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Our comment on the harpur trust v brazel saga

12/7/2022

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Background
 
In Harpur Trust v Brazel, a music teacher worked for a school under a permanent contract on a zero-hour basis. She provided music lessons during the school terms, at a varying number of hours each week, and then usually did not carry out any work during the school holiday periods.
 
It was accepted that under her contract of employment she was entitled to 5.6 weeks annual leave as a permanent staff member with a contract that ran for the full year. By agreement, she took her annual leave during the school holiday periods, equally divided into three blocks (1.87 weeks during each holiday, in effect). No specific weeks were designated as her annual leave, however. She received her holiday pay at the end each term.
 
The dispute was principally boiled down to one question: what is the proper mechanism for calculating the accrual of annual leave and the amount of holiday pay due?
 
Decision
 
The decision in Harpur confirms that employers are not to derogate from the wording of the Working Time Regulations (WTR) when calculating holiday entitlement and pay for staff, regardless of how many hours or days they work in each year.
 
Annual leave entitlement: 5.6 weeks
 
Permanent staff are entitled to 5.6 weeks of annual leave. This entitlement accrues with the passage of time, not with the number of hours or days worked. As such, these 5.6 weeks are not to be pro-rated for permanent staff who work fewer days per week.
 
However, whereas 5.6 weeks will represent 28 days of annual leave for those who work five days a week full-time, for those who work fewer days a week the equivalent 5.6 weeks for them will amount to fewer days of annual (e.g. for someone working 2 days a week, this would equal 11.2 days of annual leave).
 
For those who are on temporary contracts that only run for part of a year, the 5.6 weeks may still be pro-rated, but only by reference to the amount of the year worked (e.g. 2.8 weeks for a 6 month contract). Pro-rating in this way can also be done for permanent staff who join or leave the organisation part way through the organisation’s holiday year.
 
Holiday pay: ‘week’s pay’
 
Holiday pay should still be calculated by looking at the staff member’s last 52 weeks worked to ascertain the average week’s pay. Alternative methodologies — such as the ‘percentage method’ where holiday pay is calculated based on a percentage of days/hours work — should not be used as they are not compliant with the Working Time Regulations.
 
Employers must discount any weeks in the 52-week period where the staff member did not work, and instead draw in previous weeks — going as far back as 104 weeks if necessary.
 
Once the average week’s pay has been calculated this way (the ‘Calendar Week Method’), this can then be applied to the leave period being taken. If a full working week is taken as leave, then the week’s pay should be paid. If more or less is taken, then the week’s pay will need to be adjusted proportionately.
 
Where a staff member works only 2 days a week and takes 1 day of leave, for example, then they would be entitled to 50% of a week’s pay for that leave. This equates to 0.5 weeks of the 5.6 week entitlement.
 
Conclusion
The ruling in Harpur reaffirms the traditional position, that the Calendar Week Method should be used to calculate holiday pay. All permanent workers are entitled to the equivalent of 5.6 weeks annual leave, with holiday pay being calculated by reference to the average week’s earnings over the last 52 weeks of working. For annual leave entitlement, any weeks where the staff member does not work has no impact on their 5.6 weeks entitlement, whereas for the calculation of holiday pay those weeks of non-working are discounted when calculating week’s pay.

The bottom line of this is that the approach to handling holidays for permanent staff with fixed days/hours, whether full-time or part-time, should still be straightforward. The complexity comes with irregular hours workers and zero-hour staff. For those staff members, employers should still use the Calendar Week Method, albeit this can cause some unusual results.

e.g. if a member of staff on a permanent contract works for 5 full weeks (mon-fri, 9-5pm) and then does not work again until the same 5 weeks in the following year, they are entitled to 28 days of leave (5.6 weeks), paid as per their average week’s pay for those 5 weeks worked. This means that after working those 5 weeks, the member of staff then gets 5.6 weeks of holiday pay.
​
Staff on zero hours or irregular hours can therefore benefit greatly from this arrangement, more so than their regular hours colleagues. The Supreme Court has made it clear that the Working Time Regulations do not prohibit this outcome.
Employers are advised to review any irregular hours contracts they have with their staff. In some cases, it may be appropriate to consider using successive fixed-term contracts to avoid the 5.6 weeks entitlement accruing. However, if this arrangement continues for over 4 years, the fixed-term contract may become permanent by operation of law. Alternatively, employers would need to consider being more cautious with how hours are allocated on an irregular hour contract ­— ensuring that hours are spread thinly across working weeks rather than worked in ‘bursts’ in particular weeks — so that some measure of control can be maintained over how many days/hours constitute the average working week, and the average pay for those weeks.
 
 

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workplace mediation - employer faq

11/21/2022

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What is mediation?Mediation is a process in which parties in conflict are empowered to resolve their dispute themselves, with the assistance of an independent, unbiased mediator skilled in the art of dispute resolution.
 
What isn't mediation?Mediation is not a judicial process. It is not about blame or culpability. A mediator does not arbitrate a dispute, or decide who is right or wrong. Whereas court and tribunal processes are about looking backwards, mediation is about looking forwards. That is not to say that important events that that have occurred in the past are ignored – far from it – but the focus is on reaching a practical, workable resolution.
 
What is the difference between workplace and employment mediation?Generally speaking, workplace mediation involves two or more workers who cannot get along or who are otherwise in conflict with each other. It may involve whole teams of people, or just two individuals. It may be a Board room dispute.
Employment mediation generally involves a worker, or group of workers, (or former worker or workers) who are in conflict with their employer.
 
Is an employer involved in a workplace mediation, or is it left to the individual workers?The employer is absolutely involved – it’s their business. However, the level of involvement of the employer may differ depending on the nature and extent of the dispute. Generally, we encourage workplace mediations to be tripartite: involving the two workers, or teams of workers, and the employer.
 
Who should I send to the mediation?As the employer, that is down to you, but whoever attends (and it may be more than one person, provided that everyone is upfront about it) must have authority to agree to a legally binding agreement on behalf of the business in the event that resolution is reached.
 
Should I lawyer up?Again, generally speaking, in workplace mediation, there is no obvious necessity for any party to have legal representation unless the matter in hand is particularly sensitive or has obvious legal ramifications (such as, for example, where there are allegations of sexual misconduct).
It is less unusual for parties to be represented by lawyers at employment mediations, especially where there have been employment tribunal proceedings initiated or intimated.
 
Should the worker be entitled to bring somebody?Mediation can be a long and sometimes stressful situation. We would always encourage employers to permit workers to be accompanied by somebody trustworthy at a mediation. This may include a work colleague, or Trade Union representative, or a lawyer in certain cases. In rarer circumstances, the employer may wish to permit the employee to bring somebody other than a formal representative from outside the organisation, such as a family member. This is especially the case if the employer is required to me make reasonable adjustments for a disabled worker under the Equality Act 2010.
 
I’m worried about confidentialityNaturally, so are we. Confidentiality is a key aspect of mediation. The parties have to be free to speak to each other candidly without fear of reprisal and the employer must also be confident that the personal data it controls under the GDPR, and its legitimate business information, is protected.
We have prepared a series of template documents which include robust provisions protecting confidentiality. This includes a mediation agreement between the parties and an NDA for use with any non-party who is also attending, such as a witness or representative. Your IHL mediator will also emphasise repeatedly the importance of confidentiality during the process. Nobody should attend a mediation unless they are comfortable with committing to the principles of confidentiality.
 
Is the process ‘without prejudice’Yes. We think that most employers are familiar with this concept, but essentially this means that the content of the mediation, and what is or is not agreed, is privileged, and may not be disclosed to a court or tribunal in the event of subsequent legal proceedings. This includes any offers and concessions made.
 
Can I be told what the workers says to the mediator?No. What the worker says to the mediator as part of a private discussion during the mediation is also confidential, even from the employer. The mediator will only relay information with the express permission of the parties, but that also goes for the employer.
 
How long will the mediation last?Mediations can last for as long as necessary, but often a full day is set aside. This is because the road to reaching a resolution is often a bumpy one. A large part of the process involves the mediator establishing a rapport with the parties. Mediators that have established trust are far more likely to facilitate a resolution, but this takes time.
 
Can we arrange the mediation for less than a day?We do consider half day mediations for simpler disputes but always encourage employers to set aside appropriate time and resources into what can be a very unpredictable process.
 
Can we meditate via Zoom/Teams?IHL do undertake mediations via Zoom or Teams, but would encourage you to consider a face-to-face process if at all possible as our experience is that this is far more conducive to constructive dialogue.
 
We’ve tried mediation internally before and it didn’t achieve much – it is worth it?We suggest a neutral venue, with at least three separate rooms (one for each party and one for the mediator), but understand that there may be a cost to this. Mediations can take place on the employer’s premises, but this is often not seen as a neutral by the workers. Alternatively, we can make a suggestion.
 
We’ve tried mediation internally before and it didn’t achieve much – it is worth it?We are often familiar with parties starting by saying that mediation has been tried before without success. Digging deeper, we tend to find that this means that someone has tried to facilitate a round table meeting between two parties in dispute. This is not mediation. With IHL, your mediator is trained and accredited by CEDR (see www.cedr.com) to conduct a carefully planned and creative process.

What happens before the mediation?Your IHL mediator will spend time with both you as the employer and the parties to the mediation, or the main parties where there are teams involved, in order to begin to establish a rapport and explain the process. Often, workers are reluctant to engage in mediation; they can have anxieties and uncertainty about the process. That can take time to break down. It isn’t unusual for a mediator to spend several hours with the worker, either on the phone, face-to-ace or via Zoom/Teams, before the mediation even takes place. This is an important part of the process of managing expectations and getting the parties into the right mindset.
 
What happens on the day?Again, your IHL mediator will spend time with the parties separately to re-emphasise the process, go over the principle of confidentiality and establish a calm and practical environment conducive of resolution. The mediator will then start to explore the issues with the parties – this background exploration is about establishing common ground, building trust and identifying issues that need to be resolved before parties can move to a bargaining stage – the stage in the process where they are encouraged to put forward and consider proposals for resolution, facilitated and marshalled by the mediator.
 
Do the parties meet face-to-face?We always encourage it, but they do not have to. Sometimes, animosity has built to such a level that parties are unwilling to sit in the same room as each other. Nobody will be forced to deal directly with another party, but your IHL mediator will always explore the reasons for this and consider possible alternatives.
 
Is resolution guaranteed?No, and nor should it be. Your IHL mediator will be conscious that reaching no agreement is probably better than reaching an agreement that is impractical or unworkable or likely to be breached before the ink is dry.
 
We just can’t see any of the parties reaching an agreement – is there a point?Absolutely. All disputes are capable of resolution. A mediation may not reach an agreement on the day, but may lead to further discussions that may, given time, lead to an ultimate solution. Your IHL mediator is experienced in dispute resolution and employment relations and will be creative. Often, parties struggle to see a clear resolution through the fog of a preconceived notion of what a resolution might look like. The point is that a totally different resolution, even a radical one, might present itself during the process.
 
I have two employees who simply don’t get on. If they can’t work together, could we explore an exit strategy with one or more of them?This is certainly a possibility, and its not unusual for a workplace mediation to evolve from a discussion about two parties working together to a discussion with the employer about redeployment, voluntary redundancy, settlement agreements or relocation, hence why it is important that the person attending to represent the employer has the authority to reach a binding agreement, or at least can contact somebody who can.

How much does workplace mediation cost?Please contact us for a bespoke quote, but the costs of workplace mediation start at £1,500 + VAT per day.

How much does employment mediation cost?Please contact us for a bespoke quote, as prices depend on multiple factors, such as the amount in dispute, but the costs of employment mediation start at £1,500 + VAT per day per party, but we offer discounts where the employer agrees to pay all the mediations costs.


 
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workplace mediation - employee faq

11/21/2022

0 Comments

 
What is mediation?Mediation is a process in which parties in conflict are empowered to resolve their dispute themselves, with the assistance of an independent, unbiased mediator skilled in the art of dispute resolution.
 
What is mediation not?Mediation is not a judicial process. It is not about blame or culpability. A mediator does not arbitrate a dispute, or decide who is right or wrong. Whereas court and tribunal processes are about looking backwards, mediation is about looking forwards. That is not to say that important events that that have occurred in the past are ignored – far from it – but the focus is on reaching a practical, workable resolution.
 
What is the difference between workplace and employment mediation?Generally speaking, workplace mediation involves two or more workers who cannot get along or who are otherwise in conflict with each other. It may involve whole teams of people, or just two individuals. It may be a Board room dispute.
Employment mediation generally involves a worker, or group of workers, (or former worker or workers) who are in conflict with their employer.
 
Is an employer involved in a workplace mediation, or is it left to the individual workers?The employer is usually involved. However, the level of involvement of the employer may differ depending on the nature and extent of the dispute. Generally, we encourage workplace mediations to be tripartite: involving the two workers, or teams of workers, and the employer.
 
Can I bring somebody with me to the mediation?Mediation can be a long and sometimes stressful situation. You should absolutely bring somebody with you, but the question of who is down to the employer, because it’s their business. We encourage employers to permit workers to being a work colleague or trade union representative to a mediation and, in certain situations, a lawyer is not unusual. In rarer circumstances, the employer may allow you to bring somebody other than a formal representative from outside the organisation, such as a family member. This is especially the case if the employer is required to me make reasonable adjustments for a disabled worker under the Equality Act 2010
 
Do I have to agree to try mediation?No, not unless your contract of employment requires it, and indeed our experience is that parties who are dragged to a mediation table tend not to reach agreement. A mediation process is entirely voluntary.
Absolutely – mediation is voluntary. All that we ask is that, if you are thinking of terminating the mediation, or walking away, you discuss with the mediation first and hear their thoughts on the matter before making a decision.
 
Is mediation confidential?Confidentiality is a key aspect of mediation. The parties have to be free to speak to each other candidly without fear of reprisal and the employer must also be confident that the personal data it controls under the GDPR, and its legitimate business information, is protected.
A mediation is confidential in two important respects: firstly, what is said by everyone in the mediation is confidential and ‘without prejudice’. Essentially this means that the content of the mediation, and what is or is not agreed, is privileged, and may not be disclosed to a court or tribunal in the event of subsequent legal proceedings. This includes any offers and concessions made.
Secondly, what you say privately to the mediator is confidential and will not be relayed to other parties, including the employer, unless you agree.
 
How long will the mediation last?Mediations can last for as long as necessary, but often a full day is set aside. This is because the road to reaching a resolution is often a bumpy one. A large part of the process involves the mediator establishing a rapport with the parties. Mediators that have established trust are far more likely to facilitate a resolution, but this takes time.
 
We’ve tried mediation internally before and it didn’t achieve much – it is worth it?We are often familiar with parties starting by saying that mediation has been tried before without success. Digging deeper, we tend to find that this means that someone has tried to facilitate a round table meeting between two parties in dispute. This is not mediation. The mediator will be trained and accredited to conduct a carefully planned and creative process.

What happens before the mediation?The mediator will spend time with both the employer and the parties to the mediation, or the principle parties where there are teams involved, in order to begin to establish a rapport and explain the process. We appreciate that workers are sometimes reluctant to engage in mediation; they can have anxieties and uncertainty about the process. That can take time to break down. It isn’t unusual for a mediator to spend several hours with the worker, either on the phone, face-to-ace or via Zoom/Teams, before the mediation even takes place. This is an important part of the process of managing expectations and getting the parties into the right mindset.
 
What happens on the day?Again, the mediator will spend time with the parties separately to re-emphasise the process, go over the principle of confidentiality and establish a calm and practical environment conducive of resolution. The mediator will then start to explore the issues with the parties – this background exploration is about establishing common ground, building trust and identifying issues that need to be resolved before parties can move to a bargaining stage – the stage in the process where they are encouraged to put forward and consider proposals for resolution, facilitated and marshalled by the mediator.
 
Do I have to meet face-to-face with the other party?We always encourage it, but you do not have to. Sometimes, animosity has built to such a level that parties are unwilling to sit in the same room as each other. Nobody will be forced to deal directly with another party, but your IHL mediator will always explore the reasons for this and consider possible alternatives.
 
What is it gets out of hand?The mediator will control the process and carefully manage and moderate the dialogue. The mediator will absolutely not allow any bullying, aggressive behaviour, mud-slinging, shouting or other unprofessional conduct during the mediation. In the worst case scenario, you have the right to end the mediation early.
 
Is resolution guaranteed?No, and nor should it be. The mediator will be conscious that reaching no agreement is probably better than reaching an agreement that is impractical or unworkable or likely to be breached before the ink is dry.
 
I just can’t see what resolution looks like – is there a point?Absolutely. All disputes are capable of resolution. A mediation may not reach an agreement on the day, but may lead to further discussions that may, given time, lead to an ultimate solution. The mediator is experienced in dispute resolution and employment relations and will be creative. Often, parties struggle to see a clear resolution through the fog of a preconceived notion of what a resolution might look like. The point is that a totally different resolution, even a radical one, might present itself during the process.
 
What do I need to do to prepare?Remember: you are not preparing a case to present. This is not a judicial process, and the mediator is not going to decide on a winner and loser. You just need to be open-minded, professional and clear. Focus less on what you want, and more on what you need from the process. You may want someone to be sacked, or for you to be promoted, but is that realistic? Perhaps, in the first instance, think about what you need? Perhaps you need to be listened to? To be acknowledged? This is far more likely to be a realistic starting point to more forward on.
 
Will I be cross-examined or questioned?The mediator will not permit cross examination in workplace mediation, or aggressive questioning of any sort from a party. The mediator will undoubtedly have questions for you, but these will be focused on establishing the background, not challenging your version of events. The mediator’s role is not challenge, but they may gently stress-test your ideas and thoughts to make sure they are realistic but remember: ultimately, it is your dispute to resolve and you will be in control of what resolution looks like.
 
 
 
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The psychology of resolving conflict in the workplace

11/21/2022

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Mediation is engrained into the psyche of every civil and commercial litigator. It’s woven into the fabric of the Civil Procedure Rules – the rules that govern the conduct of litigation in England and Wales. It’s embedded in the civil litigator’s DNA.
And with good reason. Mediations are an effective form of resolving disputes and saving costs. The process is confidential, orchestrated and marshalled by a trained, unbiased mediator whose aim is to gently guide the parties down the road towards resolution.
It is somewhat of a mystery then that mediation isn’t typically on the tip of the tongue of every employment lawyer or HR director.
This is despite the pernicious destruction that suppressed conflict can have in the workplace. According to recent ONS data, the UK has one of the lowest productivity levels in the G7. Perhaps this is hardly surprising when, according to CEDR/CBI, unresolved conflict costs the UK economy a staggering £33 billion per year.
Everyone already knows that Employment Tribunal claims are expensive, time consuming, mentally draining and can cause irreparable reputational distress.
Yet, search every employee handbook and you are most likely to find that most dangerous of policies: the grievance procedure. A policy inherently designed to propagate dispute, accusation, animosity and ill-feeling. A policy that is focused on blame and culpability; that uses a grueling and often degrading quasi-legal process of mudslinging.
We propose an alternative: a resolution policy.
At IHL, we want to embed mediation into the heart of employment relations because we believe that all disputes, no matter how bad, are capable of being resolved. 
Workplace mediation is the process under which workers who are in conflict, either with themselves or their employer or both, are empowered to reach a practical, workable solution to their dispute, with the assistance of an independent mediator skilled in the art of dispute resolution.
We know why you might be reluctant. Will it work? What’s the outcome going to be? Parties often struggle to see a clear resolution through the fog of a preconceived notion of what a resolution might look like. The key is to work through issues in a calm and non-judgmental way that engenders constructive dialogue and creative thinking.
Sometimes we can’t see the end goal. Conflict can be loud, disruptive, confusing and scary. Let a mediator shine the light for you.
 
James Hazel qualified as a solicitor in 2008 and has held various departmental head positions in regional law firms before joining IHL as a business and employment relations adviser. He is also a CEDR accredited mediator with a particular specialism in workplace and employment disputes. 

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    James Hazel

    Employment and business relations consultant. Non-Practicing Solicitor. CEDR Accredited Mediator. Author. 

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