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Welcome to issue 401 of the ukrecruiter newsletter. Don't forget about the Suppliers Directory on our site. For example, why not check out our list of Computer Software Suppliers, all specialising in the recruitment sector.
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CONTENTS
Visit http://www.ukrecruiterjobs.co.uk for the latest recruitment industry jobs. |
Weekly Tips - If I've learned 3 things 1) Recruiters make their money on a phone, not shuffling paper! Roy Ripper, Director at Recruitment Juice www.recruitmentjuice.com Why not submit your 3 favourite web sites. See the guidelines at http://www.ukrecruiter.co.uk/articles.htm |
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Article One: Employment and the Law - Recent Developments by Louise Fernandes-Owen Louise Fernandes-Owen of Field Fisher Waterhouse LLP examines the latest key employment law developments. Budget 2009: Statutory redundancy pay on the up Alistair Darling, the Chancellor of the Exchequer, has announced that there will be a one-off increase in the weekly rate for statutory redundancy pay, from £350 to £380. This will increase the maximum statutory redundancy payment from £10,500 to £11,400. However, no announcement has been made as to when this will take effect or whether the maximum basic award for unfair dismissal will also increase at the same time. It has also been announced that the Government is considering whether to introduce a new 'floor' which would set a minimum level for statutory redundancy payment rates. It would legislate on this in the next Parliament. Legal representation at internal disciplinary hearings Employees are potentially entitled in limited circumstances to be represented by a lawyer (as opposed to just a workplace colleague or union official) at internal disciplinary hearings, following a recent High Court decision. In R (on the application of G) v The Governors of X School, X School commenced disciplinary proceedings against the claimant, a music assistant, following allegations of an abuse of trust with a 15 year old boy. The claimant requested legal representation at the disciplinary hearing. This request was refused and he was dismissed. The School was then obliged by statute to make a report to the Secretary of State on the basis that he might be unsuitable to work with children (the Secretary of State could then prohibit him from working with children in educational establishments). The claimant appealed, but his repeated request to be allowed legal representation was refused. The claimant applied for judicial review, arguing that Article 6 of the European Convention of Human Rights, which relates to the right to a fair trial, was breached by the School's failure to allow him legal representation at their internal hearings. The High Court held that the disciplinary proceedings and the subsequent reference to the Secretary of State (with the possibility that the claimant would be prohibited from teaching), were part of the same procedure. No distinction could be drawn for the purposes of Article 6, as the referral to the Secretary of State was a natural and likely outcome of the disciplinary procedure. Due to the gravity of the allegations and the severity of the consequences, the High Court held that the claimant was entitled to legal representation at the disciplinary and appeal hearings. The High Court made it clear that its decision in respect of legal representation at the disciplinary hearings was confined to the circumstances of the particular allegations of misconduct made in this case with the prospect of a mandatory referral to the Secretary of State. It has been reported that permission to appeal to the Court of Appeal has been granted, so this judgment will be awaited with much interest. In the meantime, employers are advised to consider the circumstances of any requests for legal representation at disciplinary hearings very carefully. Whilst this decision is confined to the particular issues which arose in this case, the principles may well be relevant to employees facing serious allegations which could adversely affect their ability to pursue a career. Although the case has more significance for public sector employers directly affected by the Human Rights Act 1998, there may be some ramifications in the private sector, for example, when determining whether a disciplinary process is fair or unfair if an individual has been refused legal representation. Opt-out – latest talks fail The latest round of European talks to agree on the proposal to remove the opt-out from the Working Time Directive have failed. The European Commission delivered an opinion earlier this year, intended to help the European Council and European Parliament reach agreement on the proposed amendments to the Working Time Directive. The second round of talks took place earlier this month but no agreement has been reached on the opt-out. National Minimum Wage - policy on enforcement and prosecutions The Department for Business, Enterprise and Regulatory Reform (BERR) has published a policy document http://www.berr.gov.uk/files/file50812.pdf setting out how the Government will operate the civil and criminal enforcement of the National Minimum Wage (NMW) in the light of changes introduced by the Employment Act 2008. The new enforcement strategy is intended to be a fairer way of dealing with NMW arrears, providing a simpler, more effective penalty regime to deter non-compliance. Louise Fernandes-Owen is the Professional Support Lawyer in the Employment and Pensions Group at Field Fisher Waterhouse LLP and can be contacted at louise.fernandes-owen@ffw.com
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Article Two: It Isn't Necessarily Time To Batten Down The Hatches by Philip Ellis “Batten Down the Hatches” is a phrase which seems to have found its way into recruitment business owners’ everyday language this year. For some it may be appropriate, but for many it may be an excuse for doing nothing and waiting for the storm to pass because they simply don’t know what else to do. Here are some practical suggestions for businesses facing challenges to consider: 1. Refinancing It might sound like a pipe dream, but banks are again considering lending propositions and a number of the High Street lenders are looking for good quality proposals. Some lenders are now looking to lend under the new EFG (Enterprise Finance Guarantee) Scheme, under which up to £1m can be loaned with the Government guaranteeing 75%. Factors and Invoice Discounters are also hungry for new business and are keen to hear of opportunities to take business from their competitors! For example there is a large recruitment Group which is looking for good quality sales ledgers against which it will lend money from its own balance sheet at levels higher than traditional sales ledger financing is available. They would also consider equity investments alongside the funding line. 2. Sell Part or All of the Business Now may not be the perfect time to sell a business with valuations depressed, but there may be occasions where it makes sense to sell part of the business to an equity investor as your remaining share of the business can become worth more than retaining 100% of the business in its present state. There are equity investors in the market who are looking for suitable opportunities to make strategic investments. It is also the case that some businesses will fail in the current climate. It may be possible to salvage some value from a failing business if the owner acts quickly enough, but “battening down the hatches” may result in all value being lost , whereas accepting the situation, difficult as it may be, and taking advice on how to extract some value from the declining business may be the best option. Doing nothing is likely to be the worst option, albeit the easiest in the short term. 3. Merge This is a complex area, but broadly finding a similar business with which to merge, with the objective of making 1 + 1 worth more than 2 captures the essence of this strategic option. No cash needs to necessarily change hands and the two businesses will need to agree on the % shareholdings in the new business, dependant upon a number of factors. It is important to ensure that the business fit culturally, roles and responsibilities are defined and there is strategic logic underpinning the merger. Benefits can include: • Strengthened market positioning • Broader client base • Cost saving opportunities • New disciplines to sell to existing clients 4. Become Part of a Larger Group This again is not a simple process which can be adequately explained in a few lines, but large recruitment Groups are looking for opportunities to find “lonely” business owners who would welcome the security and benefits of joining them. Deals should be structured so that the current owners continue to benefit from the success of their business and the benefits can include: • Funding and financial administration taken over • Benefits of larger infrastructure, including buying power, systems, insurance etc • Ability to participate in larger tenders • Greater geographic reach and ability to service national clients • Possible international opportunities • Cross selling to Group clients and offering existing clients more disciplines Deals of this nature may not be headline-grabbing, but they can provide businesses with a new lease of life. Philip Ellis works for Optima Corporate Finance who specialise in the recruitment sector and we have advised small, medium and large recruiters on corporate transactions. Our expertise is finding solutions to suit clients’ circumstances. Contact Philip on 020 7405 2626 or philip@optimacf.com for a confidential discussion.
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Online Recruitment Update (This section is sponsored by http://www.1Job.co.uk; "the leading UK job search engine") Hitwise top 10 Recruitment
Sites, week ending 25 April 2009 Louise's UK Recruiter blog Discussion Board Summary You do not need to be registered to post or view messages on the discussion board. Visit the site, ask questions and share your knowledge. This section is sponsored by http://www.1Job.co.uk; "the leading UK job search engine" |
Don't Miss This Are you looking to buy a
recruitment business? Press Release: Leading Job Aggregators partner with FreeMyCV.com Press Release: Announcing The UK’s First Conference Dedicated To Social Media In Recruitment – 16th July 2009 - London Press
Release: The Top Ten Development Challenges Facing HRs |
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Regards
Louise Triance
UK Recruiter http://www.ukrecruiter.co.uk
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