Employment Law

KEY EMPLOYMENT LAW OBLIGATIONS EMPLOYERS MUST REVIEW AT THE START OF THE YEAR

While employment considerations should take centre stage in any organization all year round, the beginning of the year particularly offers an opportunity for employers to get it right from the start and to also review any aspects that may have fallen through during the busy close of the year season. This article gives an overview on key aspects that employers should ensure are streamlined.

Implementing end of year review recommendations:

Most organizations carry out an end of year review exercise of their employee’s performance during the year. Some of the common recommendations that are reached during the review include but are not limited to: salary increase, bonuses or other employment benefits, promotions, deployments and performance improvement plans. If any of these were recommended during the review, then start of the year serves as the opportune time to revise the employment contracts to give effect to the recommendations. If a performance improvement plan is recommended for any employee but not implemented, then as an employer you cannot wake up in the middle of the year and commence disciplinary proceedings based on performance allegations.

Updating Contracts:

It is common practice in most organizations to issue a 1-2 year contract renewable annually. If this renewal notice is not specifically issued and updated accordingly, the lack of renewal formalities may create the legitimate expectation on the part of the employee that the contract shall be renewed automatically at the lapse of term, thus limiting an employer’s discretion to terminate. Similarly, if some employees are hired as consultants or casuals and over time it appears that the engagement with company is in such a way that they may be considered to be full time employees, then this would be the opportune time to convert the contracts accordingly and in accordance with the laid down procedures under the Employment Act.

Annual Leave:

During employment separation, annual leave forms one of the most contested items and therefore constant attention to this aspect can put at bay any potential conflicts. As the year comes to a start, employers should ensure that all leave days taken in the previous year are documented, and any balance taken as soon as possible. If the HR policies provide for forfeiture of leave days not taken during the previous year, this should be well documented, and any unpaid leave days updated. The season also serves as the opportune time to plan for the employee’s leave date in the current year.

Update Policies:

HR manuals and policies are living documents, meaning that they are subject to change at any given time on the basis of changing laws and also in accordance with dynamic employment environment. Employers should take stock of the legal/regulatory changes in the year ended and ensure that their policies are aligned with the new legal requirements. Similarly, if there is reached a decision between the employer and employees to change certain work place dynamics, then the prevailing policies ought to take this into account through periodic reviews.

Given that human resource and an organized employment environment is central to the success of an organization, keen attention is needed in ensuring that these employment aspects, among others are streamlined at the beginning of every year.

A.Mulu & Company Advocates runs a robust employment law department that caters to the practicalities of a modern day employer.