Employers must tighten their contracts’ warns employment lawyer

A leading employment lawyer has urged employers to take a long hard look at the terms and conditions of their employee contracts before burdensome legislation causes more HR woes.

Kevin McKenna, a senior associate in the employment team of law firm Weightmans, spoke at a seminar entitled ‘Employment law in hard times’ which was held on 24 February at the firm’s Manchester offices. He warned of harder times to come for employers following an announcement that a European Parliament committee has passed a plan to make firms pay full maternity pay for at least 20 weeks.

Kevin said of the plans, known as the Pregnant Workers Directive: “The feeling amongst employers is that now is just not the right time to be imposing a move that could cost UK companies up to £2 billion a year. 

“Employers are still reeling from last year’s cost-cutting measures and this burden will be a bitter pill to swallow for businesses that are already squeezed.”

Kevin explained that although the UK Government has opposed the Pregnant Workers Directive, it has already surrendered its veto on employment law and could be outvoted should other members of the EU opt to allow the directive when it goes before the full European Parliament next month.

e said: “Employers in the UK may not have many options if these plans are implemented, but the good news is that other aspects of employment policies could be reviewed to ease the burden.”

In the past 18 months, many businesses pushed through substantial changes to the way they managed employees. Now the time is ripe to consolidate these moves and review contracts with remaining employees:

“There may be scope to tighten terms on issues such as sick pay or modernise the bargain between employers and employees” he said.

“Now is the time to scrutinise all terms and conditions and revise any old or outdated employment policies. Getting your house in order might just help protect your business against the extra costs that could be imposed following these maternity plans.”