With the recent floods affecting many firms across Lancashire and Greater Manchester, WHN has seen a surge in new enquiries from business owners seeking advice on how they should be treating employees in such debilitating commercial situations.
Michael Shroot, partner and head of the commercial department at WHN, provides some useful guidance for employers following flooding.
Employment law rights
While businesses are faced with uncertain times with offices and shops closed either on a short or longer term basis, business owners need to ensure that staff are kept front of mind to prevent any potential employment law claims in the future.
Employers need to be aware that although the premises may be closed for business, employment law rights and your duties as an employer continue to apply.
For short term closures there is the need to keep trained staff in place. However firms that are expecting to be closed for an extended period of time need to consider the cost of either retaining staff or laying them off.
Paying your workforce
One of the main areas of concern for employers is the payment of wages. Following a major flood or natural disaster, payment depends on whether the employer or employee is at fault for non-attendance.
If the firm is unable to open its premises in the short term, then the employer should be paying full salary to staff as they are ready, willing and able to work as usual.
By UK law, employers don’t have a duty to pay employees if they cannot get into work due to a natural disaster. Most employers use discretion, offering solutions including working from home, allowing some unpaid leave or short notice holiday days to ensure staff morale remains high. The new flexible working laws also mean that if the flood causes an emergency for one of your employee’s dependants, then in certain circumstances they are entitled to unpaid time off.
Redundancies/lay-off
If you are faced with a longer term closure, you could be forced to look towards redundancies, however this is subject to the employee’s rights as outlined in their contract of employment.
While it’s possible for you to lay off your staff and minimise immediate costs, this needs to be specifically stipulated in employment contracts or agreed with employees. It’s therefore important that firms plan ahead and review these documents regularly.
Potential employment law claims
If employers fail to pay wages, incorrectly dismiss employees, or lay staff off without following the correct procedures, it can result in a myriad of claims from unlawful deduction from wages to unfair dismissal, resulting in thousands of pounds of extra costs and liability.
Business owners should consult staff and work together with them to bring the best results, but where positive action is needed on behalf of employers, there are a variety of solutions available that can be found by speaking to the experts.
For more information on managing your workforce following the recent floods, please contact Michael Shroot on 0161 761 8087 or michael.shroot@whnsolicitors.co.uk
