In this task I will explain the impact of relevant legislations / regulations on two types of employment contract of the company New Forrest logistics as well as analyse the impact of the legislation of the two contracts of the company. Contract 1
The key contrasting differences between the two contracts in question is that contract 1 the job title is for a secretary. Its hours of work are stated as 16 hours a week. Which means that it is part time temporary employment? While a member of time is on maternity leave. The employ will be required to be flexible with regard to the hours as he and she will work in accordance to the employers needs.
The employee will be paid on an hourly basis. Being a temporary position, no pension scheme will be available to the employee. The employee will be required to complete a monthly signed timesheet as a record of the employees work schedule. No payments will be made for any unused holiday. In case of sickness for more than 3 days, in order to be entitled to statutory sick pay, the employee will need to provide a sick note, further if the employee wishes to leave before the end date he or she will need to provide a weeks’ notice.
The employer two will provide the employee with one weeks’ notice of termination before the end date given in the contract, or else he has offered his/her basic salary in lieu of notice. However no notice will be provided to the employee in case of dismissal. With regard to disciplinary procedures, in case of serious problems, the employee will either be given verbal warning which will be recorded in his or her personal file (for a period of normally 6 months) or a first written warning will be given which will also be recorded in your personal file. This could then if need arose be followed by a final warning which would also be recorded in your personal file. Contract 2
The key points in contract 2 which differ from contract 1 are the job title which is that of a Personal assistant to the Managing directors. It in contrast to contract 1, it is fulltime appointment with the hours of work being 35 hours a week. The employee will be paid a salary which will be subject to revision from time to time. This job title also includes a probationary period of 3 months from the start date. As regards time keeping, it differs in that there is no need to sign in and the employee is required to have a responsible attitude towards keeping time.
In contract 2 unlike contract 1, the employee is entitled to full annual holiday entitlement of 28 days exclusive of bank holidays. With regard to sickness, in contract 2 the employee will be entitled to a contractual pay for the first 6 months of any period of sickness. However the employee will need to complete a self certification form if ill for 7 days or less. If sick or 8 days or more than a medical certificate needs to obtained from the doctor. The employee in contract 2 is entitled to maternity or paternity leave. The employee will also be entitled to participate in any pension scheme operated by the company.
The retirement age is stated to be 65 years. With regard to confidential information the key difference is that employee is not authorised to disclose any confidential information related to companies business affairs irrespective whether he resigns or is dismissed. Regarding Notice, the employee is entitled to one weeks’ notice after 4 week of employment. A copy of the companies’ grievance procedure is contained in the staff handbook and even the companies disciplinary and dismissal procedures are also contained within the staff handbook. The employee is required to take steps as are reasonably practicable to ensure the health and safety of him/her and others affected by his or her work. The employee also needs to have knowledge of fire regulations and necessary precautions. The organisation is an equal opportunity employer, thus no employee can be discriminated against on any grounds.
Contract 1: The wages for the Jobsite will be £9.50 an hour before national insurance contributions and tax deductions. Contract 2: the employee’s salary is £26,000 as stated in the appointment letter. This will be subject to revision from time to time. The employee will be paid monthly. According to law the main wage rate is £6.19. Therefore it is essential for new Forrest logistics to have knowledge and awareness of different pay rates and confirm to them. Now I shall analyse the impact of the national minimum wages act 1998 on the 2 employment contracts of the company New Forrest logistics. This act is an important piece of legislation that the company is advised to follow very closely.
This act sets the minimum wage levels an employee is entitled to per hour in accordance with the age group the employee falls under. The current wage of those falling under the group of 21 and above is £6.08 and that falling under the group of 18 to 20 is equal £4.98. This legislation will obviously have an impact on both the contracts of employment drawn by New Forrest logistics as they will have to state in the contract what wages they will pay the concerned employees. Thus they will need to ensure that they abide by the act and pay the employees the correct wages in accordance with the age group. If they violate the legislation, they will be liable legal action. Grievance procedure
Contract 1: The employee will be required to comply with the grievance procedures which will be detailed in the staff hand book. Contract 2: it is stated in the contract that the employees are expected to comply with the companies’ grievance procedures, a copy of which is contained the staff handbook. The law states that if the employee is not satisfied with the decision, he or she has a right of appeal. Thus NFL needs to be aware of this in case it runs into problems. More over it is also necessary that all employees are thorough knowledge of the grievance procedure.
The grievance procedure is another legislation that will impact both of these contracts. The main impact that it will have on the both the contracts is that by law the organisation will be bound to give a clear detailed grievance procedures to the employees through the staff handbook and staff intranet. Furthermore the employer will also need to be aware that if the employee is not satisfied with the decision he or she has the right to appeal and if correct remedial action is still not taken, he or she can refer the case to an employment tribunal. This legislation ensures that all procedures including appeals against grievance decision or appeals against a disciplinary or dismissal decision are clearly detailed in the staff handbook. Both the contacts abide and comply with the legislation. Holiday entitlement
Contract 1: it is clearly stated in the contract that the holiday year is from 1st January to 31 December. It is also stated that payments will not be made for any unused holiday. It is further stated that any holidays must be agreed with the employer at least four weeks in advance and lastly should the employee exceed his or her holiday entitlement, it will be deducted from the final pay packet. Contract 2: also states that the holiday year runs from first January to 31 December. The employees’ full annual entitlement of 28 days exclusive of bank holidays is also clearly stated therein. It also states that all holidays must be in agreement with the company and lastly except in exceptional circumstances no more than two weeks holiday entitlement maybe taken at any one time. Health and safety
Contract 1: there is no mention of health and safety in the contract. Contract 2: employees are reminded that they are responsible for observing and complying with all health and safety rules and to work at promoting health and safety at work not only for themselves but also for their fellow employees. NFL is duty bound to ensure that they comply with all health and safety rules within the workplace and to place total importance on the health and safety and the welfare of employees at work. NFL also needs to follow the health and safety act at work 1974. If NFL does not do so appropriately then they are able liable to criminal prosecution. Therefore NFL needs to put all procedures and policies in place in order to ensure that employees follow them carefully and remain safe. Maternity and paternity
Contract 1: There is no mention of Maternity or Paternity in this contract. Contract 2: this contract states that an employee who is pregnant has the right to the time off with pay. The right to Paternity is set out in the Paternity and Adoption Leave Regulation 2002. The right applies to those individuals who share a sufficiently close relationship to the child or its mother. The law states that if an employee is pregnant or adopting a child she could be entitled to 56 days leave and her partner could be entitled to 2 weeks paternity leave. NFL will need to comply with this legislation. The impact of this law will be that if a man /women take this leave, they are legally entitled to their previous job role upon their return failing which she or he can appeal against the unfair dismissal in accordance with the unfair dismissal act. Confidentiality
Contract 1: Information relating to the employer, the employer’s family and the employers domestic or personal circumstances is strictly confidential Contract 2: You must not disclose any confidential information relating to the business affairs of the company during your period of employment or even after you have either resigned or been dismissed. The Data Protection Act 1998 states and controls how you use the information of others with regard to businesses or the government. NFL too needs to abide by this act and to inform employees of their responsibilities in this regard. The impact of the law for this legislation for NFL is that they must ensure that all information is kept strictly confidential. Disciplinary Procedure
Contract 1: Minor problems will be dealt with and resolved informally. In case of serious problems, first a verbal warning will be given and then it could be followed by a first written warning and if need still arose then a final warning could be issued after which further misconduct could lead to dismissal. Contract 2: disciplinary procedure can be found in the staff handbook, you do have the right to appeal against a disciplinary or dismissal decision, the procedure for which is detailed in the disciplinary and dismissal procedures. The impact of this legislation is that NFL needs to make sure in case of dismissal of an employee that all disciplinary and dismissal procedures have been duly observed and complied with. Termination of contract
Contract 1: you will be provided with one weeks’ notice of termination before the end date given in this contract. You are required to give the employers one week’s notice should you wish to terminate your employment before the end date. Contract 2: the company will give a minimum of one day notice of termination for up to four weeks service. After 4 weeks employment you are entitled to receive one weeks’ notice increasing to two weeks after 2 years continuous service.
There after you will be entitled to receive a further week’s notice for each additional year’s service up to a maximum of 12 weeks after the 12 or more year’s service. Should the employee leave, then he or she is required to give the company one months notice. The law states that termination rights are dependent on individual contracts. So NFL need to be aware of different offers stated in contracts. The impact of this is that NFL cannot dismiss an employee unfairly. Sick leave
Contract 1: the employee will be required to inform the employer at the earliest of any sick leave. The employee will be entitled to statutory sick pay on production of an employee’s statement of sickness form for sick leave of more than 3 days. Contract 2: the employee is entitled to his or her contractual pay for the first 6 months of any period of sickness. The law states that you are entitled to sick pay depending on your contract of employment. This will vary from job to job. However any business cannot offer you less than you are entitled to through your statutory sick pay. NFL need to take into consideration the law on sick pay and keeping abide by it , keeping in mind the individual contracts.