Heavy penalties could result if managers do not get well versed in the changes to employment legislation Last year saw a steady flood of fresh employment legislation. Some ­ but not all ­ was generated by EU directives, but it affects all UK companies and proves a particular burden for small to medium sized enterprises. There are new regulations covering the national minimum wage, working time, parental leave, union recognition, not to mention the fairness at work' proposals and the working families tax credit. But there are other changes in the pipeline. For example, last December the European Commission published its plans to outlaw workplace discrimination against a range of criteria, including age. If the UK implements EU driven age discrimination legislation ­ and there is every sign it would ­ then employment lawyers can look forward to heavy caseloads that will involve business managers not familiar with the latest requirements. This fast changing and specialist area is not automatically the business manager's first concern ­ nor is it always a clearly defined responsibility within companies. And if the number of calls logged by employment law specialists is anything to go by, there is a significant demand for advice and guidance. Particularly as any business employing more than one person is affected. Research carried out by human resources consultancy Hemmingway showed that few firms in the sample understood the changes taking place in employment law. Fewer still had grasped the impact the new laws will have. The Institute of Directors estimated the likely cost of 1999's new legislation at £2bn. Unfair dismissal proceedings alone were expected to cost around £200m. And it has that estimated the likely total bill for further legislation for British employers is likely to be £5bn. Few companies can afford to sustain heavy damage. Specialist solicitor David Coward said: "We have been inundated with enquiries for information and guidance on employment issues. "Many are concerned about the working time directive, but the range of topics is widening." The volume of cases is such that Hemmingway has put together a package for employers, managed by specialist solicitors. The first part is an extensive audit of company contracts and procedures to ensure compliance with ACAS codes of conduct. Subsequently, senior managers would be trained, with a view to providing practical guidance as to how to comply with the new directives. The topics covered include discrimination issues, as well as tribunal hearings and procedures. Once the training has been completed, formal certification will be issued. This is a formal requirement of the insurance element of the Hemmingway package. In the event of a case getting as far as a tribunal hearing, there is indemnification of up to 100% for tribunal awards or agreed private settlements. But this does not cover the additional management time spent on the case. This will also frequently reflect the skill with which the case is handled ­ in fact, a tribunal hearing can be regarded as something of a last resort. Hemmingway is also offering its customers a telephone helpline to give immediate support from qualified advisers. This is available to management, human resources staff and legal departments. The package also offers legal representation for companies, drawing on a national network of barristers and solicitors, with relevant employment law experience. Corporate monitoring is also available ­ as are regular updates of changes in the field of employment law. According to Hemmingway managing director Jon Sotnick, the plan is as much about educating managers on how to implement the new directives and how to deal with discrimination issues as it is to indemnify firms against such claims. As ever, prevention is more effective than cure. "The aim is to avoid potential conflicts arising in the first instance," he says. There are signs that any measure to reduce the number of cases reaching employment tribunals would be a good thing. The tribunal system has been so heavily used since last summer that there is talk in government circles of recruiting more panels and allocating more resources. Although the Cabinet Office has been evaluating the cost and benefits of business regulation, the fact is that the body of law is here to stay. n {{TRAINING & DEVELOPMENT }}