good in parts: radical reforms of employment law

The top headline news this month has to be the mixed bag of employment law proposals announced as “the most radical reform to the employment law system for decades“. And what a mixed bag it is – everything from tidying up the unintended consequences of statutory drafting to a root and branch review of employment tribunal procedure by way of revisiting some familiar old ideas. Opinion is, of course, divided as to how effective the proposals will be, not always along traditional employer/employee lines, but some at least seem welcome in all quarters – such as the introduction of a portable CRB check.

Many of the measures announced are aimed at reducing the numbers of cases going into the employment tribunal system, speeding up resolution of cases once they get there, and of course keeping costs down – for the government, rather than for employers or employees. Continue reading

the Beecroft report and "protected conversations"

A remarkable kite-flying exercise emerged today with widespread news coverage of the report about employment law produced by venture capitalist Adrian Beecroft at the request of David Cameron. With headlines such as “Scrap unfair dismissal claims for lazy workers – report” (BBC) and “Give firms freedom to sack unproductive workers, leaked Downing Street report advises” (Telegraph), the report suggests employers could dismiss employees without giving a reason, by using a “Compulsory No Fault Dismissal System”. According to the report, “the employee should be given a chance to argue his or her case, and to suggest (but not demand) that they be given time to improve or be transferred to a less demanding job at a lower wage. If no agreement could be reached, the employee would receive the same payment they would get if they had been made redundant”. So employers would become unaccountable (save for the equivalent of a redundancy payment) even if the action taken was blatantly unfair and unjustified. Incidentally, if that option is available, why would any employers follow the requirements for a full redundancy process if they can be safely circumvented? The report refers to Britain’s “terrible” employment laws and suggests that they are undermining economic growth. The report is fundamentally wrong on two counts. Continue reading

Information Commissioner’s Office

In a case I dealt with recently, a group of disgruntled shareholders wished to make life difficult for the Board. They therefore submitted a complaint to the Information Commissioner’s Office that personal information about an employee had been divulged by a director, without the employee’s agreement. The employee himself was not bothered and did not make any complaint, given that the information divulged was already in the public domain. Nevertheless, the ICO took it upon themselves to investigate the matter even though there had been no complaint from the “data subject” i.e. the employee. The Data Protection Act 1998 does not require there to be a complaint from the data subject for the ICO to carry out an investigation. Surely that cannot be right? If the data subject has no problem with the information being divulged, it appears to me to be a terrible waste of public funds to carry out an investigation. The ICO sent no less than four, yes four officers to our client’s premises to investigate the matter, after which no action was taken.

If you have had any similar problems with the ICO, let me know, as I am starting to gather information on cases such as this.

Government’s employment law proposals

What short memories politicians have! For those of us with (some!) grey hair, it seems like only yesterday that the minimum service requirement to be able to claim unfair dismissal reduced from two years to one, in 1998. The reason for that change was that it was felt that requiring employees to have at least two years service would be disproportionately discriminatory against women, who as a group are less likely to be able to reach the two year service requirement due to childcare duties. That hasn’t changed, so if the requirement goes back to two years, all that will happen is that female employees will be able to argue discrimination instead of unfair dismissal – and unlike unfair dismissal, there’s no cap on discrimination claims. Please Mr Cameron, think again!

new agency worker rules: do they matter to you?

Implementation of the Agency Workers Directive has been in the pipeline for years. After several delays, the UK Regulations which enact the requirements of the Directive finally come into force on 1 October. But what do they mean in practice for employers? Continue reading

compromise agreements and Andy Coulson

Andy CoulsonCompromise agreements made the BBC News at Ten tonight with Robert Peston’s report that Andy Coulson received “hundreds of thousands” from News International while working as press officer for Prime Minister David Cameron.

The function of a compromise agreement is to prevent an employee who might bring a claim against his or her former employer from doing so. It’s an essential element of such an agreement that the terms remain confidential between the parties. Any properly drawn compromise agreement will ensure this. The idea is that a payment is made which represents a fair settlement without the need for the issues to be played out in public tribunal proceedings. However, if those issues are not subject to judicial scrutiny and the fact of the payment is disclosed, it’s easy for people to take the view that the employer is acknowledging wrongdoing by making the payment. Often that is not the case. Continue reading

employee or self-employed

Many employment law rights (such as unfair dismissal and statutory redundancy pay) are restricted to “employees” as defined. It is usually obvious whether a person has a contract of employment (i.e. a contract of service between an employer and an employee) or a contract for services (i.e. made by an employer with an independent contractor/self-employed person). Perhaps a simple and straightforward example of the difference is the contrast between the jobs of chauffeur and taxi-driver.

In some ways, the debate over whether someone is an employee (or worker) or self-employed has perhaps become something of an “old chestnut”. Yet no matter how many cases give guidance on how to approach the question, grey areas remain. One such common grey area has been the extent to which any written contract should provide the answer. Many outside the law would be surprised to learn that the contract is, in itself, by no means determinative. Continue reading

Harrods: female employees must wear “full makeup” and even visitors must observe the “dress code”

HarrodsIn 2011 the extraordinary and surely outdated dress codes operated by Harrods department store have been highlighted by a complaint brought by former employee Melanie Stark.

As reported in The Guardian Ms Stark, who worked not in the makeup department but in the HMV franchise, was told that she must wear “full makeup” including lipliner, lipstick and lipgloss, as well as “base and full eyes”. Continue reading

Bribery Act 2010 now in force

The Bribery Act 2010 was passed just over a year ago, on 8 April 2010, as one of the final pieces of legislation enacted by the last Labour government.  The incoming Coalition government originally intended to bring the Act into force on 1 October 2010 but postponed this until April 2011 and then postponed it again while non-statutory Guidance was finalised.

The Act eventually came into force on 1 July 2011. Continue reading

right to legal representation at a disciplinary hearing

Since September 2000 the basic rule has been that a worker (as defined) has the right to be accompanied by a fellow worker or trade union representative at an employer’s internal disciplinary or grievance hearing.  The companion does not have the right to answer questions on behalf of the worker but does have the right  to put the worker’s case, to sum up that case and to respond on the worker’s behalf to any views expressed at the hearing. Continue reading