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Are you really compliant?

13/1/2015

 
When was the last time you reviewed your contract documentation?  How often do you update your employee handbook? We have been working with a few of our new clients on restructure projects in the last 12 months and have found that their existing range of policies, contracts and handbooks are not compliant with current legislation.  Why bother?  Why does it matter?
So often, we hear that contracts are not important; they’re barely read even at the start of employment, and then they’re put in a bottom drawer and forgotten.   That is true, except when the relationship comes to an end. 
 
Last week, for example, we spoke to an HR Director, who is critical to the business and who is on one month’s notice; she is about to resign but the contract is not fit for purpose. 
 
When something goes wrong, a well-drafted, up-to-date contract really comes into its own; it can protect both the employee and the company. With the Employment Law landscape constantly changing, even well drafted contracts become out of date; it is well worth diarising a regular check.
 
If something does need changing, you don’t necessarily need to redraft the whole document.  Often, small changes can be dealt with via a letter varying the terms of the original contract.  The main point to remember is that you need to communicate clearly any changes to the terms to your employee/s.  For belt and braces, get the employee/s to sign and return a copy of any variation/revised contract.
 
Specifically, granting a request for flexible working indefinitely, without putting in a time-based review such as ‘…to be extended only by mutual agreement…’ can have dire consequences to the business because it is illegal to make a unilateral change of contract at a later date.  This is where good drafting of contracts and contract changes is critical.
 
Likewise, things can go wrong if the handbook erroneously has contractual status.  This can have disastrous consequences.  Last week we met with a new client facing a law suit for this very reason.  The handbook should provide guidance rather than commitment, and some simple wording changes can reduce potential liabilities.   
 
We can provide guidance on best practice, review and/or redraft your documents, depending on your requirements, so let us know if this is an area where we can help you.

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