News

Employment Law Update (June 2009)

"You're "Hired" – Alan Sugar hired to advise government on small business issues

The recent cabinet reshuffle threw up a few surprises for employers. The first surprise was the "hiring" of Sir Alan Sugar as the Government's "Enterprise Champion". In his role - which will be unpaid - according to information released by 10 Downing Street, Sir Alan is expected to give the government advice on how to ensure small firms and entrepreneurs make the most of the help available from the government and other organisations.

The second change in the reshuffle is that the government department responsible for business – previously known a "BERR" (Business, Enterprise and Regulatory Reform) – has been merged with the department for Innovation, Universities, and Skills, to create a new super-department responsible for Business, Innovation and Skills ("BIS").

It is not yet clear what priority the new department will be giving to future employment regulation, but it has already indicated that the extension of maternity and paternity leave pencilled in for April 2010 is now under review due to the economic climate.

Future e-bulletins will keep you informed of any developments which will affect your business.

Three good reasons why recruitment's not so easy in the real world

Sir Alan Sugar's appointment raised a few eyebrows, in particular because at first even he seemed unsure of what his duties would be and whether his role would have a political slant which might conflict with his other business and television activities.

In the real world, hiring a new member of staff is not so simple…

  1. When hiring a new employee, you should be sure of the job purpose, key responsibilities and what is required from the employee before you begin the recruitment process. Interviews should take place and candidates should be measured against your requirements. This will not only ensure fair recruitment, but will also make sure you get the best candidate for the job and that you will be able to measure their performance in the job.
  2. Equal Opportunities law requires you to select the best candidate for the job, regardless of gender, race, religion or belief, disability, sexual orientation or age. Simply hiring an acquaintance will not only limit your choice – so people who would have been better qualified applicants if they had the opportunity to apply aren't even considered – but it might also amount to unlawful indirect discrimination. The Equality Bill, which is now passing through Parliament, will require businesses to show they have a workforce that reflects the diversity of the community, and simply hiring people within an existing "network" is unlikely to achieve this.
  3. Sir Alan has been appointed on an unpaid basis, but employers must always pay workers at least the National Minimum Wage.