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2nd July 2012

Employees and Fiduciary Duties

In Ranson v Customer Systems Plc [2012] EWCA Civ 841 the Court of Appeal has held that, unlike directors, employees do not automatically owe fiduciary duties to their employer; they must be expressly written into the terms of their employment.  Therefore, when Mr Ranson resigned and set up his own…
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2nd July 2012

TUPE service provision changes: Effect of change of client

The EAT has held, following its earlier decision in Hunter v McCarrick (which has been appealed to the Court of Appeal) in Taurus Group Ltd v Crofts and another UKEAT/0024/12 that there was a service provision change pursuant to regulation 3(1)(b) of TUPE 2006 when the change of a contractor…
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2nd July 2012

Redundancy: less work does not have to mean less employees

In Packman t/a Packman Lucas Associates v Fauchon UKEAT/0017/12 the EAT has held that it is not necessary to have a reduction in the number of employees carrying out work of a particular kind in order to satisfy section 139(1)(b)(i) of the Employment Rights Act 1996, namely a dismissal “wholly or…
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6th July 2012

Swedish Default Retirement Age is Lawful

The Court of Justice of the European Union has held in Hörnfeldt v Posten Meddelande AB that the “67 year rule” (namely a rule that every employee enjoys an unconditional right to work until the last day of the month of his or her 67th birthday on which date the employment contract can be…
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6th July 2012

Annual tribunals statistics 2011/2012 show 15% decrease in Employment Tribunal Claims

The Ministry of Justice has published annual tribunals statistics (including employment tribunals and EAT) for the period 1 April 2011 to 31 March 2012 which show that during the last financial year 186,300 claims were received by the employment tribunals, which is a 15% decrease on the previous…
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6th July 2012

Executive Remuneration

On 28 June 2012, Parliament published the following proposed clauses for the Enterprise and Reform Bill which will amend provisions of the Companies Act 2006 (“the 2006 Act”) relating to executive pay: •    Subsection 421(2A) as "the policy of the company with respect to the making of…
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6th July 2012

Announcement of Changes to National Minimum Wage

The government has announced the following national minimum wage rates, which will take effect from 1 October 2012: •    Standard Adult Rate (workers aged 21 and over) will rise to £6.19 per hour. •    Development Rate (workers aged between 18 and 20) will remain at £4.98 per hour…
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20th July 2012

Enterprise and Regulatory Reform Bill 2012-2013 Commons Committee Stage complete: employment law implications

The Enterprise and Regulatory and Reform Bill 20112-2013 completed its Committee Stage in the House of Commons on 17 July 2012, and has been republished showing the amendments made. No date has yet been set for Report Stage but it will be after the summer recess. There were no changes to the…
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20th July 2012

Fair dismissal for SOSR based on unproven allegations and reputational risk

In Leach v The Office for Communications (OFCOM) [2012] EWCA Civ 959 the Court of Appeal has upheld the EAT's decision that a public regulatory authority had fairly dismissed an employee "for some other substantial reason" following an official police disclosure alleging that he had sexually abused…
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20th July 2012

Employment Tribunal Procedural Rules to be Rewritten

Mr Justice Underhill has concluded his review of the employment tribunal rules and made his recommendations and new draft rules available. One of the key changes proposed is for there to be a sift stage. A judge would review the case on the papers once the claim and response have been received with…
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20th July 2012

Employment Tribunal Fees from Summer 2013

The Ministry of Justice has published its response to the consultation on charging fees to bring and continue claims in the employment tribunal. The response sets out the Government’s intention to introduce such fees in the latter half of 2013. Fees will be charged in two stages, the first at the…
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26th July 2012

Court of Appeal confirms worker status for surgeon working as an independent contractor

The definition of “worker” in the Employment Rights Act 1996 requires agreement to provide personal services, but excludes persons carrying on a profession or business who contract directly with their clients or customers.   The Court of Appeal has held in this case that where an organisation…
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30th July 2012

Black footballer was racially victimised by club

An employment tribunal has today ruled that former Gillingham FC striker, Mark McCammon, was racially victimised and that his dismissal for alleged misconduct was unfair. The BBC has reported that former Barbados international claimed that he and other black players at the club were treated…
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