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Managing your employment risk




Wie-men Ho, Principal Associate
4 October 2012
Agenda


• discrimination update

• latest developments in restructuring and redundancies

• Enterprise and Regulatory Reform Bill
Harassment related to a protected
characteristic
• unwanted conduct “related to” a protected characteristic:
   – encompasses claims based on association or perception

• Third party harassment – the “three strikes” rule:
   – employer liable for repeated discriminatory harassment
     of their staff where inadequate steps have been taken
     to prevent it
   – currently, Gov’t consultation to revoke this provision
      • note – even if this change is adopted, may not put
         an end to claims linked to third party harassment...
Duty to make reasonable adjustments

• Cordell v FCO, EAT 2011
   – profoundly deaf employee seeking English lipspeaker
     support in an overseas diplomatic post at a cost of
     £250,000 p.a.
   – EAT held that the employer’s failure to make
     adjustments was not unreasonable due to the high
     costs involved
   – whilst cost is not decisive in deciding whether an
     adjustment is reasonable, this does not mean that it is
     not relevant
   – C’s treatment was not because of her disability, but due
     to the costs of the necessary adjustments
Duty to make reasonable adjustments

• Lancaster v TBWA Manchester, EAT, 2011
   – employee with panic disorder and social anxiety
     disorder
   – should subjective redundancy selection criteria relating
     to communication skills be removed?
   – EAT held the employer did not breach its duty to make
     reasonable adjustments by failing to adjust its
     redundancy selection criteria
   – any such adjustment would not have prevented that
     employee from being selected in any event
Redundancies: is a reduction in
headcount required?
• Packman t/a Packman Lucas Associates v Fauchon
   – claimant (Fauchon) provided book-keeping services
   – diminishing need for book-keeping services due to IT
     software
   – claimant refuses to work reduced hours and is
     dismissed
   – ET finds unfair dismissal and Claimant entitled to
     redundancy pay
   – EAT upholds decision – focus should be on employer’s
     requirement for employees generally to carry out work
     of a particular kind – not a reduction in headcount
Consultation on proposed changes to
collective redundancy rules
• June 2012 – BIS announced a consultation on collective
  redundancies with a view to “revitalising” the rules on
  collective consultation

• consultation closes on 19 September 2012

• three objectives:
   – 90 day minimum consultation period will be reduced to
     either 30 days/45 days for 100 or more employees
   – introduction of non-statutory code of practice
   – improved government guidance
Enterprise and Regulatory Reform Bill
2012-13
• introduced 23 May 2012
• Part 2 concerns employment law:
   – pre-claim ACAS conciliation – mandatory new procedure
   – unfair dismissal compensatory award: power to vary
      statutory cap
   – appointment of Legal Officers
   – Employment Appeal Tribunal judges to sit alone
   – settlement agreements
   – financial penalties for losing Respondents
   – whistleblowing must be done in public interest
   – indexation of a week’s pay
Enterprise and Regulatory Reform Bill
2012-13 (cont/d)
• Part 5 addresses the “reduction of legislative burdens”
  including from an employment perspective:-

   – curbing the duties and powers of the Equality and
     Human Rights Commission
   – giving the government the power to include sunset and
     review clauses in secondary legislation
Enterprise and Regulatory Reform Bill
2012-13 (cont/d)
• 20 June 2012 – government announced further proposals on
  director’s remuneration including:
   – a binding vote on future remuneration policy at least every 3
      years
   – shareholder approval will be required if the directors wish to
      change the policy
   – details of a company’s approach to exit payments to be
      included in the future remuneration policy and therefore
      subject to the binding vote
   – when a director leaves, the Company will be required to
      announce the amount the director received
Any Questions?

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Managing your employment risk

  • 1. Managing your employment risk Wie-men Ho, Principal Associate 4 October 2012
  • 2. Agenda • discrimination update • latest developments in restructuring and redundancies • Enterprise and Regulatory Reform Bill
  • 3. Harassment related to a protected characteristic • unwanted conduct “related to” a protected characteristic: – encompasses claims based on association or perception • Third party harassment – the “three strikes” rule: – employer liable for repeated discriminatory harassment of their staff where inadequate steps have been taken to prevent it – currently, Gov’t consultation to revoke this provision • note – even if this change is adopted, may not put an end to claims linked to third party harassment...
  • 4. Duty to make reasonable adjustments • Cordell v FCO, EAT 2011 – profoundly deaf employee seeking English lipspeaker support in an overseas diplomatic post at a cost of £250,000 p.a. – EAT held that the employer’s failure to make adjustments was not unreasonable due to the high costs involved – whilst cost is not decisive in deciding whether an adjustment is reasonable, this does not mean that it is not relevant – C’s treatment was not because of her disability, but due to the costs of the necessary adjustments
  • 5. Duty to make reasonable adjustments • Lancaster v TBWA Manchester, EAT, 2011 – employee with panic disorder and social anxiety disorder – should subjective redundancy selection criteria relating to communication skills be removed? – EAT held the employer did not breach its duty to make reasonable adjustments by failing to adjust its redundancy selection criteria – any such adjustment would not have prevented that employee from being selected in any event
  • 6. Redundancies: is a reduction in headcount required? • Packman t/a Packman Lucas Associates v Fauchon – claimant (Fauchon) provided book-keeping services – diminishing need for book-keeping services due to IT software – claimant refuses to work reduced hours and is dismissed – ET finds unfair dismissal and Claimant entitled to redundancy pay – EAT upholds decision – focus should be on employer’s requirement for employees generally to carry out work of a particular kind – not a reduction in headcount
  • 7. Consultation on proposed changes to collective redundancy rules • June 2012 – BIS announced a consultation on collective redundancies with a view to “revitalising” the rules on collective consultation • consultation closes on 19 September 2012 • three objectives: – 90 day minimum consultation period will be reduced to either 30 days/45 days for 100 or more employees – introduction of non-statutory code of practice – improved government guidance
  • 8. Enterprise and Regulatory Reform Bill 2012-13 • introduced 23 May 2012 • Part 2 concerns employment law: – pre-claim ACAS conciliation – mandatory new procedure – unfair dismissal compensatory award: power to vary statutory cap – appointment of Legal Officers – Employment Appeal Tribunal judges to sit alone – settlement agreements – financial penalties for losing Respondents – whistleblowing must be done in public interest – indexation of a week’s pay
  • 9. Enterprise and Regulatory Reform Bill 2012-13 (cont/d) • Part 5 addresses the “reduction of legislative burdens” including from an employment perspective:- – curbing the duties and powers of the Equality and Human Rights Commission – giving the government the power to include sunset and review clauses in secondary legislation
  • 10. Enterprise and Regulatory Reform Bill 2012-13 (cont/d) • 20 June 2012 – government announced further proposals on director’s remuneration including: – a binding vote on future remuneration policy at least every 3 years – shareholder approval will be required if the directors wish to change the policy – details of a company’s approach to exit payments to be included in the future remuneration policy and therefore subject to the binding vote – when a director leaves, the Company will be required to announce the amount the director received