Employment Law

A fast track attempt by the Government to abolish the default retirement age of 65 has failed, following a decision by the House of Lords.

Liberal Democrat Peer Anthony Lester recently tabled an amendment to the Equity Bill with a view to scrapping the default retirement age of 65 before the forthcoming General Election.

Currently the law enables employers to retire workers once they reach the age of 65.   Many age campaigners, and Harriet Harman have suggested that this is arbitrary, and needs to be abolished.

However recent debate in the House of Lords saw the proposed abolition of the default retirement age withdrawn for the time being for fear of delaying the Equity Bill.

Several peers in the House of Lords pushed for a delay in the decision to scrap the default retirement age until a proposed Government review on policy was completed.  This review was scheduled to take place this year.

Employment Law Partner Daven Naghen commented as follows:-

“I think that in the current economic climate it would have been rash for the default retirement age to have been abolished so quickly.  The matter is extremely complicated due to the current economic times.  Had the default retirement age been abolished or increased, then this could have had a detrimental effect on the numbers of young people who are currently out of work.

I feel that it is right for the Government to wait until the outcome of its review before making any legislative changes.”

We will of course keep you up to date on any further news regarding changes in the default retirement age.

If you want advice on this matter or any employment issue then please contact Daven Naghen in our Employment Team on 01775 722261.

Payment for sick leave costs British businesses millions of pounds per year. However the launch of the new ‘fit note’ on the 6th April 2010 could result in savings for employers. Doctors now inform employers of what tasks an employee is able to do rather than signing them off completely. They can also advise as to changes which could be made to the employee’s obligations to enable them to get back to work. Employers should therefore ensure that they follow up this initiative particularly for people on long-term sick leave.

Should you require any assistance with any aspect of Employment law please contact us on 01775 722261 or email daven.naghen@maplessolicitors.com

Introduction – What is a Zero Hours Contract?

A zero hours contract is a contract where the business or the employer is under no obligation to provide work to a worker or employee at anytime, and the worker or employee is equally under no obligation to accept work offered by the business/employer at anytime.

Some figures suggest as many as 1.8 million people in the UK work under such terms, and businesses such as Weatherspoons to the Royal Family itself are said to use such contracts.

Further controversy arises with such contracts if there is an “exclusivity clause”.  This is a clause which prevents the worker/employee working for somebody else, even though he or she is not guaranteed any hours of work at all.  Such clauses are not necessarily unlawful, and a recent survey suggested that around 9% of individuals on zero hours contracts are never allowed to work for another employer even though the primary employer has no work available for them.

The Government’s Position

The Conservative Party believes that zero hours contracts have been good for the economy, and the flexibility they provide has helped businesses during recent difficult times.  However the Government does accept that it is unfair to have “exclusivity clauses” in such contracts when work is not guaranteed as individuals who have not been offered any work are prevented from looking for work elsewhere in order to boost their income.

The Position of the Labour Party

After David Cameron’s recent admission that he could not live off a zero hours contract, Ed Milliband has stated that he would ban zero hours contracts.

Under Labour it is proposed that such contracts could only last up to three months, and thereafter the individual or employee shall be put on a “regular hours” contract.  Clearly the Labour party believe that working people should get greater protection in their endeavours to earn an income. However some experts suggest that employers will terminate an individual’s employment just before the three month period is reached in order to avoid the “regular hours” contract and that these plans will reduce the flexibility that has helped businesses in the recent poor economic conditions.

What do you need to do?

Quite simply if you employ any staff on zero hours contracts or are intending to do so, then you must wait until after the General Election in May in order to see who wins and which way the law will go.  Whoever wins there will be some changes to the current law which are necessary as the current zero hours contracts system is unfortunately open to much abuse.

If you need advice on zero hours contracts, either as an employer or as a worker/employee then please contract Daven Naghen head of our employment team.  Daven can be contacted no 01775 72261 or email daven.naghen@maplessolicitors.com or visit us or arrange an appointment at our offices at 23 New Road Spalding Lincolnshire PE11 1 DH.

The Government extend the right to request Flexible Working Hours and confirm additional Paternity Leave Regulations will remain in force.

The Government has confirmed that the Additional Paternity Leave Regulations, implemented earlier this year by the Labour Government, will remain in force.

Additional Paternity Leave will effect parents of children due on or after 3rd April 2011 and will give employed fathers the right to take up to 6 months’ extra leave when the mother returns to work.

In August the Department for Business was considering whether or not the regulations should be scrapped. However the Government has now confirmed that the Additional Paternity Leave Regulations will remain in force as an interim measure for encouraging shared parenting from the early stages of pregnancy.

Daven Naghen, head of our Employment Law Team, said “Now that it is known for sure that the Additional Paternity Leave provisions will be going ahead in April 2011, women who are pregnant now are planning with their partners for next April. They will have the benefit of the flexibility that the Additional Paternity Leave Regulations allow. However employers now need to prepare their policies on Additional Paternity Leave so that they are in place for April 2011.

Introduction

Employment Law keeps changing and evolving.  No matter how big or small your business, the laws apply to you.  Fall foul of them, and your business could face great financial difficulties or even ruin.  For a claim of unfair dismissal an employee can now claim up to around £90,000 and for discrimination cases (e.g. sex, race, age, religion, disability) claims can often reach six figure sums.  In addition the average cost of defending an employment tribunal claim is thought to be around £9,000.  With our firm’s Employment Guard Scheme you can cost effectively manage these risks and stay on the right side of the law!

How does it work?

There are 3 elements to the Scheme as follows:-

• Health Check

We check your contracts of employment, policies, procedures and handbook to ensure that they are up to date and fully compliant with the law.  If you do not have any such documents then do not worry as we will provide them for you.  By having the right documentation in place you will reduce the risk of disputes and claims and if a dispute or a claim does follow then the documentation may assist your position.

• Telephone Advice

We provide a telephone advice service to you so you can call us for help when you need it, to help you prevent or resolve any disputes in the workplace.

• Insurance Indemnity

If (i) and (ii) above have not prevented the matter escalating into a claim, then do not worry as the insurance will cover all your legal costs and any tribunal award against you up to a maximum of £250,000 per claim or £1 million in the aggregate for the year.

How much does it cost?

The insurance premium is based on a number of factors but primarily your wage roll.  The minimum annual premium is £100 plus Insurance Premium Tax (currently 6%), and this can be paid in 12 equal monthly instalments.  The fees for the telephone advice and the health check are fixed with you in advance, and depend upon a number of factors such as the number of staff you have and the extent and quality of any contractual documentation that you already have in place.

We can provide you with a free no obligations quotation, and most usually our fees are below those offered by HR companies offering similar services.  Furthermore our services are provided by qualified solicitors, and there are no long term contracts.  Hence after 1 year if you wish to leave the Scheme, then you are free to do so.

What are the benefits?

The main key benefits are as follows:-

•      Effective management of employment law risk.
•      Better financial planning and cash flow.
•      Greater awareness of the correct approach to employment        matters.
•      Reducing disputes and saving valuable management time.
•      Eliminating damaging publicity.
•      Peace of mind.
•      Improved employer/employee relations.

Is now a good time to sign up to the Scheme?

The answer to that is undoubtedly yes!

We have been fortunate enough recently to negotiate a reduction in the insurance premiums with the insurance company (Temple Legal Protection Limited).  We currently have these reduced rates in place until the start of August 2016.

In addition we have also been able to negotiate an extension to the terms of the insurance, so that it not only covers employment tribunal claims but also health and safety prosecutions and data protection issues.

Are clients happy with the Scheme? 

We have a number of clients who currently take advantage of the Scheme and all of them have been in the Scheme for a number of years.  Susan Kennedy, Managing Director of S K Cleaning Limited has given the following testimonial:-

“I have used Maples Solicitors on a number of occasions and have always been impressed with the service that I have been given.  In particular they were excellent at preparing the employment contracts and policies for my firm, and has been very supportive and understanding in helping me make the necessary employment arrangements for my staff and my business.  Furthermore it is reassuring to know that someone is at the end of the telephone and has on a number of occasions given instant advice to myself and my manager to ensure that my staff are managed properly.  I would highly recommend Maples’ Employment Guard Scheme.  My only regret is that I did not take up the Employment Guard Scheme earlier as this would have saved me years of worry, but at least now I have total piece of mind knowing that I have the Scheme in place.”

Interested?

We can provide you with further information and/or a free no obligation quotation for our Employment Guard Scheme.  Please contact Daven Naghen on 01775 722261 or email daven.naghen@maplessolicitors.com.

Dav is happy to come and visit you to discuss matters, or for you to visit Dav at our offices if you so wish.

There have been a number of cases in recent years dealing with the issue of carry-over of holiday entitlement from one holiday year into another holiday year when an employee has been unable or unwilling to take it because of (long-term) sickness.

A recent case in the Employment Appeal Tribunal (“EAT”) has considered the matter further.

Firstly the EAT held that an employee who is absent from work on sick leave is not required to demonstrate that he or she is physically unable to take annual leave by reason of his or her medical condition in order to “qualify” for carry-over of holiday entitlement.

Secondly the EAT held that a worker must take annual leave within 18 months of the end of the leave year in which it accrued.  Hence there can be no indefinite carry-over.

Daven Nagen, head of our employment team, commented as follows:-

“It is good news that there is now certainty as to the length of time for which unused holiday entitlement can be carried over at the end of a holiday year.  Hence if a worker or employee is off on long-term sickness which covers many years, the worker or employee is going to have to elect to take his or her holiday within 18 months of the end of the leave year in which it accrued or otherwise the entitlement will be lost.”

If you require advice about the carry-over of unused holiday entitlement then please contact Daven on 01775 722261 or email daven.naghen@maplessolicitors.com or visit our offices or arrange an appointment to see Daven at 23 New Road, Spalding, Lincolnshire, PE11 1DH.