HR: Fact or fable?

Lindsay Parkinson, head of the franchise team at Avensure, debunks common HR misconceptions

Myth one: Contracts are written documents

A contract is established once an offer of employment is made to an individual, regardless of whether it is in writing or spoken. From that point onwards, the employer is required to abide by that contract, and any subsequent withdrawal would be a potential breach of contract. Employers have a duty to issue a written contract within two months of the individual starting their employment, and despite there being no obligation for an employee to sign a contract, their continuation of working can be seen as an acceptance of contract by practice.

Myth two: Self-employed workers are less costly and easier to manage than permanent employees

Taking into account the economic downturn, franchisors have looked into more creative ways to bring people into their business. One of these ways has been through engaging with self-employed people to provide services. The definition of ‘self-employed’ is complicated and there are a number of checks that a franchisor should carry out to establish whether the new recruit is technically self-employed or an employee of the company.

The checklist includes:

  • Number of hours worked
  • Number of days they do
  • What their role and responsibilities are
  • Whether they wear the company uniform
  • Whether they are able to send in any substitutes

If someone works for a company 40 hours a week, five days a week, and has done so continuously, and the employer controls what the self-employed does, then there is a danger that they’re not really self-employed. The risks involved in not clarifying the definition of employment often don’t arise until there is a breakdown in the relationship between employer and employee. For instance, if the franchisor decided they no longer required the services of a ‘self-employed’ individual who had been working for them for over two years, the individual could justifiably argue they were never really self-employed on account of the workload and responsibilities, which would expose the franchisor to all sorts of complications around tax avoidance and pay.

Myth three: You can’t make a pregnant employee, or an employee on maternity leave, redundant

You cannot dismiss an employee just because they are on maternity leave. If a company is downsizing and there is potential for redundancy, in this case, the individual on maternity leave can be included in the selection process. If they were selected, it would not be because they are pregnant or on maternity leave. So, it is possible to dismiss an individual on the grounds of redundancy whilst they are pregnant or on maternity leave.

Myth four: The employer doesn’t have to consider flexible working requests

Some employees may want to change their contract. For example, an individual may have a full-time contract and wants to work on a more flexible basis. The right to request flexible work has only just come into play in the past few years. In order to do so, an individual must be employed by a company for 26 weeks and would normally have to make a formal request. The employee is expected to outline what the current hours are, what the proposed hours are and what adjustments the employer would need to make. On receipt of the request, the employer has a duty to invite the individual to a formal meeting to discuss the proposals and to see if there is a practical solution going forward. The employer can’t simply reject the request out of hand without a robust business justification.

Myth five: Social media is unmanageable. How can I control what employees post?

As we move into the social media age, more and more people are using platforms such as Facebook and Twitter. Consequently, all franchisors should be putting together a social media policy instructing on inappropriate behaviour and the implications that may result from misuse. Make the policy visible in the workplace and remind employees that it is an essential element of their employment. Without the policy and rules on employee use of social media, it will be extremely difficult to discipline an employee who has posted something inappropriate about the business or colleagues.

Other advice articles

Why Graduates Should Consider Franchising

Recent statistics from the British Franchise Association (NatWest bfa Franchise Survey) have revealed that there has been a surge in young entrepreneurs (under 30 years of age) successfully finding their way into...
Read more

A guide to managing your cashflow

Fundamentally, the reason that most businesses fail comes down to a cashflow problem – whether it is another business failure that leaves a bad debt, a change in market conditions...
Read more

Make it stick

Polish your training strategy and see results! Paul Matthews of People Alchemy talks about boosting performance with training follow-up. As a franchisor, you must train people. You know that. One of the...
Read more

The Sticky Issue Of Restrictive Covenants In Contracts

A recent case has highlighted the reluctance of the courts to intervene in “rewriting” these clauses to make them enforceable. This means it is even more important to review your...
Read more