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In the July edition of our Employment Law & HR update, we have published a selection of news, insights, case studies and more on topics including:
  • Maximising the value of probationary periods;
  • The Kings Speech 2024; and
  • The case of Mr P Ah-Thiom -v- Cloud Imperium Games Ltd.
If you require further information on anything included in this update or any employment issue you may be facing, please do not hesitate to contact the Employment team on 01332 867 766 or by replying to this email.
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INSIGHT
Maximising the value of probationary periods

A probationary period can be really useful in ensuring the compatibility of new staff to their role and to the organisation. The following sets out some of the key things you need to consider in this area.

Although our focus is on employer obligations and considerations, it is worth remembering that staff might also be considering whether the role/workplace is the right one for them during this period too. This is important if you have spent a long time and used valuable resources recruiting someone. 

When to use probationary periods?

The most practical purpose of a probationary period is to reduce the notice period within this time (usually to just one week).

Probationary periods generally last three months, although they can be extended to six months and beyond. You would expect to extend this period when you have concerns about their aptitude for the role or when there has been an absence that has prevented you from assessing their suitability. 

What should be included?

Probationary periods should be set out in the contract of employment and should include:

  • How long the probationary period lasts
  • Whether and for how long it may be extended
  • The notice period that will apply
  • How an employee will be assessed as having passed or failed

Managing probationary periods

Once you have this in place, it is important to effectively manage the probationary period. Ordinarily, you would have set criteria for assessing employee performance or certain targets/KPIs, levels of behaviour and conduct and/or demonstration of skills. 

If there are shortcomings and the period is extended, ensure you confirm to the employee what is required from them to address the shortcomings and within what timeframe.

Usually, the task of managing this process will fall to the line manager so ensure that they are adequately trained to complete this task, and offer support and guidance where needed.

Hold a meeting to discuss and to confirm whether an employee has passed, or failed, their probationary period and keep notes! 

Adopt a fair investigation

Although an employee with less than two years' service will not have ordinary unfair dismissal rights, it is still advisable to adopt a fair investigation/dismissal procedure especially where there might be a protected characteristic and therefore a risk of a discrimination claim. Exercise caution where someone has exercised a statutory right such as taking family leave or care for dependants.

Probationary periods can be used not just for new starters, but also for existing staff moving internally.

In this situation you would also need to be mindful of their other rights (most likely unfair dismissal rights having accrued because of their continuous service) and also what would happen if the new role does not work. Do they have the right to revert to their old role?

If you have any questions about this article, or on handling probationary periods in general, please do contact us for more advice. 

 

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INSIGHT
King's Speech 2024:
A new era for UK employment law?

Last week’s King's Speech introduced several bills relevant to employment law, including the Employment Rights Bill and the Draft Equality (Race and Disability) Bill.

The Employment Rights Bill seems to list all the changes which Labour committed to in its ‘New Deal for Working People’ and includes:

  • Ban on exploitative zero-hours contracts.
  • Right for workers to a contract reflecting their regular hours.
  • Right to reasonable notice of shift changes with compensation for cancelled shifts.
  • End to "Fire and Rehire" practices with adequate legal remedies.
  • Parental leave, statutory sick pay, and protection from unfair dismissal from day one, subject to probationary periods.
  • Removal of the lower earnings limit for Statutory Sick Pay.
  • Protection from dismissal for six months for women returning from maternity leave, except in specific circumstances.

However, the details of the Employment Rights Bill raise several questions:

  • Definition and allowance of non-exploitative zero-hours contracts.
  • Calculation of ‘proportionate’ compensation.
  • Specifics of ending "Fire and Rehire" and defining "adequate remedy."
  • Impact of probationary periods on unfair dismissal protection.
  • Circumstances allowing dismissal of women returning from maternity leave.
Despite uncertainties, the proposals are significant, particularly the removal of the qualifying period for unfair dismissal rights, extended to workers, not just employees. Employers are expected to actively participate in consultations, given Labour's reliance on economic growth to fulfill its commitments.
 
The briefing notes from the King's Speech state, "The Bill will deliver on policies as set out in the Plan to Make Work Pay that require primary legislation to implement," listing the same commitments. It remains unclear if these notes indicate policies in the Bill or merely restate Labour's manifesto commitments.
 
The Draft Equality (Race and Disability) Bill aims to provide equal pay for ethnic minorities and disabled people, making it easier for these groups to bring claims related to their contractual terms. This proposal modifies the role of comparators and the burden of proof in equal pay claims.
 
Updates will be provided as these Bills progress through Parliament. For now, the exact details remain to be seen.
 
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CASE STUDY
Remote work as a reasonable adjustment
Mr P Ah-Thion -v- Cloud Imperium Games Ltd

We wrote in March about the Employment Tribunal (ET) case of Wilson -v- Financial Conduct Authority, in which the ET held that the refusal of a flexible working request to maintain remote working was lawful.

In that case, Ms Wilson, a senior manager, asked to work from home 100% of the time, while her employer, the FCA, wanted her in the office for 40% of the time. The ET essentially held that Ms Wilson's line manager had carefully analysed the facts and was reasonable when relying on tasks like welcoming new starters, providing training, supervising direct reports, and attending in-person events as justifying a need to work in the office for some of the time. Ms Wilson’s claim therefore failed.

Well, the ET has just heard another case concerning a request to work from home on a permanent basis: Mr P Ah-Thion -v- Cloud Imperium Games Ltd.

The case

This case is different to Ms Wilson's in that Mr Ah-Thion, the Claimant, made the request to permanently work from home as a reasonable adjustment for his disability. The Claimant was employed as a Senior Programmer since 2018. When he joined Cloud Imperium Games, the Respondent, he told them that he had autism spectrum disorder (ASD).

The Claimant worked from the office until the pandemic, when he and all his colleagues worked from home. It was only when the Claimant started to work from home that he realised how much he struggled with working in the office, which he attributed to his ASD. The Respondent suggested it had some concerns about the Claimant's performance when he worked in the office, but it said that the Claimant's performance improved since he started working from home. Importantly, none of the Respondent’s alleged performance concerns were well-documented.

In 2021, the Respondent decided that they wanted all their employees to return to the office. In addition, it was closing its original office and moving to a new one in Manchester. The Claimant was therefore placed at risk of redundancy.

During his consultation meeting, the Claimant asked to work from home on a permanent basis, but the Respondent very swiftly refused his request. During a second meeting, after the Claimant confirmed that he would not be able to commute to Manchester or work in the office, he was made redundant.

The Claimant brought claims in the employment tribunal alleging that the Respondent discriminated against him and failed to make reasonable adjustments. The ET agreed and the Claimant succeeded with both claims.

The outcome

The ET said that the Respondent did not justify why it needed the Claimant to work in the office in order to monitor his performance or for the Claimant to perform his management and supervisory role as a Senior Programmer. It found that the Claimant could have been given clear performance targets if the Respondent had concerns, and in fact, the Claimant performed better at home anyway. With the ET finding that working from home was hugely beneficial for the Claimant, and very easy for the Respondent to implement, it held that the adjustment should have been made and that the Claimant's dismissal was discriminatory.

The Respondent in this case tried to argue that the Claimant was responsible for similar things to Ms Wilson, such as training and supervising direct reports. However, the ET commented that, if any business were able to successfully implement working from home, a technology company would be.

In a separate remedy hearing, the Claimant was awarded £27,748.75. The award might have been even higher, but the Claimant managed to find a replacement role which was fully remote and better paid.

Key takeaways for employers

As employers continue to move away from permanent homeworking, this case demonstrates some of the pitfalls of treating all employees the same. If working from home alleviates a number of disadvantages experienced by a worker with a disability, then it might be a reasonable adjustment, even on a permanent basis.

When balancing the needs of an organisation against the impact of discrimination, the employer will need to provide strong justification for why homeworking isn't appropriate. With advances in technology and the accommodations made by organisations during the pandemic to enable homeworking, this justification needs to go beyond a mere perception that people are more productive in the office. 

We'll be interested to see how the case law develops on this subject, and it’s worth considering what conclusion the ET would have reached if the Claimant wasn't disabled but brought an unfair dismissal claim. Would the Respondent have been obliged to consider the possibility of homeworking as a means of avoiding redundancies caused by the workplace closure? And if so, how much deference would the ET have shown to the Respondent's justification for working from the office? We're not convinced that the dismissal would have been unfair in that case, but the ET's comment on the ease with which the Respondent could have implemented homeworking does create some doubt.

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