Field Fisher Waterhouse

Employment Update




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27 June 2008

Welcome to our fortnightly round-up of what's happening in employment law.

Future Events

We provide an annual comprehensive training prospectus, comprising seminars and workshops on key employment and pensions law issues.


Invitations will be sent out 4 weeks before each presentation. Alternatively, you may book your place by clicking
here, specifying which seminar or workshop you would like to attend, or asking to be added to our mailing list.

Workshops

Wednesday 10 September 2008
Managing sickness absence
09.00 - 11.30
Click here to reserve your place

 

Thursday 16 October 2008
Designing 21st century pension schemes
09.00 - 11.30
Click here to reserve your place

 

Wednesday 26 November 2008
21st century workplace - is technology a help or hindrance?
09.00 - 11.30
Click here to reserve your place

 

Wednesday 25 March 2009
Conducting investigations, disciplinaries and grievances
09.00 - 11.30
Click here to reserve your place

 

Seminars

Wednesday 21 January 2009
Annual HR Planner
Half day
Click here to reserve your place

 

Wednesday 25 February 2009
Protecting intellectual property - how far can you go?
Half day
Click here to reserve your place



Downloads
Employment training prospectus 2008-2009.PDF - 437.68 kb

Where to find us
Employment and Pensions Group
Field Fisher Waterhouse LLP
35 Vine Street
London
EC3N 2AA
Tel: (0)20 7861 4000
Fax: (0)20 7488 0084
www.ffw.com



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Breaking news - change in approach to disability discrimination cases


The House of Lords has just delivered a judgment which could have a potentially significant impact on the law on disability-related discrimination. Whilst the case relates to housing rather than employment, the decision may have particularly far-reaching implications for employers as it is likely to make it more difficult for employees to succeed in their claims of disability-related discrimination, particularly those related to attendance management (although the obligation to make reasonable adjustments remains).


The judgment addresses a number of key issues, most notably whether an employer must know about the disability to be liable, whether a reason relates to the disability and how to establish the correct comparator in cases of disability-related discrimination. The decision is a complex one and we will provide our detailed analysis of its impact in the next Employment Update.

 

Focus on the proposed Equality Bill


The Equality Bill has hit the headlines over the past couple of days, following the publication of the White Paper, "Framework for a Fairer Future - The Equality Bill",  which sets out the Government's proposals to tackle equality issues and strengthen the current legislative framework for discrimination law.


The Bill has been on the agenda for some time now. The current proposals, outlined by the Minister for Women and Equality, Harriet Harman, now provide a useful insight into the Government's approach to equality legislation going forward. Although the Equality Bill is still at a relatively early stage (the Bill itself is likely to be published later this year), the proposed measures will have a significant impact on most employers in both the public and private sector.


So, what does the Bill intend to achieve? The stated purpose of the Bill and the accompanying package of measures is to "strengthen protection, advance equality and declutter the law".  The key issues are as follows:

  • Positive action - the area that has perhaps attracted the most publicity is the intention for the Bill to extend positive action. The aim is to enable employers to take under-representation into account when selecting between two equally qualified candidates. This may therefore permit an organisation that does not have a diverse workforce to select a female or ethnic minority candidate in preference to a white male candidate, if they are equally suitable.  

  • Transparency - the Bill intends to achieve a greater level of transparency in a number of areas. The Government will: 

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    ban "secrecy" clauses which prevent employees discussing their own pay with others;

     

    ·

     

     

    ensure public sector employers publish information about their progress on important equality issues; and

     

    · improve transparency in the private sector through public sector purchasing
     
    Interestingly, the Government has also proposed establishing an equality "kite-mark" scheme for employers who are transparent about reporting their progress on equality.   
  • Age discrimination - whilst age discrimination legislation came into force in October 2006, the Bill will contain powers to outlaw unjustifiable age discrimination by those providing goods, facilities and services. Service providers will be given time to address the practical and organisation issues which are likely to arise and further consultation will take place.  

  • New Equality Duty - this will bring together the three existing public sector equality duties on race, disability and gender in a new streamlined Equality Duty, which will also cover gender reassignment, age, sexual orientation and religion or belief. 

  • Enforcement - the Bill will allow employment tribunals to make wider recommendations in discrimination cases, which go beyond benefiting the claimant, so that there are benefits for the rest of the workforce. The Government will also explore further how to allow discrimination claims to be brought on multiple grounds e.g. where an individual is discriminated against because she is a black woman.

A further paper will be published next month on the content of the Equality Bill, together with the Government's response to the Discrimination Law Review consultation.

 

 

Draft Acas guide on discipline and grievances at work

 

As reported in earlier Employment Updates, following an independent review and consultation, the statutory dispute resolution procedures are due to be repealed in April 2009.  This has had an impact on the Acas code of practice, which is now being revised to take account of the forthcoming changes. Following the publication of the new draft Acas code of practice (click here to read our summary of the draft code), Acas has now published the draft accompanying guide on good practice for dealing with discipline and grievance in the workplace.


The new draft Acas code of practice is a short, non-prescriptive statutory document and it has been proposed that tribunals should be able to increase or decrease tribunal awards by up to 25% if either party has acted unreasonably in complying with the code. The draft accompanying guidance, however, is purely advisory and has no status in the employment tribunal. It is intended to complement and support the Acas code of practice and is based on Acas' own experience of handling discipline and grievance in the workplace.

 

The guidance, which contains extracts from the code, practical examples and template letters, covers information on a number of issues, including how to:

  • resolve disciplinary issues informally

  • develop rules and procedures and consider the importance of training and mediation

  • deal fairly with formal disciplinary action and grievances

  • investigate disciplinary issues and decide on a disciplinary penalty 

  • deal with short-term and long-term absence 

Enforcing garden leave without contractual right


A court has recently confirmed that an employer may be entitled to put senior employees on garden leave, even where there is no right to do so in their contracts.


In SG&R Valuation Service Co v Boudrais and others, the two senior employees gave their employer three months' notice of termination, as required by their contracts. Their employer soon became concerned that there had been some wrongdoing (e.g. misuse of confidential information) and asked the two employees to remain at home, in effect to take garden leave. The employer then sent letters suspending them. The employees subsequently tried to resign with immediate effect, on the basis that requiring them to stay at home was a repudiatory breach of contract.


Evidence indicated that the employees had misappropriated confidential information, were planning to join a competitor and were soliciting other staff to join the competitor with them. The employer applied for an interim injunction to prevent the employees taking any further steps, following which the employees returned the confidential information and gave undertakings not to use it. The key issue then became whether the employees could be put on garden leave until their notice periods expired.


There was no express garden leave clause in the employees' contracts. Case law has demonstrated that, in such cases, the key question is whether the employee has a right to work. The court held that the employees here did have a right to work as they had specialist skills, occupied high positions and were entitled to discretionary bonuses which were a substantial part of their remuneration package. However, this right to work is subject to a qualification. If there is a prior breach of contract or other duty, and the employees have demonstrated in a serious way that they are not ready or willing to work, the employer will not be required to provide work.


The court held that the employees had breached their contractual and other duties in this way so as to fall within the qualification. In particular, they had demonstrated a specific hostility towards the employer which almost, of itself, forfeited the right to be provided with work. It was therefore not unreasonable for the employer to put the employees on garden leave, even where there was no such right in the contract.

 

 

Workers set to benefit from right to request time to train


The Department for Innovation, Universities and Skills has launched a consultation on a proposed new legal right to request time to train.


It has been stated that one third of employers do not train their staff and eight million employees receive no kind of training at all every year. It is anticipated that this new right will benefit 22 million workers in England and that the legislation could be in place by 2010. 


It is planned that the new entitlement will apply to all employees who have worked for their employer for 26 weeks and it has been proposed that requests should be treated in a similar way to those for flexible working. It has, however, been reported recently in Personnel Today that the skills minister, David Lammy, has confirmed that employers will not be obliged to pay an employee's salary when they undertake the relevant training nor will they need to organise or pay for the training. The consultation period runs until 10 September 2008.

 

 

Employers of illegal workers named and shamed


Following the introduction of civil and criminal penalties for employing illegal workers in February this year, the UK Borders Agency has now published the names of employers who have been found employing illegal workers, together with the details of the fines imposed.


The website names 35 organisations that were prosecuted in May 2008 and who were fined over £300,000 in total for employing illegal workers. Since the new penalties came into force, there have been 265 fines issued, totalling £2.45m.


To reinforce the Government's approach to illegal working, there are also now plans to reorganise 7,500 immigration officers nationally into localised teams, which will include police officers and customs officials.  These teams will target "black economy hotspots". 

 

 

Health and Safety Executive (HSE) - work-related illness and workplace injuries


The HSE has recently produced statistics on self-reported work-related illness and workplace injuries, covering the period 2006/07.


The detailed statistics reveal that 2.2 million people are suffering from an illness they believe was caused or made worse by their current or past work. The statistics also show that 36 million working days were lost overall (1.5 days per worker). This figure breaks down into 30 million due to work-related illness and 6 million due to workplace injury.

 


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