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Employment Law MATTERS January 2010

January 2010 Update

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NEW ADDITION TO TEAM
Euan Smith joined the Employment Team in January from a large Edinburgh firm where he spent 15 months as an employment law specialist.   Euan has given client presentations on a number of occasions and has a particular interest in the prevention of illegal working and the new points-based immigration system.  Like the rest of the team, he is more than willing to be contacted on any issue and his details are included below.

Outside of work Euan is a keen amateur sportsman with a particular passion for football, cricket and reducing his golf handicap!

GOODBYE 2009!
Statutory Disciplinary and Grievance Procedures
After causing employers and HR professionals to pull their hair out since 1 October 2004, the statutory disciplinary and grievance procedures were finally done away with on 5 April 2009.  We are sure this caused much relief initially, until solicitors pointed out that a revised ACAS Code of Practice still had to be followed!  This meant that the best practice advice was still to follow the 3 step procedure that existed before, particularly in relation to conduct and capability issues.  If you have any queries on the revised code, or disciplinary and grievance matters more generally, please contact one of the Team.

Stringer
This was a very significant case which decided that workers are entitled to take (and accrue) statutory annual leave while off sick.  This means that they are entitled to paid annual leave, even where they have exhausted their statutory and contractual sick pay entitlements. Employers should pay special attention to those workers who notify them that they wish to take holidays while on sick leave.  The reason for this is that, if they are then not paid for these holidays, the workers could raise a claim for unauthorised deduction from wages.

HELLO 2010!
Equality Bill
Without giving away the content of future newsletters the long awaited Equality Bill is currently scheduled to come into force in October 2010.  This Bill is designed to ‘harmonise and strengthen’ existing discrimination law although some commentators believe its passage will be delayed until at least 2011.

‘Fit-notes’
Other changes to look out for are the introduction of a ‘fit-note’ system to replace what many term the current ‘sick-note’ system.  It is hoped the forms will provide greater information to employers, as GPs will be able to say whether the employee is fit for all work, fit for some work or fit for no work.  There will also be space for a GP to comment on whether adjustments such as phased return, altered hours and workplace adaptations would be beneficial.

Default Retirement Age
Another important issue which will continue to take up column inches is the UK’s default retirement age of 65.  At the moment, it is still lawful to retire somebody at 65 (even if they request to work on) but the government is in the process of reviewing this.  If the government decide that the current policy does not operate to achieve a legitimate social objective, then the default retirement age is likely to rise – or be scrapped completely. 

However, it must be remembered that, even as things stand, employers must notify an employee in writing of their intention to retire them on a certain date (e.g their 65th birthday).  This needs to be done between six months and one year before the date in question and employees should also be notified of their right to request to work on. An employer then has a duty to consider any such request and allow a right of appeal if they decide to refuse the request.  A failure to comply with these steps could result in a claim for unfair dismissal and/or age discrimination.

New Fines for ‘Serious’ Data Protection Breaches
The Data Protection Act 1998 imposes broad obligations on businesses, professionals and   government departments responsible for processing ‘personal data’.  It also gives rights to individuals about whom data is collected and it is the Information Commissioner who is responsible for enforcing the regime. 

The Ministry of Justice has recently brought forward legislation which will give the Information Commissioner the power to impose financial penalties of up £500,000 for ‘serious’ breaches of the DPA.  The impetus for the new legislation appears to have been the recent high profile loss, by HM Revenue & Customs, of 25 million records relating to child benefit claims.  As a result, small to medium sized businesses are less likely to be caught under the rules because a ‘serious’ breach needs to be one likely to cause ‘substantial’ damage. That said, now is as good an opportunity as any for those who handle ‘personal data’ to review their practices and systems before the proposed rules come into force on 6 April 2010.  In order to assist, the Information Commissioner’s Office (http://www.ico.gov.uk/) has published statutory guidance on the circumstances in which the Commissioner will issue these fines and how the level of fine will be established.

THE GATHERING 2010
In February, for the first time in its six year history this two-day event (the largest voluntary
sector event in the UK), takes place in Edinburgh, at the EICC.

We are delighted to be a part of The Gathering 2010 and to be hosting a free 90-minute seminar on Friday 19th February. The title for our seminar is “Demystifying the Law for Charities and the Voluntary Sector”. It will be a user-friendly guide to topics affecting the not-for-profit sector, including:

  • Governance issues
  • Trustee duties, including the new Protection of Vulnerable Groups legislation
  • Topical employment law issues
  • Volunteer or employee?
  • Stress at work, including bullying and harassment
  • Investment outlook for Charities (we will be joined by the Chief Investment Officer from Rensburg Sheppards)

Each topic will be presented by one of our experts and will include a Q&A session.
The seminar takes place from 09:00 to 10:30 on Friday 19th February 2010.
To book a place please contact, Luisa Deas, luisa.deas@balfour-manson.co.uk, 0131 200 1402

SEMINAR AND TRAINING PROGRAMME 2010
BREAKFAST SEMINARS
These free 60-minute events start with registration and breakfast at 8.30am. Presentations begin at 9.00am finishing at 10.00am.  All events are held at our Frederick Street offices.

Wednesday 24 March
Managing Sickness Absence
This seminar will look at long term and short term absence management. Our specialist Employment Team will examine methods and ways to ensure a healthy work force and provide advice to employers on best avoiding potential claims. The increasing importance of disability discrimination law will also be examined.

Tuesday 5th October 2010
The Equality Bill and Discrimination Issues
In this seminar the Employment Team will be looking at the Equality Bill which upon receiving Royal Assent may prove to be one of the biggest shake ups in discrimination law since the 1970’s. The Bill has serious repercussions for both public sector and private employers and brings with it considerable changes to discrimination legislation.  This seminar will help HR professionals and senior executives to be fully prepared for the changes in the law and will help ensure that equality and diversity policies and procedures are compliant with the new legislation.

HALF-DAY SEMINARS
These free half-day seminars provide practical guidance on the most significant employment law developments during the year. The events start with a 9.00am registration, 9.30am presentation and finish at 12.30pm when a buffet lunch will be served.

Thursday 27th May
Employment Seminar for HR Professionals and Senior Executives
Hotel Du Vin, Edinburgh
This half-day seminar, to be held at the Hotel du Vin, Edinburgh, will take the form of a mock tribunal. This is an excellent opportunity for HR professionals and senior executives to gain an understanding of how employment tribunals work in practice. Balfour + Manson’s  employment specialists will explore a topical issue which may arise within an employment tribunal and will give guidance on tribunal proceedings and giving evidence. The seminar will recreate the tribunal environment giving HR managers and senior executives an opportunity to receive hands-on experience in understanding the tribunals’ thought-processes. The seminar will conclude with delegates voting on a decision having seen and heard the evidence.

Tuesday 7th December
Round Up of Employment Issues 2010
Round-up of employment law for 2010 and looking forward to potential developments in the year ahead.

To book a place on any of these events please contact Luisa Deas, luisa.deas@balfour-manson.co.uk, tel: 0131 200 1402.

TRAINING COURSES
We offer training on topics we have identified as key areas for HR professionals. These training sessions can be held either at our offices, in Edinburgh or Aberdeen, or, we can come to you.
The topic titles can be used as a template for a more bespoke in-house course for all levels of management including supervisors, directors or other senior officers within an organisation.

To receive this newsletter by email, please contact luisa.deas@balfour-manson.co.uk.

This document is for general guidance and information purposes only and does not purport to give
professional advice.

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