Oxford Employment Law Practice

Employment Law News

September 2003
 


Here is our latest Employment Law newsletter . We hope you will also visit our web site at www.oxford-employment-law.co.uk which now includes a comprehensive and regularly updated free employment law section available for you to use whenever and as often as you like to find answers to basic employment law questions. We will, of course, be pleased to assist you with individual advice when that is required.


 

1. Minimum Wage

  • new rates
  • proposals for young people
  • new enforcement rules

2. ACAS Annual Report 2003
3. Stress
4. State Pension Credit Scheme starts on 6th October 2004
5. Part-time workers
6. Overseas employees and unfair dismissal
7. Doctors

  • working time rules
  • can GPs claim for unfair dismissal or discrimination?

8. Dismissal - was it for trade union reasons or misconduct (and why does it matter)?
9. Local Authority ex-gratia payments to staff
10. Nannies (and other domestic staff) and Race Discrimination
11. Unfair dismissals during first year of employment
12. European Court of Justice procedure


1. Minimum Wage

  • increases. The national minimum wage rate is increased from 1st October 2003. The adult minimum hourly rate then goes up to £4.50 (£5.15 for adult agricultural workers) and the minimum hourly rate for 18 to 21 year olds goes up to £3.80.
  • 16 and 17 years old. A Low Pay Commission consultation is currently taking place into whether there should be a minimum wage for 16 and 17 year olds (consultation ends 31st October 2003).
  • enforcement. Hot on the heels of the National Minimum Wage (Enforcement Notices) Act 2003 (covered in our immediateloy preceding newsletter) comes news that the government is proposing a new Employment Relations Bill and that this will include further amendments to the National Minimum Wage enforcement arrangements.

For more information on the above topic/s click on:
Minimum Wage/2002 and 2003 increase and/or Minimum Wage/enforcement

 

2. ACAS Annual Report 2003

The 2002/2003 ACAS Annual Report was issued on 8th September 2003. All (almost) applications to employment tribunals are referred to ACAS with a view to achieving "out of court" settlement, so the statistics in the report are of particular interest. They suggest a slight decrease in the number of tribunal cases generally (with unfair dismissal and wrongful deductions from wages claims being, as usual, the most numerous). However the total number of claims (not tribunal applications as many applications include more than one claim) remains fairly constant at between 160,000 and 170,000. The statistics also show that the ACAS arbitration scheme introduced in May 2001 is still little used - only 23 new cases during the 12 month period under review

For more information on the above topic/s click on:
ACAS/Annual Report 2002-2003

 

3. Stress

A recent case in the Employment Appeal Tribunal suggests that an employee will have more difficulty in winning an employment related stress claim if he brings it in an employment tribunal than if he brings it in the High Court or County Court. As two bites at the cherry are not allowed, the result may be that well-advised employees may choose to bring such claims in the Courts while well-advised employers, if and to the extent that they can do so, may attempt to point litigious stressed out staff towards the tribunals (Marshall Specialist Vehicles Ltd v Osborne, EAT on 30th April 2003).

For more information on the above topic/s click on:
Health & Safety at work/stress/a general note

 

4. State Pension Credit Scheme starts on 6th October 2004

The State Pension Credit will replace the current Minimum Income Guarantee (or "MIG") as from 6th October 2003. It will consist of two elements:

    1. a guarantee credit, to ensure a minimum level of income to those aged 60 (rising to 65 by 2020) and over. Those eligible will receive the "standard minimum guarantee". This will start on 6th October 2003. It will guarantee everyone aged 60 and over an income of at least £102.10 (£155.80 for couples, whether married or unmarried.
    2. a savings credit which will, from age 65, provide an additional income for pensioners who have low or modest incomes in addition to the basic state pension. The maximum savings credit is expected to be around £18.60 a week and "will reward those aged 65 and over who have built up a modest income for retirement" (eg through an occupational pension or SERPS)

For more information on the above topic/s click on:
Social Security benefits/minimum income guarantee

 

5. Part-time workers

Potentially good news for employers. In general the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000, ensure that part time workers are entitled (pro rata) to the same terms of employment as full timers doing the same job. In August 2003 one of the first important cases under the regulations came before the EAT which upheld an employment tribunal ruling that retained firemen (ie part time firemen) cannot claim parity of employment terms (pro rata) with full time regular firefighters. Interpreting the wording of the regulations, the EAT held that retained firemen are not employed under the "same type of contract" as whole-time fire fighters and nor are they engaged in "the same or broadly similar" work. Firemen are a special case but even so this ruling does suggest that part-time workers may have more of an uphill struggle than many thought in persuading a tribunal that they are entitled to the benefit of the Regulations (Matthews and ors v Kent and Medway Towns Fire Authority and ors EAT 2003)

For more information on the above topic/s click on:
Part-time employees/2000 regulations/notes

 

6. Overseas employees and unfair dismissal

Whether and in what circumstances an overseas employee of a company which also operates in Britain can claim unfair dismissal in a British employment tribunal has been confused after two apparently conflicting decisions of the EAT earlier this year. An EAT ruling in early September 2003 provides some clarification and suggests that if an employee works wholly abroad a British employment tribunal probably does not have jurisdiction simply because the employer carries on a business in England (Jackson v Ghost Ltd EAT on 2nd September 2003)

For more information on the above topic/s click on:
Unfair dismissal/employments not having unfair dismissal rights/work ordinarily outside Gt Britain

 

7. Doctors

  • working time rules when "on call". The European Court of Justice has confirmed in a ruling in September 2003 that all time spent by a doctor on call in a hospital constitutes working time for the purposes of the Working Time Directive (Landeshauptstadt Kiel v Norbert Jaeger. ECJ Case C-151/02)
  • can GPs claim for unfair dismissal or discrimination?. A General Practitioner doctor's relationship with his local health authority is not one of employment but rather is governed by statute. The EAT decided in a case in August 2003 that as a result a GP is not only unable to bring an unfair dismissal claim against his "employing" local health authority but also, at least on the basis of the law as it stood at the relevant time, he could not bring a race discrimination claim either (North Essex Health Authority v Dr C David-John, EAT 15th August 2003) .

For more information on the above topic/s click on:
Working Time Regulations/doctors and/or Employee/definition of

 

8. Dismissal - for trade union reasons or misconduct (and why does it matter)?

If the main reason for dismissal of an employee is that he is a member of a trade union or engages in trade union activities his dismissal is automatically unfair. An employment tribunal must award him a minimum of £3,500 and the normal qualification period for claiming unfair dismissal (at least one year's continuous employment) does not apply. There was an example in August 2003 of a case which may be useful for employers to note in that the EAT ruled against an employee who claimed he had been dismissed because of his trade union activities. The EAT agreed with the employer's contention that the main reason for a trade union official's dismissal was his misconduct (South West Trains Limited v McDonnell EAT on 7th August 2003)

For more information on the above topic/s click on:
Unfair dismissal/automatically unfair dismissals/taking part in union activities

 

9. Local Authority ex-gratia payments to staff

Being conscious that their employees are paid from public funds local authorities are rightly cautious about making ex-gratia payments to staff (ie payments which they are not contractually bound to make). The latest in a line of recent cases which show that in many situations it can be lawful for a local authority to make such ex-gratia payments is reported in this month's Industrial Cases Reports (ICR) (Barking & Dagenham LBC v Watts [2003] ICR 2059, High Court ChD)

For more information on the above topic/s click on:
Redundancy/civil servants and public officials

 

10. Nannies (and other domestic staff) and Race Discrimination

Until 19th July 2003 employment of Nanny or other domestic staff was exempt from the main normal anti-race discrimination rules. As from 19th July 2003 the exemption is curtailed. The "domestic staff" exemption in the Race Relations Act no longer applies to discrimination on grounds of race or ethnic or national origins. However, oddly, there is still an exemption if the discrimination is on grounds of colour or nationality (see Race Relations Act 1976 (Amendment) Regulations 2003, SI 2003/1626).

For more information on the above topic/s click on:
Racial discrimination/domestic staff

 

11. Unfair dismissals during first year of employment

More potentially good news for employers. As is well known, an employee cannot claim unfair dismissal until after he has completed 12 months' continuous employment. It has been generally believed, at least since 1999, that an employee who is dismissed without notice and for no good reason shortly before the end of those 12 months can claim damages to compensate him for his loss of the possibility of bringing an unfair dismissal claim as well as damages for failure to give him notice. The EAT has recently held that this general belief is wrong (Virgin Net Limited v Harper, EAT on 9th July 2003).

For more information on the above topic/s click on:
Wrongful dismissal/damages for

 

Disclaimer

 

The information in this newsletter does not provide a comprehensive

or complete statement of the law relating to the issues discussed.  It is intended only as a general guide. Specialist legal advice should always be sought in relation to particular circumstances.

 

 

 

 

 

Oxford Employment Law Practice

7200 The Quorum

Oxford Business Park North

Oxford OX4 2JZ

 

Telephone 01865 487136

Fax            01865 481482

Website     www.oxford-employment-law.co.uk

 



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