Sunday, December 21, 2014
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Employment Law Case of the Week

  • Receptek v Pearce UKEAT/0186/14/LA

    Ensure you have reasonable and proper cause to discipline someone before you discuss a settlement agreement with them or risk a finding of unfair constructive dismissal.

    The claimant was an Operations Manager in a company employing 5 people.  The husband of a colleague (who it is was alledged the claimant didn't enjoy the best of relations with) was recruited above the claimant as General Manager. When the claimant returned to work following an injury, the General Manager was sat at his desk and the claimant found he no longer had access to files on his computer. Following complaints made about him by the wife of the General Manager, the claimant was called into a meeting with the Proprietor.  The Proprietor asked what the claimant would take to go, and issued a veiled threat that if he did not agree to do so there might be disciplinary proceedings against him.


Topic of the Week

Overtime and Holiday Pay

On 4th November 2014, the Employment Appeal Tribunal made a groundbreaking judgement that overtime should be included in holiday pay.  Rather than paying workers basic pay, holiday pay should be calculated based on average earnings in the 12 weeks leading up to the worker's holiday.  The tribunal ruled that workers could make backdated claims but only for the 3 months prior to any holiday pay being received.  The ruling could be referred to the Court of Appeal meaning that a final decision on whether overtime should be included may be years away.  However, it is worth looking at how holiday pay is calculated at the moment and also whether any change in the calculation of holiday pay is included in the calculation of pensionable earnings.  Another point to consider is that if holiday pay is based on actual earnings it could be affected if the worker is off sick at any time during the 12 week period. 

Latest from the Employment Law Experts

Employment Tribunal Awards

Until 1999 the statutory maximum limits on monetary awards, which employment tribunals could make, were fixed on a somewhat haphazard and irregular basis. This has now been changed. The Secretary of State must now make annual orders to index-link most maximum limits by reference to changes in RPI for September, up or down, in each year.

The amount of compensation awarded following an employment tribunal will depend on the nature and outcome of the case.

Compensation Amounts and Adjustments details

Pension Arrangements

The proposals in the Government's 2006 White Paper on Personal Accounts, the aim of which is to introduce "soft compulsion" into workplace pension provision, are now coming to fruition. On 27 October 2010 the Pensions Minister, Steve Webb, confirmed that the Government would proceed with implementing the reforms set out in the Pensions Act 2008 and accompanying regulations, subject to the relatively minor changes recommended by an independent review of the proposed regime.

Read our summary with a timescale for ALL employers here



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Statutory Rates

Statutory rates are rates of payment paid and regulated by the UK government. Many of these payments are updated annually. The following table has the current statutory rates for a number of HR benefits and regulations.

Statutory rates details - 2013
Statutory rates details - 2014