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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.1 Views on Ending Contracts Over a million of people.

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Presentation on theme: "Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.1 Views on Ending Contracts Over a million of people."— Presentation transcript:

1 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.1 Views on Ending Contracts Over a million of people have their contracts ended in the UK each year (DTI 1999) Contracts are ended due to redundancy, retirement, & dismissal 10% of dismissed workers who qualify bring claims through an employment tribunal Employers must take careful account of the law otherwise face costly fines

2 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.2 Types of Dismissal Claims 1.Wrongful dismissal – way dismissed breaches terms and conditions 2.Constructive dismissal – where someone feels forced to resign as a direct result of their employer’s actions 3.Unfair dismissal – most common and occurs where dismissal falls short of expectations laid down in law

3 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.3 Unfair Dismissal Unfair dismissal law dates from 1971 and has been amended a number of times Latest changes came (2004) provide strong incentives to employers and employees to exhaust the internal disciplinary and grievance procedures In most circumstances employees who have completed a year’s continuous service with their employer can bring a claim

4 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.4 Role of ACAS Officers of ACAS will often help parties to reach a settlement before the case comes to tribunal ACAS offer help and conciliation

5 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.5 Questions a Tribunal Asks 1.Was the reason for the dismissal one which is lawful and legitimate? 2.Did the employer act reasonably in carrying out the dismissal?

6 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.6 Automatically Unfair Reasons List has grown over years. Following are just a few examples On grounds of sex, marital status or gender reassignment Racial grounds Grounds of religion or beliefs Being a part time worker Refusing to work on Sundays (retail workers)

7 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.7 Legislation Covering Dismissal Trade Union and Labour Relations (Consolidation) Act 1992 Employment Rights Act 1996 Working Time Regulations 1998 Public Interest Disclosure Act 1998 National Minimum Wage Act 1998 Tax Credits Act 1999 Employment Relations Act 1999 Employment Act 2002

8 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.8 Transfer of Undertakings Dismissals for this will be judged as unfair unless it can be shown that the dismissals were for economic, technical, or organisational reasons

9 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.9 Three Step Procedure Dismissal will be judged as unfair where businesses have not followed the following procedure 1.Employer sends employee a letter setting out the nature of the circumstances 2.Employer invites employee to a meeting to discuss issues and where both parties put across their views and outcome communicated 3.Employee exercises right to appeal

10 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.10 Potentially Fair Reasons Lack of capability or qualifications Misconduct Redundancy Statutory bar Some other substantial reason Dismissals arising from official industrial action after eight weeks have passed

11 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.11 Determining Reasonableness (1 of 2) 1.Was the decision reasonable in the circumstances? 2.Was the dismissal carried out in line with the procedure?

12 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.12 Determining Reasonableness (2 of 2) 1.Attention paid to consistency of treatment 2.Higher standards are expected of large employers 3.Attention paid to adherence to procedures laid down by law

13 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.13 Typical Procedural Defects No chance given to staff member to give an explanation Dismissal without any prior disciplinary hearing No procedure in cases involving senior staff Procedure did not comply with respondent’s own rules Unwillingness to have a procedure due to disliking formality No chance for staff member to rectify shortcomings (Earnshaw,1997)

14 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.14 Lack of Capability or Qualifications The law recognises that mistakes in the selection process can be made so dismissal can be a remedy for this To be fair at least one warning has to be given and a reasonable opportunity to improve is given

15 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.15 Probation and Termination Has the employer shown that reasonable steps were taken to maintain the appraisal of the probationer through the probationary period? Was there any guidance by advice or warning when it would have been useful or fair to provide it? Did an appropriate person make an honest effort to determine whether the probationer came up to the required standard?

16 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.16 Qualifications Have they been misrepresented? Can employee acquire the necessary qualifications?

17 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.17 Health Capability Potentially fair to dismiss someone on the grounds of ill health which renders them incapable of performing their contract Employers are expected to take into account medical advice available to them Normally prolonged absence through sickness is required for dismissal to be judged fair

18 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.18 Misconduct Gross misconduct – offence committed that is sufficiently serious to justify summary dismissal Ordinary misconduct – involves lesser transgressions

19 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.19 Documenting Standards of Conduct Establish and communicate standards expected Clear definitions of what is regarded as sackable misconduct Communicating procedures to follow

20 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.20 Redundancy Dismissal for redundancy is protected by compensation for genuine redundancy Consultation must take place before the redundancy

21 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.21 Written Statement of Reasons Employees have a right by law to obtain a written statement of reasons for their dismissal, if dismissed after completing 1 year’s continuous service Statement must be provided by employer within 14 days

22 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.22 Constructive Dismissal Occurs when management behaviour causes the employee to resign Employer’s conduct must amount to a significant breach These cases are harder for employees to win and easier for employers to defend

23 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.23 Compensation For Dismissal Reinstatement Re-engagement Basic award based on employee’s age and length of service Compensatory awards Additional awards Special awards

24 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.24 Wrongful Dismissal Taken to employment tribunals where the claim is less than £25,000 Others taken to the county court Concerned with breaches of contract

25 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.25 Retirement Employer usually has plenty of notice of this and can plan accordingly Some retirees can continue to work part time after retirement Early retirement a widespread method of slimming payrolls

26 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.26 Retirement & Pension Arrangements Nature of pension arrangements are critical to early retirement strategies Early retirements are often voluntary so financial arrangements have to be acceptable

27 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.27 Summary (1 of 2) A minority of dismissals are reported to tribunals Small minority of dismissals are in favour of ex-employee Lack of capability, misconduct, redundancy, statutory bar are all main grounds for employee dismissal

28 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.28 Summary (2 of 2) Law dictates that certain procedures are followed Constructive dismissal can be claimed if an employee resigns due to unreasonable behaviour by the employer

29 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.29 Focus on Skills II: Purposes of the Selection Interview To collect information to predict how applicants will perform in role To provide information to applicants To give applicants a fair hearing

30 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.30 Validity of the Selection Interview Extensive criticism – unreliable, invalid, and subjective Criticism directed towards decisions made Recent research indicates validity much greater than previously believed (McDaniel et al, 1994) providing interview well structured

31 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.31 Interview Strategy Frank and fair strategy Problem solving strategy Biographical strategy Stress strategy

32 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.32 Number of Interviews & Interviewers Individual interview Sequential interviews Panel interviews

33 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.33 Selection Interview Sequence Preparation Reception Setting Interview

34 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.34 Preparation Preliminaries – job analysis, recruitment and shortlisting complete Interviewers brief themselves – study of job description, candidate specs, competencies, etc. Time tabling of interviews

35 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.35 Reception Who will greet Introductions Dealing with administration - travel expenses for example

36 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.36 Setting Suitable for private conversation Remove barriers to free flow of conversation Take measures to avoid interruptions Clarity of where candidate is to sit

37 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.37 Interview Structure Opening Middle Closing

38 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.38 Opening the Interview Objectives – to put candidates at ease and develop rapport and set the scene Activities: Greet candidate by name Introduce interviewers Explain interview process Outline purpose Obtain candidates’ assent

39 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.39 Middle of the Interview Objectives – to collect and provide information Activities: Ask questions with a structure Listen to responses Answer questions asked by candidate Collect and record data Checkpoints for understanding

40 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.40 The Closure of the Interview Objectives – to close interview and confirm further actions Activities: Summarise interview Check candidate has no more questions to ask Indicate what next steps are

41 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.41 Collecting Information Simple observations of candidates Body language From listening to what is said From questions posed and answered Recording information

42 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 9.42 Summary The selection interview remains a central feature of the recruitment & selection process Typical interviews are frank, friendly, problem solving events Features – opening, data gathering, checkpoints, closure Types of questions asked – closed, open, probes and reflection Avoid multiple, leading or taboo questions


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