Contracts and Flexible Work Arrangements

Question 1

How has the UK changed in terms of employment law?

Answer 1

40-50 years ago, there were very few employment laws - the government rarely intervened in business matters unless absolutely necessary.
There were only very basic laws prohibiting things like exploitation and child labour.

Nowadays, the UK is one of the most regulated labour markets in the world.

Question 2

What is governed by the Contract of Employment? What does this contract describe?

Answer 2

The Contract of Employment governs the relationship between the employer and the employee.
It describes the T&C of employment for both parties. Its existence gives several rights and obligations.

Question 3

What is the trend in employment recently?

Answer 3

Shift away from traditional working week (Mon-Fri, 9-5). More flexible, atypical arrangements as well as self employment and agency working. Also weekend work and 0 hour contracts.

Question 4

Define EMPLOYER

Answer 4

An employer is the dominant partner in an employment relationship.

Question 5

Define EMPLOYEES

Answer 5

An employee is someone working under a ‘contract of service’, for an employer. They have wider legal rights than non-employees

Question 6

Define NON-EMPLOYEES

Answer 6

A non-employee is someone working under a ‘contract for service’. They do not work at the organisation but have been sub-contracted in, perhaps for a specialist project. They are self employed.

Question 7

What is the format of a contract of employment?

Answer 7

• May be written or verbal. Both are legally binding.
• Comes into existence when an offer of employment is made and accepted
• Different rights depending on whether it is a contract of service or a contract for service.

Question 8

What are some examples of employment rights (that are applicable to all workers)?

Answer 8

• equal pay for equal work
• basic health and safety rights
• the right to not be discriminated against on the grounds of sex, religion, race, age or disability
• the right to minimum wage (this is increasing in April 2020)

Question 9

What are some examples of employment rights (that apply only to employees)?

Answer 9

• statutory sick pay
• 9 months maternity leave
• time off for public duties
• minimum notice periods

Question 10

What sort of things should be included in a contract of employment?

Answer 10

• Name of employee and employer
• The job title
• Rate of pay; period and method of payment
• Arrangements for holidays and holiday pay
• Pension terms and conditions

Question 11

Define RESTRICTIVE COVENANTS

Answer 11

Restrictive covenants is a clause in a contract which prohibits an employee from competing with his ex-employer for a certain period after the employee has left the business. Also cannot contact the customers of the ex-business

Question 12

What is the termination of employment?

Answer 12

The amount of notice that is given before termination of a contract by both the employer and the employee

Question 13

What are the limits for contract termination for employees?

Answer 13

After 1 month, up to 2 years service - 1 week notice
After 2 yrs, up to 3 yrs service - 2 weeks notice
Thereafter a week is added for each years service

Question 14

Define FLEXIBLE WORK ARRANGEMENTS (FWA)

Answer 14

FWA alter the time and/or place that work is completed in.

Question 15

What are the different types of FWA?

Answer 15

Shift work, weekend work, fixed term contracts, compressed work week, annualised hours, flextime, homebased work, teleworking, overtime, part time work, job sharing/splitting, temp.casual work.

Question 16

Define SHIFT WORK

Answer 16

Shift work is working one of a set of consecutive periods into which a 24hr working day is split

Question 17

Define OVERTIME

Answer 17

Overtime is extra time beyond the employees normal time, added onto a day or shift

Question 18

Define WEEKEND WORK

Answer 18

Weekend work is working a Saturday or a Sunday

Question 19

Define PART TIME WORK

Answer 19

Part time work is hours of work defined as part time by employer or legislation

Question 20

Define JOB SHARING/SPLITTING

Answer 20

Job sharing/splitting is dividing one job between two or more employees

Question 21

Define TEMP/CASUAL WORK

Answer 21

Temp/casual work is where workers are employed on a temporary basis for a number of hours, weeks or months

Question 22

Define FIXED TERM CONTRACTS

Answer 22

Fixed term contracts is where workers are employed for a fixed number of months or years

Question 23

Define a COMPRESSED WORKING WEEK

Answer 23

A compressed working week is where the standard number of hours worked by the employee is compressed into a reduced number of days/shifts

Question 24

Define HOME BASED WORK

Answer 24

Home based work is where workers whose normal workplace is home but do not have any permanent electronic links to a fixed workplace.

Question 25

Define TELEWORKING

Answer 25

Teleworking is where workers have permanent electronic links to a fixed workplace

Question 26

Define ANNUALISED HOURS

Answer 26

Annualised hours is an agreement to work a number of hours annually

Question 27

Define FLEXITIME

Answer 27

Flexitime is where some hours may be determined by the employee around fixed ‘core time’

Question 28

What are some examples of companies already incorporating FWA?

Answer 28

KPMG incorporate a compressed working week

Cisco have a 4 day year end shutdown

Question 29

Why do employees need flexibility?

Answer 29

• reduced stress
• better physical and mental well being
• reduction of negative spillover - poor work relationships do not get taken home to affect home life and relationships
• increased work engagement
• increased productivity
• increased creativeness - good for company

Question 30

What are the different types of flexibility?

Answer 30

Functional flexibility - Multi skilling, one employee can do several roles and move from department to department

Numerical flexibility - hiring and firing of employees based on business needs

Temporal flexibility - Adjust working hours to meet business needs e.g. peak holidays

Financial flexibility - reduces labour and training costs to protect profitability

Question 31

What is John Atkinson’s model?

Answer 31

Devised in 1984 - purpose was to allow employees to adjust business demands using FWA. Helps to minimise costs and maximise profits.

Question 32

What are the groups involved in John Atkinson’s model?

Answer 32

Core workers

• professionals
• core to the organisation
• full time, permanent staff
• provide functional flexibility

Peripheral workers - divided into 2 groups
The 1st group provide numerical flexibility. Less job security and prospective than core workers
The 2nd group are on short term contracts, job sharing, part time workers etc

Other elements include:
Self employed people, subcontracters, agency temps, outsourced work

Question 33

Draw out John Atkinson’s model

Answer 33

You heard me