Archive for Compromise Agreements

Holiday vs. Sick Leave

June 27, 2012 Compromise Agreements, Holiday, Leave of Absence No comments

Sick leave is a complex and difficult area in human resources. It is fraught with potential pitfalls for small businesses and the consequences can be very expensive.

So, let’s see if we can dismiss some of the myths that surround this topic.

Q: Do I have to allow an individual to reschedule holiday due to sickness?

A: Yes, you should allow the rescheduling of holiday.

The ECJ (Pereda v Madrid Movilidad SA) dictated that where an individual’s pre-arranged statutory holiday coincides with a period of sick leave, the ‘Equal Treatment Directive’ requires that the individual should be given the opportunity to take leave at another time.

However, a good Absence Policy is essential to prevent abuse. For example, individuals are only entitled to statutory sick pay if they turn holiday into sick leave; ensuring individuals report sickness to their manager and requiring medical evidence for longer absences; recording and monitoring sickness absence; and only paying sick pay if the individual is unfit to do the job – the fact that a worker cannot “enjoy” their holiday need not be treated as sick leave.

If you are ever unsure – seek further advice.

Are compromise agreements the easy way out for businesses?

May 9, 2012 Compromise Agreements No comments

Is it me, or are compromise agreements becoming more and more common place – particularly in the corporate world!?

The big question here is whether a compromise agreement makes it too easy for the “big players” to streamline their businesses or “weed out” the undesirables outside of normal employment processes.

There’s no doubt that it costs them more and there is no guarantee that the individual will sign the agreement but does this put small businesses at a disadvantage? Having said that, is this how we should be encouraging any business of any size to behave?

I believe that small businesses have enough to contend with, with the increasing and ever changing legislation on employment without the addition pressure.