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Welcome to FFW's fortnightly
round-up of what's happening in employment
law.
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FFW provides 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
22 May 2007 Bullying and harassment
9.00am - 11.30am Click here
to reserve your place
Tuesday 4
September 2007 Managing
discrimination claims 9.00am - 11.30am
Click here
to reserve your place
Tuesday 20
November 2007 Dealing with
redundancy and restructuring 9.00am -
11.30am Click here
to reserve your place
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
Seminars
Thursday
19 April 2007 Incentivising your
staff with equity 9.00am - 11.30am Click
here
to reserve your place
Thursday 21
June 2007 What are you doing after
work? 9.00am - 11.30am Click here
to reserve your place
Tuesday 9
October 2007 Latest trends in
employee benefits Half-day Seminar Click
here
to reserve your place
Annual HR Planner
Tuesday 15 January
2008 Half-day Seminar Click here
to reserve your place
Summer Surprise Tuesday 10 July
2007 Evening event Click here
to reserve your
place
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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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Government fails to implement the Equal
Treatment Directive
Following our last
update, the High Court has now confirmed that
UK sex discrimination legislation does not
properly implement the EU Equal Treatment
Amendment Directive (the Directive).
The
Sex Discrimination Act 1975 (the Act) was amended
in October 2005 by the Employment Equality (Sex
Discrimination) Regulations 2005 (the
Regulations). The amendments introduced new
provisions, which expressly outlawed harassment on
the grounds of sex and sexual harassment, and
discrimination on the grounds of pregnancy and
maternity leave. The new provisions also sought to
clarify the circumstances in which a woman on
maternity leave could bring a claim for
discrimination.
The Equal Opportunities
Commission (EOC), however,
recently lodged judicial review proceedings to
challenge the way in which the Government
implemented the Directive in the form of the
Regulations. In Equal Opportunities Commission
v Secretary of State for Trade and Industry,
the High Court agreed with most of the issues
raised by the EOC and has confirmed that the Act
should be amended in order to:
-
widen the current
provisions relating to harassment, which require
that the harassment should be "on the grounds of
sex", rather than, as the Directive requires, be
"related to the sex of a person";
-
enable a complaint
of harassment to be made by a woman when the
conduct complained of is directed at, and
relates to the sex of, a third party;
-
clarify that
employers can be liable for harassment if they
fail to take steps to prevent harassment by
others e.g. clients/suppliers;
-
eliminate the
requirement for a comparator in cases of
discrimination on the grounds of
pregnancy/maternity leave;
-
clarify that a
woman can bring a sex discrimination claim if
deprived of non-contractual benefits, such as a
discretionary bonus, during the compulsory
maternity leave period (i.e. the two week period
immediately following the birth); and
-
ensure that the
same rights to bring a sex discrimination claim
apply during both ordinary and additional
maternity leave.This is a significant decision.
The clarification now required by the High Court
will lead to new provisions and a new
interpretation of a number of key aspects of sex
discrimination legislation, which are often
central to tribunal claims in this
area.
Review of statutory disciplinary
and grievance procedures
The DTI has
just published an independent review of employment
dispute resolution, which calls for the complete
repeal of the statutory dispute resolution
procedures introduced by the Employment Act 2002
(Dispute Resolution) Regulations 2004 (the
Regulations).
The review, led by Michael
Gibbons, notes that the current statutory
procedures carry an unnecessarily high
administrative burden for both employers and
employees and have had unintended negative
consequences which outweigh their benefits. The
recommendations made by the review include the
following:
- Repeal the statutory dispute resolution
procedures set out in the Regulations.
- Produce clear, simple, non-prescriptive
guidelines on grievances, discipline and
dismissal in the workplace, for employers and
employees.
- Introduce a new, simple process to settle
monetary disputes on issues such as wages,
redundancy and holiday pay, without the need for
tribunal hearings.
- Increase the quality of advice to potential
claimants and respondents, through an adequately
resourced helpline and the internet, including
as to the realities of tribunal claims and the
potential benefits of alternative dispute
resolution to achieve more satisfactory and
speedier outcomes.
- Offer a free early dispute resolution
service, including where appropriate mediation,
before a tribunal claim is lodged for those
disputes likely to benefit from it. The
Government should pilot this approach.
- Simplify employment law, recognising that
its complexity creates uncertainty and costs for
employers and employees.
In response to the review,
the DTI has issued a consultation
document entitled 'Resolving disputes in the
workplace', which seeks views on a wide range of
issues arising from the recommendations. The
closing date for responses to the consultation is
20 June. For many employers, who find the
statutory procedures cumbersome and ineffective,
both the review and the consultation are
undoubtedly welcome developments.
Whistleblowing -
reasonable belief is sufficient
The
Court of Appeal has recently handed down a
decision which will have an impact on many future
whistleblowing cases.
Under the
whistleblowing provisions in Part IVA of the
Employment Rights Act 1996, a 'qualifying
disclosure' is one which, in the reasonable belief
of a worker, tends to show that a 'relevant
failure' (such as a criminal offence or the
failure to comply with any legal obligation for
example) has occurred, is occurring, or is likely
to occur.
In the earlier case of Kraus
v Penna, the EAT confirmed that if a legal
obligation does not exist, as a matter of law, a
worker will not be protected by the legislation by
claiming he reasonably believed it
did.
However, the Court of Appeal in
Babula v Waltham Forest College has now
overturned this point, stating that it is not a
correct statement of the law and should not be
followed. As long as a worker's belief (which is
inevitably subjective) is considered by a tribunal
to be objectively reasonable, the fact that the
belief turns out to be wrong does not render the
belief unreasonable and deprive that worker of
statutory protection. The fact that a
whistleblower may be wrong is therefore
irrelevant, provided his belief is reasonable and
the disclosure is made in good faith.
This
is a sensible decision and is in line with the
policy and purpose of whistleblowing legislation
in the UK. The interpretation provided in
Kraus v Penna was a significant obstacle
for whistleblowers to overcome and the Court of
Appeal's approach will undoubtedly strengthen
their position in the future, in such
circumstances.
Constructive
dismissal - does the statutory grievance procedure
apply?
The Employment Appeal
Tribunal (EAT) has confirmed that the statutory
grievance procedure does apply where an employee
resigns and alleges constructive dismissal during
the course of disciplinary proceedings.
In
Pinkus v Crime Reduction Initiative, the
employee resigned before the conclusion of the
disciplinary proceedings. Two months later, she
raised a grievance concerning the manner in which
she was victimised and forced to resign. She
subsequently confirmed that she wanted to go
through the statutory grievance procedure as she
was alleging constructive dismissal (i.e. that the
employer's conduct constituted a fundamental
breach of contract, entitling her to terminate her
employment without notice).
When the
employee submitted her claim for constructive
dismissal to the tribunal, it was outside the
three month time limit. The tribunal therefore
initially looked at whether the statutory
grievance procedure applied as, if it did, the
time limit could be extended by a further 3
months. The tribunal found, however, that the
statutory grievance procedure did not apply, as
the employee's grievance in this case was that her
employer had been contemplating dismissing her.
The tribunal relied on regulation 6(5) of the
Employment Act 2002 (Dispute Resolution)
Regulations 2004, which provides that the
statutory grievance procedure does not apply where
the grievance is that the employer has dismissed
or is contemplating dismissing the
employee.
The EAT, however, overturned this
finding. The employee's letter made it clear that
she was terminating her contract without notice as
a result of the employer's conduct, which amounted
to constructive dismissal. This did not fall
within regulation 6(5), which only covers actual
dismissals. The statutory grievance procedure
therefore applied and the time limit for bringing
the claim could be extended.
Black and Asian women "missing" from almost
a third of workplaces
The EOC has
published its final report detailing the findings
of its two year investigation into Pakistani,
Bangladeshi and Black Caribbean women and
work.
Its report, Moving on Up? The Way
Forward, has established
that Pakistani, Bangladeshi and Black Caribbean
women face significantly greater penalties than
white women in the workplace. The EOC report
identifies 5 "employment gaps" between the
position of Pakistani, Bangladeshi or Black
Caribbean women and white women: labour market
participation, unemployment, progression, pay gaps
and segregation into a narrow range of
professions. The report also includes 10 practical
ways to create a workplace that works for everyone
(based on examples from real employers). These
include promoting diversity from the top down,
being open and transparent about the range of
opportunities and providing managers with the
tools to demonstrate a climate of respect in the
workplace.
ACAS guidance notes
updated
ACAS has updated its
guidance note on the Working Time
Regulations and has also
published new guidance to
enable managers to manage conflict at work
effectively.
Stress on the increase - new CIPD
guidance
Around one in five people
experience high levels of stress at work, and 44%
say that they feel under excessive pressure once
or twice a week or more, according to the
Chartered Institute of Personnel and Development
(CIPD).
In response to the rising levels
of stress, the CIPD has published three new
guides, in association with
the Health and Safety Executive. The guides are
tailored to the needs of line managers and HR
professionals and draw on 19 key management
behaviours that play a vital role in preventing,
identifying, and tackling stress in the workplace
effectively.
Largest trade
union created
Members of Amicus and
T&G voted in favour of a merger earlier this
month, which will create Britain and Ireland's
newest and biggest trade union, with around two
million members. The new union will cover a wide
range of industries and services including
transport, manufacturing, aviation, food and
farming, the financial sector as well as public
services and the voluntary sector.
High price for equality
Hundreds of thousands of men
working in the public sector are facing salary
cuts of up to £15,000 a year as equal pay
agreements take effect, according to The Times.
Equal pay claims for
up to 1.5 million public sector workers could cost
the taxpayer more than £10 billion and result in
male staff losing up to 40 per cent of their
salary. As each case is successful, further claims
are being brought, with many workers now eligible
for equal pay settlements stretching back over six
years. The Times report suggests that the
escalating costs could potentially cripple
councils and employers.
Employment Retention Bill
The
Employment Retention Bill had its first reading in
the House of Commons last week. The Bill makes
provision for a statutory right to rehabilitation
leave (or disability leave) for newly disabled
people and people whose existing impairments
change. As this is a Private Member's Bill,
however, it remains to be seen how far it will
progress.
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