ER: Reducing the Impact on Business

The September National Business Review has an interesting and indeed informative article on the ERA and how its decisions impact on business.  The statistics speak for themselves, the simple fact is that the ERA decisions are stacked 7:5 against employers.  Understanding why this is may also appear somewhat simple, in that procedures are not followed correctly by the employer.  Wouldn't life be easy if it were all so transparent? 

The NBR quotes David Lowe, EMA employment services manager as saying that, "technical creep" had invaded the process beyond common sense justice.  He also said that, "There are so many process hurdles for employers to jump, missing one can result in a personal grievance."

So how can employers reduce the risk of an employment problem?

Employers should ensure that they meet all of their legal obligations, for example, a written employment agreement has been completed.  The employment terms and conditions satisfy minimal statutory entitlements, this would include; minimum pay rates, holiday entitlements and health and safety requirements.

Employers should have good induction processes covering;

• Health and safety
• Relevant policies, such as; internet and email, sexual harassment and appropriate codes of conduct etc
• Expected standards of performance
• Where to go in the event of an issue or concern 
• If issues are addressed early, an employment problem may be avoided

Key steps to keep in mind should an employment problem arise;

• Check the facts and make sure there really is a problem (sensitive issues should be dealt with confidentially)
• Don't jump to conclusions, employers have an obligation to investigate employment problems fully and fairly
• Ensure the employee is treated with respect and consideration, no matter how difficult they are, as failure to meet this obligation could give rise to expensive damage due to distress and unreasonable treatment

If the matter is disciplinary;

• Ensure all steps above are or have been followed
• Advise the employee of the specific allegations of misconduct and likely consequences if the allegation/s is established
• Ensure that the employee understands their right to representation/support
• Provide the employee with an opportunity to explain the allegation in an open and unbiased forum
• Take into account the employee's explanation before concluding what happened and any consequence

For more information on employment rights and obligations