Settlement Agreements Feb 2012

Employers can dismiss employees under one of six potentially fair reasons for dismissal: conduct, capability, redundancy, breach of a statutory enactment, some other substantial reason and retirement. However carefully these dismissals are carried out by the employer, there is always a possibility that an unfair dismissal claim will be brought either because the dismissal is not for a fair reason or because it was not procedurally fair. To circumvent this, the parties can enter into a settlement agreement which effectively waives an employee's right to take their case to an employment tribunal in exchange for a sum of money being paid to the employee.  Settlement agreements can also relate to a number of other claims. Even if the employee has less than 2 years' service, there might still be a risk in dismissing them if their circumstances…

Handling Redundancies

More than 1.3 million workers have lost their jobs during this recession and there are substantial public sector job cuts to come, as the recession continues to bite. Cutting any jobs is usually a last resort and needs to be handled sensitively and carefully as navigating the plethora of employee rights can be a minefield for any employer. Staff with more than one year's employment, may be able to claim unfair dismissal if the redundancy is not genuine or if their employer fails to follow the correct procedures - so it is vitally important to ensure that you do.  If you are at all unsure, then it is best to seek legal advice. For example, staff should be consulted in a series of meetings.  This gives them a chance to come up with suggestions for…

Planning For Adverse Weather

Whether or not we see a repeat of last year's big freeze, it makes sense for employers to ensure that they have a policy regarding adverse weather conditions.  As an employer you need to be clear of your obligations and your employees will welcome clarity regarding what is expected of them. The position for your business will depend upon the particular terms within your employee's contracts of employment.  Key issues that should be set out include: the procedure for reporting to managers obtaining authorisation for an absence working at home the policy on pay; or the use of holiday entitlement or flexi time   Employees who are absent from work due to extreme weather or other travel disruptions are not generally entitled to be paid for lost time, however it is also important…

Dismissing An Employee

Dismissing An Employee Lawyers Malton, York & Wetherby When a business wants to make a change to the terms and conditions of its employees, it often goes through a process of consultation, seeking agreement to the changes. If, after the consultation period, all or some of the employees do not agree to the proposed changes, the business may be able to dismiss these employees fairly for some other substantial reason (SOSR), offering employment on new terms and conditions. In a recent case, a company asked its employees to take a 5% pay cut after a fall in the company's sales and profits. Following a company-wide consultation, only two employees refused to agree to the change. The company terminated their employment and offered new terms and conditions on the reduced pay. The Employment Appeal Tribunal held that…

Settlement Agreements Sept 2011

A settlement agreement is the formal name given to a termination agreement between an employer and an employee. Although marked "Without Prejudice" (ie off the record), once signed the agreement becomes binding upon you and your employer. The effect of you signing a settlement agreement is that in exchange for a termination payment and any other benefits which your employer agrees to give you, you will be giving up most, if not all, of your employment-related legal rights. This means that once you have signed the agreement, you will not be able to bring any claim in respect of your employment or its termination in an Employment Tribunal, County Court or High Court. For example, you cannot bring an unfair or wrongful dismissal claim, any form of discrimination claim, any breach of contract claim or claim for…

Redundancy What Are Your Rights

More than 1.3 million workers have lost their jobs during this recession and there are substantial public sector job cuts to come. Even if you do not face redundancy, it is likely that you know someone who will. It therefore pays to know your rights. If you have more than one year's employment, you may be able to claim unfair dismissal if the redundancy was not genuine or your employer did not follow the correct procedure. You have to move quickly though - you only have three months from the date your employment ends to start a claim. In following the correct procedure, your employer has to consult with you individually in a series of meetings. This gives you a chance to come up with suggestions for avoiding your redundancy, consider any other jobs your…

Restrictive Covenants

A Restrictive Covenant is a contractual term restricting an employee's activities after termination but is void for being in restraint of trade and contrary to public policy unless the employer can show that: It has a legitimate proprietary interest that it is appropriate to protect. The protection sought is no more than is reasonable having regard to the interests of the parties and the public interest. General An employer cannot impose a covenant merely to stop someone competing, but it can seek to stop that person using or damaging something which legitimately belongs to it. This type of restriction is to be distinguished from the duty of confidentiality that an employee owes to an employer. The duty of confidentiality is founded in common law and does not require an express restraint to be…

Stress In The Workplace

According to the Health & Safety Executive (HSE), over 400,000 employees suffer stress, depression or anxiety caused or made worse by their current or past work.  Over 13 million working days are lost each year as a result of stress. In addition to loss of productivity, employers need to take care not to put themselves at risk of a claim from an employee, resulting in both financial penalties and potential loss of reputation.  O2 was ordered to pay nearly £110,000 in damages to an accountant who suffered ill health, having requested assistance on a number of occasions. Through taking a positive approach to tackling work related stress your business also stands to benefit from improved morale amongst staff and reduced cost of absences, sickness cover and recruitment. Stress is defined as: 'the adverse reaction people…

New Rights For Agency Workers

New laws protecting agency workers come into force on 1 October 2011. For example, from the start of their assignment, agency workers will be entitled to access any collective facilities and amenities that other employees or workers within a business have access to (such as child-care facilities). Who is an agency worker? An agency worker is any individual who: Is supplied by a temporary work agency (TWA) to work temporarily for and under the supervision and direction of your business; and Has a contract with the TWA, which is either: a contract of employment with the TWA; or any other contract to perform work and services personally for the TWA. A TWA is an employment business that supplies workers to hirers for temporary work (as opposed to an employment…