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Thursday, 29 July 2010

Employment Law – A couple of interesting results

Some recent cases have interesting points to bear in mind when dealing with or thinking about employment tribunals and claims.

For example –

Sweeney v DLA Piper Solicitors

The Judge commented that, regarding an incident of claimed sexual harassment, that she had “‘laughed it off’ at the time”.

This was not, and should not be, a justification for harassment, but should help the employer in situations where an employee claims harassment concerning an incident which at the time had not created “an intimidating, hostile, degrading, humiliating or offensive environment”.

Your responsibility

If you become aware of any incident that could be considered to be harassment, it is important that you take action quickly to avoid claims against you. Possible actions to consider:

• Initiating grievance procedures on behalf of the victim,
• Initiating disciplinary procedures against those responsible
• Arranging additional training for managers / staff

County Court

An employee can take you to an employment tribunal for unfair or wrongful dismissal. If there is a breach of contract, they also have the option to sue before the County Court. This route is normally used when the value of the notice period is higher than the statutory cap applied in the Employment Tribunal, or where there is no claim for unfair dismissal.

The value of this claim has been limited to the expiry of the notice period, and/or where there are “stigma” damages.

However, the case of Edwards v Chesterfield Royal Hospital NHS Foundation Trust extended this rule to include not only the time a disciplinary procedure would have taken if done properly, but also covering losses sustained as a result of the breach of contract i.e. damage to the person’s career.

In this case, the employer failed to follow their own disciplinary procedure.

Your responsibility

• Follow your contractual disciplinary procedure
• If unsure, seek legal advice before embarking on the procedure

Reasonable Responses

The employment tribunal must look at any decision to dismiss within the context of the circumstances surrounding the action, including the conduct of the employee, and must satisfy itself as to whether the decision was within the range of reasonable responses.

Employment law is designed to prevent unreasonable action by employers, not to restrain employers from legitimate action.

Solutions for Clients: Insolvency

As part of Walker Thompson’s commitment to find effective solutions for clients, a relationship has been developed with The P&A Partnership who are specialists in the field of insolvency, an area of work which we do not undertake ourselves.

In these times of economic hardship, companies of all sizes have been going into liquidation including well known household names. However we appreciate that the impact of this and the impact of finance being restricted is causing financial hardship for individuals. Therefore we are offering individuals the opportunity to consider a planned settlement of debts through a Voluntary Arrangement which will be organised by P&A and which can avoid the necessity of personal bankruptcy.

The circumstances might be such as a buy to let mortgage which can no longer be funded from lower rental incomes, credit card rollovers, personal guarantees given to support a failed business or simply losing a previously well paid employment.

The first step is to complete a Financial Information form which can be found here. P&A will then assess fully the situation and advise on the options available.

Obviously we can assist in the completion of the form if asked.

The key message is “Do Something rather than Do Nothing”

Tuesday, 8 June 2010

WORLD CUP FEVER

The World Cup is upon us and with it the potential HR nightmare of sick days, hangovers and flimsy excuses. How can employers handle World Cup Fever without it becoming an issue.

Make sure employees are aware of your holiday rules (contracts and written policies).

Talk to your staff, maybe you can come up with a sensible compromise.

The Law
A few points to keep in mind:

• All employees are entitled to a minimum of 28 days paid holiday (for a full time worker), including bank holidays. This right accrues from the first day of work.

• Contracts and policies can restrict when holiday may be taken and length of holiday.

• Notice should be given of twice the length of the holiday requested.

As with all things ‘fairness’ is the most important rule to follow, thus avoiding discrimination claims

Friday, 28 May 2010

Day Out

After the rush of the Payroll Year End and preparations for the P11d returns, the Brecon Beacons countryside was a haven of quiet for those staff who went on the ponytrekking day. One of the most beautiful days in May started early as the minibus taking us to Wales left at 7am from Coventry.



We made our way up into the hillside, under a practically cloud free sky, with only the gentle baa-ing of sheep to break the quiet. Several hours of riding was rewarded by a stop at the pub for rest and refreshment (a well earned lager!). We somewhat warily mounted up again for the afternoons ride, but enjoyed our return to the hills.

In spite of various aches and pains on the following days, a great day out was had by all!

A trip well worth repeating.

Tuesday, 18 May 2010

BUDGET DAY ANNOUNCED

Tuesday 22 June 2010 will see the first Budget of the newly elected (or perhaps not elected as such) Coalition Government.

George Osborne will deliver his Emergency Budget to the nation with explanations as to how the Government will address the £6billion hole in the year one forecasts.

It is interesting to observe that the Chancellor has delegated responsibility for budgetary forecasts to a new "Quango" - "The Office for Budgetary Responsibility". It is less than 12 months since David Cameron stated that vast numbers of Quangos needed to be cut back in order to direct money to front line services.

We can expect austerity measures to be implemented which could bring higher taxes on some sectors with the potential for lower level earners to gain more from increased personal allowances.

It will be an interesting period leading up to the Budget given that the Lib Dems will be seeking to assert a level of influence over Mr Osborne.

On a side note:

HM Revenue and Customs have now introduced a scheme for those taxed under Self Assessment to pay their tax early by direct debit. This must be seen as a desperation measure and something designed to prop up the Payment Support Office which is extending credit to taxpayers worth millions of pounds. Given the choice, would you pay tax sooner than necessary? That we suggest would take all of one second to contemplate.

Tuesday, 4 May 2010

Stress At Work – Who are you kidding?

At this time of the year, employers of all sizes are engaged in the annual process of completing End of Year payroll returns as well as the normal day to day management of the business.

Compliance with the regulations is a stressful task, particularly given that we are in a period of transition between manual & electronic filing with HMRC.

The principal form P35 together with P14’s for each employee on the payroll and a form P38a for those on the payroll but where no Tax or NIC falls due, must be filed before 19 May 2010.

Soon after that filing deadline comes the deadline for forms P11d and P11d (b) relating to any Benefits in Kind met on behalf of employees.

As if this was not enough of course, Self Assessment Tax Returns have effectively been issued with effect from 6 April 2010 with yet more stringent deadline filing dates.

The key to dealing with all of these issues with the minimum of stress lies in being well prepared and methodical in approach; allowing sufficient time & especially having a back up plan in the event of unforeseen circumstances.

Stress Management is itself not a legally enforceable requirement placed upon companies but it is an increasing issue within the Health & Safety at Work legislation. Good practice will inevitably mean less possibility of claims.

Health and Safety Executive
National Stress Awareness Day

Thursday, 15 April 2010

Due Diligence

Throughout January to March this year, Walker Thompson has been assisting in the acquisition of Ray Owen Plating Ltd, a specialist metal plating business based in Telford. We were instructed jointly by Newmax Precision Engineering Holdings Ltd and HSBC Bank plc to carry out a detailed Due Diligence Report on the target company. The Report was delivered ahead of schedule enabling the respective lawyers to continue with the negotiation of an extremely complex deal which included property issues and employment matters in addition to the usual warranties & indemnities required of the vendors. The transaction was finally completed on 9 April 2010 and we look forward to working with the company in the future.