5 ways for employers to avoid costly mistakes
As the economy continues to improve, more and more SMEs hire staff, but potentially high costs can be borne by an employer if this is not the case. According to Flynn O’Driscoll’s Flynn, the dice are weighted in favor of the employee and it is important to act in a manner that minimizes this.
An abusive termination against an employer can cost the employer up to two years compensation as compensation to the employee. In some cases, this potential exposure may range between € 100,000 and € 200,000 or more.
In a win-win case, an employer may be paid up to two years’ salary, and in some cases of gender discrimination – especially in the area of maternity – allowances were also quite high.
Here we have looked at five of the most common and expensive mistakes made by employers, and we advise you to avoid these pitfalls.
1. Review your contract templates
When you sign a written agreement with an employee, you ensure that it includes a grievance procedure and a disciplinary procedure appropriate to your company, in addition to the salary and usual packaging components. Many employers are copying from the internet, which they think is a good disciplinary procedure, but it may not be appropriate. You must follow your own procedures and guidelines up to the letter.
Labor courts and gender equality courts often focus more on the employer’s process of handling disciplinary matters and on whether this process has been followed by the employer. Surprisingly, the misconduct of employees is often paid too little attention.
Many employers lose cases of unfair dismissal, not because the worker’s behavior does not merit dismissal, but because the employer did not initiate or follow an appropriate resolution process
2nd break before the action
An employer should never fire someone in the heat of the moment. Always call your legal advisor or legal advisor first. Even in cases where the misconduct is obvious, it is almost always necessary to investigate the matter before further disciplinary action is taken.
An employee subject to disciplinary proceedings has the right to know the alleged facts, the right to reply to the charges, the right to give due consideration to his answers, the right to be represented by a colleague, and the right to do so against the decision. As an employer, you must clearly state your claims in writing in good time and document each step of the process carefully.
3. impose appropriate sanctions
In considering the fairness of dismissal, labor tribunals will ask whether dismissal is appropriate to the alleged wrongdoing.
There are no strict rules. An employment tribunal might consider that a first act of serious misconduct deserves a final warning, not a dismissal. An employer must therefore be careful and seek early advice.
4. Know your notice periods
In order to benefit from the safeguards provided by the employment protection legislation, an employee typically requires 12 months’ service, including the period of notice. Therefore, employers should not give an assessment of the employee’s eligibility for this position before 11 months, as workers can do so with a notice period of one month (which is set by many workers in their contract) the protection of legislation. An employee does not need a minimum service time to apply for a tie. There have been cases in which companies have been sued in their interviews for discrimination and sentenced to a person who has never been recruited as an employee.
5. Protect your business
If your expertise, your customer lists and your intellectual property are important to your business, make sure that the appropriate agreements are included in the employment contract, hence a portion of your value, if your employee leaves the company does not leave.