Redundancy - no consultation or objective scoring

The Employment Appeal Tribunal (EAT) has upheld the decision of a tribunal that an employer’s dismissal of an employee on the grounds of redundancy was unfair, due to the absence of consultation and subjective scoring.

In E-Zec Medical Transport Service Limited v Gregory, the EAT noted that the employer had made no attempt to consult with the unions or employees as to the method of selection, the criteria to be adopted or the marking process. It was an unfair process that fell outside the band of reasonable decisions for the key criteria to be left to one individual who was not able to support his marking by reference to any company documents such as performance appraisals. The individual, the regional manager, had not spoken to any other manager concerning his marking and had not made any notes or given any indication how he had made his decisions.

The EAT also held that the tribunal, which had made it clear that its task was not to subject the employer’s marking system to a microscopic analysis or to check that the system had been properly operated, did have to satisfy itself that a fair system was in operation. The EAT held that the tribunal had been entitled to conclude that this was not a fair system and that the employer’s appeal process did not cure it.  

Employment Act receives Royal Assent 

The Employment Act 2008 received Royal Assent on 13 November.

One of the key provisions under the Act is the repeal of the statutory dismissal, disciplinary and grievance procedures, which is due to come into force on 6 April 2009. The Act will also give employment tribunals the discretion to increase or reduce awards by up to 25% if the employer or employee unreasonably fails to comply with the new Acas Code of Practice (see further below).

Revised draft Acas Code of Practice

Consultation on national minimum wage, tips and gratuities

The Government has published a consultation paper seeking views on how the law might be changed to put an end to the practice of paying service charges, tips and gratuities through an employer’s payroll and so using them to meet the employer's obligation to pay the national minimum wage.

The consultation paper also invites comments on its wish to improve consumer awareness of employers’ treatment and distribution of tips and gratuities. The consultation closes on 16 February 2009.