The Benefits of Legislation for Protecting People, Reputation and Enhancing FM Standards

Mary Horgan, Human Resources Director of facilities services specialist, Grosvenor Services outlines the importance of keeping track of employment legislation

The facilities management (FM) sector is responsible for the welfare of large numbers of workers who, in turn, deliver essential services to provide people with safe, comfortable and efficient working environments. Appropriate systems and regulations are needed to enable FM staff to be the best they can be – ultimately ensuring the protection of people, reputation and FM standards.

As the world of work evolves, so too does legislation, designed to ensure that employers and workers are aware of their mutual responsibilities and to protect the welfare of employees. There have been a number of recent changes to employment legislation, which impact the large numbers of employees working within the FM industry. It is critical that both direct employers and FM partners are fully conversant with all the changes and imminent legislation. Lack of expertise in this area can result in a reactive stance which can end up damaging employee relations, leading to lost productivity and unnecessary stress on employees, not to mention the cost of employment tribunal claims.

One of the many reasons companies outsource to facilities service providers is to avoid the obligations and complications of employment legislation and staffing issues. If organisations have a facilities management service partner, they should think carefully about the impact legislation can have – not just in delivering the service and associated value, but also in the way FM providers meet their obligations to staff.

There are clear advantages to improving employment practices, aided by legislation, including a more positive, engaged workforce who are fairly remunerated for their work. My own organisation recognises the positive benefits for staff. We know that looking after the wellbeing of employees leads to improved retention and commitment, resulting in a better level of service, and we tend to embrace changes such as these.

Ultimately, open communication about the processes and implications of new legislation will ensure both parties are suitably positioned to implement changes.

Changes to employment law

Recent significant changes in the UK and Ireland include:

The creation of the Workplace Relations Commission – WRC (Ireland) in October 2015. This has been called the biggest change to industrial relations and the employment rights framework in Ireland in 70 years, with one body now overseeing functions previously dealt with by a multitude of organisations. All claims relating to pay, holidays or working time are now dealt with by the WRC.

A review of Zero Hours Contracts (UK)
Further protection for workers on zero-hours contracts has recently come into force. Zero-hours contracts, or casual contracts, allow employers to hire staff with no guarantee of work and mean employees work only when they are needed by employers, often at short notice. The law prevents employers from enforcing ‘exclusivity clauses’ in a zero hours contract which would stop an individual from working for another employer. The regulations also prevent the dismissal of workers for refusing to agree to an exclusivity clause.

Changes to statutory minimum wage levels (UK)
Under The National Minimum Wage (Amendment) Regulations 2016, a new statutory ‘living wage’ affects all workers over 25, effectively replacing current minimum wage rates. Introduced from April 2016, it starts at £7.20 an hour and is set to rise to over £9.00 by 2020. The Minimum Wage will still apply for workers aged 24 and under, and the rate will depend upon age and whether the individual is an apprentice. Changes to Minimum Wage rates will take place every October. Changes to National Living Wage rates will occur every April.

Changes to statutory minimum wage levels (Ireland)
Minimum wage levels in Ireland were increased on 1 January 2016, having previously not risen since 2007. The national minimum wage for an experienced adult employee is now €9.15 per hour. An experienced adult employee for the purposes of the National Minimum Wage Act is an employee who has an employment of any kind in any two years over the age of 18. There are lower rates for less experienced workers over 18.

The Employment Regulation Order (ERO) for the contract cleaning industry sector in Ireland was ratified on 1 October 2015. This meant that the minimum wage for cleaning operatives went from €9.50 to €9.75 per hour. Similarly, the ERO for the security sector also saw an increase to the basic rates for security officers, from €10.01 to €10.75 per hour, from 1 October 2015. These changes often cause confusion with the legal minimum wage as typically FM workers are on a higher basic rate to other general operatives.

Keeping track of employment-related developments

It’s not just wage changes that companies need to be sensitive to. Employers should also be aware of other key employment-related developments. New legislated changes, such as those to parental leave entitlements, also impact the cost of employment.

Case law on employment related issues should be monitored carefully including those relating to age discrimination, discipline and grievances, race discrimination, maternity and parental rights, redundancy, religious discrimination, sex and sexual orientation discrimination, terms and conditions of employment and working time.

There are a number of current employment-related cases which are important to watch because they could drive a precedent for change. This includes UNISON being granted permission to appeal to the Supreme Court over employment tribunal fees, which were introduced in the UK on 29 July 2013. A test case in relation to equal pay is currently being brought against ASDA in the UK, and there are cases in relation to age and religious discrimination which may have implications for employers.

Fully briefed and fully prepared

So what can clients of FM partners and those who employ staff directly do to make sure they are fully prepared for whatever developments may be in store arising from legislative change? Here are three key things that organisations can do to help protect their people, reputation and standards:

• Avoid surprises

Make sure you’re dealing with a service provider that constantly updates itself on current and imminent elements of employee legislation that will impact on them. Forewarned is forearmed, and it’s essential that you are being fully and accurately briefed on the employment issues that will affect you most over the coming months and years.

To avoid surprises, ask that your FM partner includes regular formal briefings on the potential impact of employment legislation. This can be part of a broader monthly update and the information can be built into monthly reports and meetings.

• Ensure compliance

Failure to meet statutory employment changes can lead to being named and shamed, potential criminal proceedings and financial penalties. Your brand association with a service provider that doesn’t honour legislative improvements to pay or conditions could have a detrimental reputational effect. Even if you’re not directly hiring your service staff, if those employees are on your premises, it may lead to industrial unrest and unwelcome attention. Increasingly, tenders are checking that service providers have the relevant knowledge and experience of dealing sensitively and fairly with their own employees. Questions about employment practice, wage rates and employee well-being are increasingly being included in tenders.

• Responsible partnerships

Make sure you engage an FM partner who fully understands its responsibilities under Transfer of Undertakings (Protection of Employment) regulations. It is the service provider who needs to understand the full impact of TUPE and the relevant demands around Information, Consultation and Engagement (ICE) – but if this is poorly handled, then you may have trouble on your sites. This is the last thing you need when you have just switched provider across multiple locations.

Employment law is designed to ensure fairness at work, and can help to boost productivity and well as being a necessary response to demographic and social change. Legislation makes a positive contribution to employee relationships and increases employees’ sense of fairness and trust in their employer. Ultimately it can also have a positive impact in supporting strategic HR and business goals.

www.grosvenorservices.com

Published in Premises & Facilities Management – May 2016