EMPLOYMENT LAW PRACTITIONERS
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Employment law Practice
We have been doing Employment Law for many years and no other area of Law. We specialise in this and nothing else, that’s why we are the best. Our strengths are tactical procedural strike out, robust advocacy, and direct knowledge of all tribunals in England and Wales. An example of a case we did recently is an employee working for a high street bank call centre asked for a reasonable adjustment to be made due to hearing problems. Management refused to make a reasonable adjustment, although there were other roles available, forcing a resignation. The legal issues were that there were other roles available, so a reasonable adjustment under the Equality Act 2010 was possible and a legal right. The employee was forced to resign by the banks refusal to make the reasonable adjustment so there was loss of earnings as well due to unfair constructive dismissal. What could have been a simple adjustment ended up a complex drawn out case settlement.
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FAQs
Q1. Do you do both claimant and respondent work?
A. We do both claimant and respondent work, mainly claimant work.
Q2. What do you cover in your website?
A. We cover basic Employment Tribunal procedure, unfair dismissal, discrimination and redundancy.
Q3. What fees does a claimant have to pay when bringing an employment tribunal claim?
Fees were introduced but the Supreme Court quashed them but now they are back with some exemptions.
Q4. In what circumstances are respondents or claimants required to pay the other sides costs in employment tribunal cases?
Q6. Who sits in judgment in employment tribunal hearings?
A. The full hearing to decide most types of employment tribunal claim is usually heard by three people, an Employment Judge who is legally qualified and who has the final say, and two non-legally qualified members with relevant experience of employment matters.
At Preliminary Hearings, Pre-hearing Reviews, and Case Management Discussions, Mediation, and cases involving only unfair dismissal, an Employment Judge sit alone, in all other cases there will be the three mentioned above, with the Employment Judge having the final say.
Q7. What are Preliminary Hearings
A. Preliminary hearings are tribunal hearings at which the tribunal can: conduct a preliminary consideration of the claim with the parties and make a case management order; determine any preliminary issue; consider whether a claim or response, or any part of them, should be struck out; make a deposit order; or explore the possibility of settlement or alternative dispute resolution (including judicial mediation). Preliminary hearings replace case management discussions and pre-hearing reviews under the revised employment tribunal rules, which were enforced from 29 July 2013.
Q8. Does an employment tribunal have the power to strike out a weak case?
A. Yes, a tribunal has the power to strike out a claim or response at any stage of the proceedings if a case has no reasonable prospects of success. As of 29 July 2013, when a claim form and response are received at the tribunal, an employment judge will consider the documents and decide whether or not there are arguable complaints and defences within the jurisdiction of the tribunal. If the judge considers that the claim or response has no reasonable prospect of success, he or she can give notice to the parties that the claim or response will be dismissed. Written representation can be made by either party to prevent the case being struck out. However, most strike outs will be as result of procedural breaches at a preliminary hearing if front of Employment Judge which we make the most out of to prevent a full hearing to save costs and time for everyone.
Q9. What is Unfair Dismissal?
A: Unfair dismissal is a creature of statute and may occur, even where there is no fundamental breach of contract (e.g. the employer has given proper notice). The concept of fundamental breach is from wrongful di
To effect a fair dismissal, the reason for dismissal must come within one of the six potentially fair reasons for dismissal laid down by the Employment Rights Act 1996. The employer must then show that the decision to dismiss was itself reasonable and that the dismissal was carried out fairly. The provisions of the ACAS Code of Practice, are essential reading for any employer because an unreasonable failure to comply with the Code (by either employer or employee) will mean that any tribunal award can be increased or reduced by up to 25%. Certain dismissals (e.g. for health and safety reasons) are deemed automatically unfair’ and employees dismissed for such reasons do not need the two year qualifying period of service in order to bring a tribunal claim.
REASONABLENESS AND FAIRNESS
Once the employer has established a potentially fair reason, he must also show that he has been reasonable in dismissing the employee for that reason.
The normal test is whether the dismissal fell within the range of reasonable responses open to an employer, (e.g. was it reasonable to dismiss the employee rather than to give him another sanction, such as a written warning?) This includes consideration of whether the procedure followed by the employer was fair in all the circumstances. Employers must have regard to the ACAS Code of Practice on Disciplinary and Grievance Procedures when dealing with disciplinary situations such as misconduct and poor performance.
As far as the Employment Tribunal is concerned, there are five potentially fair reasons for dismissing an employee:
1. Capability
2. Conduct
3. Loss/lack of qualification/statutory ban
4. Some other substantial reason
To show that you have dismissed an employee on capability grounds, you will need to show that they cannot do the work that is reasonably required of them. This could be because they cannot work to the level of skill needed to do the job. It could also be where the employee cannot carry out the work due to ill health, even with adjustments, and you need to find a permanent way of getting the work done. It is not a question of the employee not wanting to do the work but that they are not capable of doing the work or getting to a position where they can do it within a reasonable timescale.
2. Conduct
When looking at conduct, you need to show that this was a matter of choice by the employee in that they would not do the work that was reasonably required of them and that dismissing them was a reasonable response by you to their unacceptable behaviour.
In general, a single act of misconduct by an employee will not be enough to make their dismissal fair. Tribunals view ending someone’s employment as something that should not be entered into lightly and that in most circumstances an employee should be given a second chance. The expectation is that an employee will be given at least one warning and the opportunity to improve their performance. The principle behind this is that an employee should reasonably understand that they are risking dismissal by their actions.
While one act of misconduct may not be enough to justify dismissal on its own, it can result in dismissal when it is the latest act of misconduct. If an employee has been specifically told that if they repeat their behaviour they will be dismissed, or if they are on a final warning that tells them that any form of further misconduct could result in their dismissal, the dismissal may then be fair because the employee chose to act this way knowing the possible consequences. You would still be required to show that dismissal was a reasonable response in the specific circumstances, but that will be easier to show.
Certain types of behaviour can be seen as wholly unacceptable and are classed as Gross Misconduct and, if the employee has behaved in this way, any dismissal as a result could be viewed as fair even if they had no previous warnings. This type of behaviour is known as gross misconduct and includes actions like theft or violence at work, harassment (such as sexual or racial harassment) of other employees or customers and breach of health and safety rules. Gross misconduct is very rare and you would need to show that the employee’s behaviour was so unacceptable that it broke the contract and the working relationship between you could not be repaired.
3. Loss/Lack Of Qualification/Statutory Ban
An employee may be dismissed because they are not qualified, or are no longer qualified, to do their job, for example, if the job involves a lot of driving and the employee has lost their driving licence. Whether this will be a fair reason for dismissal will depend on, in this case, how much driving the job involved, whether anyone else could have done the driving, how long the employee had lost their licence for, and so on. The Tribunal would decide whether the dismissal was fair or unfair, taking into account all the circumstances of the case.
If an employee acts illegally during the course of his/her employment by acting in breach of a statutory ban, for example an employee holding a position of financial responsibility whilst being prevented from doing so due to being declared bankrupt, then this would be a fair reason for bringing the employment contract to an end.
It is important to be careful when considering suggesting that there is anything illegal about the contract. If a Tribunal were to decide that you were a willing participant in any illegality, for example making cash in hand payments off the books, the Tribunal case could stop but other investigations will start as the Tribunal could report their concerns to the relevant authorities. This could include the Police, Her Majesty’s Revenue & Customs, the Health & Safety Executive and the UK Border Agency, so caution is advisable.
4. Some Other Substantial Reason
This is the catch-all alternative reason for dismissal where it does not fit into any of the other four categories. You would have to show that you had good grounds for believing that the employment relationship had to come to an end.
MAIN UNFAIR DISMISSAL CASE LAW
The leading case on unfair dismissal is British Home Stores v Burchell below is an extract from the case:
“What the tribunal have to decide every time is, broadly expressed, whether the employer who discharged the employee on the ground of the misconduct in question (usually, though not necessarily, dishonest conduct) entertained a reasonable suspicion amounting to a belief in the guilt of the employee of that misconduct at that time. That is really stating shortly and compendiously what is in fact more than one element. First of all, … the fact of that belief; that the employer did believe it. Secondly, that the employer had in his mind reasonable grounds upon which to sustain that belief. And thirdly, we think, that the employer, at the stage at which he formed that belief on those grounds, at any rate at the final stage at which he formed that belief on those grounds, had carried out as much investigation into the matter as was reasonable in all the circumstances of the case …
It is not relevant, as we think, that the tribunal would itself have shared that view in those circumstances. It is not relevant, as we think, for the tribunal to examine the quality of the material which the employer had before them, for instance to see whether it was the sort of material, objectively considered, which would lead to a certain conclusion on the balance of probabilities, or whether it was the sort of material which would lead to the same conclusion only upon the basis of being “sure,” as it is now said more normally in a criminal context, or, to use the more old-fashioned term, such as to put the matter “beyond reasonable doubt.” The test, and the test all the way through, is reasonableness; and certainly, as it seems to us, a conclusion on the balance of probabilities will in any surmisable circumstance be a reasonable conclusion.”
Unfair dismissal statute law
Employees with two years’ continuous service (one year’s service if the employment commenced before 6 April 2012) who are sacked without a fair reason and reasonable treatment can claim unfair dismissal. Fair grounds for dismissal include the conduct of the employee, their ability or qualifications, and redundancy. You must follow a fair and reasonable dismissal procedure.
The following are potentially fair reasons for dismissing an employee: conduct, capability or qualifications, redundancy, breach of a statutory restriction, or some other substantial reason. In addition to proving that a dismissal was for one (or more) of the potentially fair reasons, an employer must show that the decision to dismiss was reasonable and that the dismissal was procedurally fair. The primary legislation is the Employment Rights Act 1996 below the most significant sections which are detailed below:
Section 98. General.
(1)In determining for the purposes of this Part whether the dismissal of an employee is fair or unfair, it is for the employer to show—
(a)the reason (or, if more than one, the principal reason) for the dismissal, and
(b)that it is either a reason falling within subsection (2) or some other substantial reason of a kind such as to justify the dismissal of an employee holding the position which the employee held.
(2)A reason falls within this subsection if it—
(a)relates to the capability or qualifications of the employee for performing work of the kind which he was employed by the employer to do,
(b)relates to the conduct of the employee,
(ba) is retirement of the employee,
(c)is that the employee was redundant, or
(d)is that the employee could not continue to work in the position which he held without contravention (either on his part or on that of his employer) of a duty or restriction imposed by or under an enactment.
(3)In subsection (2)(a)—
(a)“capability”, in relation to an employee, means his capability assessed by reference to skill, aptitude, health or any other physical or mental quality, and
(b)“qualifications”, in relation to an employee, means any degree, diploma or other academic, technical or professional qualification relevant to the position which he held.
(3A)In any case where the employer has fulfilled the requirements of subsection (1) by showing that the reason (or the principal reason) for the dismissal is retirement of the employee, the question whether the dismissal is fair or unfair shall be determined in accordance with section 98ZG.
(4)[ In any other case where] the employer has fulfilled the requirements of subsection (1), the determination of the question whether the dismissal is fair or unfair (having regard to the reason shown by the employer)—
(a)depends on whether in the circumstances (including the size and administrative resources of the employer’s undertaking) the employer acted reasonably or unreasonably in treating it as a sufficient reason for dismissing the employee, and
(b)shall be determined in accordance with equity and the substantial merits of the case.
A dismissal is automatically unfair if it is for one of a number of prescribed reasons, including whistleblowing (also known as protected disclosure), health and safety activities or illegal discrimination. This applies to all workers, no matter how short their period of employment.
An employee who has been unfairly dismissed can ask the employment tribunal to order re-employment or award compensation for unfair dismissal. Under new rules the basic award is £13,500 (depending on age and length of service) and compensation for financial loss is capped up to a maximum of either £74,200 or one year’s gross pay and the fees which must be paid when an employment tribunal case is presented – whichever is the lower. The new cap will apply where the ‘effective date of termination’ (the date on which the employee’s notice expires, where employment has been terminated with notice) or the date on which termination takes effect (where employment has been terminated without notice) is after 29 July 2013. Compensation can be unlimited if the employee has suffered from illegal discrimination.
Q9. What is discrimination?
Many small employers may be unaware, for example, that discrimination can occur legally even without there being an employment relationship (in the recruitment process or with consultants) or that employers can be held legally liable (vicarious liability) for acts of employees such as harassment even where the employer may not have been aware of the action let alone in any way sanctioned it.
The best way for small business employers to protect themselves from claims is by sticking with 3 basic principles :-
1. Remain aware of the law and ensure your staff are aware of the law on equality, diversity and discrimination
2. Make sure you have up-to-date policies, procedures and checklists
3. Be consistent in adhering to your policies and procedures and in the way you deal with a any non-compliance by staff
Having the right policies and procedures is an employers first line of defence to any possible discrimination based claim. This will demonstrate to an Employment Tribunal that your business takes discrimination and equality seriously.
Checklists are also very helpful as a day to day reminder of what you should or should not do and are particularly helpful when it comes to recruitment and dealing with possible physical disability. It is all too easy to innocently ask the wrong question at interview without a checklist or a questionnaire which can be sent to applicants and may avoid the need to ask an unlawful question at interview.
The Equality Act 2010 covers a broad spectrum of situations which include:-
● recruitment
● terms and conditions
● promotions and transfers
● discrimination in providing training
● discrimination via unequal treatment on employee benefits
● discrimination in dismissal
● occupational pensions
The characteristics that are protected by the Equality Act 2010 are:
● age
● disability
● gender identity and gender reassignment
● marriage or civil partnership (in employment only)
● pregnancy and maternity
● race
● religion or belief
● sex
● sexual orientation.
Awards of compensation for unlawful discrimination will assessed for compensation for injury to feelings, and the leading case is:
In the case of Vento -v- Chief Constable of West Yorkshire Police [2002] EWCA Civ 1871, Lord Justice Mummery set out guidance for employment tribunals on how to make such awards (at paragraph 65 of the judgment):
Employment Tribunals and those who practise in them might find it helpful if this Court were to identify three broad bands of compensation for injury to feelings, as distinct from compensation for psychiatric or similar personal injury.
i) The top band should normally be between £15,000 and £25,000. Sums in this range should be awarded in the most serious cases, such as where there has been a lengthy campaign of discriminatory harassment on the ground of sex or race … Only in the most exceptional case should an award of compensation for injury to feelings exceed £25,000.
ii) The middle band of between £5,000 and £15,000 should be used for serious cases, which do not merit an award in the highest band.
iii) Awards of between £500 and £5,000 are appropriate for less serious cases, such as where the act of discrimination is an isolated or one off occurrence. In general, awards of less than £500 are to be avoided altogether, as they risk being regarded as so low as not to be a proper recognition of injury to feelings.
There is, of course, within each band considerable flexibility, allowing tribunals to fix what is considered to be fair, reasonable and just compensation in the particular circumstances of the case.
In Da’Bell -v- NSPCC [2009] UKEAT 0227 the EAT updated the bands to between £18,000 and £30,000 (top), £6,000 to £18,000 (middle) and up to £6,000 (lower).
DISCRIMINATION STATUTE LAW
Direct discrimination occurs when you discriminate against someone because of who they are: for example, if you decide not to recruit someone because of their colour. You must also avoid indirect discrimination, which involves applying an unnecessary condition that is likely to discriminate: for example, insisting that all job applicants must be at least six feet tall (and so more likely to be male).
As an employer, you can be held responsible for discrimination by your employees: for example, if an employee is abused or harassed with racist or sexist jokes. You could also be responsible if you fail to prevent other third parties, such as suppliers, clients or customers from acting in a discriminatory way.
Discrimination can occur at every stage of employment: recruitment, selecting employees for training or promotion, applying disciplinary procedures, dismissal and redundancy. To avoid illegal discrimination, you need to ensure that your procedures and policies are objective, focusing on work performance and the requirements of the job.
Under the Equality Act 2010, you may need to make reasonable adjustments to enable disabled employees to work: for example, providing appropriate equipment or altering working practices.
The primary legislation is the Equality Act 2010 and the most significant sections are below:
4. The protected characteristics
The following characteristics are protected characteristics (as stated earlier) —
● age;
● disability;
● gender reassignment;
● marriage and civil partnership;
● pregnancy and maternity;
● race;
● religion or belief;
● sex;
● sexual orientation.
13. Direct discrimination
(1)A person (A) discriminates against another (B) if, because of a protected characteristic, A treats B less favourably than A treats or would treat others.
(2)If the protected characteristic is age, A does not discriminate against B if A can show A’s treatment of B to be a proportionate means of achieving a legitimate aim.
(3)If the protected characteristic is disability, and B is not a disabled person, A does not discriminate against B only because A treats or would treat disabled persons more favourably than A treats B.
(4)If the protected characteristic is marriage and civil partnership, this section applies to a contravention of Part 5 (work) only if the treatment is because it is B who is married or a civil partner.
(5)If the protected characteristic is race, less favourable treatment includes segregating B from others.
(6)If the protected characteristic is sex—
(a)less favourable treatment of a woman includes less favourable treatment of her because she is breast-feeding;
(b)in a case where B is a man, no account is to be taken of special treatment afforded to a woman in connection with pregnancy or childbirth.
(7)Subsection (6)(a) does not apply for the purposes of Part 5 (work).
(8)This section is subject to sections 17(6) and 18(7).
19. Indirect discrimination
(1)A person (A) discriminates against another (B) if A applies to B a provision, criterion or practice which is discriminatory in relation to a relevant protected characteristic of B’s.
(2)For the purposes of subsection (1), a provision, criterion or practice is discriminatory in relation to a relevant protected characteristic of B’s if—
(a)A applies, or would apply, it to persons with whom B does not share the characteristic,
(b)it puts, or would put, persons with whom B shares the characteristic at a particular disadvantage when compared with persons with whom B does not share it,
(c)it puts, or would put, B at that disadvantage, and
(d)A cannot show it to be a proportionate means of achieving a legitimate aim.
(3)The relevant protected characteristics are—
● age;
● disability;
● gender reassignment;
● marriage and civil partnership;
● pregnancy and maternity;
● race;
● religion or belief;
● sex;
● sexual orientation.
26. Harassment
(1)A person (A) harasses another (B) if—
(a)A engages in unwanted conduct related to a relevant protected characteristic, and
(b)the conduct has the purpose or effect of—
(i)violating B’s dignity, or
(ii)creating an intimidating, hostile, degrading, humiliating or offensive environment for B.
(2)A also harasses B if—
(a)A engages in unwanted conduct of a sexual nature, and
(b)the conduct has the purpose or effect referred to in subsection (1)(b).
(3)A also harasses B if—
(a)A or another person engages in unwanted conduct of a sexual nature or that is related to gender reassignment or sex,
(b)the conduct has the purpose or effect referred to in subsection (1)(b), and
(c)because of B’s rejection of or submission to the conduct, A treats B less favourably than A would treat B if B had not rejected or submitted to the conduct.
(4)In deciding whether conduct has the effect referred to in subsection (1)(b), each of the following must be taken into account—
(a)the perception of B;
(b)the other circumstances of the case;
(c)whether it is reasonable for the conduct to have that effect.
(5)The relevant protected characteristics are—
● age;
● disability;
● gender reassignment;
● marriage and civil partnership;
● pregnancy and maternity;
● race;
● religion or belief;
● sex;
● sexual orientation.
27. Victimisation
(1)A person (A) victimises another person (B) if A subjects B to a detriment because—
(a)B does a protected act, or
(b)A believes that B has done, or may do, a protected act.
(2)Each of the following is a protected act—
(a)bringing proceedings under this Act;
(b)giving evidence or information in connection with proceedings under this Act;
(c)doing any other thing for the purposes of or in connection with this Act;
(d)making an allegation (whether or not express) that A or another person has contravened this Act.
(3)Giving false evidence or information, or making a false allegation, is not a protected act if the evidence or information is given, or the allegation is made, in bad faith.
(4)This section applies only where the person subjected to a detriment is an individual.
(5)The reference to contravening this Act includes a reference to committing a breach of an equality clause or rule.
Q10. What is Redunancy?
A redundancy situation occurs when need for work of a particular kind has stopped or reduced at a particular site. In order for dismissal to be fair, you need to show that you have carried out a meaningful consultation with your employees about whether or not you need to make redundancies and, if so, how to determine which roles and which people should go.
In order for consultation to be meaningful your employees have to have had the opportunity to see if they can find alternate solutions. You need to show that you consulted with your staff when you were considering redundancy as a real possibility and that you discussed the situation with them at each stage before you made any decisions.
To fall within the statutory definition of redundancy an employee’s dismissal must be attributable to the employer. Ceasing or intending to cease carrying on business for the purposes of which the employee was employed (business closure) ceasing or intending to cease to carry on that business in the place where the employee was so employed (workplace closure).
Having a reduced requirement for employees to carry out work of a particular kind at the place where the employee was employed to work (reduced requirement for staff). A redundancy can therefore occur where the workforce is reorganised and there is less work; when changes in conditions mean that the old job is quite different from the new one; and when work is put out to contact.
The real est for redundancy is whether the employer requires fewer (or no) workers to do work of a particular kind and not just whether the work itself has ceased or diminished. It does not matter whether workers have been selected or volunteered for redundancy – a tribunal will treat either as dismissal for redundancy.
Redundancy statute law
The relevant primarily legislation in this area is not consolidated but is mainly in the Trade Union and Labour Relations (Consolidation) Act 1992.
Employees who are made redundant are not entitled to claim redundancy pay until they have over two years’ service. Tax is not payable in respect of statutory redundancy pay. Try to avoid claims that a redundancy is unfair dismissal by ensuring that it is genuine. In general terms this means that the job must have disappeared. Also, the employer must select employees for redundancy on a fair and objective basis, after reasonable consultation and with adequate notice and a fair appeals procedure.
CHECKLIST FOR REDUNDANCY DISMISSAL PROCEDURE
To establish unfair dismissal as a result of redundancy a tribunal will look at the following issues:
1. If so, has the employer’s requirements for work of a particular kind ceased or diminished?
2. Was the dismissal of the employee caused wholly or mainly by the cessation or diminution of work?
3. Where the selection criteria transparent and objective?
4. Was there other work in the organisation available?
5. Were employees kept informed at every stage of redundancy?
6. Has the employee been made redundant or been unfairly dismissed?
The first step in the redundancy dismissal procedure is the decision on the necessity of making one or more employees redundant. The following actions should be considered and undertaken as necessary:
(A) Issue notices of dismissal for redundancy, 20 employees within 90 days or less, consult with employee representatives within the appropriate time measures.
(B) Provide the necessary information to employees affected.
(C) Follow a fair selection procedure (which is transparent and agreed by employee representative) and then invite voluntary redundancies. Consider if alternative work is available within the organisation, even if this means retraining.
(D) Consult with individuals affected before a final decision is taken
(E) Inform those employees as soon as possible of their impending redundancy and allow them time off to look for other employment.
(F) Notify BIS of impending redundancies within the appropriate time limits, if necessary.
(G) Provide Dismissal notices
The following sets out the key employment law questions that may arise at this time of the Covid-19 crisis.
11. COVID 19 and Redundancy
Redundancy is basically when an employee is dismissed from their job because their employer has decided to reduce the size of its workforce. If this happens, unlike furloughing, lay-off or short-time working, redundancy ends your employment.
Redundancy is likely to be because your employer does not need as many employees to do the work that you do (for example because there is no demand or reduced demand) or where the workplace is permanently closing down or the particular kind of work you do is unavailable due to Covid-19.
If there is a risk of you being made redundant, your employer would normally be expected to consult with you about the possible redundancy before it takes effect and to consider alternatives, such as if there are any different roles you could carry out, and this might also include whether you could instead be “furloughed” rather than being made redundant. If your employer is continuing to remain in business, but is reducing the size of the workforce, it should follow a fair process in selecting which staff are to be kept on and which are to be made redundant – in particular, it should avoid discriminating when it makes its selection. A failure to follow a fair process, might mean that your redundancy is unfair and if you have more than two years’ continuous employment you may be able to bring a claim for unfair dismissal.
If your employer is considering making 20 or more staff redundant at your workplace, then “collective consultation” with representatives of the affected employees will be needed.
12. How much can I get if I’m made redundant?
If you’re made redundant, you may be eligible for a redundancy payment if you have been employed for at least two years. Your employer may have its own policy about such payments, but the minimum “statutory redundancy pay” to which you would be entitled is: Half a week’s pay for each full year of employment that you were under 22-years-old, One week’s pay for each full year of employment that you were aged 22 or older, but under 41, One and half week’s pay for each full year of employment that you were aged 41 or older, A “week’s pay” is based on your pay before tax and is currently limited to a maximum of £525 a week, rising to £538 if the dismissal is on or after 6 April 2020. Redundancy pay does not have income tax or NICs deducted.
13. How much notice should I get?
Your employer should also give you a notice period if you are made redundant – this is a minimum of one week’s “statutory notice” for each completed year of employment, up to a maximum of 12 weeks. Your contract of employment may have a more generous notice period which would instead apply to you, if so.
14. What if my employer goes into liquidation?
If your employer ceases trading altogether (for example because it has gone into liquidation or administration) and as a result fails to pay you what you are entitled to, you can apply to the government for: your statutory redundancy payment, payment of holiday pay you are owed, other outstanding payments like unpaid wages, overtime and commission (up to eight weeks’ worth in each case), money you would have earned by working your “statutory notice” period.
15. Pay cut how should I react?
You cannot be contractually required to accept a pay cut or deferral – except if there is already a mechanism in your contract of employment allowing cuts or deferrals to be made by the employer, which would be unusual.
However, you should be aware that (even if there is no overt statement that your job is at risk) your reaction to the proposal may affect your future job security.
You should review your personal financial situation, to check whether you can reduce outgoings .
You should seek as much information as you can about the financial position of your employer and the steps being proposed to deal with the crisis more generally.
In particular, you should assess whether the proposed senior pay reduction is proportionate in the context of the severity of the situation and the other steps being proposed – such as furloughing of employees under the Government’s job retention scheme; pay reductions at more junior levels; discounts/reductions from suppliers, service providers and/or landlords and the use of Government’s Bounce Back Loan support and other measures under the Government-backed schemes.
You should consult carefully with your colleagues within the senior team and have a good think and seek legal advice before you agree.
EXPERTS IN TRIBUNALS
At Employment Law Practitioners we are experts in employment law and provide free information on our website but this is no subsitute for professional legal advice. We focus on individuals, small to medium size businesses as they stand to lose the most when an employment claim is made against them. This can run into tens of thousands of pounds.
Employment Law Practitioners is there to give you peace of mind that can be invaluable when matters such as an unfair dismissal, or discrimination claim are putting your business at risk.
We completely understand the substantive and procedural aspects of employment law (with most cases dismissed on procedural points). We know our stuff and add it to our blog which is expanding all the time.