EMPLOYMENT TRIBUNALS STATISTICS

The Employment tribunal Service has recently released new statistics for 2009 – 10 that show a marked increase in the no of claims being raised in Scotland.

The 2009-10 figures show an overall increase in the number of accepted claims (receipts)1 to Employment Tribunals and an increase in the number of disposals. Key findings of the 2009-10 statistics are as follows:

The number of receipts (accepted claims) was 236,100 in 2009-10, representing an increase of 56% on 2008-09, and 25% on 2007-08.

The increase is largely as a result of the rise in multiple claims, these rose by nearly 90% on 2008-09, but also partly as a result of the changing economic climate.

There were 71,300 single accepted claims in 2009-10, which was an increase of 14% over the previous year.

More information is available for download at www.tribunals.gov.uk

The number of single and multiple accepted claims (receipts) since 2001-02 and shows that accepted claims are at their highest levels.

This news is particularly worrying for employers who often struggle with day to day business issues. Being caught up in the Tribunal system is an expensive time for employers irrespective of the end result.

Employers are therefore urged to ensure that policies and procedures are robust and to ensure that their people are treated fairly and consistently.

At Fairways, we believe that employers where possible aim to resolve issues as they arise informally in the first instance as this usually prevents matters escalating out of control and prevents the need for formal action being applied.

None the less, disciplinary and grievance procedures are essential when informal mechanisms have been ineffective, or where they are inappropriate given the nature of the issue that has arisen. Having these procedures can also help prevent unnecessary costly and time-consuming tribunal cases which is what all employers want to avoid as best as possible.
Remember it’s not just having the policies in place but also providing training and support to your management team.

•    Do you require help to formulate and communicate policies and procedures with your staff?

•    Have your staff been trained to a level that meets your legal obligations?

Fairways can assist you with this, not only in complying with legal obligations but also in conjunction with the principles of fairness and natural justice as reflected in the Acas Code. Contact us now on 01738 632 561 or visit our website for up to date information about the services we provide clients, http://www.fairways-uk.com/.

Bribery Act 2010 update 2

Our last update advised on what to expect from the Act and what employers need to be aware of.  This update includes information regarding possible defences that may be considered by organisations.

 If the corporate offence does result in an organisation receiving sanction as a result of the activities of an individual (or individuals), there is a potential defence that the organisation can use. The defence would require an organisation to demonstrate that it had adequate procedures in place to stop any bribery from occurring.   So how do you do this?

‘Adequate procedures’ are not defined in any detail in the Act. Clause 9 of the Act requires the government to give guidance ‘about procedures that relevant commercial organisations can put in place to prevent persons associated with them from bribing’. In September 2010 the government announced the start of an eight week consultation period on the guidance that is to be given. The consultation document can found on the Ministry of Justice website.

Whilst waiting for the guidance, now expected in January 2011, organisations might find it useful to refer to the points about ‘adequate procedures’ set out in December 2009 by Lord Bach (who was then the Parliamentary Under Secretary of State). They were as follows:

•    There should be an anti-corruption culture in the organisation, led by its directors.

•    There should be a named senior individual responsible for anti-corruption procedures in the organisation.

•    Risk assessments should be in place to determine the potential risk of bribery occurring.

•    Organisations should have a clear code of conduct that addresses anti-corruption issues.

•    Penalties for participating in corrupt activities should be clearly spelt out in employees’ contracts of employment.

•    Organisations should have a gifts and hospitality procedure that sets out what is and what is not acceptable and ensures that corruption does not occur.

•    Employees should be given training in anti-corruption matters.

•    Such financial controls should be in place that the possibility of corruption occuring is made unlikely.

•    Such whistleblowing procedures should be in place that employees could report any matters relating to corruption without fear of retaliation.

It is important to note that the guidelines to be issued by the government will be just that – guidelines. It will be for the courts to make the ultimate judgment as to whether an organisation did or did not have ‘adequate procedures’ in place. It is likely that the courts will pay regard to the size and complexity of the organisation in determining what is ‘adequate’, with the controls and checks required in a large organisation likely to be more thorough and detailed than those in a small organisation.

Organisations need to start a plan of action now to protect their interests.  Doing nothing isn't an option. 

If you are considering updating policies and procedures, this may well be the time to be proactive and do so.  Fairways can help you through this.  For more information on available services look at our website http://www.fairways-uk.com/.

The Bribery Act 2010

Are you aware of new legislative changes coming through next year? The Bribery Act 2010 which was given Royal Assent in April this year comes into force in the UK in April 2011. The CIPD has just released an update.

What does the Bribery Act mean to you as an employer and are you prepared?

For the purposes of this Act, bribery is defined as ‘the giving or taking of a reward in return for acting dishonestly and / or in breach of the law’.

The Bribery Act 2010, has four possible offences that may be committed which you, as a responsible person need to be aware of in order to reduce risk within your business operation. So what are the offences? Let’s consider them now.

1. Bribing another person

The offering, promising or giving of a reward to induce a person to perform a relevant function or activity improperly.

2. Being bribed

The acceptance of, agreement to accept or request of a reward in return for performing a relevant function or activity improperly.

A ‘relevant function or activity’ includes any activity of a public nature or any activity connected to a business. This therefore may have far reaching consequences for organisations.

‘Acting improperly’ will be any breach of what a reasonable person in the UK would expect in relation to the performing of the function or activity. However, note that the offences apply even if the function or activity is not taking place in the UK.

3. Bribing a foreign public official

This is a specific offence of trying to influence a foreign public official with the intention of obtaining or retaining business in a situation where the public official was not permitted or required by law to be influenced.

4. Failure to prevent bribery occurring

This - the 'corporate offence' - occurs when an organisation fails to stop people who are operating on its behalf from being involved in bribery. One would assume then, that ignorance is no excuse.

It is the ‘corporate offence’ that organisations need to pay particular attention to and therefore may have far reaching consequences for organisations who ignore the new legislation.

This offence could occur as a result of the activities of a range of people working on behalf of your organisation – an employee, consultant or agent, for example – if those individuals were involved in accepting or receiving a bribe which resulted in the organisation gaining or retaining business. This is a change to the current approach to the law where only bribery involving senior managers is likely to result in legal action.

Note:-  that the offence of bribery relevant to this Act could be committed in the UK or overseas. Specifically offences may be prosecuted if:-

•    committed by a British national or corporate or individual who is ordinarily resident in the UK regardless of where the offence was committed, and/or

•    any act or omission which forms part of the act is committed in the UK.

In addition, the corporate criminal offence will apply to commercial organisations with a business presence in the UK regardless of whether or not the bribe is paid in the UK or the procedures are controlled from the UK.

If the ‘corporate offence’ is committed, then both the organisation and its directors can receive sanctions including unlimited fines. The possible sanction for an individual involved in bribery is raised from 7 years in jail to 10 years.

LITERACY SKILLS IN SCOTLAND

The Scottish Government has published the findings of the Scottish Survey of Adult Literacies (SSAL) 2009. The report is available online at: http://www.scotland.gov.uk/Publications/2010/07/22091814/0

The main headline findings are:-

·  Three quarters (73.3%) of the Scottish working age population have a level of skills recognised internationally as appropriate for a contemporary society.

·   One quarter (26.7%) may face occasional challenges and constrained opportunities due to their literacy skills.

·   Within this quarter, we find 3.6% face serious challenges in their literacy practices.

·   Literacy skills in Scotland are comparable with many of the world’s leading economies.

·   Poor literacies skills are strongly correlated with poverty and deprivation within Scotland.

This new knowledge will help inform the next stages of the adult literacy and numeracy strategy for Scotland.

Fairways will keep you informed of new information as it becomes available.