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Welcome to FFW's fortnightly
round-up of what's happening in employment
law.
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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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Online
gambling in the workplace
Online
gambling in the workplace is costing businesses
over £300m in productivity each year, according to
research commissioned by the business and
technology consultancy Morse. Of the workers
surveyed, almost a third (30%) confessed to
placing a bet online during office hours or
knowing a colleague who has. The gambling culprits
were most likely to be men (38%) and almost half
(46%) were aged 25-34. 7% of the workers who
gamble online admitted that they bet once a day
and 15% confessed to gambling three times a
week.
Morse notes that online gambling is
stunting efficiency, with the average worker who
does gamble online spending over a day and a half
of their working life each year doing so. Although
this is on a par with pulling a 'sickie', most
businesses do not have the same disciplinary
policy in place for online gambling as they do for
taking unnecessary time off.
This research
has major implications for employers.
Significantly, almost a third (28%) of the workers
surveyed did not know what their organisation's
Internet usage policy was, and 74% of male workers
admitted they still gambled online at work despite
knowing their organisation's regulations. It is
important for employers to revisit their Internet
policies, establish what will and will not be
deemed to be acceptable use in the workplace, and
ensure that any failure to comply may trigger
disciplinary action.
Click here to access Morse's
press release.
New penalties for illegal mobile phone
use
The Transport Secretary, Douglas
Alexander, announced this week that motorists will
face tough new penalties for breaking the law by
using a hand-held mobile phone while driving. From
27 February, the Road Safety Act 2006 will
introduce a fixed penalty of three penalty points
as well as a fine of £60.
The Government
introduced new laws to prevent motorists from
driving while using a hand-held mobile in December
2003. However, according to the figures produced
by Douglas Alexander, whilst 92% of people agree
with the law, 21% of drivers admit to breaking it.
Whilst these new penalties clearly have
implications for individuals, they will also have
an impact on employers. As the numbers of
employees using mobile phones for work purposes
steadily increases, employers need to ensure they
have policies in place to address employees' use
of mobile phones and establish what constitutes
appropriate usage.
Scope of
claims for deductions from wages
The
Court of Appeal has recently outlined the scope of
the law governing claims for unauthorised
deductions from wages, clarifying in what
circumstances they should instead be claims for
breach of contract and be brought in the county
court.
In Coors Brewers Ltd v Adcock
and ors, the claim arose from a dispute about
whether bonus amounts were payable under a share
bonus scheme. The Court of Appeal confirmed that
as the disputed bonus figures could not be
identified or quantified, the claim in reality
fell outside the law governing claims for
unauthorised deductions from wages, which was
designed for straightforward claims where
employees can point to a quantified loss. Where a
claim is for a disputed sum, which cannot be
quantified, it should therefore be brought as a
breach of contract claim in the county court (or,
where the individual is no longer employed, in the
tribunal).
This is a useful decision for
employers and clarifies an often complex area of
law. It is possible to foresee many circumstances
where disputed sums, which are commonly the
subject of deductions claims (such as bonuses),
may not be readily identifiable. Forcing an
employee to use the county court, rather than the
tribunal, with its greater costs implications,
will often be an unappealing prospect.
Jealousy
dismissals
The Employment Appeal
Tribunal (EAT) has recently decided that a
dismissal prompted by jealousy does not constitute
sex discrimination.
In B v A, a
solicitor had been having an intimate relationship
with his personal assistant and, unknown to the
solicitor, the personal assistant had started a
relationship with another man. When the solicitor
saw them together, he reacted by dismissing his
personal assistant the same day.
Whilst
the tribunal found that the personal assistant had
suffered sex discrimination, the EAT overturned
its decision. The EAT noted that the key question
which the tribunal should have asked was whether
the solicitor acted on the grounds of the personal
assistant's sex or for some other reason. It was
clear that the reason for the dismissal in this
case was jealousy and this was not sufficient to
establish a case of sex
discrimination.
Agency workers
and parallel contracts
In the recent
case of Cairns v Visteon Limited, the EAT
examined the increasingly common triangular
relationship between worker, employment agency and
client (or "end user").
The agency worker
in this case was employed by an employment agency
under a contract of employment but chose to bring
her claim of unfair dismissal against the end
user, on the basis that the claim would have
greater prospects of success. However, as the
agency worker already had an express contract with
the employment agency, the EAT could not establish
either a good policy reason or any business
necessity for implying another, parallel, contract
between her and the end user.
Whilst this
decision does not rule out the possibility of
parallel contracts between a worker and both an
employment agency and end user, it acknowledges
that this could be problematic, and would depart
from the key principle that a servant cannot have
two masters in respect of the same job.
This case is undoubtedly a significant
one. It narrows the scope of previous decisions in
this area, which indicated that there may be
circumstances which could justify a contract of
employment being inferred between an agency worker
and an end user. By restricting the impact of
these previous decisions, and examining policy
reasons and business necessity, the EAT has
provided welcome clarification for the many
employers who deal with employment agencies on a
regular basis.
Updated ACAS
guide
ACAS has updated its advisory
booklet on tackling discrimination and promoting
equality. Click here to access the
booklet.
City bonuses - call for change in
practice
The Chair of the Equal
Opportunities Commission, Jenny Watson, has called
for greater pay transparency in the City. The EOC
would ideally want full disclosure of both pay and
bonus details, with firms being required to set
out in advance the criteria used for setting
bonuses.
Click here to access the
article from The Times (18 January 2007).
Working
outside the box
52% of men and 48%
of women say they want to work more flexibly,
according to a new research from the EOC.
'Working outside the box' is an interim
report of the EOC's investigation into
transforming the workplace. The EOC notes that 6.5
million people in Britain today could be using
their skills more fully if greater flexible
working opportunities were available.
Significantly, the new findings indicate that the
lack of flexibility affects almost as many men as
women, and more non-parents than parents.
The report also demonstrates that many
employers are responding by making changes to the
traditional work culture. Flexitime and home
working are becoming increasingly popular and new
technology is encouraging a more innovative
approach to how work is organised. In return,
employers are reportedly benefiting from better
staff engagement and loyalty and raising
productivity.
Click here to access
'Working outside the box'.
Flexible
future?
The CBI and the TUC have
both signed an agreement to promote flexible
working in the UK. The agreement, written by Work
Wise UK, a not-for-profit initiative, aims to
significantly increase smarter working practices
in the UK and has been signed by a number of
businesses and organisations.
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