Is your business ready for the impact of the strikes?

We have all heard about the imminent strikes by teachers and civil servants – but how many of us have considered how it might affect our own businesses? 

The first of the joint strikes has been set for the 30 June 2011 with others expected to follow over the course of the summer. The direct impact of the strikes on the public sector is undoubtedly clear but private sector businesses are also going to suffer, indirectly. Widespread school closures, caused by the teachers’ strike, will leave many parent employees with no choice but to stay at home and employers facing unavoidable staff shortages. 

With the Government failing to show any suggestion of addressing the issues at the crux of the strikes, local businesses will have no choice but to prepare. 

So, what time off do employers have to allow for childcare during the strike? 

Employers need to be aware of an employee’s right to time off for dependants. The right is designed to allow employees time off to deal with unplanned short-term events in relation to their dependants, such as school closures, and is unpaid.  If your workforce is dominated by parents or carers, it may be worth discussing with them now whether or not they foresee a problem with childcare. Some employees may prefer to use their annual holiday entitlement so that the time off is paid.  

However, employers must be aware that even if they draw their employee’s attention to the possibility of school closures, giving them time to make alternative childcare arrangements, they will still be entitled to exercise their right to time off if they are unsuccessful. Whilst the right to time off for dependants was initially envisaged to deal with ‘emergency’ scenarios, recent case law has confirmed that the provisions still apply to events that are known in advance. As the leave is unpaid, it is unlikely that employees will abuse the exercise of this right and so employers should be careful in refusing such requests and seek advice if necessary. 

As an employer, what else can I do to prepare? 

The key is to minimalise disruption to your business whilst being fair and reasonable to employees, who may be experiencing genuine difficulties with childcare. It is sensible to ascertain in advance who may have such difficulties and offer them a choice of taking paid holiday or unpaid time off for dependants.  This may mean relaxing your holiday procedures. Do, however, make clear to your staff that such increased flexibility is an isolated amendment to deal with the difficulties caused by the strike action. 

It is advisable to consider now whether your business is going to suffer from the anticipated levels of absence. It may be worth engaging temporary staff or suggesting a strike day flexible working arrangement for parent employees, such as working from home.

Abolition of the default retirement age

Just when you thought you were getting to grips with Employment Law, the Coalition Government commits to abolishing the default retirement age!

As of 6 April 2011, businesses will no longer be able to require an employee to retire simply because they have reached the age of 65.  This will, undoubtedly, be one of the biggest changes of 2011 and with the number of tribunal claims rising by 56% last year, it is no surprise that almost 50% of employers are already worried about a surge of age-related claims!  

Some are calling the abolition a ‘victory against ageism’ which will enable the retention of skill and experience, whilst reducing administrative burdens. Others believe the change to be a ‘disaster waiting to happen’, fearing it will create a complicated, less dignified system and a minefield of uncertainty for employers. The UK’s leading employers’ group, CBI, has urged the Government to delay their plans in order to allow time to simplify the law on performance management and unfair dismissal before scrapping the default retirement age.

However, the Coalition Government believe the change will encourage people to work for longer, against a background of an ageing population, benefitting the economy and easing strain on public finances. Commitment to the change was confirmed in October and it is certainly a case of ‘when’ rather than ‘if’ the abolition will take effect. At present, the phasing out remains scheduled to commence on the 6 April 2011.

So, if you have employees that turn 65 before 1 October 2011 that you wish to retire, you must give them notice under the statutory retirement process before 5 April 2011! After this, you will not be able to rely on the default retirement age and should start planning for the change!

[The information and commentary contained in this blog does not, and is not intended to, amount to legal advice and does not form the professional advice or opinion of any Solicitor or Law Firm]