Monday 30 March 2009

The Dawn of Change

Whilst all of us in the employment field are finding ourselves involved in issues of redundancy, lay-offs and variations of contract, there are other things to consider.

For example, the new discipline procedures start very shortly and the real impact will not be known for some time; until the lawyers have had time to find the holes. I don't think they will make a great deal of difference to large organisations who will retain their agreed policies and procedures. Small employers may find the whole process a little less testing. We will no longer need to submit or receive a formal grievance before submitted an employment tribunal claim.

The whole process is designed to encourage employers and employees settle their differences before resorting to litigation - if only it was that easy. ACAS will even get involved in the pre-dismissal/resignation stage. This is another area in the 'wait and see' box.

To this end I commend you to my book "The Employer's Guide to Grievance and Discipline Procedures Procedures - Identifying, addressing and investigating employee misconduct". Published recently by Kogan Page and available on all the usual shops and websites - Amazon, Waterstones.

Whilst pushing this book I would commend you to read chapter 2 on Proactive Discipline - it has the potential to save a lot of time and effort!!!

If you do buy a copy, let me know what you think.

Thursday 22 January 2009

A decision on annual leave.

On Tuesday 20th January 2009, The Advocate General of the European Court of Justice handed down her opinion in Stringer v HM Revenue and Customs, the case formerly called Ainsworth and others v Commissioners of Inland Revenue [2005]. The matter was referred by the House of Lords to ask whether Article 7 of the EC Working Time Directive means that workers on long-term sick leave who have exhausted their entitlement to sick pay must still receive minimum statutory annual paid leave. The ruling was requested by the House of Lords to clear up confusion surrounding what rights workers have when they are on long-term sick leave.

The answer, and it cannot be appealed any further, was that a worker has a right to paid annual leave that accrues while off sick, although they cannot take that paid annual leave during their sick leave.

The European Court of Justice declared: "A worker does not lose his right to paid annual leave which he has been unable to exercise because of sickness. He must be compensated for his annual leave not taken.”

"The entitlement to annual leave of a worker on sick leave duly granted cannot be made subject to the obligation actually to have worked in the course of the leave year laid down by a member state."

Incidentally this only applies to statutory annual leave, i.e. what is now 24 days and will be 28 days in April 2009. Unless an employer agrees otherwise, they could lose any leave over and above the statutory minimum.

Employees should still accrue paid days off even if they are unable to work, the judgement said, because their rights and job benefits cannot be dependent on how well they are.
They must also be allowed to take time off that they built up while ill the previous year, and receive a payment in lieu of days off if they leave a job having been unable to take their full complement of paid leave or, presumably where the employer agrees, carry the leave over.

It also means that an employee who quits or loses their job while on sick leave is entitled to a lump sum payment in lieu of holidays accrued but not taken while they were sick, on top of any redundancy or termination payment.

One leading lawyer said: "The decision will have serious financial and practical ramifications for employers across the UK and Europe. In these difficult times, further constraints could prove too much for some businesses struggling to keep up with existing requirements.”

The decision will need to be ratified by the House of Lords but they have little option to change it.

All employers will need to review their policies and procedures relating to annual leave.

Friday 9 January 2009

Into 2009 – if we must!

Can I take this opportunity to wish all my readers a Happy New Year. I know some people read this blog because they point out spelling mistakes!
Many of my clients are undertaking or talking about redundancies, short time and lay-offs. My advice is to check before you take any action. There have been several issues in respect of pregnant employees, those on maternity leave and also age related selection. A recent case (Rolls Royce v Unite [2008]) decided that last-in-first-out (LIFO) is not appropriate as it could be age discrimination.
Did you realise that as from October 2008 employees on maternity leave are now entitled to the full range of company benefits throughout their mat leave – a maximum of 52 weeks. By the way, the proposed extension to mat leave and pay has been shelved until April 2010.
Do not forget that minimum statutory paid holiday entitlement increases to 28 days or 5.6 weeks as from April 2009. This can include public and bank holidays.
If you have any specific topics that interest or annoy you let me know.