specialist tobacconists and a temporary exemption for designated rooms for adults in mental health institutions. 

As regards vehicles, they must be smoke free if used by members of the public or in the course of paid or voluntary work by more than one person (even if those people use the vehicle at different times or intermittently). 

The Smoke-free (Penalties and Discounted Amounts) Regulations 2007 apply in England and Wales and detail the penalties payable for smoking offences in breach of the Health Act and the discounted amounts for prompt payment.

The regulations will come in to force on 1 July 2007 in England.  The Smoke-free (Penalties and Discounted Amounts) Regulations 2007 come into force on 2 April 2007 in Wales when the smoking ban in Wales comes into force.

Smoke-free (Vehicle Operators and Penalty Notices) Regulations 2007

Smoke-free (Penalties and Discounted Amounts) Regulations 2007

Smoke-free (Exemptions and Vehicles) Regulations 2007  

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CASES

There are no new cases to report this week.

© Pinsent Masons 2007

This bulletin is not intended to be a definitive analysis of legislative or other changes and professional advice should be taken before any course of action is pursued.

Should you have any questions please contact your usual Pinsent Masons advisor, your local office (see below) or hrnetwork@pinsentmasons.com

National Head of Employment

Chris Booth