A place to come to get up-to-date legal news in one place that is easy and accessible.

Monday 12 September 2011

Affected by the Riots?

Matched with the current economical climate, the riots across the current are the newest area of concern for businesses, employers and employees. With damages to buildings; both home and business and destroyed travel links advice on what to do next is much needed. 
Between employer and employee ACAS has made three main recommendations; be flexible, be fair and maintain communication. With the aim that this will ensure a stable relationship between the two parties for a hoped peaceful solution as an outcome. 
Nevertheless employers do still have a business to maintain. Travel disruptions do not automatically entitle the employee to receive pay it is dependent on the businesses contractual obligations. Likewise if unpaid leave is contained within the contract the employer may request this is taken. Finally, workplace closure does not give the employer a right not to pay the employee if they are still available for work. 

Agency Worker Regulations: Loopholes unavoidable

It seems that many employers have adopted the view that compliance with the Agency Workers Regulations (AWR) is one of a tedious task. The chosen solution of avoidance and non-compliance may now result in numerous businesses landing in hot-water. 
The AWR are set to come into force on 1st October 2011, and as recently reported less that 30% of businesses are prepared for these, despite this the regulations do impose strict and limited means of avoidance. There are penalties in place for those choosing to opt for complete non-compliance and anti-avoidance provisions for those hirers who intended to systematically restrict engagements for agency workers to 11 weeks. The only solution available to a hirer is to ensure they review what they must do and comply.
 In brief from day one the agency worker must have access to the same facilities and amenities as direct staff and be informed of relevant job vacancies to enable the application of a permanent position. After 12 weeks the agency worker is entitled to be given equal treatment in respect of basic working and employment conditions including pay and working time, without extending to sick pay and occupational pensions.  

Preparation for the impact of the removal of the retirement age

With the abolition date of the retirement age looming and the recent Ministry of Justice report illustrating an already increase in age discrimination claims, it seems it is now only appropriate for employers to prepare for the impact of the changes and choose a possible route, to benefit from the guidance provided by the European Court of Justice in Fuchs v Land Hassen.
Before October 2011 employers were able to give six months notice of the requirement to retire of an employee at 65. Whilst employees could request to continue to work and employers were obliged to consider, refusal did not require justification and unfair dismissal could not be claimed. After this date however, there cannot be notice given to retire unless the age can be objectively justified.

This objective justification requirement is seemingly set to only increase the recent 2010/2011 claims, reported by the Ministry of Justice, which show that age discrimination claims have been subject to a 30% increase. The report also made clear how, in the less than 30% of cases that made it to a full hearing, the employer was most likely to win in regards to unfair dismissal and discrimination claims. It does seem however that with the area of justification becoming more of a grey cloud it would seem that the likeliness of employers to continue to win such cases is set to decline. 
The next progressive step for employers is to address the impact of the removal of the default retirement age and the European Court of Justice’s, employer-favourable, guidance in the German case of Fuchs v Land Hassen is significant in that it allows the establishment/retention of a internal retirement age. The main points of guidance are to ensure the employer can identify the specific aim in adopting this policy, evidence its proportionality and provide justification for individuals across the whole board. 
Whilst this may aid in ensuring employers retain the higher likeliness to win cases of unfair dismissal and discrimination. It seems that with the ever impending date of abolition, the percentage of claims for age discrimination cannot be capped and is only set to increase.