08/09/2008 EMPLOYMENT LAW - RECENT DEVELOPMENTS
Certain parts of the Employment Bill 2007 are expected to come into force some time this year, but as yet no date has been fixed. These changes include:-
- A fast-track procedure for settling certain types of dispute, most likely monetary disputes without the need of a hearing, but simply decided on documentation submitted to the Tribunal which will reach a Judgment without hearing oral evidence.
This will substantially cut the cost to employers of protracted proceedings with lengthy hearings.
However, be aware that this will only be used in a limited amount of claims, and with the consent of both parties.
2 The Employment Bill makes provision for a worker who mounts a successful claim for unlawful deduction of wages, or failure to pay redundancy pay, not only to receive the money unlawfully deducted or redundancy pay, but also to obtain compensation for “financial loss” suffered as a result of not receiving the pay.
At its lowest, the compensation could simply mean payment of interest on regular household bills that were in arrears as a result of the deduction from wages.
At its highest, the employer might have to compensate a worker whose house is repossessed, where a major factor in repossession was that the mortgage was not paid due to an unlawful deduction.
EMPLOYERS BEWARE! The “financial loss” will be awarded “as the Tribunal considers appropriate” and this provides very little guidance for employers and legal practitioners alike, as to the likely quantum consequences.
- Failure to pay at least the national minimum wage will be subject to penalties from HM Customs and Excise.
An employer will receive notice ordering the employer to pay the “arrears” to the worker, and a financial penalty of 50% of the outstanding amount. That penalty has a lower limit of £100.00 and an upper limit of £5,000.00, and will act like a fine.
Non-compliance with the Notice of Underpayment will result in the Customs & Excise bringing a claim against the employer on behalf of the worker. This is significant as it means the worker does not have to bring an action in person.
For further details of these, and any other aspects of employment law, telephone ………
EQUALITY
We live in a multicultural society where people live longer and expect to work for longer. People with disabilities are also easily assimilated into the workforce.
RISK
- If an employer discriminates against an employee on the grounds of sex, race, disability, sexual orientation, religion, belief or age, it is unlawful and the employer will be liable to pay compensation.
- There is no upper limit on that compensation.
- An employer can be liable if he discriminates directly against an individual or has a work practice that indirectly discriminates against an employee.
- An employer can be liable even if the discrimination is by a fellow employee.
- Discrimination can also occur at the recruitment stage
SOLUTION
- Employers should have policies in force to prevent discrimination which is unlawful, and to aid recruitment.
PARENTS AND CARERS
Many parents and other people combine work with caring for dependants. They have specific rights protected by law.
- The right to take unpaid parental leave;
- The right to take time off to care for dependants in an emergency;
- The right to attend antenatal classes;
- The right to take maternity leave and additional maternity leave and receive maternity pay and to return to the same job;
- the right to take adoption leave and adoption pay;
- The right to request flexible working hours.
If an employer breaches these rights, it could lead to an action for unfair dismissal, and/or discrimination and/or compensation
DISPUTES, GRIEVANCES, DISCIPLINE AND DISMISSAL
Conflict at work between a worker and management, or between co-workers, can develop into major issues if they are not dealt with quickly and fairly.
- An employer must have a policy and procedure for dealing with grievances;
- If an employer is considering dismissing an employee for whatever reason, a minimum disciplinary procedure must be followed;
- An employee is entitled to a minimum period of notice of termination of employment. FAILURE to comply could lead to claims of constructive or unfair dismissal, plus additional compensation for breaches of procedure.
CONDITIONS OF WORK
All organisations need to pay close attention to the administration of staff, including keeping full records for holidays, absences, and pay. It is also important to comply with statutory requirements, including information and consultation of employees and the working time regulations.
- All employees are entitled to a written statement of terms of employment;
- If an employer wishes to impose certain restrictions at work, such as a dress code or use of e-mail and/or the internet, it is essential that the employer has written policies that are available to the employee;
- All employees are entitled to be paid at least the minimum wage;
- All employees are entitled to an itemised payslip;
- Except in certain circumstances, the employer must not make unauthorised deductions from an employee’s wages;
- Hours of work and periods of rest must comply with the Working Time Regulations;
- An employer must ensure the safety of the workforce in the workplace;
FAILURE to comply can lead to an unmotivated workforce, claims for compensation and prosecution for offences.
REDUNDANCY AND TRANSFER OF BUSINESS
Uncertainty over job security is upsetting to workers and can be potentially disastrous for the organisation. Employers should ensure that they have clear strategies about rights and issues surrounding such things as redundancy, lay offs and transfers of business, and that workers are aware of their rights in those situations.
- Employees who qualify have a right to statutory redundancy pay;
- Selection for redundancy should be based on fair, objective criteria, and applied equally to all employees;
- Employers should consult with employees, either through employee representatives where applicable, or individually;
- An employee’s rights, with certain exceptions, will, under the contract of employment, transfer in its entirety, upon a transfer of business.
FAILURE to undertake an appropriate selection and consultation procedure can lead to claims for unfair dismissal, plus a “protective award” in addition;
- An attempt to change a transferring employee’s contract could, with exceptions, lead to a claim for constructive unfair dismissal.