PEG-Protected conversations to solve employment disputes without litigation

New plans to be introduced by the government to allow employers and employees to settle differences without civil action

This week, David Cameron axed controversial proposals that would allow firms to dismiss employees without the option of going to industrial tribunal. This “fire at will” legislation will be instead replaced, with “protected conversations,” allowing employers to informally address underperforming staff.

The aim it seems is to alleviate the burden on SMEs who are often forced to continue to employ unproductive employees rather than pay legal fees to fight cases at tribunal. In each case, either party can request a “protected conversation” in which they can express their views off the record without fear that it might be used against them.

Tim Watts, Chairman of Pertemps, recently won a widely publicised landmark employment dismissal case, receiving a record payout of £100,000. This is a situation which would continue to represent itself if legislation geared at rectifying these issues weren’t implemented, to the detriment of employer and employee.

Employers will be able to point out performance issues to the employee without fear of being landed with a constructive dismissal claims. Employees are equally able to complain about a line manager without fear of disciplinary action.

Plans have already been revealed by ministers that would change the minimum period of employment before an unfair dismissal claim can be leveraged from one year to two. In addition, the coalition is proposing that fees be paid by employees wishing to pursue a case via employment tribunal.

Carmen Watson, MD of Pertemps, said, “In the current economic climate , the proposals will empower employers to invest in jobs and make long term commitments to staff without fear of being saddled with the hefty costs of overly complex bureaucratic hurdles and burdened with underperforming staff. Employers feel that they cannot have frank conversations with employees without fear of that honesty resulting in legal action.

Carmen continues, “It is of great relief to employers that they now have two years to get a working relationship right with an employee as opposed to just one. They can now create jobs without fear of becoming embroiled in legal action quite as abruptly as they do now. In effect, the proposals will make it easier to hire people and keep them, rather than dismiss them”

Further detail on how the “protected conversation” procedure will operate is to be revealed when Chancellor George Osborne publishes his plans to stimulate economic growth later this month.

ENDS

Further insight and analysis about careers and recruitment issues are available from Carmen Watson, MD Pertemps - contact Flame PR on +44 (0) 20 3357 9742 or email pertemps@flamepr.com

Notes to Editors and Journalists on Pertemps Recruitment Partnership

Formed in 1961, Pertemps Recruitment Partnership is the largest independent recruitment consultancies in Britain. It advertises permanent, temporary, and contract positions in the private and public sector, helping the right people find the right jobs.

Pertemps has 200 branches across Britain in various locations from Scotland to Plymouth. The company’s current turnover is £280 million and it employs 500 permanent staff together with 20-25,000 flexible workers in placement at any one time. In total Pertemps deals with 12,000 customers and is in the top ten recruitment agencies in the country. The company has developed an impressive client list, from major organisations to small businesses that trust them to find them the very best people.

Pertemps prides itself on having a business strategy that is shaped by opinion and feedback from employees, as well as having staff as shareholders, to maintain the strong family values on which it was built. The company’s vision statement is “To create a fully inclusive company, owned and driven by its people, pioneering the future of the recruitment industry.”

In addition to recently achieving recognition as one of Britain’s Top Employers, Pertemps also won the award for the Best Company to Work For in the £100 Million plus sector at the Recruitment International Awards.

Other awards and affiliations:

Investors In People
The Sunday Times Top 100 Companies to Work For (2007, 2008, 2009 and 2010)
Best Companies Status (2007, 2008, 2009 and 2010)
REC “One in a Million” Diversity Plus Award
Coutts 2005 Prize for Family Business (National Winner in Turnover Category £50m+)
Leading The Way – Remploy Award
The Sunday Times Top Track 250
BSEN ISO9001:2008
“Two Ticks” – Positive About Disabled People

Visit http://www.pertemps.co.uk for more information.