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Employment Update




Employment Update


8 February 2008

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

Future Events

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Tuesday 19 February 2008
Handling misconduct and poor performance
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Tackling TUPE
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Advocate General - disability discrimination by association is unlawful


The Equal Treatment Framework Directive (the Directive) does prohibit direct discrimination and/or harassment by association, according to the Advocate General. The Advocate General's Opinion, if followed by the European Court of Justice (ECJ), is likely to have a significant impact on disability discrimination legislation in the UK.


In this case, Coleman v Attridge Law, Ms Coleman worked as a legal secretary for Attridge Law, a firm of solicitors, and was also a carer for her disabled son. She claimed that her employer treated her less favourably than employees with non-disabled children and subjected her to conduct that created a hostile atmosphere for her. Examples of such conduct included calling her "lazy" when she sought to take time off to care for her son and refusing to give Ms Coleman the same flexibility as regards her working arrangements as those of her colleagues with non-disabled children.

 

Ms Coleman issued claims of constructive dismissal and disability discrimination under the Disability Discrimination Act 1995 (DDA) in the Employment Tribunal.  The Tribunal subsequently referred specific questions to the ECJ, asking whether the Directive protects not only disabled employees from direct discrimination and/or harassment but also those employees who are associated with the disabled (such as carers).


The Advocate General has now expressed his Opinion that the Directive should be interpreted as protecting those who, although not themselves disabled, nevertheless suffer discrimination and/or harassment because they are associated with a disabled person. The Advocate General has stated that it is not necessary for someone who is the object of discrimination to have been mistreated on account of "her disability". It is enough if she was mistreated on account of "disability" and the Directive comes into play every time there is an instance of less favourable treatment because of disability. Importantly, the Advocate General indicated that the same principle will apply to any of the prohibited grounds listed in the Directive (that is, religion or belief, disability, age or sexual orientation).

 

The Opinion is not binding on the ECJ, which is expected to rule on this matter later in the year. As the DDA does not expressly prohibit discrimination by association, if the Advocate General's Opinion is followed by the ECJ, the Tribunal will need to consider whether it is prepared to interpret the DDA in such a way so as to give effect to the Directive. If this cannot be done, the DDA (and potentially the Employment Equality (Age) Regulations, since UK law does not cover direct discrimination by association in relation to age) may well need to be amended in the future.

 

If the ECJ follows the Advocate General, employers will also need to understand the potential impact of the ruling in the workplace. One key example is considering applications for flexible working. If, for example, an application is made by a carer of a disabled person, extra care will need to be taken to ensure no less favourable treatment takes place on the grounds of their association with the disabled person. 

 

 

Court of Appeal upholds decision on agency workers


In the long-awaited decision of James v London Borough of Greenwich, the Court of Appeal has upheld the decision of the Employment Tribunal that an agency worker, supplied by an employment agency, was not employed by the end-user (and therefore was not entitled to those statutory rights which are only available to employees, such as the right not to be unfairly dismissed).

 

The Court of Appeal has clarified, to some extent, in what circumstances an agency worker is or is not an employee of the end user, emphasising the requirement that the implication of a contract of service must be necessary to give effect to the business reality of a relationship between the worker and end user.


The Court of Appeal confirmed in such cases that the correct legal question is not whether the individual is an "agency worker" but whether he or she is employed by the end user under a contract of employment. The two types of contract - agency agreement and contract of employment - are not necessarily mutually exclusive and it is legally possible for a worker to have one kind of contract with the agency and another with the end user. A Tribunal is therefore required to examine and assess the factual evidence carefully to determine whether the individual is an employee. Where there is no express contract, the Tribunal must consider whether it is necessary to imply a contract of employment between the parties.

 

In this case, the Tribunal was entitled to conclude that the individual, Ms James, was not an employee of the end user (the Council) because there was no express or implied contractual relationship between her and the Council. Her only express contractual relationship was with the employment agency and, similarly, the Council's only express contractual relationship was also with the agency. The Tribunal was correct when it found that it was unnecessary to imply a third contract between Ms James and the Council to give business reality to the relationship between the parties: what both Ms James and the Council did was fully explained by the express contracts they had respectively entered into with the employment agency.


Interestingly, the Court took the opportunity to add that it is aware of the current controversy at both a domestic and EU level about the absence of job protection for agency workers. However, it emphasised that courts and tribunals cannot confer the right not to be unfairly dismissed on a worker who does not have a contract of employment. It is not for them to express views about a change or to initiate change: this is a matter of social and economic policy for debate in and decision by Parliament.

 

 

Time limits relating to the statutory grievance procedure


The Employment Appeal Tribunal (EAT) has confirmed that the three month extension to the normal time limit for unfair dismissal (which is triggered where a statutory grievance procedure applies) results in a total time limit of six months less one day.


The normal time limit for an unfair dismissal claim is treated as three months less one day. Where a statutory grievance procedure is invoked under the Employment Act 2002 (Dispute Resolution) Regulations 2004, the normal time limit for presenting the complaint is extended for "a period of three months beginning with the day after the day on which it would otherwise have expired".


In this case, Joshi v Manchester City Council, the EAT concluded that, based on the interpretation of "beginning with", when an extension  of time is given, the total time limit for presentation of an unfair dismissal claim is six months less a day - not six months, as was recently held in an earlier decision of the EAT.

 

 

Acas to receive £37 million as part of shake-up to simplify dispute resolution system


Acas were given a huge boost this week following the announcement that they will receive up to an extra £37 million of funding in the shake-up to simplify the dispute resolution system.


The extra funding, over three years, will lead to the expansion of a number of services, which include the Acas helpline. Acas will also look to provide more services that encourage good employment relations and prevent disputes from happening at an early stage.


In response to the announcement, Acas Chair Ed Sweeney, said: "Acas provides a first-class service to employers and employees, based on impartiality, integrity and expertise. We also give the taxpayer outstanding value for money, with every pound invested in us resulting in a £16 benefit to the economy. This new investment will enable us to increase our effectiveness and spread the benefits of good employment relations more widely."

 

 

The impact of longer surgery opening hours on the workplace


The Government announced this week that it will be urging GPs to accept its proposals for extending surgery opening hours.


Whilst this matter is the subject of some controversy, the amount of time employees need to take off work to attend GP appointments is a common area of concern for employers. According to analysis by Boots, businesses lose 28 million working hours - or 3.5m days - and £1 billion a year because employees have little choice but to schedule GP visits in working hours.

 

The CBI has welcomed the Government's steps, commenting that "last year, four times as many working hours were lost because of visits to the doctor as were lost to industrial action because staff had no choice but to visit their surgery during office hours. The £1bn cost to the economy of this inflexible family doctor service is shouldered by everyone. The Government is absolutely right to push for surgeries to offer opening times that suit people better."

 

 

Work-related stress - revised HSE guidance


Tackling a topic which is of ongoing concern to all types of employers, the Health and Safety Executive (HSE) has published its revised guidance on "Managing the causes of work-related stress - a step by step approach using the Management Standards".


The guidance incorporates a CD containing additional resources and the latest version of HSE tools, including the indicator and analysis tools, which assist with assessing levels of stress within an organisation.

 

 

Fees for criminal record checks are frozen


The Criminal Records Bureau (CRB) has reported that its fees for criminal record checks have been frozen for the second year running, as a result of efficiency savings and increasing demand for its service. For 2008/2009, the fees for standard and enhanced CRB checks will therefore remain at £31.00 and £36.00 respectively.

 

 

Employers need to do more to appeal to older workers


With the number of age discrimination claims already on the increase and the many reports on the ageing workforce, it perhaps comes as little surprise that research has revealed that employers need to do more to tempt older workers and motivate them in the workplace.


According to research from the CIPD, employers need to look at their financial and non-financial rewards and consider whether they are attractive to older workers. On the positive side, the research found many examples of employers introducing initiatives to make their organisation more appealing to older workers. However, most of these had been introduced on an ad-hoc basis to address specific issues. The research therefore found that what is needed is a systematic and integrated approach to reward that examines whether both financial and non-financial benefits are appealing to all individuals, irrespective of age.


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