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ELITE SELECTION Services Newsletter Changing the Way the World Recruits
April 2005

Good morning!

Our newsletter is intended to be interesting and informative covering a range of employment issues, updating you with employment law and providing interesting articles relevant to the construction industry.

If you have any suggestions for future issues or would like to see a new subject covered please let us know. Also any nice comments on the newsletter - or I suppose any criticisms would be welcome.

Any comments or articles in the newsletter that concern employment law or legal matters are for information only and you should always take professional advice.

in this issue
  • Do you really want a recruitment relationship?
  • How to deal with resignations
  • Post Introduction Obligations
  • A brief history of the Building Regulations
  • We will filter them for you!
  • Employment Law Update

  • How to deal with resignations
    i resign .. so there!

    Most resignations are unlikely to cause problems for employers because they are for reasons such as more money or a better job elsewhere. However, some employees may feel they are being forced to resign, which could amount to constructive dismissal and such resignations should be investigated.

    Ask people to put their resignation in writing, indicating clearly when they intend to leave. Employees' contracts of employment wil require them to give you a specified period of notice. If they give less notice than the contract requires, it is generally not profitable to try to force them to work thier full notice or sue them for breach of contract and consequential damages. If the contract states that you can do so, you can deduct from any final pay due, a sum equivalant to the damages incurred as a result of the breach. However, before taking such action you would have to consider it carefully and take legal advice.

    Finally, it is prudent to hold exit interviews for employees who have resigned. During this meeting you should discuss and make notes of the reason behind their decision to leave.

    This is good management practice because it can pinpoint particular problems in the workplace, such as poor working relationships in a particular section, ineffective supervision or lack of training. Part of the reason, for the introduction of the Statutary Dispute Resolution Procedure on the 1st October 2004, was to make employees submit a grievance to the employer in the hope that the employer will resolve the grievance to the satisfaction of the employee so that they do not resign and claim contructive dismissal. If an employee does submit such a grievance and subsequently wins a Tribunal Claim it is likely that the awards would be reduced up to 50%. Also acceptance of the claim by the Tribunal will be refused for 28 days to allow time for the claimant to submit the grievance to the employer and for it to be dealt with. For employers this is probably the only good news in the dispute resolution legislation and the opportunity to sort the grievance should not be squandered. If such a situation should arise take legal advice immediatley - time will be running short!


    Post Introduction Obligations
    Victory bonds our obligation

    Hyperthetical background: Two months ago we introduced a Architect to a client for a permanent position. At the time everything checked out OK with the candidate, but we have since heard that he has a drug and alcohol problem. What are our obligations to our client?

    Obligation:

    We are right to be very concerned with this problem. Whilst it is not clear what the 'drug and alcohol problem' constituted, in the absence of further information we must assume that this is information which may affect their suitability to undertake the work required.

    Had we been supplying a temporary candidate to the client then we would have needed to immediately inform the client of the information we have received. This obligation applies even though the information we have received may be incorrect. We would also need to commence suitable enquires (and provide results to the client) to establish whether the candidate is suitable to continue in the position.

    However as the candidate works for the client our obligations are different. As the candidate was introduced to the client less than 3 months ago we are obliged by law to inform the client of any information we receive that may suggest the candidate is unsuitable. It is a criminal offence not to inform the client of such information and failure to do so would expose us to financial liability (i.e. the client can sue us if they suffer loss as a result of our failure to provide them with the information). Our obligations to the client during this 3 month period effectively overthrow our confidentiality obligations to the candidate, as well as our more general obligations to not make defamatory statements.

    After this 3 month period has expired our obligations change and we must not provide this information about the candidate to the client without the candidates consent. To provide such information after the 3 month period without the consent of the candidate would be a criminal offence and would also expose us to financial liability if the candidate suffered any loss (e.g. loss of wages as a result of being sacked).

    Clearly this is a complex area of law where the various obligations in respect of candidate confidentiality, defamation, and the provision of information to a client all merge. Ensuring that you take the right steps at the right time can be very difficult, we as well as any client would be well advised to consult with their legal representitve as soon as possible..

    Recruitment consultancies can take steps in advance to reduce their liabilities in such situations. Such steps include the use of appropriate contractual provisions. It is important to also have well considered procedures in place to deal with such problems before they arise. As always the facts of each case are important and if you are in any doubt as to the appropriate course of action, or if you wish to take preparatory steps to minimise your exposure to such liabilities, you should seek the advice of a specialist firm of solicitors.


    A brief history of the Building Regulations
    Our Home is our Castle unless the council says so!!

    Building Control has a long history going back many hundreds of years, first recorded in the time of King Herod who introduced a law which stated that

    'should a man construct a building which falls down and kills another then this man should be slain '.

    The first Building Control legislation within England dates back to the aftermath of the 'Great Fire' of London in 1666 when fire had spread rapidly between buildings. Shortly afterwards in 1667 the London Building Act was introduced which sought to achieve some degree of fire resistance in buildings.

    As towns expanded as a result of the Industrial Revolution they faced similar problems and over the next 150 years many towns and cities introduced their own controls. Over this period the scope of the legislation increased addressing other issues such as party wall construction, drainage and sanitary matters. With so many local Acts in force, the standards varied greatly in different towns and cities throughout the country and this led to the legislation becoming confusing and out of step throughout the country.

    In 1875, the Public Health Act was introduced to bring a degree of consistency. This required urban authorities to make byelaws for new streets, with regard to the structure of buildings, to ensure stability and prevent fires, and in respect of health matters to provide for the drainage of buildings and the provision of air space around buildings. The Local Government Board in response issued the first model byelaws for new streets and buildings as a guide for urban authorities making their own byelaws. These byelaws were further extended in 1905 to cover the whole of the country.

    A new concept of building legislation was developed with the introduction of the Public Health Act 1936. A single model series of controls regarding the construction and condition of buildings was introduced, together with the use of British Standards to indicate satisfactory compliance. This was a major step forward towards the legislation we have today unfortunately, as with all previous byelaws, these were only adoptive and not mandatory. Many local authorities still had their own local byelaws in force, which again led to varying standards in different parts of the country.

    The above unsatisfactory situation eventually led to the introduction in 1966 of the first national (England & Wales) Building Regulations. For the first time the requirements they contained were mandatory and therefore local authorities had no choice but to enforce them.

    Up until 1980 the cost of providing the Building Control Service was met wholly by the ratepayers. The government of the time considered this to be unfair and introduced the payment of fees by the applicants.

    In 1984 the Building Act came into force and consolidated a number of acts that were applicable to Building Control. The Building Regulations 1985 introduced the concept of Approved Documents, which gave greater flexibility in the design of buildings.

    The Building Regulations continue to be reissued and revised. Current regulations include measures of addressing more recent issues such as energy conservation and improved access and facilities for people with disabilities.


    We will filter them for you!
    Don't let the first candidate to drop by fool you

    Successfully recruiting for your company is a challenge no matter where you are located or what you do. The need for employees with the right mix of skills, experience and cultural compatibility is critical employees who can successfully guide your business in a rapidly changing economy. In this environment, the free and effective movement of management and technical talent is vital to allow companies to take full advantage of a pool of well-educated, highly skilled employees. To help them build the talented capital they need, many companies now turn to retained search companies.

    Simply put, retained search is a means of finding the high-calibre employee in local, regional or even international markets. Elite Selection Services act solely on behalf of you, our Client.

    Do not make the mistake of employing the first candidate to drop in - let us at Elite Selection Services do the filtering for you.


    Employment Law Update
    Old...who's old?

    Discrimination - gender reassignment The Gender Recognition Act 2004 will come into force on 4 April 2005, under which transsexuals are given the right to have their acquired gender legally recognised. The Act amends the Sex Discrimination Act 1975 to provide that the genuine occupational qualification defences will no longer be available to an employer in respect of persons who have obtained legal recognition of their acquired gender. Guidance for employer, Gender reassignment - A Guide for Employers, has been published by the DTI which explains how the new law works.

    Age discrimination and contractual retirement age New proposals unveiled by the Government regarding its implementation in October 2006 of regulations tackling age discrimination include the following key conclusions:

    • there should be a default retirement age of 65 but employees will have the right to request to continue working beyond that age, which employers will be under a duty to consider. This will have no impact on the age at which individuals can collect their State pension;
    • employers will be able to impose an earlier retirement age if they can objectively justify it by demonstrating that it is appropriate and necessary; and
    • the Government will closely monitor the appropriateness of retaining a compulsory retirement age, which will be subject to review in five years from implementation.
    It is expected that details of the proposals will be issued in the form of draft regulations, which are expected to be published in mid- 2005. The Government has reiterated its intention to bring into force the age discrimination provisions by 1 October 2006.

    There will be an increase in the following rates from April 2005:

    • Statutory Maternity, Paternity and Adoption Pay : - The rate increased from £102.80 to £106.00 per week on the 3 April 2005. The lower earnings limit, below which Statutory Maternity Pay is NOT payable will also increase from £79 to £82 per week.
    • Statutory Sick Pay: The rate will increase from £66.15 to £68.20 per week on the 6 April 2005.

    Pre-Budget implications - food for thought

    In his pre-Budget statement at the end of last year, the Chancellor announced some important proposals that would impact on certain family friendly rights. The main points are detailed below:

    Extension to the period of paid maternity leave from six months to nine months from April 2007. This is the first step in the Government's goal of 12 months paid maternity leave by the end of the next Parliament (in 2010).

    Legislation will be brought in by the end of the next Parliament to give mothers the right to transfer a proportion of their paid maternity leave entitlement to the child's father.

    Consultation will take place with employers, unions and other stakeholders on extending the right to request flexible working to the parents of older children and the carers of sick and disabled relatives.

    An extension of support for employer-supported chidlcare is planned. From April this year, the £50 a week tax-free limit for childcare vouchers will apply to the face value of these vouchers. Associated administration and service charges on top of this will also be exempt from tax and National Insurance contributions (NICs).


    Do you really want a recruitment relationship?
    Relationships and Trust are important!!

    This month Bob Barfield has a message for our community about how he believes you should work with recruiters.

    For a long time the recruitment industry has had a bad name, especially with HR professionals and I believe it has a great deal to do with the sheer numbers of recruitment companies looking for work. Instead of being a value added to HR departments or hiring managers, recruitment consultants have become a necessary evil.

    Every day we hear the voices of members of HR departments or managers that just wish our consultants would evaporate into thin air. They keep their voice mail on all day or tell their Secretary's/PAs to avoid calls from recruitment consultants canvassing for work because they get so many! I know some of you can get between 10 and 15 calls per day. No wonder an "us and them" situation has developed. We hear stories from recruitment consultants about how they avoid HR departments at all costs and prefer to canvass line managers directly. This practice only exasperates the situation as HR becomes more negative towards recruitment consultants. I also have a belief that all recruitment companies are perceived as providing the same thing and can be bullied into operating on a "transactional" basis. Let's face it, how would you feel if you had spent time developing a relationship with one of your most difficult line managers. This manager has always thought cooperation was a waste of time and provided no real benefit to them. Anyway you've worked really hard to convince this individual that cooperation is worth it, only to find that instead of briefing you they are still going external on you. That's exactly how recruitment consultants feel when they spend time trying to develop a relationship with you, only to find that you have briefed a number of agencies on a particular role.

    The point is that it doesn't have to be like that. The simple fact of the matter is that by choosing a career in HR or working for an organization where managers recruit for themselves, you will come into probably daily contact with the recruitment industry.

    I cannot stress that you get what you ask for from recruiters. If you brief 3 agencies on the role, expect a not very thorough search and to receive lots of resumes that "kind of" fit the job description. Most clients work this way and then wonder why they receive 'below standard' service from their recruitment suppliers. If I was one of those agencies I would know that I'd have to work quickly (so I get the candidates resumes to you before my competitor, in case we are both putting the same candidate forward) which means that I probably wouldn't match the brief to the candidate skill all that well because of the lack of time I have.

    It is never wise to work this way. You pay the same or very similar fee whether you receive the service mentioned above or a more detailed service because you have briefed the consultant exclusively (that is you have not briefed anyone else on the role).

    I believe that the only way to develop a decent relationship with your recruiter is to retain them to find you the best person for the role. This allows the time required and I can assure all readers that you will be guaranteed a better quality service.

    Look at it this way, a permanent recruiter normally works on 10 jobs at any one time (numbers may change depending on the city, country and specialization of the recruiter) of that 10 jobs, 7 are contingent, 2 exclusive and 1 retained.

    If you were a recruiter where would you spend most of your time? On the retained and exclusive roles because (a) your client has instilled their trust in your ability and (b) you are more likely to get a fee (or successfully fill the role.)

    Logical? Why then do most of you continue to work with your recruiters on a contingent basis and then complain about the quality of candidates AND the quality of service you receive?

    If you have done your initial research properly and appointed the most appropriate recruiter to service your needs, then there is no reason why you shouldn't retain their services. Depending on your requirements, you may need to appoint a number of specialist recruiters to service your needs.

    Next step is to be clear about your expectations and communicate them accordingly. Like any good relationship, constant communication is the key......

    with ELITE SELECTION Services of course, we look forward to hearing from you - even if it's to 'bend- our-ear' about this article - all views would be warmly welcome.

    Find out more about retained search.....
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