EMPLOYEE MONITORING

EMPLOYEE MONITORING

Employee monitoring methods should be considered carefully

A recent decision by the Grand Chamber of the European Court of Human Rights has brought the question of employee monitoring to the forefront of employers’ minds once again. The Grand Chamber in Bărbulescu v Romania examined the ability of employers to monitor their employees’ work, email accounts and in particular, the extent to which employers can check whether employees are using email accounts for solely work-related purposes.

Mr Bărbulescu was dismissed by his employer for unauthorised personal use of the internet. The dismissal arose as a result of allegation that Bărbulescu had been using a Yahoo messenger account whilst at work. Following various decisions in Romania and in the European courts, the Grand Chamber of the ECHR determined that Bărbulescu’s private life and correspondence had been infringed.

It is worth noting that employers can be found to be vicariously liable for the actions of their employees in the course of their duties. This means that employers may find themselves liable for their employees’ actions if the employee causes damage or loss to a third party. Employers therefore often find that they have a heightened interest in understanding – and keeping tabs on – the activities of their employees.

EMAIL AND INTERNET USE
The Grand Chamber decision in Bărbulescu v Romania highlights the fine balance between an employee’s reasonable expectation of privacy and an employer’s right to check the activities of those working for them. It was not sufficient for the employer to simply inform the employee that there was an internet usage policy in place but instead, the Grand Chamber found the employee should also have been made aware of the extent and nature of the monitoring activities that the employer was putting in place.

In the UK, the monitoring of employees is heavily regulated by existing legislation, which places limitations on the
powers of employers to monitor their employees’ private communications, including the Data Protection Act 1998 (and soon to be the General Data Protection Regulation, which comes into force in May 2018). Employers must provide
legitimate reason to justify the monitoring of an employee’s communications. This requires some form of assessment to be in place in order to decide whether legitimate reasons are in place.

The importance of an assessment can also be found in the Information Commissioner’s Employment Practices Code in the UK. The Code recommends that employers carry out an impact assessment, taking into account factors such as the purpose behind the monitoring arrangement and any benefits or adverse effects that arise from this monitoring.

Ultimately, employers must be satisfied that they have achieved the correct balance between protecting workers’ privacy and the interests of the business. Carrying out an impact assessment in relation to communications monitoring is one way in which employers can demonstrate that they have achieved this. Employers should also ensure they have a communications monitoring policy in place and where possible, this should be backed up with specific training on the use of IT and email systems.

DRUG AND ALCOHOL MISUSE
Employers have a responsibility to look after the wellbeing, health and safety of employees whilst they are in the workplace, and this duty may extend to ensuring that employees are not misusing drugs or alcohol.

The extent to which employers will need to monitor their employees’ use of alcohol or indeed drugs, will depend on the particular environment in which the business is based. For instance, in some circumstances, it may be appropriate for employees to consume alcohol whilst entertaining clients. For other industries, however, employers will need to be much more cautious about their employees’ use of alcohol or drugs. Those whose staff use vehicles as part of their jobs, for instance, will need to maintain a higher level of vigilance in this respect.

Employers may want to consider whether it is necessary to carry out drug screening or alcohol testing. This will – of course – only be relevant in particular industries, however, for those where this is likely to be an issue, then employers should ensure that reference to screening or testing is included in a policy given to all staff.

Even with a drug screening or alcohol testing policy in place, employers will not be able to require staff to submit to testing without their specific consent to do so. One option is to draft the monitoring policy to say that withholding consent is a misconduct offence in itself.

TRACKING
Employers whose staff work ‘off-site’ – say when driving – may find it particularly difficult to know the exact movements of their employees during their working hours. Improvements in technology have, however, made employee accountability in the workplace much easier in recent years. Again, industries which rely on employees driving vehicles may find this kind of technology particularly useful. GPS, for instance, highlights if drivers are deviating from their planned routes or if there is traffic preventing them from reaching their destination.

If employers do intend to monitor vehicles they should ensure that they provide a policy which sets out the nature and extent of the monitoring. Employers should satisfy themselves that their employees are aware of the policy that is in place, what information is recorded and the purpose for that recording. Where the vehicle is used for both private and business use employers, should be particularly wary, as monitoring movements when the vehicle is being used privately will rarely (if ever) be justified.

CONCLUSION
Monitoring employees can take place in a variety of ways and employers should carefully consider which form of monitoring is necessary for their business, without being unnecessarily intrusive to the privacy of staff. Carrying out impact assessments are often a useful way of determining whether the monitoring is truly justifiable.

Case law such as Bărbulescu v Romania clearly demonstrates that the courts take the privacy of staff in the workplace very seriously. In order to reduce the risk of employee complaints, employers should try to be transparent and honest with employees about monitoring which they may be subject to.

Getting employee monitoring wrong can have a significant impact. Employers could face discrimination complaints or employees resigning and claiming constructive dismissal. Employees could argue that their rights under the Data Protection Act 1998 – or even the Human Rights Act 1998 – have been infringed. In addition to the cost and time associated with defending a claim, an employer could be found liable by a court, employment tribunal or the Information Commissioner’s Office, and ordered to pay compensation.

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VLS RECEIVES 50TH CASE

VLS RECEIVES 50TH CASE

As the Verification of Lubricant Specifications receives its 50th case complaint, the Director reviews the cases it has investigated so far

VLS was formed in 2013, when the industry faced a real problem. Lubricant products were being sold by some new market entrants with claims that just did not seem to be believable. Closer inspection found that occasionally sub- standard formulations provided by newly-established companies were being passed off as the latest specifications to their customers, or even failing to perform effectively at low temperatures.

Even though the majority of lubricants were compliant with relevant market standards and manufacturer approvals, out of this concern reputable lubricant blenders and manufacturers came together to launch the Verification of Lubricant Specifications (VLS), an industry-led service that independently validates complaints regarding the technical specifications and performance claims of products.

Four years on, VLS has tackled 50 cases, receiving its 50th complaint in September this year. Looking back over the cases so far presents some interesting reading.

MISLEADING CLAIMS
The first case was received in March 2014. The complaint related to an engine oil which was making unrealistic claims that did not comply with ACEA sequences for which it was claimed to be suitable. At the time, VLS was still relatively new and people did not know what to expect. The company involved soon saw that it meant business as the case was escalated to Trading Standards and the company suspended from membership of the United Kingdom Lubricants Association (UKLA) until the matter was resolved.

Non-compliance with ACEA has accounted for the majority (60 percent) of cases. These engine oil sequences change every four years to take account of developments in emission regulations and technical developments in OEM engine design. Lubricant marketers need to manage their stockholding to ensure they are not left with old stock on the shelves when the new sequences become mandatory. VLS cases have shown that they will get reported, investigated and required to withdraw mislabelled stock if necessary.

COLD WEATHER
Around a quarter of cases have related to low temperature properties, which is a particular safety issue. In one case a lubricant was found to turn solid at temperatures of minus 40 degrees centigrade. Whilst the temperature in some parts of the country rarely stays below freezing for a sustained length of time, in Scotland, extreme temperatures are not uncommon. To be within specification, lubricants must be able to perform even in these extreme conditions to avoid damage to vehicles.

OIL TYPES
Of the cases investigated three quarters have related to passenger vehicle engine oils. This is in line with expectations, as automotive comprises a significant sector in the marketplace, as much as half of all lubricants sold. However, VLS’ remit does include everything from engine to transmission and gear oil and all have featured in cases. Seven cases of automotive gear oils with suspected low temperature properties have been investigated. Cases have also been reported in automotive transmission fluids and hydraulic fluids. VLS has even investigated agricultural tractor oil. So far only two cases have been received relating to industrial products and one in the marine sector. VLS plans to focus on raising awareness in this sector as well.

AFTERMARKET AND BEYOND

Over the course of 2017 the number of cases brought to the attention of the organisation has reduced as the initial issues of non-compliance have been tackled in the wider lubricant marketplace. There is now a greater awareness amongst marketers and blenders as to what constitutes a compliant product.

We know this because blenders report that there is a greater degree of compliance in the market place, additive companies tell us that they are engaging with companies that they have not had a relationship with previously, and European body ATIEL has also begun its own programme of policing conformity.

If you have any concerns about lubricant products then you can report them to VLS by calling 01442 875922 or emailing admin@ukla-vls.org. uk. VLS handles all cases anonymously through a clearly defined process which includes technical review by a panel of experts from across the industry and dialogue with the manufacturer and all relevant parties to work together to resolve any issues.

You can find out more about VLS by visiting their website: www.ukla-vls.org.uk or calling 01442 875922.

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AUTOMATED FUTURE FOR FACTOR CHAIN

AUTOMATED FUTURE FOR FACTOR CHAIN

Large German factor Stahlgruber combines robotics and logistics in hub reboot. CAT contributor Alan Smithee gets the latest. 

Factor gets an upgrade

How about this for a warehouse upgrade? German motor factor Stahlgruber needed to expand and in typical fashion, bosses at the firm put their minds to achieve the most efficient solution possible.

What they came up with was a completely robotic 23,000 sq. ft extension, connected to the existing facility by a 60-metre bridge with a pallet conveyor. Working with warehouse automation firm TGW Logistics, the firm built the new new automatic ‘mini-load’ warehouse and the entire conveyor system for plastuc crates known as ‘totes’, roll containers and pallets, plus the storage and retrieval machines. TGW was responsible for the design and installation of the pallet conveyor and storage and retrieval equipment in the receiving area.

The new 26-metre-high automatic mini-load warehouse consists of two storage levels with nine aisles each, and two separate storage and retrieval levels serviced by machines. ‘Twister’ load handling devices transport the goods to and from 165,800 storage locations at rates of up to 118 movements per hour, with each unit identified by barcode and tracked on Stahlgruber’s computer system.

As part of the new facility, TGW built a new receiving terminal that makes the best of the received goods’ travel through the logistics centre. Modifications to the existing pallet handling system means suppliers now deliver all pallets pre-labelled with a barcode indicating the shipping unit.

On receipt in pallets or grid- boxes, items are routed either directly to the existing pallet warehouse over the bridge via conveyor; to eight picking stations for direct picking from pallet; or to 44 decanting workstations connected to the tote conveyor system for unpacking the pallet into the tote crates. A display at each decanting station informs the employees about the required number of items to put into a provided empty tote, which is then transported to the automatic mini-load storage warehouse.

The existing warehouse has also been redesigned with ‘ergonomic’ workstations for receiving, repacking, picking and shipping areas, with everything to hand and technology measuring weights etc in order to provide the best possible conditions for the employees. There is little need for employees to walk very far at all in fact, as the facility has four kilometers of conveyors whizzing totes and pallets wherever they need to go. Bosses reckon on employees picking 210 totes per hour. The same picking stations also pick from full pallet loads delivered directly from the receiving area via TGW pallet lifts and a double transfer car.

TGW also added a new shipping line to the shipping area and expanded the dispatch sorters. The changes to the twenty-year-old conveyor system in the shipping area increased performance significantly and dramatically reduced the noise emissions. The logistics centre now holds over 155,000 SKUs, with up to 100,000 orders leaving each day in a two-shift operation that provides customers with fast, accurate deliveries.

Even more surprising is that the upgrade, was completed in a year without having to shut the warehouse. “Work in this area was carried out at weekends, to avoid affecting the facility’s performance during the reconstruction phase,” explained TGW Project Manager Josef Eibel. “The coordination was challenging at times, but the team worked together perfectly and the high-tech upgrade for factor shipping area’s performance was doubled. The new system provides Stahlgruber with a supply chain that provides operational efficiencies as well as enhancing its high levels of customer service.”

Is this an exciting future, or are robots threatening the way we work? Why not email CAT and let us know your views.

MINI-LOAD SYSTEMS
‘Mini-Load’ systems, so-called because they use small crates called ‘totes’ in conjunction with a tall and fast robotic picking known as Automated Storage and Retrieval. When used with other systems mentioned, they can increase space utilisation by 90 percent, productivity by 90 percent and throughput up to 750 lines per hour. Who wouldn’t want that?

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AN INSIDE JOB

AN INSIDE JOB

 It can leave a bad taste when an employee commits fraud, but it must be dealt with, writes Adam Bernstein.

It’s bad enough losing out to theft committed by customers and third-party criminals, but it can leave a particularly nasty taste in the mouth when those most trusted – staff – commit criminal acts against the business that employs them.

According to Action Fraud, one in five small businesses will have been defrauded at some point in their trading history – sometimes to the point of bringing the business to its knees.

In March 2010, The Journal reported that a 21-year-old garage – Knights of Newcastle – was put out of business after a trusted employee, Colin Prudham, used the company computer to print off 419 fake MOT test certificates. The fraud only earned Prudham £12,500. In February 2011, a former employee in the accounts department was convicted for stealing over £50,000 from Lanehouse Service Station in Weymouth over a six-year period. The managing director, Peter Amery, described Joyce Britnell’s actions as a “major betrayal.”

And in February 2013, a bookkeeper stole £210,000 from a family business involved in motorcycle publishing run by her friends. Amanda Stevens took the money for, among things, hair and clothes leaving the company – Redcat – to pick up the pieces. The fraud committed over a number of years was only discovered when the VAT couldn’t be paid.

TAKING ACTION
While fraud is an ever-present risk, and a destructive one at that, employers can take preventative measures.

Background
The first step is to proactively check on everyone that is employed by the business, especially where they have access to sensitive systems or the company bank account. Quite simply, firms need to know exactly who they are employing. References should be sought and followed up with calls; the matter shouldn’t be dropped until satisfactory answers are received. Everyone from the cleaner to the members of the board, as well as contractors, should be subject to background checks. At the very minimum, it’s important to confirm an employee’s identity, date of birth, residential address, qualifications, employment history, criminal history and financial background. The process can be undertaken as part of the statutory obligation to ensure that an employee has the legal right to work in the UK.

Another option is to ask for a recent bank or utility statement, as well as details to check on qualifications, or a marriage certificate if a married woman has changed her name. You can also ask for past P45 or P60s, as well as data from Disclosure and Barring Service. Credit agency Experian offer background checks for those in the automotive sector to enable employers to check on, for example, qualifications and experience. At the same time, by signing up with one of the credit reference agencies – Experian, Equifax or Callcredit – employers will be able to monitor if employee (or third party) activity has changed the financial status of the business.

Policies
Another large step that a business can take to protect its position is to engender the ethos that fraud is not tolerated within the business. This starts at the top with everyone being able to see that the management plays by the same rules that employees have to follow. Policies and procedures need to be written, but they also need ‘buy-in’ from employees which requires consultation. On joining, every employee should be given, among things, an anti-fraud policy. If a fraud should occur and the employee concerned is dismissed, the event and the consequences should be widely communicated to all staff as a deterrent.

Control access
As harsh as it sounds, firms need to strictly control access to their premises and systems. As soon as an employee leaves the company their access to systems should be terminated immediately. Passwords should be changed, passes revoked and possession should be regained of company laptops and mobiles. (It doesn’t hurt to regularly change passwords held and used by all employees).

Take action
If a faked history or worse, criminality, is suspected, it’s important to take good legal advice with a view to with- drawing any employment offer made (or dismissing the employee). The situation should be reported to the police or, in the case of illegal working, to the UK Border Agency, as well as to the recruitment agency if appropriate. Ignoring the issue will only shuffle the problem to another employer; it could also leave the firm open to claims from future employers who weren’t warned about the ‘rogue’ employee.

Check further
Processes need to be put in place so that no one person has sole control over payment systems, chequebooks or the ability to singly authorise purchases over a given (low) value. Invoices should be checked to ensure that they are from genuine suppliers; unexpected requests to change bank accounts should verified – every time; and suppliers should be informed in writing each time a payment is made.

It’s important to also prevent premium rate and international numbers from being dialled out on company phones. Premium rate fraud – also known as PBX or dial-through fraud) involved out of hours calls being made to particularly expensive numbers. Similarly, phone logs should be regularly checked for increased use or unusual call activity.

Lastly, firms should take steps to destroy any documents with sensitive information that may allow a fraudster to misuse the corporate identity for criminal gain.

For paper, this means acquiring a fine cut cross shredder, while for data, firms should securely wipe computers (physically destroying hard drives and USB sticks) while factory resetting mobile devices. At the same time, time spent signing up on Companies House and other agencies websites seeking out their online protections is worthwhile. Companies House, for example, offers the PROOF scheme in relation to the changing of official corporate details; it helps prevent the hijacking of a company.

Fraud is an unpleasant fact of life. However, those firms that make it harder for employees who are criminally minded will be much better off. By removing the opportunity they’ll remove the temptation.

WHAT TO BE AWARE OF

There are countless different ways that an employee can abuse trust. However, the main forms that firms should be on the watch for are:
Procurement fraud: Fraud relating to company purchases of goods, services or works commissioned. Goods are invoiced but not delivered, or are subject to inflated prices.

Travel and subsistence fraud: Where employees claim for, say, food and mileage not incurred or which is higher than receipts can show.

Personnel management: Staff on sick leave but moonlighting elsewhere, misuse of company equipment and time for private purposes, or the use of false references and qualifications.

Exploitation of assets and information: The passing of internal company information for personal gain.

Payment fraud: The creation of fake accounts and invoices, the redirection of cheques and other payments, or the processing payments to the fraudulent individual.

Receipt fraud: The theft of inbound monies or where records for monies owed are altered.

False accounting: Changing records and accounts to misrepresent their true value, to enhance or alter their appearance, to gain funds from a bank, report overly high profits or to hide losses.

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RECON WITH RISK AND MANAGE YOUR PREMIUM

RECON WITH RISK AND MANAGE YOUR PREMIUM

Insurance premiums might seem like they only go one way but manage your risks and you could get a reduction.

Joe Howard
Aftermarket Lead Broker, Hugh J Boswell

Maximising efficiencies and controlling costs are the buzzwords of the aftermarket right now. You can add to that getting the right insurance policy is critical otherwise insurance costs can soon become unsustainable, or worse your policy fails to adequately cover any losses incurred in the event of a claim being made. A large number of the factors insurance companies review, such as those above, are essential to your business, thus limiting your ability to alter them for the same insurance premiums. So, what factors are there in your control?

CLAIMS FREQUENCY
It sounds obvious to say, but reduce your claims, and your premiums will be lower. The most effective way to manage your claims frequency is to develop a company culture that works towards eliminating or reducing incidents.

A motor factor’s van f leet is most likely to be affected by a high claims frequency. So, how are policy holders protecting themselves?

For example, if motor claims are an issue for your business, start there. Employing drivers who aren’t as careful driving your vehicles as they are driving their own can result in claims. One potential solution? Making them responsible for paying the excess in the event of an accident encourages them to be more circumspect in your vehicles. Plus, incentivising them with a bonus if they avoid any fault accidents after, say three years, can add additional positive motivation as well.

To lower your insurer’s exposure to risk and therefore lower your premiums, purchasing vehicles with modern safety kit such as autonomous emergency braking is another way to minimise road traffic incidents. Insurance companies are now starting to build these into their pricing.

Of course, claims can’t always be avoided, and damage limitation sometimes needs to apply. When it comes to motor accidents, capturing information at the time, including photographs, or/and dash cam footage can help avoid fraudulent claims and make for a speedier resolution. An essential, but often overlooked element in managing claims costs is the early notification of your claim to your broker or insurer. Amongst other benefits, this helps manage (often expensive) third party claims management costs.

The most significant aspect here is age. Drivers under 21 pose the largest risk and are looked at very unfavourably by insurance companies. With motor policies running at loss for many insurance companies, the market has seen further tightening, with under 25’s and any drivers with less than 2 years’ experience often in the firing line. Restricting drivers to specific types of vehicle use and driver training are just some of the ways you can help alleviate costs here.

KEEP SAFE
Away from the roads, other ‘claims hotspots’ in the aftermarket business often revolve around health and safety. So being thorough with plant and equipment maintenance can reduce the number of claims resulting from accidents. Equally, protecting your staff well (e.g. steel toe-capped boots) strengthens a health and safety culture that reduces accidents.

MISCONCEPTION
There is a misconception that insurance companies offer f lat rate discounts for some practices, products or behaviours, which in most cases is simply untrue. A typical example of this is the installation of vehicle trackers. However, don’t let that deter you. A good insurance broker should be using such information, along with their knowledge of your business, to present a portfolio of evidence to insurance companies that your business is a desirable risk.

In some higher risk areas, insurers may have minimum security requirements to cover your business premises, such as red care police response alarm. Generally though, the better security measures you have installed, the more discounts the insurer can apply. The same also applies to vehicles, but in addition to your postcode, insurers also look at the vehicle type and its attractiveness to thieves.

If you would like to discuss anything raised in this article, please contact Boswell Aftermarket on 01603 626155.

TYPES OF COVER

The product range required to protect a modern business is vast but typically, most aftermarket businesses will be protected by at least one, or maybe all of the following products:

  • Commercial combined;

Covering all the commercial elements of a business – from employers,public and product liability,to buildings and stock,as well as business interruption,loss of revenue, etc.

  • Motorfleet;

Insuring your vehicles.

  • Motortrade; effectively garages, covering mechanics in customers’ vehicles, property, defective workmanship, accidents, etc.

When an insurer is calculating the weight of risk your business carries, there is a multitude of factors they consider, including;

  • Location (likelihood of theft and flood)
  • Value of stock and tools
  • Number&value of your vehicles
  • Property rebuild value Business function,e.gtrading in safety critical parts will carry higher premiums than car accessory retail.

If you would like to discuss anything raised in this article, please contact Boswell Aftermarket on 01603 626155.

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KNOW YOUR LIMITS: SET AN ALCOHOL POLICY

KNOW YOUR LIMITS: SET AN ALCOHOL POLICY

What is the best policy for booze in the workplace?

Sensible policies for alcohol at work are encouraged

Do you have a policy on alcohol in the workplace? If you don’t then you are hardly unusual as most British companies either don’t have anything written at all, or they swing the other way and have an absolute zero-tolerance policy… which may or may not be enforced.

However, you should have a policy in place and have the means to enforce it. As the trend for fines for corporate manslaughter and injury continues to significantly increase across the UK, the emphasis on employers to operate strong and effective health and safety policies and practices has never been more vital.

KNOW THE LAW
Aside from drugs and alcohol costing British businesses in excess of £6 billion per year in lost productivity, under the Transport and Works Act 1992 it is a criminal offence for any worker to be unfit to operate due to drink or drugs and employers must show due diligence to prevent such offences from occurring in the workplace.
Laws that relate to drink- driving are of special interest to motor factors or any other business that has a van fleet. Don’t forget that limits vary within the UK with England, Wales and Northern Ireland having the highest permitted limit of 35 micrograms per 100ml of breath, compared to Scotland’s reduced limit of 22 micrograms, which is in line with the majority of the rest of Western Europe.

BEST PRACTICE
Of course, these limits are perhaps moot if your company has an absolute zero policy on alcohol. However, such a policy might not actually be the best plan. Suzannah Robin, a Director at breathalyzer maker AlcoDigital said: “One of the first steps in setting best practice policy is deciding a company alcohol limit. There will be many factors determining what this should be and it will very much depend on your business operations, however, we would always recommend that an employer sets the limit below the current legal drink-driving limit rather than at a dead zero”.

“Whilst zero may sound like a target every business should be aiming for, it can also cause issues where there may be discrepancies in results, caused by things such as liquor in chocolates or alcohol in medicines. Instead, using a scale of differing limits to determine the next steps an employer should instigate in the event of a positive alcohol test will provide staff with a clear set of rules and help to avoid any unjustified gross misconduct disciplinaries” she added.

EVIDENCE
If a company intends to screen staff on a regular basis it can use a Home Office approved breathalyzer. However, should a screening test reveal a positive result, a company will be obliged to re-test the employee.

Of course it isn’t just about the type of equipment being used, but also how the procedure is carried out and followed through. This means making sure staff implementing alcohol workplace policy have the sufficient training to perform such tests fairly and effectively. Robin explained: “If an employer does not follow best practice policy this can cause issues further down the line, particularly if an employee has tested positive for alcohol. Therefore, professional and reliable training is absolutely crucial for those being assigned to implement alcohol testing policies in the workplace.”

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DRIVING CHANGE: HOW COMPLACENCY CAN KILL

DRIVING CHANGE: HOW COMPLACENCY CAN KILL

Driving for work is a ‘work activity’ like any other. However, our familiarity and, in some cases complacency, with the activity can make it difficult to manage despite it being one of the greatest risks we face. With the trade running fleets of delivery vehicles, the issue of road safety should be high up on the agenda. Indeed, it’s not hard to find web-hits such as ‘Van driver hurt in crash’ or ‘Truck, lorry and van driver injury compensation claims’.

THE LAW
There is a raft of criminal offences that capture individual drivers who decide to break the law. These include death by dangerous driving, careless driving and driving without a valid licence or insurance. The law recognises that properly licensed drivers have a personal obligation to take care of themselves and others on the road.

However, organisations, managers and colleagues could also be implicated if they are considered to have “aided and abetted” that criminal behaviour. A potential example of this would be where a manager
knew that a driver’s insurance had expired but did not alert anyone within the business or prevent that individual from driving. Organisations often collect vast swathes of information that are relevant to managing driving, but are not used as such. Working time details, health information and job descriptions are all good examples.

Prosecutions for ‘aiding and abetting’ offences remain rare, but a fatal road death may result in a Coroner’s Inquest and the organisation having to answer some difficult and probing questions on behalf of the deceased’s family.

Within the more typical health and safety arena, prosecutions could arise where the culture of the organisation is such that driving for work is not managed properly and individuals are put at risk.

In fatal incidents, under the Corporate Manslaughter and Corporate Homicide Act 2007, an organisation can be held liable if “working regimes, dangerous or illegal practices or negligence have contributed to the death”. The police will investigate for the offence of corporate manslaughter and will want to establish the attitude of senior management towards managing driving for work. Were policies in place and enforced, and was there real and visible leadership from the top?

Further, the Health and Safety at WorkAct 1974 states that organisations have a duty to ensure, so far as is reasonably practicable, the health and safety of all employees while at work, and that others are not put at risk by work-related driving activities.

Beyond the broad 1974 Act there are various other health and safety regulations that apply to work activities such as driving. The key action point is to appreciate driving for work as a work activity and treat it as you would any other, providing suitable instructions, information and equipment based on a sound risk assessment process.

CONSEQUENCES
The most obvious consequence of getting it wrong is that an employee or members of the public is seriously injured or killed as a result of your organisation’s driving activities. Organisations recognise the moral reasons for keeping people safe.

In addition, there is the risk of a subsequent prosecution for individual criminal offences or for organisational or management failures.

The potential consequences of getting health and safety management wrong have become all the more severe since February 1 2016, which saw the introduction of a Sentencing Guideline for health and safety offences and corporate manslaughter (among others) and creates the potential for higher fines and prison sentences than we have seen historically. The guideline uses ‘potential harm’ as one of the determinants when deciding upon a sentence; the potential harm associated with driving is obvious.

In addition to a criminal prosecution, you may have to deal with any civil claims brought against the business by individuals who have been involved in an incident. Insurance may be in place for organisations and those that use company cars, but what about those who use their own vehicles? Everyone ‘driving for work’ needs to have ‘business use’ insurance. Without it, insurance policies can be revoked and the individual or organisation is left to pay.

Aside from financial implications, incidents and prosecutions can attract significant negative publicity, which in turn could affect an organisation’s brand and reputation. Many vehicles now bear corporate logos and branding which can have unwanted consequences in the event of a serious incident. The impact of an investigation can also create significant business interruption, with the seizure of vehicles, computers and other records, even if a prosecution does not result.

Driving for work can be a risky business and should be taken seriously by the whole organisation; not just the driver.

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WHAT WILL AUTONOMOUS CARS MEAN FOR GARAGES?

WHAT WILL AUTONOMOUS CARS MEAN FOR GARAGES?

Euro Car Parts CEO Martin Gray

We live in a time of regular announcements about trials of connected autonomous vehicles as manufacturers race to be first to offer self-driving cars. And the government, Automotive Council UK and other bodies are fully committed to making sure the UK is at the forefront of autonomous technology, with a supply chain able to deliver it.

While we may be a few years from when cars will drive occupants to their destination, one thing is for sure; modern cars are getting ever more sophisticated. Indeed, some automotive observers have remarked there will be more technological change in the next 10 years than there has been in the past 100.

In fact, connected technology is already with us, with such systems as adaptive cruise control, automated city braking and lane departure – a sign that Advanced Driver Assistance Systems (ADAS) are growing in number and intricacy. Even simple components, such as automatic full beam units, require technicians to acquire new skills and garages to invest in new equipment to replace windscreens, because systems need re-calibrating before returning a car to its owner.

Cars are also sophisticated in the way they alert a service is due and help an owner identify and reach the nearest garage to book an appointment. This is the brave new world made possible by the major advances in technology and presents a host of new business opportunities for the independent garage.

Consumers deserve and need choice in the market place and the aftermarket sector can continue to provide a great value, high quality, customer- focused solution in a technologically-changing world. With the right training and investing in key equipment, independents can realise a new range of business options.

“That’s why no matter how sophisticated the modern car will become with autonomous abilities, the essential nature of servicing and maintenance required remains the same. That’s why an entrepreneurial approach and ‘can do’ attitude mean the connected car of tomorrow will be welcomed at the forward-thinking independent garage of today.”

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TIME IS AN ENEMY WHEN YOU ARE HIRING STAFF

TIME IS AN ENEMY WHEN YOU ARE HIRING STAFF

Don’t let the clock tick down when you need to fill a sales role

Let’s talk about time. If recruiting for a role yourself, you will spend countless hours sifting through applications and initial screenings.

At its most simple, using a recruiter will save you time and to use an example, time is critical when filling vacant sales roles. If the territory is vacant it means that another employee or even the hiring manager is covering the area and this could result in a loss in revenue as customers are not getting the right amount of contact. Another implication, people are human and if someone is covering two roles rather than just their own, it will cause issues. Trust me, I’ve been there!

People will talk sometimes to a recruiter rather than apply direct as it offers them in some cases some anonymity, also the roles I work on are not out there plastered across the job boards for all to see. Using a recruiter cuts out the headache of marketing the role, finding candidates and organising meetings. My ‘specialism’ (a horrible term) is in the body refinish market, but the same rules apply across the aftermarket and elsewhere.

But what if the boot is on the other foot and you are a candidate?. Why would you consider going to a recruiter instead of approaching the firms that interest you directly? Ideally, any good recruitment agency should act as the ‘compère’, between you as a candidate and a potential employer. Putting the right people in front of the right employer is a skill, encountering a large number of variables along the way. Yes, the skills must be right to do the role however much more is involved. There aremany more elements which come together to make the perfect candidate including personalities need to match with company culture and ethics. A good recruiter will understand the needs to match all aspects, the candidate must be right for the business in the same breath as the client being right for the candidate ensuring longevity for both client and candidate alike. Believe me this is no easy task.

Recruiters (well the good ones), have a network of hiring managers, business influencers and decision makers in multiple businesses. Something that as a candidate you in all likelihood don’t have, or not to the extent of an agent. All of these things go back to the issue of making the most of the limited time available – don’t waste yours.

TOP CANDIDATES MOVE QUICKLY

Research shows that from the start of the hiring process the top 10 percent of candidates have disappeared from the market in the first two working weeks. So, considering the average time to hire in the UK is approximately 28 days, the candidates remaining in your process from working day 11 onward are unlikely to be the right fit or the most qualified for your role. However, some companies will attempt to make a ‘good fit’ from the limited candidates now available and in effect taking on someone who doesn’t entirely fit the role because they need it filled and the slow process has cost them the best candidates.

In addition to this, a long hiring process is often the top reason candidates speak negatively about a brand or company. Candidates are now researching online reviews from former candidates or employees in the same way that they would from (say) Trip Advisor, when looking at holiday destinations. The result of this is that it can add 10 percent to the cost of every hire.

Remember the hiring process clock starts ticking as soon as that candidate submits the application not when you review it or when they sit in front of you at interview. By then the damage could have been done and your ideal candidate could have slipped through your fingers! So how long is your hiring process? Do you need to make changes?
Gavin Collier

Posted in CAT Know-How, Factor & Supplier News, Garage News, News, Retailer NewsComments (0)

A NEW DEBT COLLECTION PROCESS

A NEW DEBT COLLECTION PROCESS

Changing rules mean more hassle in getting your hands on money owed

A customer will not pay their bill. Despite your requests followed by demands, you find yourself in a position where you’re getting nowhere and the debt remains outstanding. Your thoughts turn to the law, but what steps do you need to take before you can “see them in court?” Well, as it turns out, more than you may have thought.

Business creditors dealing with a debt claim involving an individual, as opposed to a business, currently have to follow a simple set of rules. However, from 1 October 2017, the new Debt Claims Protocol will apply and businesses will need to ensure that they have complied with it when trying to collect debts owed. The Protocol will be used alongside any other regulatory regime to which the creditor may also be subject.

Sarah Carlton, an associate at Fox Williams LLP, says it’s important to note that the new rules only applies to businesses (including sole traders) claiming payment of a debt from an individual which also includes someone in business as a ‘sole trader’ – “the Debt Claims Protocol will not apply to debts from a business owed to another business (except where a sole trader is involved), and nor will it apply to claims issued by HMRC.”

REGIMES
The current position for debt claims is that a business creditor, or its legal adviser, will issue a Letter Before Claim to the debtor, in order to give them a chance for the matter to be settled before court proceedings. The new rules seek to formalise the process even before a Letter Before Claim is issued. Carlton says that in practice, “this will likely mean more work will need to be undertaken before even a simple debt claim is issued, the intention being that the parties try to settle the matter without the need for court proceedings while protecting debtors facing prospective legal proceedings from creditors.” Where a firm, or its legal adviser, intends to send a Letter Before Claim over an unpaid debt, the Debt Claims Protocol aims to encourage early communication between the creditor and debtor without having to involve court proceedings.

In terms of process, the debtor will have 30 days to respond to the Letter Before Claim once it’s been sent. If the debtor fails to pay the claimed debt, another letter must be issued from the creditor giving a further 14 days for them to respond, and in theory the person with the debt should use a new special form.

Carlton sums up the thrust of the process: “Creditors should seek to take ‘pro-active’ steps to engage with debtors whatever their response to a Letter Before Claim, even if the Reply Form has only been partially completed”. She adds: “The creditor should make attempts to contact the debtor and obtain any further information that is required to appreciate the position of the debtor.”

Of course, the parties may not be able to reach an agreement or resolve the debt repayment, in which case both should take steps to resolve the dispute without starting court proceedings. Here Carlton says that they should consider other forms of Alternative Dispute Resolution (ADR), for example ‘a without prejudice meeting’ or mediation. “Again,” she explains, “the obligation remains on creditors to consider the cost against the benefits when deciding whether to proceed with ADR – it may be the case that the amount of debt claimed does not justify such a process.”

Unfortunately, if the parties do reach an agreement and the debtor later defaults, the whole process must be restarted and a new Letter Before Claim will need to be sent to the debtor.

Carlton says that only time will tell whether individuals will use the new rules to frustrate collection actions against creditors, and whether the front-loading of costs onto the creditor pre-hearing may prevent creditors from pursuing all of their debt actions – “creditors who regularly have claim money from individual debtors will have to consider whether the preparation work now required makes the claim worth pursuing” she concludes.

The new Debt Claims Protocol process

The Debt Claims Protocol requires that a standardised Letter Before Claim be sent to a debtor and that it contains particular information:

  • The amount of the debt, any interest and/or other charges claimed by the creditor
  • The date of the agreement following which the money is owed and the parties to it (whether made by written or oral agreement)
  • Where the debt has been transferred to a different creditor (i.e. ‘assigned’) details of the original debt and creditor and details of the assignment
  • If the debtor has offered to pay, an explanation of why the offer or payments from the debtor are not acceptable to the creditor and why a court claim is still being considered
  • Details of how the debt can be paid and details of how to proceed if the debtor wishes to discuss payment options with the creditor
  • An up to date Statement of Account for the debt (including charges and interest claimed), an Information Sheet, a Reply Form and a Financial Statement Form (as annexed to the Debt Claims Protocol)
  • The address to which the Reply Form should be sent

Posted in CAT Know-How, Factor & Supplier News, Garage News, News, Retailer NewsComments (0)

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