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Do managers typically think of personal liability when making decisions to dismiss? They perhaps should

Directors and senior managers and their employers should consider the recent Court of Appeal decision in the Osipov whistleblowing case very carefully. Briefly, by way of scene-setting, Osipov had made a series of protected disclosures and he was ultimately dismissed as CEO of the employer company pursuant to a decision of two non-executive directors (NEDS) … Continue reading

Vicarious liability in the data breach context – bad news for UK employers

The Court of Appeal has upheld a decision of the High Court holding that an employer can be vicariously liable for data breaches caused by the actions of an employee, even where the employee’s actions were specifically intended to harm the employer. This decision is significant as it means a company can be held liable … Continue reading

Employee rights on bereavement

In the UK, compassionate leave for employees in the event of bereavement has until now been dealt with by way of employment policies. There have been no specific legal rights on bereavement, whether in relation to the death of a family member or anyone else close to the employee. Any rights which they have to … Continue reading

Corporate Governance Reform – new disclosure requirements

Following on from it proposals for reform, which we reported on at the end of last year (Corporate Governance Proposals), the UK Government has now published draft regulations, (the draft Companies (Miscellaneous Reporting) Regulations 2018). The Draft Regulations will implement some of the proposals, in particular in relation to holding larger companies to account for … Continue reading

Overtime and holiday pay – non-guaranteed and voluntary overtime

The Employment Appeal Tribunal (EAT) in the UK has recently considered whether voluntary as well as non-guaranteed overtime should be taken into account in calculating the amount of holiday pay. The question arose both under the terms and conditions of the claimants’ employment, but also pursuant to the EU Working Time Directive (No.2003/88) (WTD). The … Continue reading

“High heels and workplace dress codes” – the UK Government Equalities Office publishes guidance

In December 2015, an agency worker arrived to work as a receptionist and was sent home without pay for failure to wear high heels in accordance with the agency’s dress code. The story attracted widespread media attention, and led to an enquiry by a House of Commons Committee whose report was published in January 2017. … Continue reading

Appointing Contractors through a personal service company – employment and tax implications

Following on from the recent cases on employment status there has been much discussion regarding how individuals should be appointed. Whilst some commentary has suggested that companies should consider appointing their contractors through Personal Service Companies (PSC’s), is this an ideal solution? Currently, where a private sector employer appoints a contractor who operates through a … Continue reading

Corporate Governance Reform – new disclosure requirements

Following on from it proposals for reform, which we reported on at the end of last year (Corporate Governance Proposals), the UK Government has now published draft regulations, (the draft Companies (Miscellaneous Reporting) Regulations 2018) . The draft regulations will implement some of the proposals, in particular in relation to holding larger companies to account … Continue reading

UK Supreme Court holds that plumber engaged by Pimlico Plumbers was a “worker” and not a self-employed contractor

The Supreme Court has dismissed the latest appeal by Pimlico Plumbers Ltd (the Company) against the employment tribunal’s decision that one of its plumbers, Mr Smith, was a “worker” under the provisions of the Employment Rights Act 1996 (ERA) and the Working Time Regulations 1998 (WTR).   The Supreme Court held that, on the facts of … Continue reading

EAT holds that paying enhanced maternity pay, but only statutory shared parental pay, is capable of amounting to indirect sex discrimination

In the UK, only female employees are eligible for statutory maternity leave. They are also eligible for statutory maternity pay at a fixed rate during such leave subject to certain conditions – and it is common for employers to pay enhanced maternity pay during periods of maternity leave. Whilst many employers do not pay enhanced … Continue reading

It’s not discriminatory to pay enhanced pay during maternity leave but only statutory pay during shared parental leave

In the UK, only female employees are eligible for statutory maternity leave. They are also eligible for statutory maternity pay at a fixed rate during such leave subject to certain conditions – and it is common for employers to pay enhanced maternity pay during periods of maternity leave. Whilst many employers do not pay enhanced … Continue reading

Changes to taxation of termination payments – April 2018

Changes to taxation of termination payments came into force in the United Kingdom on 6 April 2018. The new rules will mean that income tax and national insurance contributions (NICs) will be payable on all payments which relate to an employee’s notice period. The position prior to 6 April was that a “termination payment” (being … Continue reading

The fairness of a misconduct dismissal

A recent case has considered whether a school was entitled to summarily dismiss a head teacher for her failure to disclose a personal relationship with a convicted sex offender. In the case of Reilly v Sandwell Metropolitan Borough Council Mrs Reilly was dismissed after she failed to disclose her friendship with a convicted sex offender, … Continue reading

The UK Government’s Good Work Plan and the Gig economy

Further to our post on the UK Government’s announcement (7 February 2018) of its Good Work plan following the Taylor review of Modern Working Practices published in July last year (the Review), the Government’s full response has now been published (the Response) together with the four consultation documents promised. The key proposals detailed in the … Continue reading

The UK Government’s Good Work Plan

(Note: Since drafting this post, the Government has published the consultation documents so a further update will follow.)   The UK Government has today (7 February) announced its Good Work Plan (the Plan) in response to the Taylor review of Modern Working Practices published last year which set out a number of recommendations, in particular … Continue reading

AI and the future of work – UK Prime Minister puts Modern Industrial Strategy at the centre of the Government’s agenda

In her speech at the World Economic Forum in Davos last week, Theresa May focused on the UK Government’s plan to develop a Modern Industrial Strategy to best harness the huge potential of the technological advances in Artificial Intelligence (AI) whilst addressing the profound concerns about any negative consequences. Modern Industrial Strategy  The Prime Minister … Continue reading

Employment and Financial Services

On 7 March 2016 the Senior Managers and Certification Regime (SM&CR) was introduced to improve accountability in the financial services sector.   The SM&CR applies to UK banks, building societies, credit unions, PRA designated investment firms and branches of foreign banks operating in the UK.  It consists of three elements: the Senior Managers Regime (SMR), the … Continue reading

Enforcement of the right to paid holiday under the UK Working Time Regulations ruled incompatible with the EU Directive

The Court of Justice of the European Union (ECJ) has ruled that the method of enforcement of the right to paid holiday in the UK Working Time Regulations (WTR) is incompatible with the EU Working Time Directive. This is because, if an employer refuses to pay a worker for a period of holiday, under the … Continue reading

A Framework for Modern Employment – House of commons report.

The Work and Pensions and Business, Energy and Industrial Strategy Committees have published a joint report on “A framework for modern employment” (the Report) which considers how the employment framework should be amended to reflect the modern workplace. The Report acknowledges that “the expansion of self-employment and business models built around flexible work on digital … Continue reading

Uber appeal – Drivers have worker status

The EAT has dismissed Uber’s appeal against the employment tribunal’s decision that its drivers are ‘workers’ within the meaning of S.230(3)(b) of the Employment Rights Act 1996 (ERA 1996) and the equivalent definitions in the National Minimum Wage Act 1998 (NMWA 1998) and the Working Time Regulations 1998 (WTR 1998).   The EAT held that the … Continue reading
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