In a desperate attempt to get employers hiring again the UK Government is preparing to shake up the employment tribunal system with a raft of radical measures.
Controversial moves such as increasing the qualifying period for unfair dismissal claims from one to two years, scrapping the payment of expenses in hearings and introducing a fee to lodge a claim are being considered.
The raft of actions are designed to curb the number of tribunal claims which rose to a record 236,000 last year, a rise of 56 per cent on 2009.
The Government proposals come after businesses raised concerns that the current system has become too costly. Takes too much time, places unnecessary strains on small businesses and that it is too easy to make unmerited or vexatious claims.
Last year actions cost firms an average of £4,000 each to defend leading an Commercial Contract expert to argue that hiring a freelance is the best way to get the work done and avoid being stung.
“Whether the government makes the qualifying period for claims one or two years makes little difference, getting the right person, reducing cost and managing risk are what matters,” said David Reilly, commercial director of Create Ts and Cs, a company specialising in creating tailor made business contracts.
“A ‘contract for service’ is the answer, and with over four million people now self employed, why not share the risk and hire a skilled person on a contract basis?
“An effective contract for services can also include performance related mile stones, review periods, notice periods for both parties and protection for your customer database, outline customer ownership and where possible anti-competitive clauses.”
With top lawyers warning that employers who treat the qualifying period extension as a ‘licence to sack’ could unwittingly sow the seeds of future costly and complicated discrimination claims it’s never been more important to look at the fine print.
“Getting the right person on a contract basis will save money both in the short and long term,” said Mr Reilly.   “We can help by drafting bespoke contract for services in line with your business and client requirements.”

The End

by EasyEditor Newswire

Firms and organisations across the UK have been warned to prepare for year of discontent after senior union leaders predicted a surge in strike action on a scale not seen since the campaign to abolish the poll tax.
In a joint message to more than 3.5million workers across both the public and private sectors officials from the GMB, Unison and Unite unions, the biggest in the UK, have called upon members to resist government spending cuts.
“Strikes are inevitable. The more of us that stand together against the cuts, the more problems we can create. The Government has to see we are serious,” said Mark Serwotka, leader of the Public and Commercial Services Union.
The unions have vowed to work together throughout 2011 to pursue a sound economic alternative even if it means calling for widespread industrial action and manning picket lines.
“It’s clear that the Government is ideologically driven to massacre public services and bring the misery of unemployment and poverty to millions. This is a recipe for social turmoil on a scale not seen since the 80′s. A whole generation of young people betrayed, facing a bleak future,” said Dave Prentis General Secretary of UNISON.
Bob Crow, general secretary of the National Union of Rail, Maritime and Transport Workers, has predicted widespread dissent and resistance on a level not seen since the anti-poll tax campaign which saw riots in the streets of London and other cities.
“We can expect to see workers in both public and private sectors out on the picket lines fighting for jobs and against savage attacks on pensions and standards of living. There is no reason for working people to pay the price for a crisis we didn’t create and which is wholly down to the banks, speculators and politicians,” he said.
However, any industrial action which impacts upon postal services, communications or transport is likely to have a major impact on small and medium sized businesses across the country. During the last postal strike the Federation of Small Businesses calculated that SME’s lost a minimum of between £500 and £5,000 each.
“Any industrial action that involves disruption to transport or postal services is going to have a major impact on business productivity and services,” said David Reilly, commercial director of Create Ts and Cs, which specialises in tailor made terms and conditions for SMEs.
“Some firms may be able to let staff access their system remotely so they can work from home but other companies can’t do that. At the very least businesses should consider having something in their terms and conditions which protects them penalties incurred by late deliveries or problems caused by events outwith their control.”
Wherever possible firms should consider drawing up contingency plans to cope with any disruptions.
“Technology is such that many firms can carry out meetings with clients by telephone or over the internet. At Create Ts and Cs we have regularly have conference calls with clients which cut down on the need for face-to-face meetings and unnecessary travel,” said David Reilly. “We at Create Ts and Cs have devised an operational process for satisfying clients who require virtual services; our bespoke well rehearsed service offering delivered over Skype or by conference call is proving time efficient and cost effective”
“If things get as bad as predicted, with strike action and demonstrations disrupting normal working patterns, businesses will have to prepare some sort of continuity plan or risk suffering potentially major consequences.”

ENDS

by EasyEditor Newswire

Hundreds of thousands of workers turning freelance or starting new

businesses to make a living in the face of a tough economic climate have

been warned to ensure they protect their intellectual property and guard

against the pitfalls of late payment.

According to the Office for National Statistics (ONS) the number of

self-employed people rose by 59,000 in the first three months of this

year to reach a new high of 3.93 million.

While full-time job vacancies have fallen by 45 per cent from

pre-recession levels the number of self-employed workers looks set to

grow over the next couple of years.

While at least a quarter of small businesses throughout the UK admit the

recession has had a dramatic impact on them 81 per cent claim they have

turned to freelance workers to help with short-term projects instead of

employing permanent staff.

Freelancers are now an important part of the UK labour force

contributing at least 8 per cent of business turnover and are considered

a low risk, flexible resource that can be turned on and off as firms

start to grow again.

“Whether people choose to become freelance or are forced into working

for themselves because of the lack of permanent jobs they still need to

protect themselves and their intellectual property,” said David Reilly

of Create Ts & Cs.

“The need for properly worded terms and conditions of business has never

been more prevalent.

“Doing business without terms and conditions means running the risk of

not getting paid and, in some circumstances, losing the rights to

intellectual property.”

The recession has done a lot to break the psychological contract between

employer and employee which in many ways promoted a degree of loyalty

and trust which is different between freelancer and client.

“Many freelance people and new businesses have to wait months to get

paid and risk losing control of their work if they don’t spell out their

terms and conditions before taking on a job. It doesn’t have to be

complicated just straightforward and unambiguous so there is no room for

dispute.

“It’s an important time to value what you do or what your business has

to offer. Commitment to seeking formality is critical and discourages

the unscrupulous from not paying or the thrifty from avoiding late payment”.