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Employment Update




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5 October 2007

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 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

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


Downloads
Employment-training-prospectus.pdf - 61.27 kb
21Sept2007.htm - 44.03 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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EAT guidance on disciplinary investigations for malingerers

A recent decision from the Employment Appeal Tribunal (EAT) has confirmed two key issues regarding the conduct of disciplinary investigations for "malingerers", providing practical guidance for all employers. In Corus UK Ltd v Mainwaring, it was held that:

  • the employer was not obliged to take a witness statement from the person who provided a tip off that the employee was in fact fit for work. 

  • it was reasonable for the employer in this case to rely on evidence from its occupational health physician, rather than obtain a specialist consultant's report, when considering the state of the employee's health.

In this case, the employee was on sick leave with back pain, but was in fact well enough to return to work.  In relation to the failure to interview the informant, the EAT confirmed that whatever he said was not part of any investigation; it merely triggered it. The employer's own investigation into the issue was considered sufficient. 

Whilst the EAT confirmed that the employer had acted reasonably in relying on the evidence of an occupational health physician, it did accept that the context of an internal disciplinary investigation is different from a forensic examination of an allegation of malingering in the context of a personal injuries claim: in such a case evidence from a specialist consultant would probably be required. 

Amendments to the Sex Discrimination Act delayed

When the High Court recently ruled that amendments made to the Sex Discrimination Act 1975 did not adequately implement the amended Equal Treatment Directive, regulations implementing the ruling were expected to come into force on 1 October 2007. This has now been delayed and the regulations are now due to come into force at the "earliest possible opportunity".

The regulations are likely to impact on a number of areas of sex discrimination legislation, and may require employers to revisit their policies and practices. Here is a reminder of the potentially wide-ranging amendments, which are due 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 an individual 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.

Outsourced local government staff and pension schemes

From 1 October 2007, two groups of local authority employees have new rights as regards their pension arrangements. The groups of employees are:

  • those whose employment is transferred to the private sector under a contracting-out arrangement; and
  • those whose employment is then subsequently transferred to a further private contractor.

Both such groups now have a statutory right to pension protection and for that protection to be enforceable.

In this context, "pension protection" means that a transferring employee must be offered, as an employee of the contractor, rights to acquire pension benefits which are the same, "broadly comparable" or better than those he had, or had a right to acquire, as a local authority employee.

The test for "broad comparability" here is that the pension benefits are largely of the same value as those under the Local Government Pension Scheme ("LGPS"), so that no identifiable member of the LGPS is materially worse off after the contract. Therefore private sector employers are not under an obligation to exactly replicate the benefits under the LGPS. However, it is worth noting that private sector employers can participate in the LGPS (which they cannot do with the Principal Civil Service Pension Scheme).

The law states that a "best value authority" which enters into a contract with another body for the provision of services must address the question of the pension arrangements of existing employees, and other employment related matters, where their employer will change as a result of the contract. Examples of "best value authorities" are local authorities, county passenger transport authorities and waste disposal authorities.

Although not on a legislative footing until now, the usual practice of "best value authorities" was to require that contractors offer pension protection as part of the contractual arrangements. However, the significance of the change is that the contract between the "best value authority" and the private contractor must now include a provision to the effect that the contractor secures pension protection for transferring employees and one to the effect that such protection is enforceable by those employees. Employers must therefore ensure that they comply with the requirement of pension protection so as to avoid the risk of employee claims.

IBM facing first virtual picket

IBM workers in Italy have taken their dispute with their employer into the virtual world of "Second Life".  Alongside real-life protest pickets outside IBM offices, a virtual picket took place in the online community of Second Life, with workers asking for a salary increase, plus improvements to pension and health rights.

Reported to be the first ever union action in the virtual world, union officials commented that this opens new avenues for industrial pressure in the future and brings greater involvement in trade union activities for "younger, computer-savvy members".

New ACAS guidance on holiday pay

Following the increase in statutory holiday entitlement on 1 October (as outlined in our last update), ACAS has issued a new advice leaflet on "Holidays and Holiday Pay" to help employers understand and apply the recent increases. 

This leaflet can be used alongside the guidance and "Holiday Entitlement Ready Reckoner" provided by DBERR (formerly the DTI) on its website, which outlines the calculation process in more detail.

National day to highlight bullying in the workplace

7 November 2007 has been deemed National Ban Bullying at Work Day by an independent charity.  Bullying at work is increasingly prevalent, with employers facing a growing number of Tribunal claims based on bullying and harassment. The national day has been organised to increase awareness of the issue and highlight the problems it can create for employers, both in terms of reputation and cost.

Age discrimination still rife in the workplace

It is now just over a year since age discrimination became unlawful. However, new research commissioned by The Employers Forum on Age (EFA) has found that employers are still not abiding by the rules.

The EFA research reveals that almost nine out of ten (86 per cent) people know it is illegal to discriminate on the grounds of age at work, compared to just 51 per cent this time last year. However, 59 per cent of workers claimed to have witnessed ageist behaviour in the workplace during the last twelve months alone, compared to 61 per cent when surveyed just before the legislation came in.

One in three (31 per cent) workers see people being managed differently depending on their age - an increase from 23 per cent last year. Over more than a quarter (27 per cent) said that people of a similar age to the rest of the team are recruited to ensure a good 'fit'. This has not changed in the 12 months since the laws came into force. The EFA research also found that there is a long way to go in ensuring that ageism is properly understood, with less than half (45 per cent) of those surveyed correctly identifying that it is an issue which can affect anyone of any age and a third (33 per cent) believing that it only affects older people.

Workers fail to take a break

Almost one in four full time British workers never take a break during work and 7 per cent do not even take a holiday, according to new research from Legal & General.

At a time when there is growing concern over British working hours and the need to reduce workplace stress, the research provides an overview of British workers' health concerns.   The results appear to reveal the impact that long working hours are having on workers' perceptions of their health:

  • Over one in five, 23 per cent, full time employees are not happy with their work-life balance which is perhaps symptomatic of them working too many extra hours, which was mentioned by 20 per cent. 

  • 49 per cent of full time workers put lack of exercise as their top health concern followed by 42 per cent who cite not getting enough sleep, being overweight is third at 38 per cent and 33 per cent are stressed by their daily routine. 

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