E-NEWS: 9 February 2001

IN THE NEWS THIS WEEK:

* Government reform of Employment Agency Regulations
* Claims of racial abuse from city broker
* 13 week rule for holiday entitlement is unlawful
* Age discrimination - publication of European Code of Practice
* Back dated pensions

GOVERNMENT REFORM OF EMPLOYMENT AGENCY REGULATIONS

The Government announced, on 1st February 2001, new proposals for temporary workers to enhance their employment rights. More than 500,000 temporary workers, ranging from office staff to models and actors, will enjoy greater protection from exploitation and be able to move from temporary to permanent work more easily.

Amongst the various proposals are:

* establish a hiring extension option as an alternative to employers having to pay agents a fee when they wish to offer temporary staff permanent employment. This ensures a guaranteed return for agencies and will give employers and temps greater flexibility;
* introduce clearer contracts so that temps know they are engaged by their agency. This will end confusing arrangements and will stop elderly or vulnerable people from finding themselves responsible for ensuring their carer's contract complies with the national minimum wage and other regulations;
* toughen controls on bogus advertisements, both in print and on the internet, such as those which advertise non-existent jobs.

The Minister for Industry, Alan Johnson, has stated the employer will not be charged a transfer fee if they hire workers for 6 weeks or more and then decide to employ the worker permanently, more than 8 weeks after the original hiring ceased.

The new draft regulations, which are expected to come into force in summer 2001, will have implications for your business if you hire workers through an agency and subsequently wish to retain their services on a permanent basis.

See more details .

CLAIMS OF RACIAL ABUSE FROM CITY BROKER

A Jewish City broker who worked for Tullett and Tokyo Liberty is suing them for racial discrimination and unfair dismissal. Laurent Weinberger had been asked to wear a Nazi uniform as a penalty for being late for work and was also called 'Yiddo' and 'Jewboy' by colleagues. The company claim that the practice of making employees dress in costumes was a light-hearted one and the name-calling was just part of the office culture.

This case highlights the fact that just because behaviour has become part of an office culture, it does not make it acceptable. Complacency in respect of any discrimination can lead to substantial tribunal costs as well as adverse publicity.

A clear and unambiguous harassment policy, communicated to all employees, will ensure that Management and employees are aware of behaviour that is considered unacceptable by the company. Cheryl Edmonds, head of Steele & Co.'s London Employment team advises, "Harassment and Equal Opportunities policies are essential to ensure compliance with anti-discrimination legislation. These need to be communicated to all employees and procedures put in place for employees to voice concerns and grievances."

If you require further information on drafting and implementing harassment and equal opportunities policies please contact us using the buttons above.

13 WEEK RULE FOR HOLIDAY ENTITLEMENT IS CONSIDERED UNLAWFUL

> This was the opinion expressed by the Advocate-General in the European Court of Justice in the case of BECTU (Broadcasting, Entertainment, Cinematographic and Theatre Union)-v-UK.

BECTU brought a claim in the High Court seeking a declaration that Regulation 13(7) of the Work Time Regulations, which provides that workers do not acquire the right to 4 weeks' annual leave until they have been working for 13 weeks, was incompatible with the Working Time Directive.

The Advocate-General stated that the right to paid holiday is "an automatic and unconditional right granted to every worker". There is no provision within the Directive to make it subject to any qualification period.

This decision has far reaching implications for employers who employ workers on short term contracts. We would be happy to carry out a "health check" of your existing contracts of employment or if you require advice in this area please contact us using the buttons above.

AGE DISCRIMINATION - PUBLICATION OF EUROPEAN CODE OF PRACTICE

On 22nd January 2001, Eurolink Age, a not-for-profit European network concerned with older people and issues of ageing, published a European Code of Practice entitled Ageing in Employment: A European Code of Good Practice.

According to Eurolink Age and the UK's Employers' Forum on Age, the decision by the European Union to outlaw age discrimination in employment by 2006 'could cause mayhem unless employers and trade unions are prepared well in advance'. This change is contained in the Equal Treatment Framework Directive (2000/EC/78/EC) which was adopted on 27th November 2000.

The code published by Eurolink Age contains guidelines intended to assist employers and others responsible for recruitment and training to manage productively the ageing of the workforce. According to Eurolink Age, this will 'help to promote an age-neutral approach to employment and avoid the unnecessary exclusion of workers as they age, as well as to ensure better employment prospects for older workers'.

For copies of Ageing in Employment: A European Code of Good Practice, see Eurolink Age's website at http://www.eurolinkage.org/

BACK DATED PENSIONS

Yesterday the House of Lords handed down its opinion in Preston-v-Wolverhampton and followed the European Court of Justice in that it held:

1. the 6 month time limit for bringing a claim for backdated pensions under the Equal Pay Act 1970 was lawful, but,

2. the 2 year backdating limitation under the Equal Pay Act 1970 was not compatible with Article 119, and thus part-time pensioners would be entitled to back-date their pension claims to the 8th April 1976.

The consequences of this ruling have the potential to be very far reaching. The facts are as follows:

* Employees can only claim their backdated pensions if they are still working for the employer who provided the pension, or have left their employment within 6 months.
* Employees who do not have to contribute to their pensions can claim the full amount owed from their employer immediately.
* Employees who would have had to contribute to the pension must pay the amount which they would have paid during their employment up front and can then claim the equivalent payment from their employer.

It is estimated that this ruling could cost UK employers anywhere between four to seventeen billion pounds.

WE CAN HELP YOU:

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If you would like further information about this or anything else please e-mail lonemp@steeleslaw.co.uk or visit our web site www.steeleslaw.co.uk

This article copyright © 2001 Steeles Law. All rights reserved.