The People Bulletin

With huge public sector funding cuts on the horizon – the theme of ‘austerity’ was somewhat dominant in the coalition talks after the Election - there is no question that headcount reduction will continue to be routine in many organisations.  So it is vital that line managers with responsibliity for staff are equipped with the necessary skills to avoid unecessary confrontation and increased compensation pay-outs.

Major employers who rely on public sector funding, such as local authorities, health providers and universities are in the firing line as government grants and funding sources dry up – it is here that job losses are anticipated the most.  However,  many private businesses may also feel the squeeze – particularly those which may rely on public sector funding for the bulk of their work. Job losses are likely to cut right across businesses and organisations, with positions in every department and at every level under review – including HR.

Dealing with HR issues

What that means is that line managers in larger organisations and owner/managers in SMEs will be expected to take on greater responsibility and face up to the realities of staff discipline and HR issues – which previously may have been dealt with by in-house HR teams or trusted managers.

The same point also applies to  trade union relations, which again may have previously been handled by in-house HR teams or dedicated HR managers. Without the proper training this can be a risky and potentially costly exercise for employers, particularly when the process is not clear and the manager or management team are uncertain about the regulation, legislation and processes which should be followed. 

The outcome of a slip-up can be costly and may involve organisations, which are already going to be under financial stress, having to pay out far more than they anticipated or budgeted as a part of the redundancy process.

Effective training

To that end effective training is vital to ensure employees are treated correctly and to avoid costly pay-outs. The ACAS code of practice[1] on discipline and grievance clearly states that line managers should try and dispose of potential issues informally before they get to the discipline and or grievance stage but without proper training this is often ignored.  There are a number of things you can do to avoid the unnecessary slip ups which can result in costly compensation claims:

• Check you have information on key legislation changes. Line managers are now expected to perform challenging people management tasks, therefore gaining training on how to deal with the legal aspects is vital. Ensure you are aware of the latest changes in legislation check what literature the company has, ensure it is up to date and make sure it is fresh and clear in your mind.
• Be aware that employees are now very aware of their workplace rights. Even if you aren’t clear about employment law you can be assured employees will be or will know someone who is. If you are not clear and firm in your actions you are leaving yourself open to criticism and the risk of challenge.
• All managers have a responsibility. Do not assume the understanding employment law is the sole responsibility of HR; take action now to learn the latest rules and regulations, it is a crucial discipline of a contemporary manager. 
• Don’t let things get out of hand. Try and settle matters and problems informally.  The ACAS code of practice on discipline and grievance clearly states that line managers should try and dispose of potential issues informally before they get to the discipline and or grievance stage.
• Do bear in mind that employment law is constantly changing - but generally new legislation is introduced on the 6th April and the 1st October annually.  You can keep yourself abreast with changes in legislation as well as all the emerging new case law on our blog.
• Ask for help. It’s an all-too-common problem that many people are afraid to ask for help. If you don’t understand something ask, handling grievances and disciplinary hearings can be complex so seek out the most knowledgeable people and see what they think. 
• Check out the employee handbook. Familiarise yourself with the business rules and the contents of the employee handbook. This may seem obvious, but more than one manager has been caught out by not being up to speed with the staff handbook. How can you possibly discipline someone for breaking the rules if you are not clear on what the rules are in the first place!
• Don’t be afraid of trade union representatives. If an employee is represented by a trade union representative – which can sometimes be the case and make a tough situation even harder – there is no need to be intimidated. Make sure you are as aware and familiar with employee rights as your trade union counterpart.

The Equality Act and beyond

Finally bear in mind that the scope for discrimination claims widens this year. The Equality Act comes into effect in October 2010, which will introduce new protected characteristics on the grounds of your marriage and civil partnership status and gender re-assignment, whilst also allowing claims for dual strands of discrimination. Make sure you are up to speed with the changes this is likely to mean and the implications for your business.

Nothing makes up for training but by following the advice laid out above you should be able to steer a course through the potentially costly HR minefield you may be exposed to as public sector spending cuts start to bite across the business community as a whole.

 [1] www.acas.org.uk/index.aspx?articleid=2174