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Employment Law Breakfast
       Briefing
        March 2013
Review of 2012
 Edward Jenneson
Qualifying period for unfair dismissal
Judges sitting alone
Witness Statements
Increase costs award
      Increase deposit award
Increase cost of Tribunals - now at
    record £84 million per year
Looking at mediation before litigation
Increase in statutory payments
National minimum wage - 1 October 2012
          £6.08 to £6.19 - 21 and over
          £2.60 to £2.65 - Apprentices
         Youth rate unchanged at £4.98
Last possible date to legally retire an employee!
Employment Law Reform
      Donna Ingleby
Introduction
•   The Enterprise Regulatory Reform Bill
•   The Employment Tribunal Rules Review
•   The Children and Families Bill
Dates to Look out for in Spring
2013

8 March
increase in unpaid
                   1 April
parental leave (13
weeks to 18        the Legal Aid
                                     6 April
weeks).            Sentencing and
                   Punishment of     Changes to
                                                        9 April
                   Offenders Act     collective
                   2012.             consultation.      Close of ACAS
                                                                          11 April
                  Remove new           One hundred plus consultation on
                  employment cases redundancies at      the Code of       Close of
                  from the scope of one establishment Practice for        Government
                  legal aid, except in - consultation   settlement        consultation on
                  relation to          reduced to 45    agreements.       repealing
                  discrimination       days.                              elements of TUPE.
                  complaints.                                             Regulation of
                                                                          employment
                                                                          businesses and
                                                                          employment
                                                                          agencies.
Summer 2013
•   Portable online DBS (previously CRB)
•   Review of Agency Workers Regulations
•   Whistle blowing reform
•   New Tribunal fees and rules
•   Making Settlement Agreements easier
•   Twelve month cap on unfair dismissal compensation
Autumn 2013
•   Employee shareholder employment status
•   TUPE Regulation reforms
Spring 2014
•   The right to request flexible working for all employees
•   ACAS Early Conciliation introduced
•   The introduction of Employment Tribunal penalties
Looking forward 2015
•   Shared parental leave
•   Changes to the Equality Act 2010
A Focus on Apprenticeships
         Lottie Pigg
The Old Regime
Common Law Apprenticeship
1. Primary purpose training
2. Secondary purpose employment
3. Cannot dismiss on same grounds as an ordinary
   employee
•   Learoyd v Brook (1891)
    – Apprentice’s actions must be so extreme that the apprentice is
      effectively unteachable
•   Dunk v George Waller & Son Ltd (1970)
    – Lack of initiative and an unsatisfactory college report did not
      justify dismissal
•   Wallace v C A Roofing Services Ltd (1996)
    – Redundancy only permitted if potential closure or fundamental
      change to the character of the business
Common Law Apprenticeship
•   Risks:
    – Wrongful Dismissal
    – Compensation based on lost earnings and loss of expected
      earnings on achieving the qualification
The New Regime
Apprenticeships, Skills, Children and Learning Act
2009 (“ASCLA 2009”)
• Primary purpose employment
• Apprenticeship Agreement two main requirements:
   – The Apprentice must undertake work for the employer
   – The Apprenticeship must be in the “prescribed form”
Prescribed Form
•   Must be a written contract of employment (section 1
    Employment Rights Act 1996)
•   Must include a statement of skill trade and occupation
•   Must be and state entered into in connection with a
    qualifying apprenticeship framework
Apprentice Rights
Pay
Apprenticeship Rate:   £2.65/hour   Under 19 or over but 19 in first year of
                                    apprenticeship

Development Rate:      £4.98/hour   Aged 18 -20

Standard Adult Rate:   £6.19/hour   Aged 21 or over
The Working Time Regulations
                             Working Hours
Under age 18                             Age 18 or over
Max 8 hours work/day                     Max 48 hours work/week
Max 40 hours work/week                   Can “opt out”
No night work between 10 pm - 6 am or    Max 8 hours night work in each 24 hours
11 pm - 7 am                             11 hours rest in each 24 hours
12 hours rest in each 24 hours           20 minute rest break when working over
30 minute rest break when working over   6 hours/day
4.5 hours/day

Holiday Entitlement                      Health & Safety
28 days/year or 5.6 weeks                Risk Assessment
Can include bank holidays
Sickness Absence
•   Entitled to SSP provided earn at least £107/week
    (£109/week from April 2013)

•   SSP currently £85.85/week
    – Company Sick Pay
    – Absence Procedure
Maternity & Paternity Leave
     Exactly the same as your employees so provided have sufficient continuous
 employment and earn at least as much as the Lower Earnings Limit for NIC £107/week
                           (£109/week from April 2013)
Maternity Leave (52 weeks)                   Paternity Leave (2 weeks)
No qualifying level of employment            Employed for 26 weeks before the 15th week
                                             before expected week of childbirth

Statutory Maternity Pay                      Statutory Paternity Pay
Employed for 26 weeks before the 15th week   As above
before expected week of childbirth           2 weeks at £135 or 90% of weekly earnings
6 weeks 90% of earnings 33 weeks at SMP      whichever is the lower
£135.45
Summary
•   Existing apprentices
•   New apprentices
•   Contractual documentation is key!
Case Update
 Ed Jenneson
Employee or self-employed?
Quashie v Stringfellows.
•   Dismissed and claimed unfair dismissal

•   Mutuality of obligations

•   Subject to disciplinary process

•   Court of Appeal

•   Had to consider how she was paid
Is it ok to shout?
Townsend v Gillette UK
Farnaud v Dr Hadwen Trust Ltd
•   Importance of procedure
Be careful what you eat!
Kaczor v Booker Limited
•   “a harsh dismissal will not always be an unfair dismissal”

•   Theft justifies dismissal. Even if it is only 39p!


Note Employment Tribunal decision and not binding
Behave at the Christmas party!
Gimson v Display by Design Limited
•   During the course of employment?

•   Deemed sufficiently connected
Religious Discrimination
•   The right to wear a cross
•   A number of cases went to Europe
Ms Eweida v BA
•   Deemed to be a manifestation of her religious belief
•   BA wanted “clear corporate image”
•   No evidence that wearing a cross would damage that
    image

However, NOTE: This is the one which hit the press
Religious Discrimination
Chaplin v NHS Trust
•   No discrimination on health and safety grounds
•   Worn it since 1978
•   Department of Health Guidelines to “protect the health
    and safety of patients and staff”
Religious Discrimination
Ladele and McFarlane
•   Refused to deal with gay individuals on the grounds of
    their religion
•   Marriage counsellor and civil servant who performed civil
    ceremonies
•   Employer was right to conclude that all employees
    adhered to a non-discriminatory policy
Age Discrimination
Nolan v CD Bramall Limited/ta Evans Halshaw
•   Be careful what you say as “Yoda” was discriminated
    against.
•   Brought claim for unfair dismissal and age discrimination
    on the basis that he was selected for redundancy based
    on the fact that he was nearing retirement.
•   104 year old team leader
•   Changed number plates on his car
Any Questions?
Donna Ingleby               Ed Jenneson                  Lottie Pigg
Partner, Head of Employment Associate                    Senior Solicitor
donna.ingleby@rollits.com   edward.jenneson@rollits.com lottie.pigg@rollits.com
01482 337314                01482 337341                 01482 337242

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Rollits Employment Law Breakfast Briefing March 2013

  • 1. Employment Law Breakfast Briefing March 2013
  • 2. Review of 2012 Edward Jenneson
  • 3. Qualifying period for unfair dismissal
  • 6. Increase costs award Increase deposit award Increase cost of Tribunals - now at record £84 million per year
  • 7. Looking at mediation before litigation
  • 9. National minimum wage - 1 October 2012 £6.08 to £6.19 - 21 and over £2.60 to £2.65 - Apprentices Youth rate unchanged at £4.98
  • 10. Last possible date to legally retire an employee!
  • 11. Employment Law Reform Donna Ingleby
  • 12. Introduction • The Enterprise Regulatory Reform Bill • The Employment Tribunal Rules Review • The Children and Families Bill
  • 13. Dates to Look out for in Spring 2013 8 March increase in unpaid 1 April parental leave (13 weeks to 18 the Legal Aid 6 April weeks). Sentencing and Punishment of Changes to 9 April Offenders Act collective 2012. consultation. Close of ACAS 11 April Remove new One hundred plus consultation on employment cases redundancies at the Code of Close of from the scope of one establishment Practice for Government legal aid, except in - consultation settlement consultation on relation to reduced to 45 agreements. repealing discrimination days. elements of TUPE. complaints. Regulation of employment businesses and employment agencies.
  • 14. Summer 2013 • Portable online DBS (previously CRB) • Review of Agency Workers Regulations • Whistle blowing reform • New Tribunal fees and rules • Making Settlement Agreements easier • Twelve month cap on unfair dismissal compensation
  • 15. Autumn 2013 • Employee shareholder employment status • TUPE Regulation reforms
  • 16. Spring 2014 • The right to request flexible working for all employees • ACAS Early Conciliation introduced • The introduction of Employment Tribunal penalties
  • 17. Looking forward 2015 • Shared parental leave • Changes to the Equality Act 2010
  • 18. A Focus on Apprenticeships Lottie Pigg
  • 19. The Old Regime Common Law Apprenticeship 1. Primary purpose training 2. Secondary purpose employment 3. Cannot dismiss on same grounds as an ordinary employee
  • 20. Learoyd v Brook (1891) – Apprentice’s actions must be so extreme that the apprentice is effectively unteachable • Dunk v George Waller & Son Ltd (1970) – Lack of initiative and an unsatisfactory college report did not justify dismissal • Wallace v C A Roofing Services Ltd (1996) – Redundancy only permitted if potential closure or fundamental change to the character of the business
  • 21. Common Law Apprenticeship • Risks: – Wrongful Dismissal – Compensation based on lost earnings and loss of expected earnings on achieving the qualification
  • 22. The New Regime Apprenticeships, Skills, Children and Learning Act 2009 (“ASCLA 2009”) • Primary purpose employment • Apprenticeship Agreement two main requirements: – The Apprentice must undertake work for the employer – The Apprenticeship must be in the “prescribed form”
  • 23. Prescribed Form • Must be a written contract of employment (section 1 Employment Rights Act 1996) • Must include a statement of skill trade and occupation • Must be and state entered into in connection with a qualifying apprenticeship framework
  • 24. Apprentice Rights Pay Apprenticeship Rate: £2.65/hour Under 19 or over but 19 in first year of apprenticeship Development Rate: £4.98/hour Aged 18 -20 Standard Adult Rate: £6.19/hour Aged 21 or over
  • 25. The Working Time Regulations Working Hours Under age 18 Age 18 or over Max 8 hours work/day Max 48 hours work/week Max 40 hours work/week Can “opt out” No night work between 10 pm - 6 am or Max 8 hours night work in each 24 hours 11 pm - 7 am 11 hours rest in each 24 hours 12 hours rest in each 24 hours 20 minute rest break when working over 30 minute rest break when working over 6 hours/day 4.5 hours/day Holiday Entitlement Health & Safety 28 days/year or 5.6 weeks Risk Assessment Can include bank holidays
  • 26. Sickness Absence • Entitled to SSP provided earn at least £107/week (£109/week from April 2013) • SSP currently £85.85/week – Company Sick Pay – Absence Procedure
  • 27. Maternity & Paternity Leave Exactly the same as your employees so provided have sufficient continuous employment and earn at least as much as the Lower Earnings Limit for NIC £107/week (£109/week from April 2013) Maternity Leave (52 weeks) Paternity Leave (2 weeks) No qualifying level of employment Employed for 26 weeks before the 15th week before expected week of childbirth Statutory Maternity Pay Statutory Paternity Pay Employed for 26 weeks before the 15th week As above before expected week of childbirth 2 weeks at £135 or 90% of weekly earnings 6 weeks 90% of earnings 33 weeks at SMP whichever is the lower £135.45
  • 28. Summary • Existing apprentices • New apprentices • Contractual documentation is key!
  • 29. Case Update Ed Jenneson
  • 30. Employee or self-employed? Quashie v Stringfellows. • Dismissed and claimed unfair dismissal • Mutuality of obligations • Subject to disciplinary process • Court of Appeal • Had to consider how she was paid
  • 31. Is it ok to shout? Townsend v Gillette UK Farnaud v Dr Hadwen Trust Ltd • Importance of procedure
  • 32. Be careful what you eat! Kaczor v Booker Limited • “a harsh dismissal will not always be an unfair dismissal” • Theft justifies dismissal. Even if it is only 39p! Note Employment Tribunal decision and not binding
  • 33. Behave at the Christmas party! Gimson v Display by Design Limited • During the course of employment? • Deemed sufficiently connected
  • 34. Religious Discrimination • The right to wear a cross • A number of cases went to Europe Ms Eweida v BA • Deemed to be a manifestation of her religious belief • BA wanted “clear corporate image” • No evidence that wearing a cross would damage that image However, NOTE: This is the one which hit the press
  • 35. Religious Discrimination Chaplin v NHS Trust • No discrimination on health and safety grounds • Worn it since 1978 • Department of Health Guidelines to “protect the health and safety of patients and staff”
  • 36. Religious Discrimination Ladele and McFarlane • Refused to deal with gay individuals on the grounds of their religion • Marriage counsellor and civil servant who performed civil ceremonies • Employer was right to conclude that all employees adhered to a non-discriminatory policy
  • 37. Age Discrimination Nolan v CD Bramall Limited/ta Evans Halshaw • Be careful what you say as “Yoda” was discriminated against. • Brought claim for unfair dismissal and age discrimination on the basis that he was selected for redundancy based on the fact that he was nearing retirement. • 104 year old team leader • Changed number plates on his car
  • 39. Donna Ingleby Ed Jenneson Lottie Pigg Partner, Head of Employment Associate Senior Solicitor donna.ingleby@rollits.com edward.jenneson@rollits.com lottie.pigg@rollits.com 01482 337314 01482 337341 01482 337242