Iam delighted to provide the foreword to this new Good Employment Practice Guide, and to take this
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1 Foreword by the Minister for Enterprise and Lifelong Learning Iam delighted to provide the foreword to this new Good Employment Practice Guide, and to take this opportunity to commend the FSB, ACAS and the STUC on their joint work. This publication should benefit employers and employees alike, and is an excellent example of organisations working in partnership. The importance of small firms is increasingly - and rightly - being recognised in Scottish Executive policy across the board. They make an important contribution to the economy through improving innovation and competitiveness and are also crucial players as employers. There are nearly 100,000 small employers with a total of around half a million employees. I believe that businesses that have good employment practices are better able to maximise their potential and contribute to the success of the economy and society as a whole. This guide will help good employment practice to become the norm. Employment legislation is of course a matter reserved for Westminster. However, I am determined that the Scottish Executive can and should ensure the smooth working of Government at the interface between reserved and devolved functions. The provision of good quality information is an important part of that work, and the Scottish Executive is already working to improve access to good quality business support. The recent establishment of the single door Small Business Gateway removes confusion over where to turn for advice, information and access to funding. And the Gateway package includes a range of new standardised support programmes that improve the quality and consistency of public sector support for new and small businesses in the Scottish Enterprise area. Improvements in business support are also in hand in the Highlands and Islands Enterprise area. This new guide is an extremely helpful contribution to that broader framework of support and advice, and I commend it to all small businesses and their employees. Wendy Alexander MSP Minister for Enterprise and Lifelong Learning Good Employment Practice Guide Issue 1 January 2001
2 Employment Relations Act 1999 The Act introduces a number of key changes to the workplace. These changes may affect the manner in which the relationship between employer and employee is conducted. The thrust of the legislation is to seek change by partnership working through voluntary agreement between employers and employees. A number of new rights have been established including:- Collective Bargaining: Recognition From June 2000 an independent trade union may make an application to the Central Arbitration Committee (CAC) for recognition in organisations which employ at least 21 workers. The preferred route to resolving recognition issues is through voluntary agreement between the employer and the union seeking recognition. If a voluntary approach is not productive the union may pursue their claim to the CAC seeking a declaration that Statutory Recognition is appropriate. Right to be accompanied at disciplinary and grievance hearings From 4th September 2000 a worker has the right to be accompanied by a representative of their choice at any disciplinary or grievance hearing. The new ACAS Code of Practice gives details of good practice on handling discipline and grievance issues. It incorporates the new right to be accompanied and indicates how this right impacts on employment practice. The new code will be used by Employment Tribunals to test the fairness of procedures adopted by an employer in handling disciplinary issues. Leave for Family Reasons The Act introduces changes to Maternity Leave and introduces new rights to Parental Leave and for Time off for Dependants. Maternity leave increases to 18 weeks for women expecting babies on or after 30 April 2000 with additional leave of 29 weeks from the baby s birth for an employee who has completed 1 year's employment. Parental leave of 13 weeks for each child born or adopted after 15 December The leave is unpaid. Time off for Dependants, introduced from December 1999, gives all employees the right to take reasonable unpaid time off work to deal with an emergency involving a dependant. Each of the new provisions may bring changes to relationships at work. The provision which has had immediate effect on a number of businesses has been the right of trade unions to seek recognition for collective bargaining. A good practice fact sheet on recognition is incorporated in this edition (Issue 1). Future editions will cover other areas that affect relationships and employee rights. Issue 2 will focus on the new individual right to be accompanied at grievance and disciplinary hearings. Good Employment Practice Guide Issue 1 January 2001 Page 1 of 5
3 What is Trade Union Recognition? A trade union is recognised by an employer when it negotiates agreements with employers on pay and other terms and conditions of employment on behalf of a group of workers, defined as the bargaining unit. This process is known as collective bargaining. A trade union may seek recognition in an organisation by 1) voluntary or 2) statutory means. 1) Voluntary trade union recognition When a union uses voluntary means to achieve recognition, it will contact the employer without invoking any legal procedures. ACAS will be ready to conciliate and facilitate discussions if both parties agree. What is the ACAS role in voluntary trade union recognition? ACAS can: give impartial and confidential information and advice on trade union recognition help to resolve disputes over trade union recognition by voluntary means help resolve disputes when a union makes a claim for trade union recognition under the Employment Relations Act 1999 assist with membership checks and ballots which provide both parties with factual information to assist and resolve the recognition issue assist employers and trade unions to draw up jointly acceptable recognition and procedural agreements and work together to solve problems Membership checks as part of the voluntary recognition process If there is an issue about the level of trade union membership within a bargaining unit, ACAS can carry out a membership check. Employers and unions accept ACAS is an independent organisation and have trust in the accuracy of membership check results. Secret ballots as part of the voluntary recognition process Where an employer and trade union agree that workers should take part in a secret ballot to determine whether the trade union should be recognised, ACAS can help the parties to determine: the question to be asked on the ballot paper the rules about how the ballot should be conducted the action to be taken following the ballot result ACAS conciliators can administer the ballot in organisations where the proposed bargaining unit is less than 250. ACAS help after the union has been recognised ACAS can help the parties to draw up a recognition and procedural agreement. Usually ACAS will set up a joint working group comprised of employer and worker representatives. The ACAS facilitator will chair the meetings of the joint working group and help the group to develop the necessary procedures and arrangements to ensure an orderly relationship. This joint working approach, with the emphasis on joint problem solving, has the added advantage of fostering a co-operative style of employment relations from the outset. Good Employment Practice Guide Issue 1 January 2001 Page 2 of 5
4 2) What is statutory trade union recognition? From June 2000 an independent trade union may make an application to the Central Arbitration Committee (CAC) for recognition in organisations that employ at least 21 workers. What requirements have to be met before the CAC can consider an application from a trade union? The trade union must first have made a formal application to the organisation concerned. The CAC is unable to accept an application if, following the request, the employer suggests that ACAS should become involved and the trade union refuses or does not respond. The union must have at least 10 per cent membership in the bargaining group and be likely to attract majority support in a ballot. Costs of the CAC ballot are shared equally between the employer and union. The CAC will not accept applications from trade unions competing for recognition in the same company. If a single joint application is made by the unions concerned, they will need to show that: they will co-operate with each other If the employer wishes, they will enter into collective bargaining arrangements by which the unions act together on behalf of the workers in the relevant bargaining unit In what circumstances will the CAC grant recognition? The trade union must demonstrate, either through a ballot or through levels of membership, that it has the support of a majority of workers in the bargaining unit. Where the CAC makes a declaration that a trade union should be recognised for collective bargaining purposes, the parties must then agree a bargaining procedure. If they are unable to agree a procedure, the CAC will impose one. The role of ACAS in statutory recognition claims When a trade union makes a statutory claim for trade union recognition ACAS is ready to conciliate. Where the employer proposes to involve ACAS, and the union refuses or fails to respond within 10 working days, the union cannot apply to the CAC. The ACAS role is separate from the statutory decision making role of the CAC and is entirely impartial and confidential. Conciliation is voluntary and attempts through discussion and negotiation to enable the parties in dispute to reach their own agreement. ACAS conciliators have no power to impose, or even recommend settlements. The Central Arbitration Committee (CAC) The CAC is a permanent independent body with statutory powers which: adjudicates on applications related to the recognition and de-recognition of trade unions for collective bargaining purposes, where employers and trade unions cannot agree voluntarily determines disputes between trade unions and employers over the disclosure of information for collective bargaining purposes disposes of claims and complaints regarding the establishment and operation of European Works Councils in Great Britain Good Employment Practice Guide Issue 1 January 2001 Page 3 of 5
5 Employment Law Information and Good Practice Guide We would like to ensure we are providing employment law information and good practice guides on topics of concern to you. To help determine our future agenda we would like your views. We have listed some topics below that currently feature high on the ACAS enquiry lines. It would be most helpful if you would take a few minutes to tell us how important information on these topics is to your business. Topics on which you would like information tick priority for action (1 = high 5 = low) Arbitration Alternative to Employment Tribunals Disability Discrimination Family Friendly Policies Working Time Regulations Working Time Regulations - Holidays Human Rights Act Minimum Wage Public Interest Disclosure (whistle blowing) Sickness Absence Guarantee Payments Maternity Provisions Disciplinary and Grievance Procedures Sex Discrimination and Equal Pay Part-time Working Regulations Bullying and Harassment Other: Please specify On completion, please fax back this form to: FSB Scottish Office on or post to FSB Scottish Office, 74 Berkeley Street, Glasgow, G3 7DS. Good Employment Practice Guide Issue 1 January 2001 Page 4 of 5
6 Sources of Information and Advice FEDERATION OF SMALL BUSINESSES For advice on employment legislation and other matters, FSB members can contact the FSB Legal Helpline or FSB Scottish Office tel STUC STUC tel ACAS For advice on employment issues, contact: ACAS Public Inquiry Point tel SMALL BUSINESS GATEWAY The Small Business Gateway is a service provided for Scotland s small business community by the Scottish Enterprise Network and local partners. A single access point provides a range of integrated services offering assistance for business information, business start-ups and business growth. tel web COMMISSION FOR RACIAL EQUALITY The Commission for Racial Equality (CRE) is a statutory organisation charged with three functions according to the Race Relations Act, 1976, namely: (i) to work towards the elimination of racial discrimination and promote equality of opportunity; (ii) to encourage good relations between people from different racial backgrounds and; (iii) to monitor the way the Race Relations Act is working and recommend ways in which it can be improved. In practice, the CRE in Scotland provides an advisory service to employers wishing to develop good racial equality policies and practices. It provides up-to-date advice on such topics as ethnic monitoring, recruitment practices, advertising, positive action and training, and can supply employers in the public, private and voluntary sectors with publications and case studies illustrating a range of issues. The CRE can also provide advice on recent developments on racial equality legislation and policy. Irene McClure, CRE Policy Officer at CRE Scotland, Hanover Street, Edinburgh EH2 2PJ. tel fax cre_edin@freenet.co.uk EQUAL OPPORTUNITIES COMMISSION The Equal Opportunities Commission (EOC) is the statutory body on sex equality, established by the 1975 Sex Discrimination Act. The office in Scotland provides a range of services to individuals and employers developing equal opportunities practice in SMEs, including advice and guidance on maternity and parental rights, equal pay, recruitment and other employment related issues for employers, owner/managers and employees. Up to date information can also be obtained from the website and publications. EOC Scotland, St. Stephen's House, 279 Bath Street, Glasgow, G2 4JL. tel fax web Good Employment Practice Guide Issue 1 January 2001 Page 5 of 5
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