The cost of unclear HR policies

It was reported this month that the Employment Relations Authority had upheld a personal grievance for unjustified dismissal and awarded the employee around $35,000 in lost wages and compensation.

The issue centred on alcohol policies that were both inconsistent and unlawfully applied. The employee concerned had been drinking over the weekend and arrived for work on Monday apparently smelling of alcohol which prompted an alcohol test and then a confirmation test.

There were two specific policies that covered the situation and the employee was subsequently dismissed. However, it was not clear what policy should have applied and the ERA rules therefore the policies had not been applied lawfully and the standards for passing the alcohol test were not clear.

When relying on policies to discipline and/or dismiss employees, it is essential that a suitable policy exists and employees are aware of its existence and have had a chance to read and understand it. Many organisations require their staff to confirm in writing that they have read and understand every policy at the start of their employment. Policies need to be clear, fair and applied consistently through the business.

When I first start talking to new and prospective clients for the first time, it often emerges the business has not reviewed its policies for several years, or they have significant gaps in their suite of policies. This is a significant risk for any business. Don’t be that business that gets caught out when a significant staffing issue arises.

Just cutting and pasting someone else’s policy template and changing the name of the employer doesn’t cut it. Your policies need to reflect the industry you work in and any specific issues that your business faces such as when working as a supplier to another business who may have higher standards they want to impose on yours. If this is an area you need help with, get in touch and I can help you manage your risk.