Bosses be warned: Beware of management myths

Bosses are being warned they could be breaking the law due to a number of common yet basic employment law misconceptions.

Croner Consulting, one of the UKís leading providers of business advice and support, is issuing its íTop Ten Management Mythsí based on research of queries to its employment law helplines, revealing that a surprising number of professionals are making fundamental employment errors.

Richard Smith, HR expert from Croner Consulting, which is part of Wolters Kluwer UK, believes that even the most astute manager can be caught out, but says those most at risk are smaller businesses which may not have dedicated HR professionals working for their organisation.

Croner Consultingís Top Ten Management Myths:
1. There is no contract of employment if thereís nothing in writing Croner Consulting says: Even a verbal contract is a binding agreement.

2. Employees paid a monthly salary are entitled to one monthís notice of the termination of their employment Croner Consulting says: The minimum legal notice period is one week per year of service to a maximum of twelve weeks, irrespective of how frequently someone is paid, but could be longer for more senior staff.

3. Employees with less than one yearís service can be dismissed for any reason Croner Consulting says: There are now over 20 grounds where an unfair dismissal complaint can come from an employee with under one yearís service.

4. Making someone redundant is easier than dealing with the real issues relating to performance Croner Consulting says: This risks an unfair dismissal finding especially if the worker is replaced shortly afterwards. Employers must show reasonable justification for a redundancy.

5. You can sack someone on the spot for gross misconduct without following any form of procedure Croner Consulting says: This is highly risky, leaving the employer open to an unfair dismissal claim. Workers should be given an opportunity to explain themselves at a properly conducted meeting before decisions are made.

6. Casual, agency and temporary workers never have employment status Croner Consulting says: Such workers may be classed as employees, especially if under the control of the íemployerí and working as part of their organisation, and therefore gain employment rights.

7. If an employee resigns without serving their necessary notice the employer is entitled not to pay them outstanding wages or holiday pay Croner Consulting says: The employee may be due outstanding wages or holidays and to withhold such sums would require a written term allowing for this, signed by the employee.

8. Employees must always be given Bank Holidays off work or receive additional pay for working them Croner Consulting says: Bank holidays are a matter entirely of contract. There is no right to them, or for extra pay, unless otherwise agreed.

9. Holidays do not accrue if the employee is on long-term sickness absence Croner Consulting says: Case law has now shown that, even if the contract says otherwise, workers continue to be entitled to accrue and take holidays, even if sick, under the Working Time Regulations.

10. An employer does not have to give the right of appeal if there is no one higher to hear the appeal Croner Consulting says: Even in such a case, allowing a review is sensible and allows any misunderstandings to be cleared up. Failure to offer any appeal will render most dismissals unfair.

Richard says: Many employers get away with implementing bogus policies based on these myths because employees are often oblivious to many of their employment rights and therefore do not appeal. But employers cannot depend on this to remain the case and should be aware that employees are becoming increasingly savvy to their rights.

In a busy workplace employers often donít have the time to clarify or feel the need to challenge principles of employment they believe to be true. But when it comes to employment law there is no room for complacency and keeping up to date and complying with legislation is as important as making a profit.

Richard says that management myths must be urgently addressed to help prevent unnecessary tribunal cases, which are costly to the bottom line and reputation of a company.

He says: Although commonly upheld, these myths are the equivalent of old wivesí tales. Employment hearsay is no basis on which to do business, which is why we are alerting employers to the most common misconceptions and misunderstandings which could catch them out.

Croner Consulting provides advice and support to organisations from experienced consultants on all aspects of employment law.