PEOPLE BUSINESS NEWSLETTER
Companies in need of a flexible workforce during difficult times
Pressure on businesses in these tough economic times has forced Companies to get creative with their workforce. With permanent full time job vacancies at low levels, many employers are now using such measures as internships and zero hours contracts in a bid to be cost effective.
In tough times, many companies need the flexibility to adjust their workforce to changing levels of business with fewer people on the permanent payroll. When the country starts to climb out of recession, as it surely will, then businesses will need fast and flexible access to labour to meet rising business demands.
If your Company is feeling the strain of having less work available for employees you could consider some of the following options:
Zero hours contracts
Under such a contract you offer no guaranteed hours, the individual does not have to accept the work offered and you only have to pay for the work actually done.
It is important to ensure that the contract is carefully drafted to reflect a true zero-hours arrangement. This can be tricky so you may wish to seek advice when considering this type of arrangement.
Flexible working
Allowing employees to work flexibly can benefit both the employee and the employer. This can include allowing employees to reduce their hours to part time or allowing someone to take an unpaid sabbatical.
If an employee puts in a request to work flexibly under the statutory right (for those with children or those who are carers) you must consider the requests properly and can only refuse a request on certain business-related grounds.
Flexible working practices may include:
- Part-time working: work is generally considered part-time when employers are contracted to work anything less than full-time hours.
- Term-time working: a worker remains on a permanent contract but takes leave during school holidays.
- Job-sharing: a form of part-time working where two (or occasionally more) people share the responsibility for a job between them.
- Flexitime: allows employees to choose, within certain set limits, when to begin and end periods of work.
- Annual hours: the period within which full-time employees must work is defined over a whole year to allow for peaks and troughs in the business.
- Career breaks: career breaks, or sabbaticals, are extended periods of leave – normally unpaid – of up to five years or more.
Part time working
Part-time working has become increasingly common but laws are in place which prevent employers using part-timers as a cheap pool of labour. Employers cannot discriminate against part-timers by treating them less favourably than full-timers, unless objectively justified. They will therefore generally be entitled to the same terms and conditions pro rata as full-timers, including pay, benefits, pension and holiday entitlement.
Unpaid work experience/internships
Offering an unpaid internship is another way of reducing labour costs. Internships can benefit both employer and intern as the employer is gaining help in the Company while the intern is gaining experience and contacts within the workplace. Just be aware that if you offer an unpaid internship the intern has the right to come and go as they please and do not have to work to certain deadlines or complete certain tasks.
What challenges could our Company encounter implementing these practices?
The kind of challenges you might face include:
· overcoming concerns about operational pressures and meeting customer requirements
· how to manage flexible working practices effectively
· current attitudes toward flexible working and the existing organisational culture
· a lack of support at various management levels
Top tips
The following tips can help effective implementation:
· Ensure that there are clear roles and responsibilities for employees and managers
· Assess the current levels of support offered to managers and ensure it is sufficient
· Assess how conducive your organisation culture is to flexible working arrangements and take action accordingly
· Build in opportunities and mechanisms to monitor and evaluate progress
· Draft agreements carefully and if in doubt seek advice
· Familiarise yourself with the rights of employees and workers
· Beware of offering regular casual work as this could lead to an employment relationship arising
· If you agree to flexible working arrangements remember that you will need to amend terms and conditions of employment
· Consider any flexible working requests according to the statutory requirements
· Ensure that part-time workers are given the same terms and conditions as the full-timers as is directed by statutory law
· Pay interns the NMW unless they are work shadowing or volunteering
· Look into the governments Get Britain Working scheme and investigate job subsidies
There is absolutely no doubt that pressure on businesses during these tough economic times means the need for more flexibility. However, it is important to consider which types of contract are appropriate for your workers depending on your organisation’s culture, resources and the work assignments that need to be delivered.
If you would any advice or help with the implementation/review of your employee contracts or would like to make a comment about this newsletter please email us at: julie.ware@peoplebusiness.co.uk or call us on 01932 874944. You can also respond at http://people-insight.blogspot.com/
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