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ACAS publishes latest early conciliation statistics

Acas has published its latest statistics on early conciliation take-up and success rates covering the period April to December 2018.  Between April and December 2018, the number of notifications received by Acas was 98,143, an increase from 77,167 during the same period in the previous year.  The figures also show an increase in successful conciliation of claims compared to the previous year, with 64% of disputes not progressing to a tribunal claim, compared with 58% in 2017.

If you require further information, follow the link below:

http://www.acas.org.uk/index.aspx?articleid=6688

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New ACAS guidance on the potential impact of Brexit on workplaces

To assist employers and employees in understanding the potential impact that Brexit may have in their workplace, Acas has published a new guidance outlining possible implications.  The guidance gives advice regarding the steps employers and employees may want to take and consider before the UK leaves the European Union. 

The new guidance explains the potential changes to employment law stemming from the UK leaving the EU, and provides links to the government technical guidance. In addition, it explains the impact of Brexit on EU citizens working in the UK, provides links to government materials on their rights and goes on to offer advice to employers when talking to their employees about how they may be impacted by the UK’s exit.

The guidance confirms that tribunal and court decisions appealed to the European Court of Human Rights will not be impacted by Brexit.

For further information, follow the link below:

http://www.acas.org.uk/index.aspx?articleid=6686&utm_medium=email&utm_campaign=NTL%20April%202019&utm_content=NTL%20April%202019+Version+A+CID_9bdb63d0ec73d4c09861fca9eb6b3a82&utm_source=Acas%20National%20Email%20Marketing%20Live&utm_term=View%20Acas%20guidance%20for%20employers%20and%20employees

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Pimlico plumber loses £74,000 holiday pay claim

An employment tribunal has ruled that plumber Gary Smith, whose status as a worker was confirmed by the Supreme Court in 2018 is not entitled to his alleged £74,000 arrears of holiday pay as he did not bring his claim in time.  

The written decision has not yet been published but we will report further on the issues when more information is available.  We understand that Mr Smith will appeal.  A separate disability discrimination claim is to be heard in June.

However, this ruling highlights the importance of bringing your claim within the appropriate time limit and the Tribunals may take a strict view as to awarding compensation to employees if their claim is out of time.

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Government campaign launched to increase awareness of holiday entitlement

To help workers understand their rights and to ensure that employers understand their obligations in relation to holiday pay, on 12 March 2019, the government launched a campaign to clarify the position.

The campaign will provide accessible information in the form of video on-demand, Spotify advertising and digital website and social media advertising. These efforts will be complemented by adverts in train stations and on streets.

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Employment Tribunal quarterly statistics for October to December 2018

The employment tribunal quarterly statistics for the period October to December 2018 published by the Ministry of Justice.  

During this period, receipts, disposals and outstanding caseloads all increased (by 23%, 30% and 53% respectively) compared to the fourth quarter of 2017.  Receipts in multiple claims fell by 78% in the quarter, while disposals and caseload outstanding in multiple claims rose by 35% and 18% respectively.

Between the launch in October 2017 and 31 December 2018, a total of 21,800 applications to the employment tribunal fee refund scheme were received.  However, only 300 of these were received in the quarter October to December 2018.  As explained in the report, the decline was due to the e-mailshot campaign which culminated in July 2018 as it resulted in exceptionally high receipts, in the previous quarter, particularly in England and Wales.

Over the period of October 2017 to 31 December 2018, a total of 21,300 fee refunds were made, with a total value of £16,950,000; 1,300 refunds being made in the quarter October to December 2018.

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Possible introduction of gender pay gap reporting for little companies

Hilary Spencer, the director of the Government Equalities Office, has announced that gender pay gap reporting will be established for little companies. The action was proposed in 2017 and companies with at least 250 employees must publicise their gender pay gap figures. Mr Spencer indicated that there may be further developments before the review in 2022, such as, requiring smaller companies to publicise their figures. This is as a result of the Trades Union Congress focussing on the need for companies to lessen their figures, to show that they are actively engaging in reporting, rather than doing so purely to conform with the requirement.

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GDPR One Year On – Statistics

One year on after GDPR came into force on the 25 May 2018, below is an overview of the key statistics:

  • In June 2018, 1,792 breaches were reported to the ICO. This is compared to 657 in May 2018, and 367 in April 2018;
  • In 2018, 103 monetary penalties were raised for failing to pay the ICO’s registration fee;
  • A class action was successfully brought by 5,518 claimants against Morrisons supermarket under the Data Protection Directive (the predecessor of GDPR). The Supreme Court have allowed Morrisons to appeal against the Court of Appeal’s decision, however, subject to the appeal, UK employers are exposed to vicarious liability for breach of GDPR by employees;
  • No GDPR fines have been issued so far by the ICO, nonetheless, 12 EU member states’ data protection authorities (DPAs) have issued fines under the GDPR;
  • Ordered by the French CNIL on Google in January 2019, the largest fine in data protection history is in the sum of €50 million as a result of not being transparent and complying with information duties, and for failing to have a legal basis for processing personalised advertising.
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Potential changes to the National Minimum Wage’s ‘naming and shaming’ arrangements

Conservative ministers are no longer ‘naming and shaming’ companies that do not pay their workers the legally required national minimum wage, according to Labour MP Stephanie Peacock. Companies have not been ‘named and shamed’ since 6 July 2018, however in April 2019, the Low Pay Commission asked that ‘naming and shaming’ be resumed. The Commission asserted that over 400,000 workers were illegally underpaid by their employers in 2018.

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Menopause versus work

Recent research into the effect of the menopause has shown that it generally affects women between the ages of 50 to 64. The time off work due to symptoms caused by menopause results in the loss of 14 million working days annually. Women suffering from menopausal symptoms take time off work and/or work outside of their working hours to make up for the working time lost.

Currently, claims for unfair dismissal, direct sex discrimination and disability related discrimination have been brought. There is scope that possible future claims may be brought for indirect sex and disability discrimination, sex, disability and age-related harassment, victimisation, and failure to make reasonable adjustments. These claims may be costly, lengthy and damaging to an employer’s reputation.

Employers should provide training, encourage open conversations, and elect champions and ambassadors in the workplace to reduce the pressure for women suffering from menopausal symptoms.

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Human rights and discrimination adviser helpline

The Equality and Human Rights Commission (EHRC) is now providing a telephone helpline to professional organisations that provide advice in relation to human rights or discrimination to individuals. Members of the public cannot use the helpline, however, they can use the Equality Advisory and Support Service.

Latest News

Disclosure and Barring Services Checks and Deductions in England and Wales

There is no doubt that Employers and Employees often ponder who is responsible for bearing the cost of a DBS check.  Has it ever occurred in your workplace?

The Government indicates that the fee for a Disclosure and Barring Service Bureau check (known as a DBS check and formerly known as a CRB check) is the liability of the individual upon whom that check is being undertaken.

In this respect, any deduction made from the worker’s pay to pay for the DBS check on his or her behalf will NOT therefore reduce national minimum wage pay since it is paid over by the employer to a third party to meet the liability of the worker.

As a Disclosure and Barring Service check is a requirement for securing the employment and, unlike an expense, which does not arise from performing the job itself, the cost of a DBS check is NOT considered an expense for the national minimum wage purposes.

The employee can make a payment to the employer to cover the cost of the DBS and if that is the case, the amount of the payment will not need to be reduced from the employee’s national minimum wage pay.

However, if the employer imposes an administrative charge for handling the application, then the amount of the administrative charge will reduce the worker’s national minimum wage pay.

If the worker is not charged for a Disclosure and Barring Service check but the employer pays the cost directly to a third party on behalf of the worker and does not seek to recover the cost, the amount paid does not count towards national minimum wage pay as it is not a payment being made to the worker.

If you require any clarity on any of the above aspects or concepts, please do not hesitate to contact our Employment team.

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Permission to appeal a data breach case in the Supreme Court

Following an unsuccessful appeal made by Morrisons in October 2018 against the High Court’s decision of liability for data breach claims brought by 5,518 employees, the Supreme Court have allowed Morrisons to make an appeal against the Court of Appeal’s decision.

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Plans to digitise employment tribunals

A plan has been announced to modernise employment tribunals. The aim is to have an electronic case management system which will enable tribunal users, panel members and judges to view cases electronically, and judges will be able to manage cases online. A database of precedent orders, notices, letters and documents will be available on the system also.

This will begin in the employment tribunals between January and March 2020.

At all hearing rooms in the employment tribunals, applicable IT equipment will be available so that tribunal users can view and show documentation electronically. Further, during 2019, recording equipment will be at all hearings to ensure transparency, and so that judges and panel members have a report of what was discussed during the hearing. This is currently being trialled in the employment tribunal in Cardiff.

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Injuries on the Dancefloor

At a research institute’s Christmas party where alcohol was being served, a visiting scientist at the institute tried to pick up an employee off the dancefloor, however this was unsuccessful and the employee fell to the floor. As a result, the employee suffered from a severe injury to her back. The injured employee brought a claim against the institute for negligence, however this was rejected by the Court.

The employer had undertaken a risk assessment prior to the party, and the Court decided that this was sufficient. The duty of care does not extend to the employer having to risk assess whether an unfortunate event following the consumption of alcohol would occur on the dancefloor.

The Court determined that the employer was not vicariously liable for the actions of the visiting scientist, and the event at the party was not connected with the research activities required of the visiting scientist.

Latest News

Directors can be personally liable for breach of an employment contract

The High Court has recently decided that officers of a limited company can be personally liable for its breaches of an employment contract.

In a claim for damages for exploitative labour, the claimants, who worked exceedingly long hours for less than the statutory minimum wages, brought an action for unpaid wages and unlawful deductions from their income. The claimants were also frequently not paid the sums that were due to them from their employer and payments were also often withheld. Additionally, there was no attempt by the employer to pay the claimants holiday pay or overtime.

Generally, an officer of a company is not personally liable for a breach of contract by that company if the officer is acting bona fide within the scope of his/her authority on behalf of a company.

However, in this particular case, the focus by the court was on the officers’ conduct and intention in relation to their duties towards the company, not towards the third parties (the employees). Mr Justice Lane concluded in this case that the officers of the company – a director and a company secretary – were jointly and severally liable to the claimants for inducing the breaches of contract by the company, as they did not honestly believe that they were paying the minimum wage, overtime and holiday pay nor that they were entitled to withhold payments.

The decision of Mr Justice Lane is an important decision due to its wide-reaching implications for officers of a company. Legal decisions that are made by judges in higher courts, such as the High Court, remain as a precedent, so the decisions made by lower or equal courts in future need to follow the earlier decision made in the higher courts.

This is a binding decision, however it could be subject to an appeal in a higher court.

Latest News

Employers missing out on best candidates due to discriminative approval to applications.

In a recently published study by the Scottish Centre for Crime and Justice, the criminal record “tick box” commonly found on job applications was found to be redundant and discouraging to job seekers. Dr Beth Weaver of Strathclyde University carried out the study and has suggested that the criminal record declarations is not symptomatic of an applicants possibility of reoffending. Furthermore, the study illustrated the fact that many applicants with previous convictions are being disregarded without any consideration due to their conviction and more worryingly their positive attributes are being completely overshadowed by their past. Roughly 11 million people in the UK have a criminal record and the research shows 75% of employers admit to discriminating against those who do.

 

More positively, Virgin Trains and the Civil Service are among employers who have banned the criminal record declaration on job applications. Virgin have commented “there are better ways to talk to people about their offending background rather than just simply putting them off with a ticked box exercise”.

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Hot Topics for Employment Law – April 2019

Below we take a look at some significant changes expected in employment law in April 2019. 

Gender pay gap report

Employers with 250 + employees must report on their percentage gender pay gap annually.  Many will remember the headlines last year such as “Virgin Money reports a 36% gender pay gap”. 

The deadline for private sector companies to publish their reports is 4 April, so we wait to see whether companies are reporting a narrowing gender pay gap or whether or not it has in fact widened.

Wages

The new national minimum wage rates that apply from 1 April are as follows:

  • Workers aged 25 and over – £8.21 an hour (National Living Wage)
  • Workers aged 21-24 – £7.70 an hour
  • Development rate for workers aged 18-20 – £6.15 an hour
  • Young workers rate for workers aged 16-17 – £4.35 an hour
  • Apprentice rate (workers under 19 or in first year of apprenticeship) – £3.90 an hour.

Payslips

Two important changes will come into force on 6 April:

  • Where people’s pay varies according to the number of hours worked, employers must include the total number of hours worked on the payslip.
  • Payslips must be given to ‘workers’ and not just employees.

Pension

Currently, automatic enrolment requires employers to contribute a minimum of 2% of an eligible worker’s pre-tax salary to their pension pot, with the individual contributing 3% themselves.

However, from 6 April employers and employees will now have to contribute a minimum of 3% and 5% respectively.

Statutory pay

The weekly amount for statutory family pay will increase to £148.68 from 7 April. This rate will apply to maternity pay, adoption pay, paternity pay, shared parental pay and maternity allowance.

The weekly rate for statutory sick pay will increase to £94.25 from 6 April 2019.

 

For more information please contact Hannah Dahill, Associate Director, on 01267 493130 or email [email protected].

 

 

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New Guidance on employment tribunals powers

The Department of Business, Energy and Industrial Strategy (BEIS) has published guidance for users of employment tribunals on the powers available to tribunals. This is a response to feedback that a lack of awareness or rather confusion over exactly what powers tribunals have. Clarity was provided in the following areas:

– tribunal powers to act against specific employment law breaches

– poor behaviour in bringing or defending a claim

– the way a case is conducted

– the ways powers are applied

 

The hope is that the guidance will provide an accessible explanation for all tribunal users as to the extent of tribunal powers available and the use of illustrative case law ill demonstrate how tribunals use their powers.

Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/780614/employment-tribunal-powers-user-guidance.pdf

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Labour plans to promote flexi-time

The shadow minister for Women and Equalities, Dawn Butler has revealed that Labour plans to give workers a day one right to select their working hours.

 

Labour wishes to encompass job sharing, working from home, part time, annualised, compressed and flexi time. The announcement comes as part of a greater plan to create a presumption in “favour of flexible working,” forcing employers to design a potential for people to work flexibly when creating roles.

 

It is argued that this approach is essential to closing the gender pay gap and dismantle the structural barriers that imprison women form promotion or progression.

 

This area is continually being discussed by the Government, Theresa May believes that jobs should be advertised from day one as flexi unless “a solid reason” can be justified.