The Sexier Side of Employment Law!

In a interesting case on employment status, a lap dancer was deemed to be an employee by the EAT (HHJ McMullen QC) in Quashie v Stringfellows Restaurants Limited.

The Claimant worked under a standard industry contract – the relationship was generally understood in the industry to be one of self-employment (or so I’m told!). The Claimant worked on a rota and was paid by the Respondent (subject to deductions) for the ’money’ she received from clients.

The Respondent had the right to control the Claimant’s activities when she was at work. Even though the Claimant worked under an ‘umbrella contract’ covering each separate engagement, the relationship gave rise to an expectation of continued engagement, hence there was sufficient mutuality of obligation for employment status to be established.

The case was decided on its facts, but again illustrates that Tribunals are very willing to look behind the label given to a relationship to determine its true nature.

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Increase to National Minimum Wage rates

The government has announced the following national minimum wage rates, which will take effect from 1 October 2012:

  • The standard adult rate (workers aged 21 and over) will rise to £6.19 per hour (up from £6.08).
  • The development rate (workers aged between 18 and 20) will remain at £4.98 per hour.
  • The young workers rate (workers aged under 18 but above the compulsory school age who are not apprentices) will remain at £3.68 per hour.
  • The rate for apprentices will rise to £2.65 per hour (up from £2.60).
  • The accommodation offset will rise to £4.82 per day (up from £4.73).
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IMPORTANT – Unfair Dismissal Qualifying Period Update

The Department for Business, Innovation and Skills (BIS) has now confirmed that the impending increase in the qualifying period for unfair dismissal claims from 1 year to 2 years will only apply to those who commence employment on or after 6 April 2012.

Employees whose employment started before 6 April 2012 will remain subject to the 1 year qualifying period.

By way of example, an employee with 20 months’ continuous employment on 6 April 2012 will not lose their right to claim unfair dismissal.  Similarly, an employee with 11 months’ service on that date will still only have to wait one month before being able to claim.

This decision appears to be the fairest way of dealing with the transition between the two qualifying periods, but will most certainly be welcomed more by employees than by their employers.

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Age Discrimination Update

The Supreme Court is currently hearing two landmark cases on the issue of justifying age discrimination.  We will of course report further once the Judgments are handed down. 

In the meantime, below is a link to some commentary on the cases by the Equality and Human Rights Commission.

http://www.equalityhumanrights.com/news/2012/january/commission-funds-first-age-discrimination-case-heard-at-the-supreme-court/

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Increase in Compensation Limits for 2012

The Department for Businsess, Innovation and Skills has set the new compensation limits, adjusted as always in line with the Retail Price Index, which take effect from 1st February 2012.

The key changes are:-

  • a week’s pay – £430 (currently £400)
  • maximum compensatory award – £72,300 (currently £68,400)
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Increase in Maternity etc and Sick Pay rates

The Minister of State for the Department for Work and Pensions, Steve Webb, has announced the proposed rates for statutory sick pay and statutory maternity, paternity and adoption pay for 2012.

The changes expected to come into force on 9 April 2012 are:

Statutory Maternity, Paternity, Additional Paternity, Adoption Pay and Maternity Allowance will increase from £128.73 to £135.45; and

Statutory Sick Pay will increase from £81.60 to £85.85.

Those people in possession of our ‘Pocket Guide to Employees’ Rights 2011′ should amend it accordingly.

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Industrial Action on 30 November – how to prepare for it.

 

Below is a link to an article published recently on our website regarding the upcoming stike on 30 November 2011.

http://www.michelmores.com/dealing-with-industrial-action-publication.htm

Please do contact us if you feel you would benefit from some bespoke advice on this issue.

Tom

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Prime Minister’s Speech – Employment Law Implications

Below is a passage lifted directly from the speech given last week by David Cameron.  It provides a useful indication of the upcoming changes in employment law -

 ”So we will be consulting on the introduction of protected conversations, so a boss and an employee feel able to sit down together and have a frank conversation – at either’s request. And we’re going to help address employers’ fears of a tribunal by increasing the qualifying period for unfair dismissal claims from one year to two years from next April.

This means anyone taking on a new employee can now be confident that they have two years to get the relationship right, rather than just one. And if things aren’t working out then they can end the relationship without being sued for unfair dismissal.

We’re also proposing to introduce fees for individuals who want to bring cases to employment tribunals, meaning that potential claimants are much less likely to pursue this option unless the employer has a genuine case to answer.”

The full speech can be found at http://www.number10.gov.uk/news/prime-ministers-speech-on-exporting-and-growth/.

It will be interesting to see if ‘protected conversations’ are introduced in due course.  The sceptical employment lawyer in me fears that the concept could easily be abused by both employers and employees.

If anyone has any thoughts on these changes, we would be interested to hear them.

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Causation and Vicarious Liability in Whistleblowing Cases

The Court of Appeal has provided useful guidance on whistleblowing claims in its recent judgement in NHS Manchester v Fecitt and others.

In this case, the Claimants were nurses who were employed by the Respondent at a medical walk-in clinic. They made protected disclosures about a colleague who had made false statements regarding his qualifications and, as a result, they were subject to unpleasant treatment by other members of staff. In order to deal with the dysfunctional working environment, the Claimants were removed from the centre and were either redeployed or, in the case of one nurse who was a bank worker, not provided with further shifts.

The Court of Appeal held that the Claimants were not unlawfully victimised for making protected disclosures. Although the Respondent should have better protected them from the unpleasant treatment, its failure to do so was not deliberate or based on the protected disclosures. In addition, the Claimants were redeployed from the centre to deal with the dysfunctional situation and the fact that they had made protected disclosures played no part in the Respondent’s decision.

The judgement usefully clarifies that, where a worker has made a protected disclosure and their employer has subjected them to a detriment, the employer, in order to avoid liability under the whistleblowing legislation, needs to be able to show that making the disclosure did not materially influence the detrimental treatment.  In this case, it was clear that the reasons given by NHS Manchester for acting as it did were genuine and were not affected by the Claimants’ disclosures.

The Court also confirmed that an employer cannot be vicariously liable where employees victimise their whistleblowing colleagues. There is no provision in the whistleblowing legislation making it unlawful for an employee to victimise a whistleblowing colleague and vicarious liability can only arise where an employee has carried out an unlawful act.  The Court recognised that, depending on the nature of an employee’s actions, they may commit other unlawful acts for which the employer might be vicariously liable but none applied in this case.

The Court did acknowledge that its decision may leave whistleblowers inadequately protected but suggested that the legislation would need to be amended before whistleblowers were also afforded protection against their colleagues. The Public Concern at Work charity intervened in this case and has called for a government review of the legislation to ensure that other whistleblowers in similar situations are protected.

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First conviction under Bribery Act 2010

A magistrates’ court clerk has become the first person to be prosecuted and convicted under the Bribery Act 2010. Munir Patel pleaded guilty to bribery and misconduct in public office after taking a £500 bribe in exchange for agreeing not to record a traffic offence on a court database.

Under the legislation, an individual guilty of such an offence may be liable to a maximum of 10 years’ imprisonment, a fine or both.  Mr Patel is due to be sentenced on 11 November 2011.

See the link below for a press release from the Crown Prosecution Service.

http://www.cps.gov.uk/news/press_releases/127_11/

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