Editor’s Note: the risk in this instance can be managed with proper documentation and processes. HRTorQue’s HR support product is ideally positioned to help employers with this type of risk.
In a recent CCMA ruling, an arbitrator sided with an employee and argued that given the difficult financial climate, prescription periods should be relaxed and required an employer to pay the employee for disputed holiday pay. Central to the argument was the fact the employer could show no evidence that the employee had been shown and understood the company’s policy on holiday pay.
While the case may be referred, a precedent has been set.
It is critically important for employers to manage their potential liabilities by making sure of the following:
- They have comprehensive up to date policies and procedures which are consistent with their contracts of employment
- They have a proper induction process where employees are taken through the policies and sign the documentation; and
- They have a proper exit process where the employee is once again taken through all exit steps and confirms their understanding of any final payments;
With the right steps in place, it is difficult for an employee to say they were not aware of something, even if many years have passed.