March 2007
 
In This Issue:
 •  Welcome
 •  Agency workers
 •  Defining a worker
 •  Age bias ruling
 •  Butlins decision
 •  Disciplinary rulings
 •  Disability ruling
 •  And some snippets...



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Welcome
The fortunes of agency workers dominate this month, with an Employment Appeal Tribunal ruling, a new Government consultation under way, and the fate of a private member's bill on topic decided.

Heyday's challenge to the age discrimination regulations has meanwhile taken a knock and the courts' never-ending quest to define 'a worker' continues.

Malcolm Davies
Andersons Solicitors


Agency workers
Labour MP Paul Farrelly's Temporary and Agency Workers (Prevention of Less Favourable Treatment) Bill was blocked by the Government during its second hearing on 2 March with employment relations minister Jim Fitzpatrick still speaking when time ran out.

A total of 115 Labour MPs — 15 more than required to secure a second reading — were present to back the measure which was supported by the TUC and the UK’s leading unions and would have extended fundamental employment protection to agency workers.

On the same day, the Trade Union Rights and Freedom Bill — introduced by Labour MP John McDonnell and again supported by the TUC — also failed to secure a second reading, this time with no debate. The Bill's prime aim was to strengthen workers' rights during lawful disputes.


… another ruling…

The Employment Appeal Tribunal has in Craigie v Haringey found that there was no 'necessity' to imply a contract of employment between an agency worker and the end-user, upholding the employment tribunal's decision and declining to follow the Court of Appeal's position in Dacas v Brook Street Bureau.

The judge also commented that the law on agency workers is unsatisfactory and needs revisiting by legislators.


… and fresh consultation

The Government has launched a consultation exercise to both address 'bad practices' affecting the most vulnerable agency workers and 'reduce burdens on reputable agencies where we can do so without removing important protection for workers'.

The Department of Trade and Industry says there are 17,000 employment agencies and associated businesses in the UK with approximately one million temporary and contract workers on their books.

Details on the consultation, which runs until 31 May, from http://www.dti.gov.uk/consultations/page37726.html


Defining a worker
In James v Redcat, the Employment Appeal Tribunal has revisited the definition of 'worker', with the judge defining the essential question as 'whether the obligation for personal service is the dominant feature of the contractual relationship or not. If it is, then the contract lies in the employment field…'

The case involved a woman delivering parcels for a courier company and whether she was a worker for the purposes of the National Minimum Wage Act 1998, but has implications for other areas of employment law.


Age bias ruling
Campaigning group Heyday's challenge to the mandatory retirement procedures in the age discrimination regulations has taken a knock with the Advocate General’s opinion in a Spanish case before the European Court of Justice.

He states the EU Equal Treatment Directive 2000 does not apply to individual state laws on retirement ages and even if did apply, national provisions were justified.

Although an Advocate General’s opinion is not binding on the ECJ, it is rare for it not to be followed and if it is in Palacios v Cortefiel Servicios SA, Heyday's Strasbourg challenge would be significantly weakened.


Butlins decision
The Court of Appeal has upheld the Employment Appeal Tribunal's decision in Leisure Employment Services v HMRC that an employer could not count money deducted for gas and electricity as part of an employee’s wages.

The deduction of £3 a week was part of the provision of living accommodation or, alternatively, for the employer's own use and benefit. As a result the employer — here the owner of the Butlins brand — was in breach of the national minimum wage legislation.


Disciplinary rulings
Expired warnings should never be considered when deciding to dismiss, the Employment Appeal Tribunal has ruled in Airbus UK v Webb.

Three weeks after a final written warning expired, Mr Webb — with four colleagues — took part in a similar offence and was dismissed. His colleagues were not, and the employment tribunal found the dismissal unfair.

The employer appealed, arguing that it was legitimate to consider expired warnings but the EAT followed a Scottish Court of Session decision to hold that 'a tribunal is obliged, and not merely entitled, to ignore expired warnings'.


Disability ruling
Employers will not normally have to pay salary as a reasonable adjustment under the DDA 1995 to staff who are on long-term sick and qualify as disabled, the Employment Appeal Tribunal has ruled in Fowler v Waltham Forest.

Making such a payment was not normally reasonable because it would not help employees return to work, the EAT said, reaffirming its decision in O’Hanlon v HMRC.


And some snippets...
Cancer guidance

The CIPD, in collaboration with charity Cancerbackup, and the Working with Cancer (WwC) group, has produced new guidelines on employer obligations under the DDA 1995.

'Cancer and working: guidelines for employers, HR and line managers' offers information on best practice and making adjustments, including dealing with the issues arising at different stages of the illness and a cancer policy template.

More information and a PDF of the guidelines from http://tinyurl.com/ypu2ka


Equalities report

A new approach to tacking discrimination and disadvantage is needed to prevent some forms of inequality remaining at 'intolerable' levels, the Equalities Review’s Final Report has warned.

Among the report's findings are that it could take until 2085 to close the gender pay gap, and disabled people may never overcome the workplace penalties they currently face.

The review can be read in full at http://www.theequalitiesreview.org.uk


 
About Andersons
----------------

Andersons offer a comprehensive employment law service to a broad client base comprised mainly of quoted and private companies, public authorities, charities and private individuals, many of whom are household names. Our expertise covers all aspects of employment law and in particular matters relating to litigation, re-organisations, severance, training and general HR advice. We act for clients on a nationwide basis and represent clients all over the country in Employment Tribunals, the Employment Appeal Tribunals and other courts.

If you require advice or assistance in respect of any particular matter, please contact Malcolm Davies on Malcolm Davies . For more information about Andersons, please see our website http://www.andersonssolicitors.co.uk .



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