Whether you are a small business owner or director of a large company, there are similar issues which negatively impact operations. A business owner must consider the economic climate, ability to secure contracts/sales, income and expenditure, coupled with countless other matters. A growing consideration should be employees. The terms of employment, disciplinary approach, employer/employee relationship and the approach to be adopted should the need to terminate an employee arise.
The Industrial Relations Act is a piece of legislation that has always concerned me. While it provides considerable safeguards for the employee, I do not think it has struck a balanced approach which addresses the employer’s concern. I remember reading a conversation between two people once and it can be used to describe this act. The man was entering into an agreement with another person and the contract was long and cumbersome to read.
The man, in frustration, asked the lawyer who prepared the document whether he could summarise his risks should he sign. The lawyer told the man if he did what he needed to under the contract, nothing worded in it would harm him, but if he did not do what he had to, then nothing in the contract would save him. That is the Industrial Relations Act; should an employer keep their employee in their job under agreed terms and conditions, then all is well, but should they dismiss their employee due to some issue, nothing can save them.
I have seen frustrated employers terminate employees for what they deemed to be “gross misconduct” or a “history of disciplinary issues” and despite this, have had to pay considerable sums awarded by the Industrial Court for unfair or constructive dismissal.
Unfair dismissal claims are one side of the coin and are easy enough to appreciate; an employee is terminated and they believe they should not have been.
Constructive dismissal is slightly different; an employee quits because of some alleged wrongdoing by the employer, or a hostile environment or some scenario whereby they believe they are being pushed out of a job.
As employers, we are hesitant to issue disciplinary letters for fear that an employee may decide to terminate their employment or because we do not want to be unduly harsh.
Yet, the failure to keep a proper paper trail or to convene a disciplinary committee to discuss the employee’s conduct and attempt to rectify same, are issues that will result in significant awards in favour of an employee. Bottling up frustration with an employee’s conduct and then having a meeting where all of it is thrown on the table (as some people tend to do), can be viewed as a form of constructive dismissal, despite never actually putting the employee on notice or showing them the door.
Christmas is here and after comes the Carnival season. During both of these times, Trinbagonians spend hefty amounts on gifts, renovations, fete tickets, Carnival costumes etc. Not all people can readily pay for these from savings, so, we turn to loans and credit cards.
Some employers who believe they share a good relationship with their employees often issue employment letters falsifying the salary of their employees in letters to the bank in support of loan applications. Employers believe they are helping, yet, when relationships sour and claims are filed in the Industrial Court, these letters are used in an attempt to prove a higher salary. There have been cases where the employers were made to pay benefits to the employee based on the salary as contained in letters to the bank.
The act, in essence, ensures that employees should not be terminated without notice and there should be a paper trail for employees who had various infractions. Employees should not only be warned of improper conduct, but attempts should also be made to assist them with rectifying their poor conduct. Employers have a tendency to believe they are right in terminating employees without notice and then contending there was a history of conduct.
Agreeably, there may have been a history, but one that was not properly recorded or brought to the employees’ attention; even in these cases, the employer will be made to pay some form of damages to the employees.
For employers thinking about appealing, the Industrial Relations Act is clear; an appeal can only be brought on points of law. It means filing an appeal may not be as easy.
An appeal can usually be brought on points of law or fact. It is well known that proving an appeal on fact is an uphill battle, yet, civil matters and criminal matters still have the chance to attempt to prove that a trial judge may not have considered facts which were before them. But, with matters out of the Industrial Court, there is no such consideration.
While an appeal can be filed, if that appeal is not on a point of law, the appeal can and will be struck out. It means, in essence, the employer is bound by the court’s decisions.
I appreciate that for many years, many employees did not have the benefit of proper protection, which was, in fact, needed. Yet, protection cannot be skewed.
Employees cannot rest comfortably in the belief that they can conduct themselves however they wish and the law will protect them. It means that as long as the act remains as it is, employers who do not wish to be on the wrong side of a monetary judgment need to take extra precautions to protect themselves.
Sadly, some employers may not be aware of what these precautions may be and continue to run their businesses as they have for many years and not realise they can be leaving room to be challenged in court.
