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Monthly update December 2007
Welcome to BusinessHR's December update
Topics:
- Helpline cover over the Christmas period
- Employment law update
- Employment judges
- Forthcoming changes
- Age discrimination - a further update!
- Some interesting tribunal cases...
- Disability discrimination
- Religious discrimination
- TUPE: preserves employment contracts but shouldn't improve
them
- Be consistent in your application of your rules!
- Working with children and vulnerable adults
- ACAS Code of Practice on time off for union reps to be
strengthened
- Agency workers update
- Health and safety update
- 36 million days lost to ill-health and injury
- Smoking - update
- Language problems can create a risk
- Do check out your employees who drive on business!
- New on the website
- And finally...
- New Year's resolutions? A change of career?
Helpline cover over the Christmas period
We are having a team awayday on Wednesday 12 December and our
helpline will be closed for the day as a result. In emergencies
only, please call the helpline and leave a message - we will
check for messages regularly and call you back as soon as
possible.
Our helpline hours over the Christmas period will be as follows:
- Monday 24 December - 9.00am - 1.00pm
- Tuesday 25 December - closed
- Wednesday 26 December - closed
- Thursday 27 December - 10.00am - 3.00pm
- Friday 28 December 10.00am - 3.00pm
- Monday 31 December 9.00am - 1.00pm
- Tuesday 1 January - closed
Then back to normal!
Employment law update
Employment judges
As from 1 December, employment tribunal chairmen are retitled
"employment judges".
Forthcoming changes
The Queen's Speech last month contained some proposed changes to
note:
- firstly the proposal to extend the right to request flexible
working to parents of school-age children. Currently this right
is restricted to those with children under 6 (or under 18 if
disabled). Whilst newspaper reports have suggested that the
extension may be for children up to 17 years, the upper age
limit has not yet been decided. If the age limit of the child
were raised to 17, 4.5 million parents could potentially
benefit. A review will take place in Spring 2008, followed by
formal consultation. The existing procedure for making a
flexible working request, and the grounds for refusal will
remain unaltered. Government figures show that 91% of workplaces
receiving requests for flexible working in the last year approved
them.
- secondly, a Pensions Bill that will aim to get more of us
saving for our retirement by placing "a duty on every employer
to contribute to good quality workplace pensions for their
employees." It will be compulsory for employers to contribute
to the new personal account pension scheme, which employees will
automatically join when they start a new job, unless the employer
provides an alternative which is as good or better. The scheme is
due to be introduced from 2012.
- thirdly, an Employment Bill which will abolish the statutory
dismissal and disciplinary and grievance procedures. It is not
yet known what will replace these but they are expected to go in
April 2009 - so we have another year at least! The Bill will also
amend the legislation concerning exclusion from membership of
trade unions on political grounds (allowing them to do this if
membership of a political party is incompatible with the union's
aims) and will clarify and strengthen the enforcement framework
for the National Minimum Wage and employment agency standards
(see below for more details on the latter).
- an Education and Skills Bill and a Apprenticeships (Draft)
Bill. The former will raise the school leaving age to 17 in
2013, and 18 in 2015. Those who take jobs before they are 18
will have to do at least one day of accredited training. The
Apprenticeships Bill will give all 16 to 18-year-olds who meet
the entry criteria, entitlement to an apprenticeship by 2013.
The Government has also announced a major expansion of
apprenticeships to increase overall places from 250,000 to more
than 400,000 over the next three years.
In addition, the Low Pay Commission is to investigate whether
minimum wage regulations should be extended to cover all
apprenticeships. (Apprentices under 18, and older workers in the
first year of their apprenticeship, are currently exempt.)
Finally, the single equality bill, which will bring together the
nine pieces of existing discrimination legislation and around 100
pieces of ancillary legislation, will not now become law until
2009 at the earliest.
Age discrimination - a further update!
Not what we were expecting!
Following last month's information regarding the Spanish case on
compulsory retirement (Palacios de la Villa v Cortefiel
Servicios SA), it seemed more likely that the challenge to
our UK retirement age of 65, currently being brought by Heyday,
would not succeed. However, the EAT has decided that an
existing claim - Johns v Solent SD Limited - should be
"stayed" (put on hold) until the outcome of the Heyday case is
known. Following this, the President of the Employment
Tribunals has directed that all similar cases should also be
stayed. This affects claims that have already been lodged as
well as future ones. The direction only affects claims brought
in England or Wales; we understand that Scottish cases will be
referred to chairmen for individual decisions.
The Heyday case is unlikely to be resolved until 2009 - as it
may need two visits to the European Court of Justice (ECJ)
before going back to the High Court to decide the key issue of
whether UK law is justified. And the High Court may refer the
case back to the ECJ for further guidance!
Even if the Heyday challenge is successful, it will be unclear
as to whether private employers can still rely on the UK
legislation.
In the meantime, the first case of discrimination on the grounds
of being too young has been won! Megan Thomas, aged 20, was
dismissed from her job as a membership secretary at the Eight
Member club in London after her six-month probation period.
She claimed "I was told I was too young and if they had met me a
few years later there may not have been a problem. They also said
that I was deceitful, sly and lacked integrity, which was hurtful
and untrue." The employer denied discrimination, claimed that
the reason for the dismissal was because she had made some
mistakes. They pointed out that many waiters and waitresses at
the club were younger than she was, but lost their case.
The award is expected to be about £2000 - a relatively low
amount because Megan Thomas found another, higher paid, job
within four days of being dismissed, so will only be compensated
for injury to feelings and unpaid notice.
Some interesting tribunal cases...
Disability discrimination:
A reminder to carefully check your selection criteria for
potential discrimination when making redundancies! A man with
learning difficulties was one of 24 gardeners employed by the
London Borough of Lambeth who brought claims for unfair
dismissal. The selection criteria used by the borough was found
to be weighted against disabled workers as it focused on the
number of days of absence and whether staff drove a car or not.
The claimant was awarded £550,000 for disability
discrimination. He was aged 34 when he lost his job - the
compensation covers loss of earnings until retirement.
Religious discrimination:
A Muslim woman, Bushra Noah, is claiming religious
discrimination against the owner of a hair salon in King's Cross
after she was refused a job for wearing a headscarf. The owner
of the salon insisted that staff display their own hairstyle to
the public. She said: "When a potential client walks past on the
street, they look into a salon at the stylists to get an
impression of what haircut they are going to get there. It has
nothing to do with religion. If an employee were wearing a
baseball cap or cowboy hat I would ask them to remove it at
work,."
Noah, who apparently has been rejected for 25 different
hairdressing jobs after interviews, is suing for more than
£15,000 for injury to feelings and an unspecified sum for
lost earnings. The case will be heard in January.
TUPE: preserves employment contracts but shouldn't improve
them:
In Computershare Investor Services PLC v Mrs A Jackson ,
Mrs Jackson was transferred to Computershare. Computershare
offered an enhanced redundancy payment scheme, which gave
employees who had joined prior to March 2002 more favourable
terms than those who joined after this date. Mrs Jackson joined
the scheme following the transfer of her employment in 2004.
When she was made redundant in 2005, her redundancy payment was
calculated according to her length of service backdated to 1999
but on the 'post-2002' terms. Mrs Jackson argued that she should
be treated as a pre-2002 joiner and should receive the (better)
terms.
The Court of Appeal confirmed that the purpose of TUPE is to
safeguard the existing rights of employees on a transfer, not to
give them additional rights or to improve their terms. So whilst
employers may choose to improve the contractual terms of
transferring employees (usually to bring them into line with
other colleagues), this case confirms that the Regulations do
not require them to do so.
Another TUPE case concerns employees who objected to working for
their new employer after the transfer had taken place.
In New ISG Ltd v Vernon, the new employer sought to rely
on the restrictive covenants in the employees' contracts of
employment, claiming that these had transferred over with them.
Whilst this would normally be true, in this case, the employees
had not known who the new employer was, as this information had
been withheld from them. The transfer took place, and the
employees objected two days after the transfer, once they
discovered the identity of the new employer and realised they
did not want to work for it.
The court ruled that a valid objection can take place after the
date of transfer, where the employee does not initially know the
identity of the transferee and objects promptly as soon as s/he
finds out. The objection takes effect retrospectively and
prevents TUPE applying. Therefore the restrictive covenants had
not transferred to the new employer and they could not rely on
these.
Be consistent in your application of your rules!
Do your absence notification rules require your employee to
phone in, or do you allow other means of notification (eg email,
text messages etc)? Ensure that you are clear about this, and
that you apply your rules consistently!
In December 2006, Mr Morrison, a sales advisor, called his
employer to say he would be off sick because his brother was
dying. When his brother died, he sent a text to his boss to say
he would be off until after the funeral. He returned to work
after this, but then went off sick again and sent text messages
to his employer on five consecutive days saying he was too
depressed to come into work. He also informed his boss that his
doctor had signed him off work for two weeks owing to
depression. On return to work, he was called to a disciplinary
hearing and dismissed for failing to follow company procedures.
The employer's policy stated that absences should be notified by
phone or by sending in a sick note.
The tribunal, unsurprisingly, weren't happy with this and found
the dismissal unfair. Mr Morrison had not been warned, following
his previous return to work, that text messages were
unacceptable. The tribunal "did not believe that the claimant
had been told he must not notify absence by way of text
messages. Throughout these events, the [employer was] perfectly
well aware of the reason for the claimant's absence. "
Mr Morrison was awarded £6977 for unfair dismissal.
Working with children and vulnerable adults
The government has starting consultation on its implementation
plans for the Safeguarding of Vulnerable Groups Act, and is
seeking views on who the scheme will protect, who will need to
join the scheme, how to refer information to the scheme, how
applications will be made and how the scheme will be phased in.
The Act is due to come into force next autumn: its main
provision are as follows:
- It will be a criminal offence for a barred individual to
even seek a job in regulated activity working in close contact
with children or vulnerable adults.
- Employers and parents will be able to make an online check
that a prospective employee is not barred.
- Penalties, including fines of up to £5,000, will apply
to employers who fail to carry out the necessary checks or
recruit people who are not members of the scheme.
A new body, the Independent Safeguarding Authority, will decide
who should be included in the lists of those barred from working
with children and/or vulnerable adults.
If your employees work with children and vulnerable adults, you
may wish to view the guidance and policies we have recently
added to the website on this topic - see "new on the website"
below.
ACAS Code of Practice on time off for union reps to be strengthened
The Government has recommended that the above code of practice,
which recommends the time and resources that employers grant
union reps to do their jobs, should be strengthened. Government
figures suggest that properly trained and supported reps can
reduce absenteeism, improve job retention rates and boost
productivity.
Agency workers update
When do agency workers become employees?
In the case of Brook Street Bureau (UK) Ltd v Dacas, the
Court of Appeal recommended that, when considering the status of
an agency worker, tribunals should consider the possibility of an
implied contract of employment. More recent EAT decisions have
questioned this and in James v Greenwich Council the EAT
stated that in most circumstances this will not be appropriate
and that time alone does not necessarily imply a contract of
employment. They felt that such a contract is unlikely to arise
where the arrangements with the agency are accurately recorded
and the relationship is managed consistently with those
documents.
The James case is going to the Court of Appeal, and the
President of the Employment Tribunals has now directed
employment tribunals to put on hold all current and future
claims regarding the employment status of agency workers until
the judgement.
In the meantime, the government's consultation on agency workers
has concluded and resulted in revised regulations which will
come in to force in April 2008.
In summary, the Conduct of Employment Agencies and Employment
Businesses (Amendment) Regulations 2007, provide:
- Agency charges - whilst agencies can provide, and
charge, applicants for additional services such as writing CVs,
offers of work cannot be conditional upon the work-seeker using
and paying for the additional services. As from April, those who
choose to accept the offer of services will be able to
subsequently withdraw from them (on notice), without suffering
any detriment.
- Drivers - clearer guidance for driver agencies and the
companies that use their services, regarding their working hours
and limits on these.
- Short-term assignments - the requirements in the existing
regulations for information to be provided will be relaxed for
those working on assignments of fewer than five days provided
the agency's terms are sufficiently clear.
- References - where an agency is unable to disclose the
appropriate references where confirmation of, for example
professional qualifications or references for those working with
vulnerable persons are required, it will not only have to inform
the hirer but also explain the steps it has taken to try to
obtain these. In addition, the current obligation on the
agency to inform the hirer if information suggesting a
work-seeker may be unsuitable subsequently comes to light will
be further clarified to confirm that this overrides any duties
of confidentiality to the work-seeker.
Further changes re agency workers will take place if the draft
European Directive on Agency Workers progresses.
Health and safety update
36 million days lost to ill-health and injury
New statistics from the Health and Safety Commission show that:
- 36 million days were lost due to work-related ill health and
workplace injury in the last year.
- 30 million days were due to work-related ill health
- 2.2 million people suffered from an illness they believed
was caused or made worse by their current or past work.
- 241 workers were killed at work and 141,350 other injuries
to employees reported under RIDDOR.
Smoking - update
The first publican has been convicted of breaching the smoking
ban which came into force this summer. Hamish Howitt of
Blackpool's opposition to the ban was well known - he had
covered his bar with posters and banners and set up a website
promoting his political party. Mr Howitt was given a written
warning in July 2007, a number of fixed penalty notices were
subsequently issued to customers on the premises and on 19 July,
the council served him with seven court summonses. However,
despite this, he still continued to allow smoking on the
premises and another five were issued by the end of the month.
Mr Howitt was fined £500 and ordered to pay £2000 in
prosecution costs.
Whilst on this topic, a reminder to ensure that you comply with
the requirement to have "no smoking" signs in vehicles.
A survey by Vansunited.co.uk found that just 51% of the van
drivers they questioned had been provided with a "no smoking"
sticker for their van, and 44% were unaware of the new smoking
law regarding smoking in company vehicles.
Any vehicle used to transport members of the public or used by
more than one person should be smoke-free - regardless of
whether they are in the vehicle at the same time. "No-smoking"
signs should be displayed in each area of the vehicle in which
people can sit. Fines for non-compliance include a fine of up
to £1,000 for failing to display the signs, and a fine of up
to £2,500 for failing to prevent smoking in vehicles covered
by the ban.
Language problems can create a risk
A recycling company in Uxbridge, Ethos Recycling, was recently
fined £35,000 following an accident in which a Romanian
worker lost a leg. The worker said that he had not understood
the company's health and safety systems.
The Approved Code of Practice associated with the Management of
Health & Safety at Work Regulations 1999 says that employers
should make special arrangements for employees with limited
English in order to ensure that they understand health and
safety procedures. Such arrangements could include using more
symbols, having a more thorough induction programme, appointing
a translator for these sessions, providing translations of the
employee handbook or important policies etc. So if you employ
workers who are not fluent English-speakers, do ensure that they
understand your rules and procedures - especially your Health and
Safety and other critical rules!
Do check out your employees who drive on business!
If you have employees who use their own vehicles for business
travel, do ensure that you make appropriate checks, as you may
be liable for any accidents they may have whilst driving on
business.
According to the HSE, there are 150 deaths and serious injuries
each week in crashes involving someone driving on business. The
police therefore have launched a new campaign to reduce this,
and will prosecute employers who fail to ensure their employees
drive safely. Following a collision, the police will check
whether the employer had ensured the vehicle has an MOT and
valid insurance, whether managers made excessive demands on the
driver and required him/her to drive whilst tired. Apparently
more than half of companies fail to check that employees using
their own cars for work have insured them for business use; only
26% ask their employees to produce an MOT certificate and 17%
make enquiries as to whether they have been maintained regularly
- so there could be some problems here!
So:
- check the driving licences of all new appointments who are
required to drive on business, prior to them doing so - take a
photocopy and keep it on file
- make a periodic check thereafter - perhaps annually when you
also update employee details and next of kin etc
- you may wish to take photocopies of MOT and insurance
documents and/or to add a declaration to your expense claims
which requires the employee to sign to confirm that his/her
vehicle is insured for business use and fully MOT'd
- check the hours of work of your employees when driving on
business and ensure that they take suitable breaks and plan
their journeys properly
If you don't have a policy on driving on business, you may like
to consider one - see our template on the website:
/docs/pol/drivers/index.html
When the Corporate Manslaughter Act comes into force in April
2008 it will be easier to bring cases against companies that
cause death through negligence - so take action now!
New on the website
We've been pretty busy this month and have added the following to
the website: a guide to organising work-related functions (based
on last month's hot topic); policies on working with volunteers,
on working with children, young people and vulnerable adults and
on work experience; guides to apprentices and working with
children and vulnerable adults.
See:
/docs/guides/functions.html
/docs/pol/volunteers/index.html
/docs/pol/vulnerable/index.html
/docs/pol/experience/index.html
/docs/guides/apprentice.html
/docs/guides/child.html
We've also added customisable versions of the maternity,
adoption and paternity policy, the parental leave and time off
for dependants policy and the maternity, adoption and parental
leave guidelines for use by those clients who offer enhanced
benefits in addition to the statutory ones.
Can we also remind you to take a look at our new premium service
which costs just £100 per year extra, and offers you not only
a wider range of documents, but, more importantly, allows you to
store your customised versions of our template policies on our
server and to then update and amend these easily and quickly -
thus saving you lots of time and making updating your policies
an easy and effective task.
See: /intro/premiumservice.html
And finally....
New Year's resolutions? A change of career?
If you're thinking of changing your job, you might be interested
to learn that your choice of career may also affect your life
expectancy! New figures issued by the Office for National
Statistics show that, whilst life expectancy has risen for all
social classes over the last 30 years, and whilst women fare
better than men:
- people in professional occupations (eg doctors, accountants,
professionally qualified engineers) have the longest expectation
of life - (male life expectancy 80 years; female 85.1 years),
- managerial and technical occupations (eg managers,
journalists, teachers) - 79.4 and 83.2 years respectively
- skilled non-manual (eg clerks, cashiers, retail staff) 78.4
and 82.4 years
- skilled manual (eg supervisors, plumbers, electricians,
goods vehicle drivers) 76.5 and 80.5 years
- partly-skilled (eg warehouse, security guards, care
assistants, waiters and waitresses) - 75.7 and 79.9 years
- unskilled manual occupations (labourers, cleaners and
messengers) fare the worst - (male expectancy of 72.7 years;
female 78.1 years)
The report on life expectancy by social class is available on
the National Statistics website at
www.statistics.gov.uk/StatBase/Product.asp?vlnk=8460
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