​Zero hour contracts have received a great deal of media attention in both the UK and Ireland recently, and rightly so. While unemployment statistics are often cited and analysed, there is an increasing understanding of the need to look into exactly how people are employed rather than simply whether or not they have a job. It is essential to shed light on different types of contracts that are being issued to employees, not least to ensure that their rights are protected. So, what exactly is a zero hour contract?
 
In a nutshell, zero hour contracts are working arrangements wherein an employee must be available to work for a certain number of hours each week, yet employers do not have any obligation to give any hours to the employee. Employers, particularly those in businesses that experience seasonal highs and lows, tend to use zero hour contracts to increase flexibility and limit their commitment to employees.

While there are fewer employees on zero hour contracts in Ireland, it is estimated that a massive 1.4 million people are working on these contracts in the UK. Many employers have been criticised for taking advantage of employees by using zero hour contracts, as they offer next to no financial security for workers and can make achieving a comfortable work-life balance very difficult. In light of this, the Irish government is proposing a number of changes to the current legislation in Ireland that could impact both employees and employers. In this post I will discuss the current situation regarding zero hour contracts in Ireland, outline the Government’s proposed changes and detail their possible effects on Irish businesses.

The Current Legislation
 
Unlike in the UK, employees in Ireland who are on zero hour contracts are protected by the Organisation of the Working Time Act 1997. There is little more frustrating for an employee than being contractually obliged to work, yet not being given any hours. In order to protect employees on zero hour contracts falling victim to this, Section 18 of the Organisation of the Working Time Act states that an employee in this situation is entitled to be paid for 25% of the hours which they were required to be available for, or 15 hours pay – whichever one is less.
 
This at least ensures that employees on zero hour contracts are guaranteed a pay cheque, regardless of what hours their employer gives, or doesn’t give, them. It is important to note that Section 18 of this act does not cover ‘casual’ workers who are not contractually obliged to accept work from their employer.

What Changes Are Being Proposed?
 
In order to further strengthen protection for zero hour contract workers and boost their entitlements, the Irish government plans to make it illegal to hire an employee on a zero hour contract and give them no hours at all. Furthermore, in the event that a worker is called into work and does not receive the hours expected, they will get a minimum payment of three times the minimum wage or three times the rate stipulated in an Employment Regulation Order.
 
Finally, under the new proposals, employers will have to be much clearer about the terms of employment given to an employee. In fact, employers will be required to provide, in writing, five core terms of employment. This will include outlining how many hours the employer expects an employee to work in a given week.
 
How Will Employees and Employers Be Affected?

Clearly, these proposed changes are positive for employees, giving them increased financial security and more entitlements under zero hour contracts. However, employers must understand that the proposals could mean much more bureaucracy and a greater need for due diligence when it comes to employee management and drawing up contracts. Failure to properly understand and comply with any legislative changes that come into place could put employers at risk of criminal prosecution – all the more reason to keep a close eye on the status of the proposals and react accordingly.

Importantly, zero hour contracts suit certain employees and employers, especially due to their flexible nature. That being said, it is vital that businesses are transparent about the work contracts they are providing and that those contracts meet all legislative requirements. Keeping on top of changes in employment law is part and parcel of running a good, ethical business.
 
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If you’ve got talented people in your business, it’s likely that they’ve already been approached by recruiters at some time or another. With the talent pool drying up, competitors are looking to woo and poach your best employees. Indeed, a survey by STEM recruiters, Harvey Nash, revealed that more than a third of technologists have been contacted by five to 14 recruiters in the past year alone.
 
The problem this causes is twofold. Firstly, you’re losing a valued member of your team, who will take with them ideas and knowledge of how your business operates, to a competitor. Secondly, you’re going to have to spend time – and money – sourcing a replacement and training them. All this is bad for business.
 
So how should you react when a competitor is trying to steal an employee? And what measures can you take to deter your staff from jumping ship?
 
Here are some things to consider if you find yourself in such a situation:
 
Is it Worth Enforcing Non-Competes?
Non-compete clauses are pretty standard in today’s employment contracts. Put simply, this involves an employee agreeing ‘not to enter into or start a similar profession or trade in competition’ against their employer. They are also referred to as restrictive covenants.

However, in a bid to encourage innovation and entrepreneurialism, Governments across the UK and Ireland are seeking to change these rules, and employers must put forward a strong case that demonstrates their case is reasonable and protects a legitimate interest.

Enforcing a non-compete is always costly and difficult to enforce and might even work against your business. Restricting an employee’s ability to develop their career and limiting their ability to make a living can breed resentment, which may impact on productivity and your brand’s image. What you could consider is making sure you have a robust confidentiality clause in your contract as well as restricting any ex-employees from contacting your customers or trying to poach your remaining staff for a period of time after they leave. These clauses are generally easier to enforce.
 
However, before launching straight into the legalities, it’s worth exploring other avenues first.
 
Be Proactive
Should you discover one of your best workers is thinking about leaving, it’s important to take positive action. Ignoring the problem, suggests you don’t care, and is a sure-fire way of pushing them out the door. Instead, sit down with the person, acknowledge their position, try to understand what has led to their wanting to leave, and see if it can be fixed.

While money is important, it is not usually the driving force behind an employee’s decision to leave. More often it comes down to feeling undervalued or under-challenged. If this is the case, perhaps involving such employees on new and innovative projects, or giving them greater responsibility for a specific task may be enough to coax them to stay.

Counter Offers Are Counterproductive
Following on from my second point, if an employee decides to leave for a job with better pay, making a counteroffer might seem like a sensible option. However, without understanding their underlying issues, you’re basically paying more money to keep an unhappy worker. It might act to bandage the problem for a while but, sooner or later, their dissatisfaction will start to show in their work.

Furthermore, if word gets out (and it always does) that one employee received a pay rise, then it can cause problems with the rest of the team. They may feel unappreciated for the work they do. The could demand a similar pay rise. They may decide to seek out pastures greener themselves.

Invest in Your Staff
Some years back Richard Branson famously said business should ‘train people well enough so they can leave, treat them well enough so they don’t want to.’ Many companies make the mistake of sending employees on costly courses and training programmes to further develop their skills, but fail to invest the time or effort to show them they matter to their organisation. When the employee moves on to a competitor, where they feel more valued, the employer is left feeling betrayed and offended.

Invest in your staff at a personal level. Take the time to understand how they feel about their jobs, what motivates them, what frustrates them, what you can do to support them in their role and keep them from leaving. Too often, employers wait until the exit interview – when it’s too late – to ask these questions.

From their feedback, you can develop bespoke retention plans, while reinforcing all the positive points that working for you offers them. Just be sure to act on the feedback, less it become another bureaucratic exercise.

Don’t take it Personally
No matter how good an employer you are and how big an effort you make to ensure the happiness and wellbeing of your staff, people are going to come and go. The most important thing is that you don’t take it personally and don’t overreact.

It may be a case that the employee just needs to try something new, or is keen for a change of scenery. Retaining a relationship with these people, even if they’ve been poached, can benefit you in the long run. They may become advocates for your brand, sharing their positive experiences of working with you. Better still, they may come to realise that the grass is not always greener on the other side and wish to come back to your company. Check out the article I wrote about Boomerang Employees here.

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Retirement age is not a topic many business owners spend much time mulling over. The general assumption amongst most is that it’s the same as the pension age (now 66 in Ireland). The rationale behind this is understandable. After all, who wants to work any longer than they have to?
 
With this in mind, Irish businesses for years have included retirement clauses in their employment contracts, stipulating the end of a worker’s employment when they reach that golden number.
 
However, new legislation, passed back in December is changing all that. The Equality (Miscellaneous Provisions) Act 2015, which came into effect in January, makes a number of amendments to employment equality legislation. Most notable among these are the changes to the compulsory retirement age.
 
The net result of this is that to include a compulsory retirement clause, an employer must be able to objectively justify it. Retirement clauses in existing employment contracts will, for all intents and purposes, become void unless they adhere to this requirement. And in situations where no compulsory retirement age is set, employees will be entitled to work-on until they see fit to retire. Failure to comply with the amendments could see business owners being brought before the employment equality tribunal and the labour court for unfair dismissal.
 
The fact that we’re living longer, the cost of living is higher, we have more debts and a creaking Government Pension Fund mean more and more people are choosing to work past their pension age. This new legislation can be seen as a coup for equality campaigners, as it's not forcing people to work longer, but giving them the option to do so if they wish.
 
However, while greater equality is something all business should strive towards, the ramifications of this amendment for business owners and employers are quite serious. In businesses with no compulsory retirement age, or those that cannot objectively justify it, such issues may include:
 
Succession Planning Challenges
Motivated, driven, younger employees may quickly find themselves hitting a promotional ceiling where they can go no further until more senior, older members of the workforce decide to step down from their position.
 
The lack of a clear career path within an organisation may result in a business’s top talent leaving and joining competitor companies, where their ambitions can be realised. For smaller businesses, this could have a hugely detrimental impact.
 
Inability to Attract Talent
Running parallel to the issue above, is the challenge is attracting talent. Young professionals may end up shirking smaller businesses, or those with an ageing staff, for fear of stalling their career progression.
 
Reduced Productivity
For many who decide to continue working past retirement age, it will be because of the passion they have for the job they do. However, there will also be those who hang on, doing the bare minimum, just so they can claim their pay-cheque at the end of the month. The drain this could have on productivity, not to mention employee morale, is something employers need to give serious consideration to.
 
3 Steps to Protecting Your Business from Challenges

1. Ensure that a specific retirement age is clearly stated in employment contracts and this this age has been set in agreement with employees.
2. Provide an objective justification with the specified retirement age. These justifications must achieve a legitimate aim and be reasonable and proportionate in their application. Some examples of objective justification may be on the grounds of health and safety, intergenerational fairness and dignity (where issues of ability and under-performance might otherwise be brought into question).
3. Stipulate in the clause that the employer reserves the right to review the compulsory retirement age depending on the changing needs of the business.

 
Finally, employers must fully consider the repercussions of retaining an employee past the specified age of retirement. While there is nothing in the legislation to prevent an employer from offering a fixed term contract, provided it is objectively justified, it sets a precedent for other employees to challenge the normal age of retirement in the future.
 
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People change jobs for a wide variety of reasons, and in the majority of cases, leave a role with a very positive outlook of their previous employer. In recent years, it has become more popular for employees to return to a workplace they may have left to seek employment elsewhere, in turn, being labelled as ‘boomerang employees’.

Hiring a boomerang employee generally has a high returns on recruiting investment, as the cost to re-hire a boomerang employee can be a third to two thirds of the cost of hiring a new employee.  However, whilst there are benefits to re-hiring a previous employee, there are also some drawbacks.  Companies should always have a rehire policy set in place for potential reappointment of past employees.

Boomerang employees generally fall into the below categories:

• Top performers who voluntarily left
  
• Employees who were in key positions
  
• Valuable workers with key skills, contacts, or experience
  
• Promising interns who failed to return
  
• Retirees who may have realised they weren't ready to retire
  
• Top finalists who accepted another job
  
• Long-term consultants or contractors
  

So what are the benefits and drawbacks of employing past members of your staff? The drawbacks are simple:

1. Employees can potentially return with baggage they left with, including any bad habits they may have formed on the job.
   
2. Returning employees may not get along well with employees that have been hired in their absence.
   
3. Employers have to fully consider the position that the rehired employee will assume. The workforce dynamic may have changed, such as a former junior employee being higher up the ladder than the boomerang employee.
   

The benefits of rehiring past employees far outweigh the drawbacks for most businesses:

1. Often when an employee re-joins a company, there is no need to train them like one would with a brand new employee. It may be necessary to give some training on new policies or projects, however in general re-hiring turns out to be less expensive and time consuming than hiring a new individual.
   
2. During a boomerang’s absence, there is also a good chance that they may have learnt new skills and strategies, achieving success in a different situation. They will have likely made new connections and expanded their network which in turn is a bonus to your company.
   
3. There are no recruiting costs with a boomerang employee which means employers know their skill set and have no need to hire an agency to recruit on their behalf. This also saves on time, as it is often the case that companies hire new employees only to find out they are just not what they seemed.
   
4. Boomerang employees can be valuable to an organization because they already understand procedures and the culture within the business. They also know the habits of other employees and structures which have been put in place. The procedures are familiar and so it becomes a benefit to the business, whilst also potentially bringing a fresh perspective from the outside.
   
5. Generally when a company rehires a previous employee, loyalty from that employee increases. This may be because they have seen other business practices and realised they weren't all they seemed. The boomerang employee finds that they want to come back where they prefer it, and in turn becomes more loyal to the company and the employers that they work for.
   

Hiring boomerang employees shouldn't be the chosen strategy due to it being cheap and easy - the decision to re-hire an employee should be based on a good role fit and that the employee has the right skills for the right job. Not every employee who voluntarily left is a positive candidate for bringing back into the company.

Consider the below if deciding to hire boomerang employees:


Stay in Touch

It can sometimes be tough to accept that a top employee has decided to move on, and often personal feelings can get in the way of professional decisions. If the employee has a good track record then an employer should offer to be a reference for any future opportunities they may have. Employers should keep in touch with past employees and make sure to catch up a couple of times a year. It is important to keep their contact details on file and keep them in the loop with company announcements via email. Even if the employee isn't re-hired, they could potentially be a new client or refer someone to the business due to positive relationships with the company.


Be Thorough when Rehiring

Boomerang employees that only left the company a few months prior don’t necessarily have to be re-interviewed and quite often, simply having a conversation with the leadership team will suffice. However, for those that have been gone for more than a year, a formal interview process is beneficial, as company factors may have changed after a year — staff, culture, processes, etc.

Within any company, employers aim to ensure they are hiring the most qualified people and so it is important to approach potential rehires in the same way as unknown candidates. Focusing on positive performance records, in any company they have been hired with, as well as professional references, along with skills tests if needed, ensures their knowledge and abilities are up to standard.

The formal interview also enables a company to revisit the employee’s exit interview and look at their reasons for leaving in the first place. Any previous issues mustn't be overlooked, because chances are if they felt it once, they can feel it again. Asking questions such as "What do you think you can offer our company now that some of our priorities and service goals have changed?" confirms that the employer is not taking the re-hiring process lightly.


Debrief Returning Staff

As touched on in the previous point, if a boomerang employee has been out of the returning work place for a considerable amount of time, they may need to be brought up to speed on new structures within the company. The person who they report to may have changed, or if they are being hired for the position they held before, certain responsibilities may have changed. Employers must encourage a returning employee to ask questions and provide them with a go to person in their department who can offer assistance if need be.

Boomerang employees may need to be retrained. At this stage of re-employment, managers should be over communicating with the employee as well as ensuring that they know there won’t be any special treatment.


Prepare Current Staff

As soon as the decision is made to rehire an employee, team members must be told immediately to avoid upsetting existing, loyal staff as well as allowing an employer to be notified of any potential hesitations or concerns. Managers should work especially closely with the group of employees to which the boomerang employee is returning and ensure that there is open and honest communication within the workplace.


Monitor Progress

Often, boomerang employees are reluctant to ask for assistance when they need it, for fear their employer will question the decision to bring them back. To ensure the employee is happy, managers must check in regularly to show interest in their progress and ask of any concerns they may have.

Transitioning back into an organisation may be slightly uncomfortable at first for boomerang employees, especially if there's been a lot of restructuring or staff changes since they left. Being considerate to returning employees’ needs can lead to them adapting more quickly and feeling positive about starting with the company again.

In an age where specific skills are increasingly limited, it is irrational to believe that departure from a company has anything to do with lack of loyalty. Individuals with the most valuable skills are always offered new opportunities, and if a valued employee accepts another position, due to flexible work arrangements, higher pay or growth opportunities, it could be seen as the employer’s fault for failing to retain the employee, and not the employee’s fault for taking advantage of market conditions. Rehiring former employees who have the skills a company needs is not only the right thing to do, it’s good for business.



The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.

As every employer will know, employee rights are a minefield that needs to be navigated carefully. One wrong step could result in very costly legal proceedings. Nowhere is this truer than in the case of unfair dismissal. In the last month alone numerous cases of unfair dismissal have been reported in the media, from the Dunnes Stores worker who sold alcohol to a minor to the customer services representative at Oxigen who was dismissed for using expletives in an open office.

Also remember in a unfair dismissal claim it is presumed the employee was unfairly dismissed unless the employer can prove otherwise!

So how do so many companies end up in this position? While every case is different, there are two points at which the majority of businesses fall down:

1.       Clearly outlining the disciplinary process in the contract of employment and staff handbook

2.       Poor implementation of the disciplinary investigation

1.       Your Contract of Employment and Staff Handbook

From the time that employment commences, each staff member should be provided with a contract, which they must sign, and staff handbook that clearly stipulate the terms and conditions of their employment. Amongst these terms and conditions are the disciplinary procedures adopted by the company for dealing with issues of performance, bullying, negligence, misconduct and so forth. The procedure serves as a guideline, not just for the employee but for the employer too, that can be implemented when necessary, ensuring that a fair, unbiased and systematic series of series of steps.

Here are some considerations when drafting your employment contract and staff handbook:

a.       How long a probation should I have?
b.      Will I pay employees on sick leave and if so for how long?
c.       Do I have a clear job description?
d.      Will my employees be working at different locations?
e.      Who will carry out disciplinary investigations?
f.        Do I need a CCTV policy?
g.       Do I need a social media policy?
h.      What are the employees statutory leave rights?
i.         Do employees need to keep some annual leave for Christmas or Easter

2.       Poor Disciplinary Investigation Process

While it is important to clearly state the disciplinary process in your staff handbook, it is equally important that it is implemented effectively. As part of the process, an employer should carry out a disciplinary investigation, even in cases of apparently ‘obvious guilt’ or where there is an admission of guilt. With this in mind, an investigation should always be carried out prior to any disciplinary action if an employer is to ensure it does not fall foul of the principles of fairness and natural justice established by case law.

Remember, as an employer you must be able to demonstrate that you genuinely believe that the employee is guilty and that this belief is based on reasonable grounds, after having carried out as much investigation into the matter as is reasonable in all the circumstances of the case. A flawed or incomplete investigation can undermine the entire disciplinary process, leading to claims of unfair dismissal, costly legal battles and hefty pay-outs that often cripple smaller businesses.

Below are some points, provided by UK based commercial law firm Hill Dickinson, that every person carrying out the investigation should consider before commencing:

1. What’s the problem? Clearly identify the allegation to be investigated.
2. Independence and impartiality - ensure the investigating officer is independent: they should not have any previous involvement in, or knowledge of, the matter.
   
3. Open mind - the investigating officer should keep an open mind. Their task is to look for evidence which weakens, as well as supports, the employee’s case; it is a fact finding exercise.
4. Swift investigation - ensure the investigation is commenced and concluded without unreasonable delay; it is important to establish the facts and put the allegations to the employee promptly before recollections fade.
   
5. Expectations - where significant delays in concluding the investigation are anticipated, this should be notified to the affected employee and where possible a timescale for completion given.
6. Preserving evidence - the investigating officer should consider what evidence or documentation they might require. Where evidence is likely to perish or be removed or destroyed this should be gathered as a priority.
   
7. Fair investigatory meeting - interview the ‘accused’ employee to establish his/ her version of events; give the employee advanced warning of the meeting and time to prepare. The employee should be made aware of the allegations against them, preferably in writing and be provided with any documentation that the investigating officer wants to speak to them about.
8. Representation - be aware that, although there is no statutory right for an employee to be accompanied at an investigatory meeting, the right may apply under the company disciplinary procedure or by reason of custom and practice.
   
9. Witnesses - interview witnesses, sometimes more than once if necessary. Employers need not interview all available witnesses once a fact has become clearly established.
10. Record keeping - if possible, have someone accompany the investigating officer to interviews so they can take a note of the interview allowing the investigating officer to focus on the questions. Ask the witnesses to read through the notes and confirm they are a true reflection of the conversation by signing and dating them.
    
11. Confidentiality - witnesses should be advised not to discuss the investigation with other employees or third parties and, where appropriate, be reminded of their legal duties of confidentiality.
12. Impartial reporting - after collating the evidence, including statements and relevant documents, the investigating officer should draft an investigation report setting out a summary of the evidence including any inconsistencies. They should not draw any conclusions: that is the role of the disciplinary panel.
    
13. Recommendations - depending on what the employer’s disciplinary policy says, it may be within the investigating officer’s remit to recommend whether the matter should proceed to a disciplinary hearing.

The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.

Cultivating employee relationships is a skill that needs to be practiced and perfected on a continual basis. If I were to liken it to anything it would be like gardening. Plants need the sun, the right amount of attention and room to grow if they are to thrive. Keep them in the dark, fuss over them too much or neglect them and they’ll wither. In much the same way, providing staff with praise for their achievements, support without micromanagement and providing a platform for them to develop their talents and career are key to developing long-lasting, successful relationships with your employees.



Here are eight steps to help you build better relationships with your employees:

Step 1 – Be Accessible

This doesn’t mean giving your personal number out to everyone so they can call you at any time. By  operating an effective open door policy, where employees can come to you with new ideas, concerns and, heaven forbid, complaints, makes it easier to establish a give and take relationship with your staff.

Step 2 – Be Visible

Advances in technology, from video conferencing to instant messaging, have certainly made keeping up with the affairs of your business easier. However, nothing can replace your physical presence in the office or on the production floor. Make sure you don’t become so busy that you neglect to be visible to your employees.

Douglas Conant, former CEO of Campbell’s Soup Company, credited a lot of his success and the revitalisation of the company, to walking around a different part of the company headquarters every day and engaging with the staff.

Step 3 – Get Involved

Following directly on from step 2, if you want to develop real relationships with your employees, then you need to spend quality time with them. It's not enough just to be present for meetings and other essential tasks, you have to be there for the ups and downs. Offer your help on a difficult project, ask them about their work, hobbies and family and take them out for lunch after a particularly busy period.

Step 4 – Be Fair

Few things breed discontent and ill-will in the workplace faster than obvious favouritism toward certain employees. You're not going to like everyone equally, of course, but the important thing is to treat all employees equally. Enforce rules uniformly, reward hard work and exceeded expectations the same way for every employee. A well thought out staff handbook is a must if you wish to achieve this.

Step 5 – Be Reasonable

No matter how personable you are, or how well your employees like you personally, you're pushing for disgruntled employees if you ask for the impossible. Make sure you set reasonable goals and achievable expectations.

Step 6 – Involve Your Employees

When possible include employees in important decisions. The benefits of this are twofold. Firstly, listening to the needs and challenges of your staff can highlight issues and opportunities that might have otherwise been overlooked. Secondly, when employees work together to create policy, set goals, choose the tools they need to work and make other decisions integral to the organisation, they feel valued and important to the business and to you.

Step 7 – Be Honest

We all heard it as children and it holds true today: Honesty is the best policy. When you lie to employees, you erode their trust, and that erosion of trust results in a damaged relationship. Even when telling the truth is difficult, bite the bullet. Studies have shown that business environments with high levels of trust foster significantly more creative and more productive employees.

Step 8 – Be Appreciative

When employees do something well or beyond expectation, acknowledge it and show your appreciation. It costs nothing but can mean a lot. According to the Harvard Business Review, research shows that the ratio of positive to negative interactions is 5:1 in a successful relationship. ‘You don’t need to pay someone five compliments before offering criticism, but do be mindful of the ratio’.

Step 9 – Create Opportunities to Grow

In order to keep your employees interested and engaged they must see themselves advancing within the business, both in terms of their skills and their position within the business. Encouraging them to continue their education or professional development – and paying for it - shows your support. Your employees will work harder and more effectively with this level of support.

The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.

If Government reports are anything to go by, it appears that the worst is behind us; unemployment levels are dropping, businesses are growing and people are looking for new job opportunities. As any good business owner will know, quality employees will always be in demand and retaining quality retaining them is essential to the development of their business. But what if you find yourself losing your top talent? What has motivated them to search for pastures greener and how can you stop the outflow? Funnily enough, it usually has very little to do with money. Here are five of the top reasons quality employees quit.

1.       They Don’t Feel There Are Growth Opportunities

Whether it is in terms of promotion or learning new skills, employees may feel that they are not advancing in their career. Personal growth can be a strong driver, especially for younger employees who are looking for training opportunities and ways to differentiate themselves from the larger pool of fresh executives.

Other times, employees may feel frustrated in their current role and feel that they have reached a ceiling on how far they can advance within a company. In such situations they will seek out opportunities at other companies where a more senior role is available.

The Fix: Establish a clear learning and development programme for your staff that provides opportunities to enhance and expand their skillset. A more qualified, satisfied employee can only be considered a more valuable asset to your company.

Equally, detailing a career path for your employees by identifying the skills and qualities necessary to advance to a higher level will motivate to work towards a promotion. Regular appraisals paired with effective communication will help them identify the areas that need to be improved if they are to achieve their goals.

2.       They’re Not Feeding Their Passion

Employee satisfaction is about much more than their salary. They need to be passionate, or at least actively interested, about the job they do. Nobody wants to be bored at work. Too often employees are assigned to tasks and positions that they have no interest in. Your employee applied for a job because what was outlined in the job spec appealed to them. If it turns out that the job they’re doing doesn’t relate to what they thought it would be, you wind up with a frustrated employee that eventually burns out or leaves.

The Fix: Set clearly defined roles for your staff and ensure that the role is suited to their individual strengths, where they will be challenged, engaged and excited about what they do. If a situation does arise where they must take on some extra responsibilities that are completely different to their area of expertise – be it due to understaffing or a lack of budget to invest in more people – be sure to communicate the issue to them, expressing your appreciation for their flexibility and providing an end date that they can work towards.

3.       They Fee Unappreciated

Unlike you, your employees do not come into work with the company’s balance sheets in mind. Most of them do not see themselves as being there to increase revenues and profits. They are there to work for you, their employer, and to carry out their role in making the business work. If they feel that they are not being recognised for the hard work they do for you then they will eventually stop doing it or move onto another company where such effort is acknowledged and rewarded

The Fix: Develop effective employee relationship strategies. Communicate with your staff regularly and find out how they are doing both in- and outside their job. Most importantly, don’t be afraid to praise good work and acknowledge when someone exceeds expectations.

4.       Lack of Autonomy

Trust is a huge factor for any employee. They want to know that they can trust you to manage the business that pays them but the best employees also want to know that you trust them to carry out their job professionally and autonomously.  You’re worst people are probably happy to have you standing over their shoulder, checking everything is done correctly. However, this will drive you’re most talented employees to madness. If your employees feel that you don’t trust their work, it will not be long before your proofing their letter of notice.

The Fix Autonomy and independence are traits and characteristics that you must encourage in the work place. As an employer you can only provide an environment that encourages such things but it is up to each member of staff to embrace it. One way to help create such an environment is to develop a culture of accountability, where employees own and execute their duties and thus are more empowered within their roles.

5.       They Feel Redundant

As I mentioned before, employees need to be passionate about the work they do. They also need to believe that there is a value in the work that they do and that their role is important to the functioning of the company. Failure to fulfil this need results in a sense of disillusionment that quickly turns into disengagement and poor performance.

The Fix: It is important to sit with each reporting employee and the value of their job and contribution to achieving the business’s overall strategy, showing them the relevance of what they do beyond their role and department.


The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.

According to all the confidence reports being released lately, things are getting better at social and business levels. Businesses are growing, unemployment levels are dropping and everyone appears to be that bit happier.

With all this recovery and the growing competition between businesses for skilled labour, it is inevitable that some of your staff are going to be tempted by, and may even move to, one of your competitors. If this happens and you haven’t protected your property – be it client lists, intellectual property or unique business processes – you may end up losing a lot more than just a staff member to the competition.

So what can you do to protest your business?

Whilst there are some implied obligations on employees in relation to their employers confidential information and trade secrets, restrictive covenants are becoming more and more common in employment contracts for senior employees, employees who have access to customers on a regular basis and employees with specialist knowledge of a business and its products or services.   Typically, the use of such agreements is found in companies that could experience financial loss if employees became employed by competitors, taking with them client lists, trade secrets valuable knowledge or other co-workers.

So what are restrictive covenants and how enforceable are they?

There are three main types of restrictive covenants:

1. A non-compete clause would prevent you from working for a competitor for a defined period after the termination of your employment;

2. A non-solicitation clause that doesn’t prevent you from working for a competitor, but it does prevent you from soliciting customers of your former employer; and

3. A non-poaching covenant prevents you from poaching your former colleagues.


1. Non-Compete Clauses?

In general the courts have been reluctant to enforce these types of clauses as they are seen to be a restriction on a person’s ability to work and anti-competitive.  Also, where a particular clause is seen as too broad or have unrealistic duration or geographically too wide they will be difficult to enforce as they will be seen as merely preventing employees from seeking employment elsewhere.

However, there are circumstances where certain restrictions will be allowed namely:-

A. Where an employer has a legitimate interest to protect- the restriction should not be a broad and general restriction on certain conduct; rather, an employer should specifically define the interest that may be damaged by the employee within the terms of the restriction itself;

B. Where the restriction is reasonable in terms of the activity that is being restricted- the restriction should only relate to the activity that the employee was engaged in whilst working for the employer;

C. Where the restriction is only for a reasonable time period-case law suggests that in general 6 months is reasonable;

D. Where the geographical extent of the restriction is reasonable- the extent of any geographical restriction will depend on the nature and location of the employers business for example a beauty salon that draws the bulk of its clients from the local area may require a relatively small geographic restriction e.g. 4 miles from the practice location. 

2. Non-Solicitation Clauses?

In general non-solicitation clauses are more enforceable than non-compete clauses as they do not directly prevent an employee from seeking alternative employment.  The same test of reasonableness in relation to the time period and geographic area also apply to these types of restrictions.  When these clauses are being drafted the restriction should be as specific as possible as to what is allowed and what is restricted, e.g. is the ex-employee only restricted in approaching clients of the employer or is it intended to cover where customers contact the ex-employee directly.

3. Non-Poaching of Staff Clauses?

Again as with the other restrictive covenants the enforceability of these clauses will greatly depend on how key the individual being restricted is to the business. It should be remembered that these clauses are not intended to be enforceable against the person being enticed to leave the company but against the person ding the enticing.  The employer should identify the key personnel in the organisation who may need other employees to assist them if they leave the business and go to a competitor or set up business on their own and consider putting a restriction in their contract to this effect.

4. What about enforcing the clause?

Employers are often reluctant to incur the cost or risk negative publicity in bringing an action against an ex-employee under a restrictive covenant.  However, where such a restriction exists and a breach by the ex-employee is causing or could potentially cause the employer to incur significant loss of businesses serious consideration should be given to enforcement. 

Furthermore such clauses do have an impact on employees who are considering leaving the company as they may be reluctant to test whether the company will bring an enforcement action, particularly where there is a clear requirement in their employment contract.

In conclusion where an employer feels that they have a legitimate interest to protect and that there are certain key employees who require some type of restriction then one or all of these clauses should be introduced into the contractual relationship.

The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.