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The Active Business Series 12                         2011
    plummerparsons                                                               ab12




HR SUMMER
UPDATES
KEY CHANGES                                                                    say there weren’t enough jobs for older people to be in work and 14
                                                                               per cent claimed older people should retire to make way for younger
Working Time Regulation to be Revised                                          workers. One fifth believe the over 60s are slower and are less productive
                                                                               than their junior colleagues with one in 20 claiming they should be paid
The Working Time Regulations (WTR) are to be amended to update them
                                                                               less because they work at a slower pace.
in light of case law (such as Pereda and Stringer) which has established
that workers unable to take their annual leave because of sickness etc. in     QUICK LOOK AT RECENT CASE LAW
the current year must be able to carry it forward into the following leave
year.                                                                          Publishing company forced to pay uncontracted intern:

Flexible Working for all by 2013?                                              The use of interns has become increasing common and therefore this
                                                                               case is particularly noteworthy. In a groundbreaking case, a publishing
The right to request flexible working looks as if it will be extended to       company has been ordered to pay an intern £1,000 in damages after an
all employees, possibly as soon as late 2013, according to proposals           employment tribunal ruled that she was classed as a worker under the
contained in Consultation on Modern Workplaces. The Government                 law, despite having no written contract.
proposes various changes to make the scheme’s administration more
flexible and less onerous for employers.                                       Former intern Keri Hudson, 21, who had worked for two months at the
                                                                               My Village web site last year, was awarded £913.22 in national minimum
DEBUNKING MYTHS: OLDER WORKERS ARE MORE PRODUCTIVE                             wage back pay and £111.76 in holiday pay from TPG Web Publishing Ltd.
NOT LESS                                                                       The tribunal heard that Hudson worked for the company on a daily basis
                                                                               from 10am until 6pm and was personally responsible for and in charge
Findings from the study ‘Productivity and Age” has shown that older
                                                                               of a team of writers. She was also responsible for training and delegating
workers are often more productive, even with physically demanding jobs
                                                                               tasks, collecting briefs, scheduling articles and even hiring new interns.
than younger workers.
                                                                               Hudson said that, when the site was taken over by TPG, she was asked
To be productive in manufacturing workers need more physical strength,
                                                                               to stay on and work for the new firm and was assured her pay would
dexterity and agility (which tend to decline with age) than experience
                                                                               be fixed. After five more weeks of doing so, however, she was informed
and ability to work in a team (which tends to increase with age). But in
                                                                               that she would not now be receiving payment for the work she had
the service sector, experience and the ability to work in a team are key, so
                                                                               carried out. As a result, she resigned and took out a grievance against the
the growth in productivity with age may be even greater.
                                                                               company.
In many countries, including the UK, employers often cite lower
                                                                               The National Union of Journalists, which took her case on under the
productivity among older workers as a reason to force early retirement.
                                                                               auspices of its ‘cashback for interns’ campaign, said that the company told
But the research shows that if this were true, ageing populations in
                                                                               her that “she was not eligible for any pay because they considered her an
many developed countries would be having a negative effect on overall
                                                                               intern”.
productivity as the proportion of older workers increases.
                                                                               The tribunal disagreed, however. It ruled that Hudson was classed as a
This study was published in the same week as more research revealed
                                                                               worker under the law even though she had no written contract. As a
ageism to be endemic in the workplace. Findings from home and care
                                                                               result, she was entitled to be paid at least the National Minimum Wage
provider, Anchor, show that two fifths of young people aged 18-24 years
                                                                               and holiday pay.
                                                                               The NUJ’s general secretary Jeremy Dear said: “Today’s judgement sends
                                                                               a clear warning to all employers to pay their interns, abide by the law or
                                                                               face the consequences. It is unacceptable that full-time staff are being
                                                                               sacked, while unpaid interns are being exploited. This is the first case of
                                                                               its kind – if employers continue to break the law it will not be the last.”
                                                                               Kurumuth v NHS Trust North Middlesex University Hospital - Fair
                                                                               dismissal of employee with unresolved immigration status:
                                                                               This was an appeal by the claimant against dismissal of unfair dismissal
                                                                               and breach of contract claims where the claimant’s immigration status
                                                                               was in doubt. Appeal allowed on the breach of contract claim but other
                                                                               appeal dismissed.
                                                                               The claimant was a health care worker, originally from Mauritius. In
                                                                               1997 she was refused leave to remain in the UK but was allowed to
Plummer Parsons | 01323 431 200                                                stay pending an appeal. That appeal was not determined by the time
eastbourne@plummer-parsons.co.uk | www.plummer-parsons.co.uk
18 Hyde Gardens Eastbourne East Sussex BN21 4PT



                                                                                                             The Active Business Series       2011
The Active Business Series 12      2011


of her appointment in 2003 but the respondent later requested further            The employee appealed the decision relating to her victimisation claim
information and was dissatisfied with the claimant’s response and                and unfair dismissal claim. On appeal, the EAT upheld the Tribunal’s
instigated a disciplinary procedure. She was dismissed as there was no           decision, finding that the circumstances surrounding the manner
evidence that she had the right to work. In subsequent ET proceedings            in which the complaint was made meant that it was “properly and
the dismissal was found to be automatically unfair but no compensation           genuinely separable” from the fact that Ms Martin’s allegations related
was awarded as she would have been dismissed in any event.                       to discrimination. The particular features of her complaint which led to
                                                                                 the decision to dismiss included the falseness and seriousness of the
In this appeal, the claimant’s principal argument was that the Tribunal
                                                                                 allegations, the number and frequency of the allegations, Ms Martin’s
ought to have decided her immigration status. The EAT rejected that
                                                                                 refusal to accept that the allegations were false, the risk of repetition and
submission as, although the ET had misdirected itself on the issue of
                                                                                 further disruptive and unmanageable conduct as a result of her mental
the burden of proof, they must take “a non-pernickety and non-fussy
                                                                                 illness and the cost and time in having to deal with her complaints.
approach” and the ET’s analysis was consistent with the reasonableness
                                                                                 Therefore, her claims of victimisation and unfair dismissal were dismissed.
approach. They also confirmed that there was no error of law in the ET’s
approach in reducing the compensation to zero.                                   TOP TIPS ON HOW TO BE PREPARED FOR AND MANAGE AN
Martin v Devonshires Solicitors - Dismissal of employee who raised               EMPLOYMENT TRIBUNAL
‘false’ grievances was fair:
                                                                                     1.   When dealing with employees ensure a paper trail of the
Ms Martin began employment with Devonshires Solicitors in 2006. She                       actions you are taking exist even when you don’t believe there
raised a grievance in 2008 alleging that various partners at Devonshires                  is a major problem i.e. document meetings, confirm in writing,
were aware of her previous sex discrimination claim against her                           etc.
former employer and that she had been subjected to harassment and
                                                                                     2.   With disciplinary issues ensure that a full investigation is
victimisation as a result. Devonshires dismissed the grievance and its
                                                                                          conducted, the hearing is fair and dismissal is only a last resort
appeal, concluding that it had been made in bad faith, with malevolent                    when you are sure of your facts; give the right to appeal.
intent and with no basis in fact.
Soon after she raised her grievance, Ms Martin went on sick leave for                3.   Make sure that you have a clear written disciplinary procedure
                                                                                          which is available to all employees.
stress, during which period she raised seven similar further grievances.
Devonshires obtained two medical reports, one from a consultant                      4.   If you receive an ET1 from for a Tribunal case don’t delay in
psychiatrist and another from an occupational health consultant. These                    submitting your (ET3) response.
divulged that Ms Martin had a history of mental illness and suffered from
a persistent depressive disorder, experiencing paranoid hallucinations               5.   Ensure you meet all the tribunal office requirements and
during psychotic spells.                                                                  deadlines without fail.

Having notified Ms Martin that her employment may be terminated due                  6.   Act professionally throughout in all communications whether
to the breakdown of mutual trust and confidence, Devonshires wrote                        written or verbal using external support where necessary.
to Ms Martin dismissing her with immediate effect. The grounds for her
dismissal included the possibility of further relapse, Ms Martin’s lack of       SURVEY INFORMATION
awareness of her condition, the time and money spent on handling the
                                                                                 Company cars remain popular but costly benefit
grievances and the stress that she would suffer on facing the colleagues
against which she had made the allegations on her return to work.                Company cars remain a popular benefit, with almost three-quarters of
                                                                                 the 450 employers surveyed by XpertHR offering employees either a
Ms Martin brought claims in the Tribunal against Devonshires for sex
                                                                                 company car or a car allowance.
discrimination, disability discrimination, victimisation and unfair dismissal,
all of which were dismissed. The Tribunal held that Devonshires would            According to the company cars survey 2011: cars are a popular but costly
have treated other employees who made similar false allegations in               benefit. Around seven in 10 organisations provide cars on the basis of job
the same manner, regardless of their disability, and accordingly there           need, while around six in 10 offer cars as a perk to senior employees.
was no direct discrimination. The Tribunal also stated that there was no
requirement for Devonshires to continue to employ Ms Martin, despite
their duty to make reasonable adjustments in light of her disability, and
the victimisation claim was dismissed.




                                                                                                                The Active Business Series        2011

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Plummer Parsons Chartered Accountants Mini Guide Series 12 HR Summer Updates

  • 1. The Active Business Series 12 2011 plummerparsons ab12 HR SUMMER UPDATES KEY CHANGES say there weren’t enough jobs for older people to be in work and 14 per cent claimed older people should retire to make way for younger Working Time Regulation to be Revised workers. One fifth believe the over 60s are slower and are less productive than their junior colleagues with one in 20 claiming they should be paid The Working Time Regulations (WTR) are to be amended to update them less because they work at a slower pace. in light of case law (such as Pereda and Stringer) which has established that workers unable to take their annual leave because of sickness etc. in QUICK LOOK AT RECENT CASE LAW the current year must be able to carry it forward into the following leave year. Publishing company forced to pay uncontracted intern: Flexible Working for all by 2013? The use of interns has become increasing common and therefore this case is particularly noteworthy. In a groundbreaking case, a publishing The right to request flexible working looks as if it will be extended to company has been ordered to pay an intern £1,000 in damages after an all employees, possibly as soon as late 2013, according to proposals employment tribunal ruled that she was classed as a worker under the contained in Consultation on Modern Workplaces. The Government law, despite having no written contract. proposes various changes to make the scheme’s administration more flexible and less onerous for employers. Former intern Keri Hudson, 21, who had worked for two months at the My Village web site last year, was awarded £913.22 in national minimum DEBUNKING MYTHS: OLDER WORKERS ARE MORE PRODUCTIVE wage back pay and £111.76 in holiday pay from TPG Web Publishing Ltd. NOT LESS The tribunal heard that Hudson worked for the company on a daily basis from 10am until 6pm and was personally responsible for and in charge Findings from the study ‘Productivity and Age” has shown that older of a team of writers. She was also responsible for training and delegating workers are often more productive, even with physically demanding jobs tasks, collecting briefs, scheduling articles and even hiring new interns. than younger workers. Hudson said that, when the site was taken over by TPG, she was asked To be productive in manufacturing workers need more physical strength, to stay on and work for the new firm and was assured her pay would dexterity and agility (which tend to decline with age) than experience be fixed. After five more weeks of doing so, however, she was informed and ability to work in a team (which tends to increase with age). But in that she would not now be receiving payment for the work she had the service sector, experience and the ability to work in a team are key, so carried out. As a result, she resigned and took out a grievance against the the growth in productivity with age may be even greater. company. In many countries, including the UK, employers often cite lower The National Union of Journalists, which took her case on under the productivity among older workers as a reason to force early retirement. auspices of its ‘cashback for interns’ campaign, said that the company told But the research shows that if this were true, ageing populations in her that “she was not eligible for any pay because they considered her an many developed countries would be having a negative effect on overall intern”. productivity as the proportion of older workers increases. The tribunal disagreed, however. It ruled that Hudson was classed as a This study was published in the same week as more research revealed worker under the law even though she had no written contract. As a ageism to be endemic in the workplace. Findings from home and care result, she was entitled to be paid at least the National Minimum Wage provider, Anchor, show that two fifths of young people aged 18-24 years and holiday pay. The NUJ’s general secretary Jeremy Dear said: “Today’s judgement sends a clear warning to all employers to pay their interns, abide by the law or face the consequences. It is unacceptable that full-time staff are being sacked, while unpaid interns are being exploited. This is the first case of its kind – if employers continue to break the law it will not be the last.” Kurumuth v NHS Trust North Middlesex University Hospital - Fair dismissal of employee with unresolved immigration status: This was an appeal by the claimant against dismissal of unfair dismissal and breach of contract claims where the claimant’s immigration status was in doubt. Appeal allowed on the breach of contract claim but other appeal dismissed. The claimant was a health care worker, originally from Mauritius. In 1997 she was refused leave to remain in the UK but was allowed to Plummer Parsons | 01323 431 200 stay pending an appeal. That appeal was not determined by the time eastbourne@plummer-parsons.co.uk | www.plummer-parsons.co.uk 18 Hyde Gardens Eastbourne East Sussex BN21 4PT The Active Business Series 2011
  • 2. The Active Business Series 12 2011 of her appointment in 2003 but the respondent later requested further The employee appealed the decision relating to her victimisation claim information and was dissatisfied with the claimant’s response and and unfair dismissal claim. On appeal, the EAT upheld the Tribunal’s instigated a disciplinary procedure. She was dismissed as there was no decision, finding that the circumstances surrounding the manner evidence that she had the right to work. In subsequent ET proceedings in which the complaint was made meant that it was “properly and the dismissal was found to be automatically unfair but no compensation genuinely separable” from the fact that Ms Martin’s allegations related was awarded as she would have been dismissed in any event. to discrimination. The particular features of her complaint which led to the decision to dismiss included the falseness and seriousness of the In this appeal, the claimant’s principal argument was that the Tribunal allegations, the number and frequency of the allegations, Ms Martin’s ought to have decided her immigration status. The EAT rejected that refusal to accept that the allegations were false, the risk of repetition and submission as, although the ET had misdirected itself on the issue of further disruptive and unmanageable conduct as a result of her mental the burden of proof, they must take “a non-pernickety and non-fussy illness and the cost and time in having to deal with her complaints. approach” and the ET’s analysis was consistent with the reasonableness Therefore, her claims of victimisation and unfair dismissal were dismissed. approach. They also confirmed that there was no error of law in the ET’s approach in reducing the compensation to zero. TOP TIPS ON HOW TO BE PREPARED FOR AND MANAGE AN Martin v Devonshires Solicitors - Dismissal of employee who raised EMPLOYMENT TRIBUNAL ‘false’ grievances was fair: 1. When dealing with employees ensure a paper trail of the Ms Martin began employment with Devonshires Solicitors in 2006. She actions you are taking exist even when you don’t believe there raised a grievance in 2008 alleging that various partners at Devonshires is a major problem i.e. document meetings, confirm in writing, were aware of her previous sex discrimination claim against her etc. former employer and that she had been subjected to harassment and 2. With disciplinary issues ensure that a full investigation is victimisation as a result. Devonshires dismissed the grievance and its conducted, the hearing is fair and dismissal is only a last resort appeal, concluding that it had been made in bad faith, with malevolent when you are sure of your facts; give the right to appeal. intent and with no basis in fact. Soon after she raised her grievance, Ms Martin went on sick leave for 3. Make sure that you have a clear written disciplinary procedure which is available to all employees. stress, during which period she raised seven similar further grievances. Devonshires obtained two medical reports, one from a consultant 4. If you receive an ET1 from for a Tribunal case don’t delay in psychiatrist and another from an occupational health consultant. These submitting your (ET3) response. divulged that Ms Martin had a history of mental illness and suffered from a persistent depressive disorder, experiencing paranoid hallucinations 5. Ensure you meet all the tribunal office requirements and during psychotic spells. deadlines without fail. Having notified Ms Martin that her employment may be terminated due 6. Act professionally throughout in all communications whether to the breakdown of mutual trust and confidence, Devonshires wrote written or verbal using external support where necessary. to Ms Martin dismissing her with immediate effect. The grounds for her dismissal included the possibility of further relapse, Ms Martin’s lack of SURVEY INFORMATION awareness of her condition, the time and money spent on handling the Company cars remain popular but costly benefit grievances and the stress that she would suffer on facing the colleagues against which she had made the allegations on her return to work. Company cars remain a popular benefit, with almost three-quarters of the 450 employers surveyed by XpertHR offering employees either a Ms Martin brought claims in the Tribunal against Devonshires for sex company car or a car allowance. discrimination, disability discrimination, victimisation and unfair dismissal, all of which were dismissed. The Tribunal held that Devonshires would According to the company cars survey 2011: cars are a popular but costly have treated other employees who made similar false allegations in benefit. Around seven in 10 organisations provide cars on the basis of job the same manner, regardless of their disability, and accordingly there need, while around six in 10 offer cars as a perk to senior employees. was no direct discrimination. The Tribunal also stated that there was no requirement for Devonshires to continue to employ Ms Martin, despite their duty to make reasonable adjustments in light of her disability, and the victimisation claim was dismissed. The Active Business Series 2011