Employment Rules Spring 2015

Spring 2015 Employment Law Update

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Spring Edition 2015

I am delighted to enclose the Spring edition of our regular publication, Employment Rules. I do hope that you find it both of interest and assistance.
I would welcome any feedback you have on our publications or even the opportunity to discuss with you how we may be of assistance to you or your business. Similarly, should you have any topics which you would like us to cover in future issues then please do let me know.
Please do not hesitate to contact us if you have any questions.

Holiday Pay and Commission
Following the decision of the Court of Justice of the European Union (CJEU) in Lock v British Gas Trading Limited that an employee's holiday pay must take account of his commission payments, the Employment Tribunal (ET) has decided that it is possible to read words into the Working Time Regulations 1998 (WTR) in order to overcome the incompatibility between domestic law and EU law. Following the decision of the Court of Justice of the European Union (CJEU) in Lock v British Gas Trading Limited that an employee’s holiday pay must take account of his commission
payments...READ MORE

Changing Terms of Employee Contracts
In a vitally important decision for public sector workers, the High Court has ruled that a government department had no lawful right to unilaterally change the terms of its employees’ contracts to their detriment without first obtaining their consent.

Staff handbooks given to all Department for Transport (DfT) employees laid down detailed procedures for dealing with absences on sick leave. After 21 days of such leave in any 12-month period, workers would first be talked to informally. However, if attendance issues continued, written warnings and even dismissal could result...READ MORE

Disabled IT Worker Suffered Discrimination
A disabled IT specialist who was cut out of the communication loop by his employer whilst on long-term sick leave has triumphed in a discrimination claim and will receive thousands of pounds in compensation following a tribunal ruling.

The man had been suffering from stress and on sick leave for many months before his employer shut down his access to its internal email and Internet. As a result, he was not informed in a timely manner of an opportunity to benefit from a share options scheme. The delay in communication put him in a financial dilemma and caused him additional stress which culminated in his hospitalisation....READ MORE

Defining Disability Remains a Quandary
In a case which illustrates the continuing quandary of accurately defining the concept of disability, a services manager who claimed that he was discriminated against due to hearing impairment and a painful condition affecting his shoulder has had his hopes of compensation reborn.

The man, who worked for a Citizens Advice Bureau, lodged a disability discrimination claim after he was made redundant. His case was, however, rejected after an Employment Tribunal (ET) found that he had ‘exaggerated’ the problem with his shoulder and that his hearing difficulties were unlikely to last more than 12 months.....READ MORE

One Employee Can Be an 'Organised Grouping'. Court Rules
In what some may view as a counter-intuitive decision, but one which has significant implications for employers, the Court of Appeal has ruled that a single employee was by herself capable of forming an ‘organised grouping’ within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

The property manager had worked for an international firm of estate agents and bore sole responsibility for an important client’s portfolio of properties in Holland. After the firm reorganised its business, ....READ MORE

Smoking Policy - Time to Update for E-Cigarettes
E-cigarettes are becoming more and more popular and, as is common when an innovation occurs, the law struggles to keep up.

In a recent case, the Employment Tribunal (ET) had to consider a claim for constructive dismissal brought by a school canteen worker who contended that her employer was wrong to bring disciplinary proceedings against her for smoking an e-cigarette in view of the pupils before she started work in the morning. The disciplinary proceedings were brought after the...READ MORE

Can An Unpaid Worker Be An Employee? Judges Say Yes
A businessman who worked full time as a director of a start-up company – but was paid not a penny for his toil as the business fought to establish itself – was nevertheless entitled to full employment rights, the Court of Appeal has ruled.
The man had invested heavily, both in money and time, in trying to make the new venture a success. His fellow director was paid £60,000 a year for his work, but he received no remuneration at all before his directorship was terminated....READ MORE

Annual Inflation-Linked Changes in Tribunal Awards
The Employment Rights (Increase of Limits) Order 2015, which details the annual inflation-linked changes in limits on the compensation amounts which can be awarded by employment tribunals, was laid before Parliament on 13 February 2015 and applies where the appropriate date falls on or after 6 April 2015.

The main changes are:

The maximum amount of a week's pay for the purpose of calculating a redundancy payment, or for various awards including the basic or additional award of compensation for unfair dismissal, increases from £464 to £475; and
The statutory maximum compensatory award for unfair dismissal increases from £76,574 to £78,335.

In July 2013, a 12 months' pay cap was introduced on the unfair dismissal compensatory award if this amount is less than the statutory maximum or overall cap. Where the employee's annual salary exceeds the limit, the statutory maximum applies.
There is no statutory cap on the amount a tribunal can award in discrimination cases.

For further information on this or any other Employment Law matter please do not hesitate to contact Matthew Miles on 020 3725 4011.