Employment Practice

The unauthorised removal of material, assets or services from employers and abuse of their facilities is on the increase. Some estimate the losses from staff theft and fraud to be as high as 5% of sales, and this is an equivalent reduction of profit. Inevitably this problem will be worse where procedure and policing are slack. Employee Fraud According to the first 'Fraud Watch' report issued by accountants BDO Stoy Hayward in June 2004, employees perpetrated more than one-third of all reported fraud cases in the previous year. 84% of frauds are perpetrated by men with a median age of 44. Top cities for fraud are London, Birmingham, Glasgow and Liverpool. The authors commented that 'the majority of fraud is committed by employees and directors who know the systems and can override controls'. This pre-supposes that controls exist. In many organisations there is a considerable lack of control which can only encourage more thefts. Making the offer of a j...

A policy for dealing with telephone threats and suspect packages, may be advisable, even if, to avoid concern, the contents are made known to only a few employees. Conversely, some organisations, being more prone to such threats, may need to alert their staff by distributing the policy widely. Telephone Threats Most threats (the police estimate that over 95% are hoaxes) are made by telephone by disaffected employees or ex-employees. Receptionists and telephonists should be coached to deal with such calls. Checklist - Dealing with a Threat Call Accept call in a calm, unhurried manner. Ask caller to repeat the sentence or message to give yourself time to recover and, without alerting the caller, to advise someone who can listen in. Try to keep caller talking - 'I'm sorry this is a bad line - I can't hear you clearly', or 'I don't understand what you mean - could you repeat that please so that I get it right' or 'Did you say (repeat ...

Action to Terminate There are a number of issues to be addressed when an employee leaves and a checklist can help avoid items being omitted or overlooked. Resignation letter/ Termination authority received Issue leaving form covering: Reason for leaving (see Termination interview below). Accrued HOLIDAY pay to be paid. LOAN or wages advance to be recovered. EXPENSES float to be recovered (although some of this may be retained to cover current month expenses). (Under the Employment Protection Act 1996, only items for which the employer has an authority to deduct from wages can be so deducted.) Prepare: P45; and SSP (1) L re Statutory Sick Pay, if the employee has been paid SSP during the last 56 days of employment. Recover: protective clothing; access and other keys; company car; phone and any other Organisation property; credit, fuel cards; samples, employers notepaper and other paperwork, confirmation of order forms etc. Check: forwarding ...

Suggestion schemes work on the premise that no-one should understand the job in hand better than the person actually performing it, and that the ideas that they may have on improving their job (and any other aspects within the Organisation) are worth consideration. Although improving profitability and/or productivity, and efficiency or saving money are quantifiable effects of operating such a scheme, of greater value may be the motivational benefit that result from employees discussing and seeing their own ideas implemented for improvements. Recognition All ideas should be recognised, not just to acknowledge the thought of the originator but also to encourage others to contribute. The Work Foundation estimated recently that there were between 400 and 500 schemes in operation, and in its own survey of 103 schemes, noted that over 73,000 suggestions had been received, or roughly 5 from every 100 employees, with around 20% taken up. In Japan the concept is far more widely ...

It has been estimated that at any one time as many as 20% of the workforce of the average Organisation will be trying to cope with a personal problem likely to affect their performance. Of these nearly half could be experiencing a serious problem, such as divorce, death or serious illness of a close relative or friend, court case, and so on. All these eventualities as well as uncontrollable pressure of work, could lead to stress. Definition Stress could be defined as 'pressure which is uncontrollable by the sufferer'. The problems set out above and others, can cause stress which is detrimental to the output of the employee, and could affect the output of their colleagues. This can be compounded by unsympathetic attitudes of those in any position of authority who in trying to achieve output or targets, may feel their efforts are being negated, virtually deliberately by those suffering from stress. Unlike a broken leg, or a heavy cold, stress symptoms are far less ...

Research indicates that of the total employees in the average Organisation, 25% are honest and another 25% are dishonest. The remaining 50% are said to be as honest or dishonest as the procedures of their employer will let them be. Adequate procedures and regular policing of such procedures are essential to minimise theft. Procedures Procedures which impinge on honesty must be adhered to strictly. Once the rule has been breached and is known to have been breached its effectiveness may be at an end. Wherever there is doubt or uncertainty, the situation can be exploited. organisations should consider implementing a chart such as is shown in THEFT, delineating who has authority to authorise what expenditure. Buying Products Many organisations allow their employees to purchase products (perhaps slightly substandard) or discontinued lines, at a discount. Since this legitimate removal of such items from the premises can be abused, a well-advertised policy document should be...

Of the two changes in life - from school to employment and employment to retirement - the latter receives less preparation but involves the greater challenge. Retirement requires individuals to move from activity and commitment, which they may have experienced for over 50 years, to inactivity. Increasingly employers provide guidance and assistance to employees. Pre-Retirement Preparation Ceasing to use employees at retirement is to become a more challenging process for employers by 2006 when anti-ageism legislation is to be introduced. One effect may be that employers may not be able to insist on set retirement ages, unless these can be objectively justified (e.g. on safety grounds). This could also mean a far greater number of dismissals on grounds of CAPABILITY. Preparation for the change from active earning life to inactivity (at least in economic terms) cannot be left until just before retirement age - irrespective of the date this is to take effect. Employees should...

Procedure Draft Checklist Notice At least three months notice of the intent to relocate will be given in writing to those affected. Employees will be told, either that they are required to work at the new location or that they may work there if they wish, or that they are not required to move. Employees will be requested to confirm in writing whether they are interested in relocating within one month from the date of the letter of notice of relocation. When confirming their interest, they will also be required to confirm that they have placed their existing property on the market at a figure recommended by a local agent, or, if occupying leased property, that they have given appropriate notice, and that they have registered their housing requirement with a named agent at the new location. Location inspection During the month after the notification of the relocation, visits to the new location and its surrounding area will be arranged for all employees considering ...

Although there is nothing to stop employers asking applicants for details of any criminal convictions, under the Rehabilitation of Offenders Act 1974 certain offences become 'expired' after various periods of time and must be ignored. Other than jobs which are exempt, taking account of an offence after it has been time-expired breaches the Act. New Legislation To assist employers knowing whether applicants have a criminal record, under the Police Act 1997, the Criminal Records Agency was set up to provide a range of certificates giving details of criminal convictions. The Agency is now able to issue two of the required certificates, with the first certificate expected to be made available by early 2005. The following certificates are now available: Criminal Conviction Certificates are available to individuals and (with the individual' s agreement to employers) give details of all 'unspent' convictions. Criminal Record Certificates available to bot...