Field Fisher Waterhouse

Employment Update




Employment Update


25 January 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 on key legal issues and a workshop programme.

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

Tuesday 19 February 2008
Handling misconduct and poor performance
9.00am - 11.30am
Click here to reserve your place

Tuesday 18 March 2008
Tackling TUPE
9.00am - 11.30am
Click here to reserve your place


Downloads
Employment-training-prospectus.pdf - 61.27 kb
3November2006.htm - 35.04 kb
19October2007.htm - 56.82 kb
Data Security Briefing - Jan 08.pdf - 158.86 kb

Where to find us
Employment Team
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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Likelihood of disability recurring - assess at date of discriminatory act

 

In an important disability discrimination case, the Court of Appeal has clarified that when a tribunal assesses whether a person's impairment is likely to recur for the purposes of establishing disability, the assessment should be as at the date of the act of discrimination and subsequent events should not be taken into account.

 

In Richmond Adult Community College v McDougall, Ms McDougall had been offered a position at the College, subject to satisfactory medical clearance and references. After a medical report revealed that she suffered from a mental illness, the job offer was withdrawn. Whilst the disorder suffered by Ms McDougall was said to be long standing and life long, she had not suffered an episode of her illness for three years. However, she subsequently suffered a relapse shortly after the withdrawal of the job offer and was committed to hospital under the Mental Health Act.

 

The Employment Appeal Tribunal (EAT) had stated that, when deciding whether an impairment has a long-term effect, tribunals should take account of all the information available up to the date of the hearing (in this case, this would include the relapse), rather than restrict themselves to asking what the likelihood of recurrence was at the date of the alleged discriminatory act.


The Court of Appeal, however, has confirmed that a tribunal should make its judgment as to whether unlawful discrimination has been established on the basis of evidence of the circumstances prevailing at the time the alleged discriminatory decision is taken by the employer. The legislation "requires a prophecy to be made" and therefore does not permit subsequent events to be taken into account.

 

 

Holiday entitlement during sick leave - Advocate General's Opinion


Workers who are absent on sick leave should still accrue entitlement to statutory annual leave, according to the Advocate General in Stringer and ors v HM Revenue and Customs.

 

This case originally reached the House of Lords in 2006, when the issue of accruing statutory paid holiday during sick leave was subsequently referred to the European Court of Justice (ECJ). Clarity in this area has therefore been needed for some time.

 

The Advocate General's Opinion, based on the questions referred by the House of Lords to the ECJ in 2006, states that:

  • the Working Time Directive must be construed as meaning that a worker on sick leave is entitled to accrue entitlement to paid annual leave during that sick leave

  • such a worker, however, cannot take this annual leave while they are on sick leave

  • on termination of employment, a worker is entitled to payment in lieu of leave which has accrued but has not been taken due to illness. This is also the case where the worker was on sick leave for all or part of the leave year in question.

Whilst the Advocate General's Opinion is helpful, the next stage is for the ECJ to give a ruling on this case. The ECJ tends to follow the Advocate General's Opinion but this is not guaranteed. It is likely to be at least a further six months before we have a definitive ruling on this issue and can fully assess the practical impact for employers.

 

 

Compulsory retirement and age discrimination

 

It is only a few weeks into the New Year but it is already clear that age discrimination will be a particular area of interest over the coming months.

 

As with the case of Bloxham v Freshfields, heavily reported last year, the most recent case to address the newest strand of discrimination involved a firm of solicitors. In Seldon v Clarkson Wright and Jakes, an Employment Tribunal has confirmed that the compulsory retirement of a partner in the firm constituted direct age discrimination under the Employment Equality (Age) Regulations 2006, but it was lawful as it was objectively justified as a proportionate means of achieving a legitimate aim.

 

Offering some useful guidance on the interpretation of objective justification, the Tribunal concluded that the compulsory retirement age did achieve legitimate aims, which included the following:

  • ensuring that associates were given the opportunity of partnership after a reasonable period, thereby discouraging them from leaving

  • facilitating the planning of the partnership and workforce across individual departments by having realistic long term expectations as to future vacancies

  • limiting the need to expel partners by way of performance management, and contributing to the congenial and supportive culture in the firm

The tribunal also considered the effect or impact of compulsory retirement, and carried out a balancing exercise between the needs of the partnership and the impact of compulsory retirement on the partner concerned. On the basis that the compulsory retirement rule applied to all partners irrespective of personal circumstances, it was held to be a proportionate means of achieving legitimate aims and was therefore objectively justified.

 

 

Disparity of treatment and dismissal

 

The EAT has confirmed in a recent unfair dismissal case that there are limited circumstances in which the disparity of treatment between employees involved in similar incidents will be relevant.

 

In Epstein v Royal Borough of Windsor and Maidenhead, two lifeguards at a swimming pool were on duty when an incident occurred in the pool. Following a disciplinary procedure, one lifeguard was dismissed but the other was not disciplined at all.

 

The EAT confirmed that the difference in treatment was not an issue in this case. The tribunal was satisfied that the employer had carried out an adequate investigation and had reached a conclusion which was not capable of being characterised as unreasonable. The lifeguard who was not dismissed had not been in a position to observe the relevant incident and could not have been expected to take any action. The tribunal had therefore been entitled to conclude that the employer had acted within the reasonable band of responses and the issue of disparity of treatment between employees was not relevant.

 

 

Data security - what every organisation needs to know


There is no doubt that data security has been a hot topic recently, most notably following the loss of personal records by HM Revenue and Customs last year. However, the need to safeguard data has always been vital in the workplace. Whether through pure accident, negligence, recklessness or deliberate action, employees are often at the heart of security breaches and it is important for organisations to implement a comprehensive data security strategy.


Click here to read more in a briefing paper on the key legal issues within the field of data security, which follows the recent session 1 of our "Data Security Breakfast Briefing" series. This briefing paper addresses not only the relevant employment law issues but also the wider implications for other areas of law, including  contract law, technology law and litigation.

 

 

Impact of sick employees on the workplace


Despite news of the norovirus bug still lingering in the headlines, only one in four organisations report that they have a plan in place if large numbers of employees become ill.


According to the findings of the CCH Unscheduled Absence Survey, coping with sick employees in the workplace still presents a variety of problems. For example, the survey reports that when sick employees show up for work ("presenteeism"), there is a significant and costly impact on an organisation, not least in terms of diminished productivity, quality and attention to safety. Overall, 38 per cent of employers said presenteeism was a problem in their organisation. The survey also found that the most common reason that employees come to work sick is having too much work and impending deadlines. 56 per cent say there is no-one available to cover their workload and 49 per cent report fear of discipline as the reason sick workers come into work.

 

 

Fear associated with homeworking


Whilst remote working might save organisations money, recent research is reported as showing that employees remain worried about what they may miss out on by being out of the workplace.


According to the research, commissioned by Durler Consulting, and carried out among 40 organisations with between 50 and 500 staff, there is a mixed response in attitudes to remote working. Fear of missed promotion opportunities, envy of other employees, health and safety concerns and lack of social interaction were listed as key concerns. However cost savings, improved technology and shorter working days were all considered to be benefits to the businesses that are embracing the concept of homeworking.

 

 

Death of the traditional annual pay rise


Almost half of organisations (46 per cent) no longer award employees an across the board annual pay rise or cost of living adjustment, according to this year's Annual Reward Management survey from the Chartered Institute of Personnel and Development (CIPD).


Manufacturing, production and private sector service firms are the least likely to provide such a pay rise. It seems that the current trend is to allocate pay budgets to departmental heads to distribute among staff based on individual and or collective contribution, and movements in market rates and inflation, rather than as an across the board rise.


The survey also states that 70 per cent of organisations use cash based bonuses or incentive plans. Broken down by sector, 86 per cent of organisations in the manufacturing and production sector, 89 per cent in private sector services and 30 per cent of voluntary and public sector services provide cash based bonuses. However, only 40% of employers plan to amend their current bonus scheme or introduce new schemes.

 

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