E-NEWS: 14 June 2002

Welcome to the latest edition of enews produced by Steele & Co. In this issue we report on:

* PROPOSED REVIEW OF THE EMPLOYMENT RELATIONS ACT
* ROLLED UP HOLIDAY PAYMENTS ARE RULED TO BE IN BREACH OF THE WORKING TIME REGULATIONS 1998
* RACE DISCRIMINATION - COMPENSATION
* REDUNDANCY - COLLECTIVE DISMISSALS
* STEELE & CO.'S THREATS AND VIOLENCE IN THE WORKPLACE BRIEFING

PROPOSED REVIEW OF THE EMPLOYMENT RELATIONS ACT

On Tuesday the 11th June a DTI consultation paper was leaked to the Times and the Financial Times Newspapers. The consultation paper is reported to propose a complete overhaul of the Employment Relations Act 1999.

The review is said to be likely to take place later on this year.

The consultation paper will look at abolishing the rule for one year's continuous employment for claiming unfair dismissal.

It will also look at increasing the compensatory award for unfair dismissal. The limit is currently set at £52,600.

The review is likely to consider giving greater powers to re-instate unfairly dismissed employees. A remedy which is not often requested and far less frequently granted at present.

A further point which is likely to be raised is lowering the threshold for Trade Union recognition.

If the above proposals are considered and implemented there is likely to be a huge impact on the workplace.

Employers will be more susceptible to employment claims if the service bar on bringing unfair dismissal claims is abolished.

Employment Tribunals work loads will increase which will lead to increased delays in hearing cases.

We will keep you informed of developments as they occur.

ROLLED UP HOLIDAY PAYMENTS ARE RULED TO BE IN BREACH OF THE WORKING TIME REGULATIONS 1998

In the recent case of MPB structure Limited v Munro the Employment Appeal Tribunal decided that, an employer who paid a percentage allowance to employees, as part of their weekly pay, in order to cover their holiday entitlement to paid holiday under the Working Time Regulations 1998 was in breach of the regulations.

As is now widely known, under the Regulations every employee is entitled to minimum periods of annual leave for which they must be paid.

Some employers try to discharge their liability to pay an employee holiday pay by including an element of holiday pay in the amount the employees are paid for actually working. This is a 'rolled up' payment.

The Employment Appeal Tribunal found that in this case the rolled up payment was rendered void by the Working Time Regulations because it had the effect of excluding or limiting the operation of the Regulations.

The Employment Tribunal made this decision on the basis that the aim of the regulations could only be met if employees received holiday pay at the appropriate rate and time when they take the leave and this was found not to be adhered to in the facts of this particular case.

Oliver Brabbins, Partner and Head of the Norwich Employment Team comments:

"This case seems to be completely at odds with the early case determined by the EAT this year of Gridquest v Blackburn. In Gridquest the EAT gave approval to the public of paying rolled-up holiday pay. Gridquest does not seem to have been considered in MPB Structures. The law is now confused and in need of guidance from the higher courts."

Accordingly, it would seem that 'rolled up' payments are not acceptable in the workplace.

RACE DISCRIMINATION - COMPENSATION

In the case of Dashiki v Draeger Limited it was found that an award of £750 for injury to feelings in a race discrimination case was ' inadequate to a degree where it was wrong in law'.

The Employment Appeal Tribunal stated that there are two categories for injury to feeling awards, the lower and the higher category.

They decided that this case fell within the lower category where compensation extends up to £10,000.

It was found that the abuse that the individual was subjected to did not correlate with the minimal award that he was given.

On that basis the Employment Appeal Tribunal increased the individual's award to £4,000.

This highlights that injury to feeling awards are increasing thus employers need to be proactive in the workplace to stop discrimination so that they do not incur such costs.

REDUNDANCY - COLLECTIVE DISMISSALS

The Trade Union Relations Act 1992 provides that where an employer is proposing to make redundant 20 or more employees within 90 days, the employer must consult with representatives of all the employees who may be affected.

If an employer fails to comply with the consultation process then the Employment Tribunal may award the dismissed employees a protective award, not exceeding 90 days pay.

In a recent case of Middlesborough Council v TGWU the EAT has again sent the clear message that collective consultation must commence before a final decision has been made other than in exceptional circumstances.

If proper consultation is not carried out then it is likely that there will be repercussions for the employer.

The case also confirms that for the purpose of calculating the period of time for which an employer must collectively consult, the Tribunal should count backwards from the date of dismissal and not the date when notice of dismissal was issued to the employee.

STEELE & CO'S THREATS AND VIOLENCE IN THE WORKPLACE BRIEFING

The London Employment Team of Steele & Co are holding a practical legal briefing on Threats and Violence in the Workplace on Wednesday 26th June 2002 between 4.00 p.m. and 5.30 p.m. and we would be delighted if you could join us.

At the briefing we will be looking at the employment law implications to employers of threats and violence at work. This will include the various claims that may be brought before an Employment Tribunal and the extent of an employer's liability for those claims as a result of the conduct of their own staff and non-employees. As a practical and informative briefing we shall discuss the methods by which employers may avoid liability at law for the violent acts of their own staff and non-employees.

Drinks and refreshments will also be served. There will be a small charge of £50.00 plus VAT per attendee. If you wish to attend this seminar and require further details please do not hesitate to contact us.

WE CAN HELP YOU:

Please use the links on this page if you:

* Want to receive more information/advice on any of the matters in this edition (please give details of the matter you require advice on).

* Want advice on any employment matters

* The employment team also conducts practical in-house training and workshops for companies on a wide range of issues including:-

Managing sickness absence/stress in the workplace
Misconduct and the disciplinary procedure
Poor performance
Handling redundancy situations
Avoiding unlawful discrimination claims
Avoiding unfair dismissals
Employment law update and practical advice for line managers

* Our aim is to offer line managers practical training to ensure that costly mistakes are avoided. All of the training workshops are tailored to meet the exact requirements of each individual business.

* If you are interested in finding out more about such training please do not hesitate to give us a call.

Visit our web site http://www.steeleslaw.co.uk

See this and other articles from Steele & Co on the web at: hrmguide.co.uk

This bulletin is intended for general guidance only and should not be relied upon without detailed legal advice on your specific circumstances.

This article copyright © 2002 Steeles Law. All rights reserved.