InterIM Executives Sponsor CIPD Conference
Chaired by InterIM Executives, this year's CIPD Employment Law conference was again over-subscribed.
Job cuts leading to ‘survivor guilt’ in workplaces
Thousands of people at work are becoming psychological victims of soaring unemployment and widespread job-cuts a conference of HR managers in Dublin was told this week.
Lay-offs and redundancies have knocked the levels of trust built up in recent months after years of building employee engagement and confident growth in many organisations. Psychologist John Loughran told the Chartered Institute of Personnel and Development (CIPD) annual employment law conference in Dublin that many employees are now experiencing “survivor syndrome”.
Topics such as redundancies, shorter working times, amendment of employment contracts, abolition of non-contractual perks, communicating bad news, ensuring compliance with more rigorous employment inspections and resolving workplace disputes dominated the event. The topics reflected the changes landscape in employment relations as the recession depends and unemployment climbs to double digit percentages of the workforce.
The mood of gloom and the accelerating number losing their jobs has put many who have retained their jobs into what Mr Loughran called “a rational negative” phase where confidence slumps. To ensure ongoing employee commitment many businesses will have to anticipate and implement strategic changes rather than confine themselves to short-term reaction and adaptation to the recession.
According to Mr Loughran those who keep their jobs when colleagues lose theirs often display guilt, reduced self-esteem and their productivity and sense of involvement decreases. In addition there is increased anxiety, distrust, stress and absenteeism evident in many workplaces.
Medical research suggests that major downsizing leads to increases in sickness absence and cardiovascular deaths among the remaining employees.
Redundancy procedures
The HR managers in attendance at the Burlington Hotel were also warned that those who have little experience of making employees redundant in recent years face risks of legal action from breach of employees’ rights.
Employment lawyer Joanne Hyde, of Eversheds O’Donnell Sweeney firm, told the 200 participants that managers need to have a clear written business case for collective redundancies showing what triggered the decision such as specific loss of contracts, falling revenues, declining sales or increased use of technology.
Even if there have just been some limited redundancies in the past they may set a pattern for any redundancy compensation proposals. Equally selection for redundancy must be fair and clear so that someone who has received a bonus for top performance last year or is on maternity leave should not be selected ahead of an underperforming colleague.
Ms Hyde cautioned that employees who request details should be supplied with their scores in any company-wide assessment for redundancy. While they may not have an automatic right they may pursue a freedom of information or Employment Appeals Tribunal action to uncover the information and assessment score.
Jennifer Cashman, of Ronan Daly Jermyn solicitors, provided an overview of the increasing number of inspections being conducted by the expanded staff of the National Employment Rights Authority (NERA). She highlighted an issue which has arisen in some retail businesses where they felt that they were in compliance with employment rules for shop-workers. Some businesses and shops which also operated cafes, deli-counters or department store restaurants found that different employment conditions under catering trade employment agreements applied to these staff.
She cautioned those employers who have failed to introduce employment contracts and provide statements of earnings, working hours and employment conditions to do so before a likely inspection by the expanded number of NERA employment rights inspectors. “Employers must ensure that they have in place all necessary documentation such as contracts, policies and procedures together with all employment records”, Ms Cashman cautioned.
Employment arbitrator and facilitator John O’Dowd provided a presentation on the increasing use of in-house “interest based bargaining” rather than the more adversarial and time-consuming ‘head-to-head’ negotiations often adopted in traditional Irish workplaces.
Natural justice
Enniscorthy solicitor, Adrian Twomey warned employers and managers who decide to initiate employment investigations or select people for redundancies of the pit-falls of breaching natural justice in their enthusiasm to finalise an investigation or process He outlined the risks of bias, fore-knowledge or personal relationships with any person connected with the issue.
PR manager Padraig McKeon provided insights into how an employee and media communication campaign was conducted by a large Irish family-owned retail group which was selling its outlets to a consortium of property investors a few years ago.
Maria Gleeson and Jackie Kelly of the A&L Goodbody legal firm advised on reviewing existing contractual terms and cautioned against the imposition of new or amended employment conditions without the assent of the employee or through a collective agreement. Participants at the CIPD event were advised to review existing contractual terms and review non-contractual benefits such as free newspapers, coffee or mobile phones before opting to impose cost-cutting initiatives.
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