Welcome
In this month's eBulletin we examine some of the recent key changes to and developments in employment law including the introduction of the new "fit-note"; the new prohibition on blacklisting trade unionists; and recent amendments to family friendly working practices.
We also review the significant cases to have been decided in the last few months covering such topics as working time, variation of contractual terms and also an update on the long-running sickness and holiday debate. |
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News in Brief | |
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Click on any underlined heading to read a full article about that topic. |
Introduction of the new Fit-Note
The overhaul of the current sick note system and the introduction of the Statement of Fitness for Work or "fit note" took effect from 6 April 2010. The new system is designed to reduce the numbers of people on long-term sick leave by actively encouraging people back to work. |
Prohibition on blacklisting trade unionists
Trade unions have been in the news a lot recently, and in the case of Unite and its long running dispute with BA, not all the press has been positive. But even with the unions out of political favour, important new Regulations were brought into force designed to prevent the blacklisting of trade union members in the employment sphere. |
Family friendly changes
Family friendly rights are back in the spotlight with important changes to the amount of paternity leave new fathers can take and proposed amendments to the right of both parents to take parental leave. The rate of Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), and Statutory Adoption Pay (SAP) was also increased to £124.88 from £123.06, from 4 April 2010. |
Introduction of the new 50% tax rate
From 6 April 2010 the new 50% rate of income tax for high earners takes effect. The new rate will apply to all individuals with taxable income over £150,000 per annum. The rate bands for basic and higher rate tax remain frozen at 20% and 40% respectively. The basic rate limit also remains at £37,400 for the 2010/11 tax year. For more information on this or on any other aspect of tax law generally please contact the Tax Group. |
Acas figures published
Figures published by Acas recently show a rise in the number of employment disputes which are resolved before they reach the tribunal, with the number of calls to Acas' pre-claim conciliation service doubling in the last six months.
This is good news for both employees and employers: if employment disputes can be settled before they reach the tribunal, both parties will be spared much wasted time and costs. It is estimated that more than 5,000 tribunal claims have already been avoided which should also help to ease the backlog in the tribunal service.
'Solidus' Employment Claims Liability Insurance
The increase in the number of employment disputes being settled is a useful reminder that the sophisticated 'Solidus' insurance policy which we have developed for our clients with Hiscox (who will provide the insurance cover and are the underwriters under the policy) can assist our clients with the costs of dealing with allegations and claims before they reach a tribunal. Our Solidus insurance cover will help an employer manage the risk of a claim being made against it and can cover settled claims, even if an employment claim hasn't been lodged in the tribunal.
In summary, the Solidus insurance product covers (subject to the terms of the policy) legal costs, any compensation ordered by a tribunal against the employer and sums paid over by way of an agreed settlement. Clients taking up the Solidus policy will also have the reassurance of knowing that if a claim is brought against them, the Employment team at Harbottle & Lewis will represent them at no extra cost.
If you are interested in finding out more, please contact Howard Hymanson or Marian Derham. |
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Case Law Round-Up | |
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Click on any underlined heading to read a full article about that topic. |
Pay in lieu of holiday on termination of employment
The Employment Appeal Tribunal (EAT) has held that where there is a contractual provision for pay in lieu of accrued but untaken holiday on termination of employment, the right to payment will not be limited to the last year of employment only, unless the contract explicitly states that to be the case.
Beijing Ton Ren Tang (UK) Limited v Wang UKEAT/0024/09 |
Sickness and holiday (continued)
The employment tribunal has held that a worker who was prevented from taking annual leave because he was absent on sick leave was permitted to take his annual leave at another time, even if that meant carrying over annual leave into the next holiday year. The decision is significant as being the first tribunal decision to give effect to the ECJ ruling in Pereda v Madrid Movilidad SA (C-277/08) [2009] IRLR 959.
Shah v First West Yorkshire Limited ET/1809311/09 |
Uncertainty over the rate of holiday pay
The Supreme Court has referred certain questions concerning the calculation of holiday pay to the ECJ. The dispute centres on whether BA pilots should only be entitled to their basic pay during periods of paid annual leave or whether they should also be entitled to supplementary payments which they receive when flying.
British Airways plc v Williams and others [2010] UKSC 16 |
No 'inalienable' right to take holiday
The EAT has confirmed that the right to take annual leave is not "inalienable" and can be lost if an employee fails to comply with the notice requirement as set out in the Working Time Regulations 1998 or the contract of employment, providing the notice requirement is not operated by the employer in an unreasonable, arbitrary or capricious way.
Lyons v Mitie Security Ltd EAT/0081/09 |
Fundamental breach cannot be 'cured'
The Court of Appeal has held that when an employee resigns in response to an actual breach of contract which entitles the employee to treat the contract as repudiated, the employer cannot then take steps to "cure" the breach. The Court of Appeal further held that the breach should be assessed objectively and not by reference to the "range of reasonable responses" test.
Buckland v Bournemouth University Higher Education Corporation [2010] EWCA Civ 121 |
Employers' right to unilaterally vary contractual terms
The EAT has confirmed that Asda was entitled to rely on a term in its staff handbook which gave it the right to unilaterally vary its employees' contracts where the change reflected the needs of the business, without the need to first gain the express consent of the affected employees.
Bateman and others v Asda Stores Ltd UKEAT/0221/09 |
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Publications | |
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Family friendly working for men
The Government Equalities Office (GEO) has published guidance on the benefits of family friendly working for men designed to encourage more men to consider alternatives to full time working. A copy of the guidance is available from the GEO website. |
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Consultations | |
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Review of EU Working Time
The European Commission (EC) has begun a six-week consultation on the options for reviewing EU rules on working time. The consultation will cover an evaluation of the current provisions of the Working Time Directive 2003/88/EC (WTD). This is the first step in a comprehensive review of the WTD and comes after previous efforts to revisit the legislation stalled in April 2009. The first-phase consultation will close on 5 May 2010. |
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