The Practical Lawyer

In the current economic situation, an increasing number of employers are considering how they can introduce across-the-board wage cuts. The procedural options are as follows:

The EAT has held that employees on sick leave will only be entitled to paid holiday if they have asked to take it. In effect, a 'use it or lose it' test applies. Thus, in a recent case, an employee was long-term sick from 2005 until she returned in 2007. When she left work in 2008 she claimed accrued holiday pay for 2005 and 2006. However, her claim was dismissed - because she did not request or take any holiday during those two years.

TUPE applies when there is either: (i) a transfer of an economic entity that retained its identity (a standard transfer); or (ii) a service provision change (a service provision transfer).

Getting it wrong in relation to references could expose an employer to claims of discrimination, breach of contract, defamation, malicious falsehood, and negligent mis-statement. Accordingly, care is needed - and the starting point will usually be a clear policy on the provision of references. Points to note:

The qualification period for bringing an unfair dismissal claim will be extended from one year to two years (as from 1 April 2012).

A recent case shows that there are dangers for employers in trying to relocate employees following a TUPE takeover. Even if there is a mobility clause in the employee's contract, such a move might amount to automatic unfair dismissal.

Article 6 protects the right to a fair trial. It is now accepted that Art 6 can give a right to legal representation in disciplinary proceedings if they have a 'career-ending' potential.

A recent case involved an employee who made minor derogatory remarks on facebook. Her dismissal was held to be unfair.

The EAT has recently found that a termination payment described as ex gratia could not be used to cover damages for failure to give notice pay to an employee.

A reminder of the current statutory employment figures: