Your workforce is likely one of the most significant assets of your business. Payment of wages, salaries and entitlements are always a large part of your business expenditure.
When workplace issues arise these can be both time consuming and costly to your business. Knowing the ‘rules’ goes a long way to avoiding employee confusion about what is expected of them in the workplace. It follows that employers must implement and communicate to staff clear, compliant and practical workplace policies and procedures.
There is common misconception amongst business owners that workplace policies should seek to govern pretty well every activity in the workplace. We do not agree with this approach. How detailed a workplace policy may be is often dependent by the nature of the business and the practical and operational considerations of the business. A common sense and practical approach should always be utilised when preparing workplace policies and procedures.
One of our small business owners recently consulted us about difficulties they had encountered with an employee who:-
- was not demonstrating a satisfactory understanding of what was required to perform the employees role and duties;
- was conducting themselves to staff and customers in an impolite and discourteous manner;
- was not committed to promoting a close interacted relationship between all employees and was not fostering a spirit of cooperation and teamwork;
- would not comply with required workplace procedures; and
- had made a number of mistakes in the course of his employment that was costing the business significant lost revenue;
- when confronted with these issues seemed unconcerned, failed to demonstrate any remorse or commit to rectifying his behaviour.
The business owner retains a large and well-known employment human resources service provider and pays monthly subscription fees for services. In this case workplace policies and procedures had been documented in an Employee Handbook. This Employee Handbook included a detailed disciplinary procedure with a step by step process for issuing of verbal and written warnings on each occasion that there was unsatisfactory conduct or performance by the employee. Further, there were time frames specified for compliance with disciplinary warnings.
In our view the Employee Handbook was both onerous in its terms and to some extent unpractical for application by a small business, particularly as it related to disciplinary procedures. The Employee Handbook did not properly take into consideration practical and operational aspects that would arise for a small business in the management of employees. What was required to resolve the issue was not complex and could have been handled in a less time consuming and more cost effective manner.
Our client had followed the Handbook disciplinary procedures and issued both verbal and written warnings. The employment service provider prepared a ‘letter of concern’ to the employee, which was followed by a further warning letter. When a further issue in the workplace arose a final warning could not be issued to the employee due to the time that had passed since the previous warnings and concern expressed by the employment service provider that the continual warnings could be seen as ‘workplace bullying’.
This matter was both costly and stressful for the employer and after many months, the issues have become further complicated and issues remain unresolved. The working relationship between the employer and employee has now also become toxic.
A fair and reasonable approach must always be taken when implementing disciplinary procedures against an employee. Procedural fairness should always be afforded to the employee. However, if a breach of a fundamental term of employment occurs and it is made clear to that employee that it must not occur again, how many warnings should be provided before it can objectively been seen as reasonable to terminate the employment relationship?
We have represented many employers previously who have validity and fairly terminated the employment of a ‘troublesome’ employee without providing any written warnings. Likewise, often an employer will often provide notice to an employee stating in clear terms that the issue has been discussed previously and it should not occur again or termination of employment may occur.
Again, it depends on the facts of the situation and every situation is different. It is therefore imperative that workplace policies and procedures provide the required flexibility to employers to proceed with disciplinary action against an employee, as and when that may be required.
Well prepared and carefully documented workplace policies and procedures not only reduce the possibility of disputes and conflicts arising, but often give rise to a more productive and efficient workforce. The majority of problems and disputes that arise in a workplace could be avoided by having appropriate documentation and policies in place. Effective workplace policies now could save you a lot of money, time and stress when something goes wrong with an employee in the future.
Connolly Suthers provides comprehensive employment and industrial relations service to its clients and can assist with all matters relating to the workplace relationships. Should you wish to schedule an appointment with our Employment Law Partner, Brendan, please call 4771 5664 or email law@connollysuthers.com.au