Employment: Settling employment disputes

Potential hurdles to securing a clean break on termination is highlighted in the recent Court of Appeal decision in Gibb v Maidstone & Tunbridge Wells NHS.

Employment: Equality Act 2010

The Equality Act 2010 will finally become law in October 2010. This major new piece of legislation promises to be fertile ground for litigation whilst employers and employees get to grips with the new regime.

Changing employment contracts - problems when employees refuse

Employers often look to change terms and conditions of employment as part of a strategy to reduce cost or avoid redundancies, particularly in the current economic climate. However, employers face a number of risks when attempting to change terms without an employee's consent. Following a recent Employment Appeal Tribunal decision, employers may rely more readily on an express contractual right to unilaterally change contracts of employment and take a more bullish approach to implementing changes.

Spotlight on bribery

Following criticisms from the OECD on the current state of bribery laws in the UK and recommendations from the Law Commission in 2008, the Bribery Bill was introduced to Parliament towards the end of last year. It will consolidate the existing law on bribery and reform the criminal law to provide a comprehensive set of bribery offences. Employers will need to act now to address the impact of the Bill.

Whistleblowing

From 6 April 2010, Employment Tribunals will be able to pass information from any new (or amended) whistleblowing claims to the relevant prescribed regulator, such as the Health and Safety Executive or HM Revenue & Customs (the Employment Tribunals (Constitution and Rules of Procedure) (Amendment) Regulations 2010).

Collective redundancies - when consultation seems impossible

It is common for contractors operating in the construction industry to be instructed to stop or suspend work, necessitating an immediate reduction in the need for labour. The recent Employment Appeal Tribunal decision of Shanahan Engineering v UNITE gives employers in this situation important guidance on their consultation obligations and potential liabilities with regard to subsequent redundancies. Employers should review their arrangements and consider ways of reducing their financial exposure.

Fit Notes

Employee absence can put a considerable burden on employers, both financially and in terms of managing ongoing absence. A recent survey found that 35% of 697 organisations questioned saw a rise in the number of employees off work for longer than a month between 2007 and 2008. Under the current system, employers often allow employees to self-certify for seven days before requiring them to produce a 'sick note'. In an attempt to facilitate return to work and to reduce the burden on the public purse in paying Statutory Sick Pay, the Government is introducing 'fit notes' to replace 'sick notes' on 6 April 2010.

Pay and bonuses in the financial sector

Last year the banking and credit crisis prompted significant intervention on remuneration and incentive arrangements in the financial services sector. As we enter the New Year, bonuses and pay remain in the spotlight with potential challenges to the Government’s 50% windfall tax, further moves from the FSA to clamp down on high earners and the passing of the new Financial Services Bill through Parliament.

Legal representation at disciplinary hearings

Employees often ask to be legally represented at disciplinary hearings. Until recently, employers felt confident in refusing such requests (unless the contract of employment or disciplinary procedure allowed it) because, under Section 10 Employment Relations Act 1999, the right is to be accompanied by a colleague or trade union official, not a lawyer. However, two cases have cast doubt on this approach.

Sick on holiday? What are the implications?

In 2009 there were a number of high profile decisions dealing with the relationship between holiday rights and sickness. Although these cases resolved some issues, they also left a number of questions unanswered. Given the current state of the law, employers face significant difficulties when dealing with holiday and absence, whether sickness absence or family leave.

2010 Employment rates and limits

A number of employment related payments changed on 1 February 2010. In summary:

• the maximum compensatory award for unfair dismissal fell to £65,300 (previously £66,200)
• the limit on the amount of a guarantee payment also fell to £21.20 (previously £21.50)

A week’s pay, for basic award and redundancy purposes, remains at £380 (until February 2011).

In addition, the EAT held at the end of last year in Da’Bell v National Society for the Prevention of Cruelty to Children that the Vento guidelines, used to assess compensation for injury to feelings in discrimination cases, should be increased to take account of inflation. Accordingly, the bands have increased as follows:

• The top of the lower band from £5,000 to £6,000
• The top of the middle band from £15,000 to £18,000
• The top of the upper limit from £25,000 to £30,000

Extended paternity leave rights

Since 6 April 2003, fathers (and other eligible employees) have been entitled to paternity leave on the birth or adoption of a child. However, in contrast to maternity leave (where at present mothers can take up to 52 weeks' maternity leave with 39 of them paid), fathers can only take either one whole week or two consecutive weeks' paid paternity leave.

Holiday and sick leave - new developments

In our February Briefing we reported on the uncertainties surrounding the interaction between holiday rights and sick leave as a result of conflicts between recent European Court of Justice (ECJ) decisions and the Working Time Regulations 1998 (WTR). Last week, in the first case to consider the issue of holiday and sickness absence since these ECJ decisions, an Employment Tribunal has now given some welcome clarity.

Time to train. Another headache for employers?

From 6 April 2010, employees with more than 26 weeks' service will have the right to request time off to undertake study or training. Whilst this right will initially only apply to businesses with 250 employees or more, its full impact will be felt from 6 April 2011 when the entitlement will be extended to all organisations, regardless of the number employees.