SANDY ADIRONDACK
Training and consultancy on governance and law
for the voluntary sector
LEGAL UPDATE
FOR VOLUNTARY ORGANISATIONS:
EMPLOYMENT, EQUAL OPS,
HEALTH & SAFETY

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This page provides information of a general nature for boards/management committees and staff of voluntary organisations about legal changes over the past year, and forthcoming changes, relating to employment, volunteering, equal opportunities, and health and safety. Information about earlier changes is archived at www.sandy-a.co.uk/vslh.htm.

Another page, MANAGING THE ORGANISATION, covers charity law, company and related law, data protection, electronic communications, internet, intellectual property, human rights, finance, property, licensing etc.

The information and commentary on this website cover the law applicable to England, and may not apply in Wales, Northern Ireland and/or Scotland. It is provided free of charge for information purposes only, and is not a full or definitive statement of the law. Reasonable efforts are made to keep the information and commentary accurate and up to date, but no responsibility for its accuracy and correctness, or for any consequences of relying on it, is assumed by Sandy Adirondack. The information and commentary do not, and are not intended to, amount to legal advice to any person or organisation on a specific case or matter and are not intended as a substitute for professional advice.

Items on this website are cross-referenced to The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3 — the 3rd edition of The Voluntary Sector Legal Handbook), by James Sinclair Taylor and the Charity Team at Russell-Cooke Solicitors, edited by Sandy Adirondack. The website items are generally in the same order as in the book. VSLH3 was published in September 2009 and costs £60 for voluntary organisations, £90 others, + 10% p&p. To order, print out the order form at Books by post, or send an email order by clicking , or ring 020 7232 0726.
If you can't see the word 'Bookorders' or have trouble sending an email by clicking on it, the address is bookorders at sandy-a.co.uk, with the spaces and 'at' replaced by the @ symbol.

Dates in red below have been updated in the past three months (more or less).

EMPLOYMENT
  • "Weekly pay" and unfair dismissal awards for 2009/10 (updated 22/11/09)

  • VSLH3 Chapter 26: Rights, duties and the contract of employment
  • Rights of agency temps (updated 22/11/09)

  • VSLH3 Chapter 29: Taking on new employees
  • Right to work in the UK (updated 22/11/09)
  • TUPE cases and guidance (added 14/6/09)

  • VSLH3 Chapter 30: Pay and pensions
  • Minimum wage (updated 22/11/09)
  • Tips, gratuities and minimum wage (updated 22/11/09)
  • PAYE forms and filing (added 21/3/09)
  • Tax allowances and national insurance thresholds for 2009/10 (updated 14/6/09)
  • State pensions and national pensions savings scheme (updated 14/6/09)
  • Pension liability on incorporation, merger or winding up (updated 31/3/08)

  • VSLH3 Chapter 31: Working time, time off and leave
  • Statutory sick pay (updated 25/1/09)
  • Active and inactive on-call time (added 8/1/09)
  • The working time opt-out: Still in place (added 4/5/09)
  • Increase in statutory annual leave (updated 14/6/09)
  • Holiday pay and long-term sickness (updated 14/6/09)
  • Fit notes to replace sick notes (added 14/6/09)
  • Time off for public duties (added 14/6/09)
  • Right to request time off for training (updated 7/1/09)

  • VSLH3 Chapter 32: Rights of parents and carers
  • Statutory maternity, paternity and adoption leave and pay (updated 21/3/09)
  • Non-cash benefits during maternity and adoption leave (updated 14/6/09)
  • Flexible working to care for children (updated 21/3/09)
  • Time off for dependants does not have to be emergency (added 25/1/09)

  • VSLH3 Chapter 33: Disciplinary matters, grievances and whistleblowing
  • Code of practice on disciplinary and grievance procedures (updated 15/6/09)
  • ACAS/CIPD guide to mediation (added 16/1/09)

  • VSLH3 Chapter 35: Redundancy
  • Statutory redundancy pay (updated 22/11/09)

  • VSLH3 Chapter 36: Employer-employee relations
  • Information and consultation regulations (updated 3/5/09)

  • VSLH3 Chapter 38: Self employed and other contractors
  • Employment status indicator for self-employed workers (added 14/6/09)

  • VSLH3 Chapter 41: Safeguarding children and vulnerable adults
  • Criminal record checks (updated 3/5/09)
  • Vetting and barring scheme (updated 3/5/09)
  • Support for organisations working with children and young people (added 3/5/09)
  • Registration of childcare providers (added 19/9/08)
  • Registration of care workers (updated 3/5/09)


  • VOLUNTEERING
    VSLH3 Chapter 39: Volunteers
  • Childcare and other care costs and minimum wage (updated 16/2/09)


  • EQUAL OPPORTUNITIES
    VSLH3 Chapter 28: Equal opportunities in employment
    VSLH3 Chapter 42: Equal opportunities: Goods, services and facilities

  • Equality Bill (updated 14/1/10)
  • Discrimination is unlawful regardless of motive (added 14/1/10)
  • A derogatory remark may be harassment (added 14/1/10)
  • Discriminatory job adverts (added 14/1/10)
  • Hair length and sex discrimination (added 14/1/10)
  • Changes in sexual and sex harassment rules (added 30/3/08)
  • Comparator for disability discrimination (added 9/3/09)
  • Disability discrimination by association (updated 9/3/09)
  • Anti-gay innuendo against a heterosexual man (updated 8/1/09)
  • Discrimination on grounds of another person's religion (added 9/3/09)
  • Mandatory retirement age is lawful (updated 15/1/10)
  • Review of default retirement age (added 15/1/10)


  • HEALTH AND SAFETY
    VSLH3 Chapter 40: Health and safety
  • H&S resources (updated 14/6/09)
  • Stricter penalties for breach of H&S law (added 22/3/09)
  • Corporate manslaughter (updated 31/3/08)
  • New H&S poster and leaflet (added 14/6/09)
  • Example risk assessments (updated 22/3/09)
  • Good practice for school and youth club trips (updated 22/3/09)
  • Duty of care and workplace stress (added 22/3/09)

  • You can also find legal updates for voluntary organisations on the websites of Bates Wells and Braithwaite Solicitors at www.bwbllp.com and the Charity Team at Russell-Cooke Solicitors at www.russell-cooke.co.uk, and information about changes in tax and finance law on the Sayer Vincent website at www.sayervincent.co.uk.


    EMPLOYMENT

    "WEEKLY PAY" AND UNFAIR DISMISSAL AWARDS
    FOR 2009-10


    Updated 22/11/09. This information is included in ss.35.7.1, 37.4.2 and various other sections in The Russell-Cooke Voluntary Sector Legal Handbook.
    From 1 October 2009 maximum "weekly pay" for calculating statutory redundancy pay and certain other entitlements is increased from £350 to £380. For unfair dismissal claims where the effective date of termination is on or after 1 October 2009, the maximum basic award is increased from £10,500 to £11,400, but the maximum compensatory award remains £66,200, as it has been since 1 February 2009.

    The maximum compensatory award may (or may not) be increased from 1 February 2010, but weekly pay and the maximum basic award will not be increased again until 1 February 2011.

    The regulations setting out these and other limits are at www.opsi.gov.uk/si/si2008/uksi_20083055_en_1
    and www.opsi.gov.uk/si/si2009/uksi_20091903_en_1.

    Go back to contents


    RIGHTS OF AGENCY TEMPS

    Updated 22/11/09. This information updates s.26.4.4 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The government announced in October 2009 its intention to implement on 1 October 2011 the EU Agency Workers Directive (also called the Temporary Agency Workers Directive). This entitles agency temps to the same basic employment rights as if they had been directly employed, in relation to pay, holidays, working time, rest periods and maternity leave.

    In the UK agency temps already have most of the relevant statutory rights from Day 1, but the draft Agency Workers Regulations will entitle them to the remaining statutory rights, and after they have worked for an employer for 12 weeks in a given job, they will be entitled to same contractual rights as directly hired workers . The directive does not give temps a right to sick pay (although in the UK they are entitled to statutory sick pay) or occupational pension rights.

    Under the draft regulations, agency temps will be entitled, from Day 1, to equal access to collective facilities such as canteens, childcare facilities and transport services; information about the employer's vacancies; and increased protection for new and expectant mothers including time off for ante-natal appointments and adjustments to working conditions and working hours.

    The government is consulting on the draft regulations until 11 December 2009. Consultation details are at www.berr.gov.uk/consultations/page53060.html. The draft regulations are included in the consultation booklet.

    The directive can be accessed via tinyurl.com/7dep4h.

    From 22 September 2009 the minimum wage helpline was replaced by a new pay and work rights helpline for workers and employers at 0800 917 2368, covering agency workers' rights, minimum wage and working time rights.

    Go back to contents
    Go to archived items about recruitment (VSLH2 chapter 26)


    RIGHT TO WORK IN THE UK

    Updated 22/11/09. This information updates s.29.5 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The draft Immigration Bill, published on 12 November 2009, will if passed consolidate existing immigration law to create a complete new framework for immigration. The draft bill and related documentation can be accessed via tinyurl.com/ykyfue3. Details of the consultation, open until 3 February 2010, are at tinyurl.com/yavbaxd.

    From 29 February 2008, rules on people from outside the European Economic Area (EU + Iceland, Liechtenstein and Norway) and Switzerland working in the UK were significantly tightened. The main rules likely to affect voluntary organisations as employers are set out below.

    Checking right to work
    Under the Immigration, Asylum and Nationality Act 2006, it is no longer enough for the employer simply to check and keep a copy of an employee's passport or other relevant documents at the beginning of employment. If a person who is hired on or after 29 February 2008 has limited leave to remain in the UK, the checks have to be repeated every 12 months. In addition employers have to take action if they become aware at any stage that a person is working illegally. An employer can be fined £10,000 for each person found to be working illegally, unless they can show that they saw and kept a copy of the relevant documentation. An employer who knowingly hires someone who is not entitled to work in the UK could be subject to an unlimited fine and prison sentence of up to two years. The initial checks must be done before the person is employed, and to avoid allegations of racial discrimination should be carried out for all potential employees.

    From 24 November 2009 an ID card issued under the Identity Cards Act 2006 is acceptable documentation. A copy must of kept of both sides of the card. This provision is in the Immigration (Restrictions on Employment)(Amendment) Order 2009 at www.opsi.gov.uk/si/si2009/uksi_20092908_en_1.

    Points-based system
    Also under the new legislation the right to enter or remain in Britain is now based on a five-tier points system similar to Australia. Any employer who wants to hire or continue to hire a migrant worker (any worker who is not from the EEA or Switzerland) in tier 2 or in most tier 5 categories has to register first with the UK Border Agency as a licensed sponsor. Registration as a sponsor is also required before any existing migrant worker's work permit in these tiers can be changed, extended or renewed.

    After registering, the sponsor then provides a certificate of sponsorship which enables the worker to apply to enter or remain in the UK. This decision as to whether the worker is admitted depends on the number of points the worker has. Points are based on the worker's skills (including aptitude, experience and age), the need for those skills in the UK economy, proficiency in English, prospective earnings, and funds available for maintenance.

    Sponsors are responsible for workers they sponsor and must, amongst other things, inform the Border Agency if the worker does not turn up for the job, or is absent from work without consent for more than 10 days. Detailed HR systems must be in place to monitor all sponsored workers.

    The five tiers are:

    • Tier 1 for highly skilled individuals such as scientists started operating in early 2008. Applicants for admission to the UK or the right to remain in the UK under tier 1 do not need a job offer before they apply, and their permission to work is not linked to a particular job or type of work. The academic and financial qualification rules for tier 1 were tightened on 31 March 2009.


    • Tier 2 is for skilled individuals such as teachers and nurses. It came into effect on 27 November 2008. This is the tier most likely to affect voluntary organisations. Any organisation which wants to hire a skilled worker from outside the EEA or Switzerland, or who will want to extend existing workers whose work permit ends, must register far enough in advance to ensure their sponsorship application can be processed in time, and they can issue the worker with the necessary certificate of sponsorship.

      Unless the occupation is on the government's list of shortage applications, the employer can issue a certificate of sponsorship only if it has conducted a resident labour market test. This means the employer has advertised at JobCentre Plus and in at least one other specified medium and could not fill the post from within the UK, EEA or Switzerland. The advertising must be for at least two weeks if the salary is £40,000 or less, or one week if the salary is over £40,000. The government announced on 7 September 2009 that from 2010 (date not specified) the two-week period will be extended to four weeks, and the minimum salary for a person to qualify as a skilled worker will be increased from £17,000 to £20,000.

      Advertising is not necessary for posts on the list of shortage occupations. The list was revised on 15 June 2009 and 12 November 2009. The changes most likely to affect voluntary organisations are removal of all social workers except those working in children/family services; changes to the list of medical and health-related occupations; changes to the skills criteria for care assistants, home carers and chefs; and the inclusion of special needs teachers, skilled orchestral musicians and contemporary dancers.

      Tier 2 also covers intra-company transfers, sports people, ministers of religion and some other religious workers, for whom different rules apply. The rules on intra-company transfers are also expected to be tightened in 2010, requiring the person to have worked for the company for at least one year rather than only six months as at present.


    • Tier 5 for temporary workers and youth mobility schemes also came into effect on 27 November 2008. The provisions for temporary workers cover creative and sporting workers coming to the UK for up to 12 months, charity workers coming to the UK to do unpaid voluntary work for a charity for up to 12 months, religious workers who do not meet the criteria for entry under tier 2, workers on government authorised exchange schemes, and employees of overseas governments and international organisations.

      Temporary workers need to have a licensed sponsor. For those on exchange schemes, the sponsor is the body which manages the scheme, rather than the individual employer. Youth mobility schemes are for young people aged 18-31 from Australia, Canada, Japan and New Zealand. coming to the UK for up to 24 months. The individual's national government is the sponsor.


    • Tier 4 is for students who are not from the European Economic Area or Switzerland, and came into effect from 31 March 2009. Their university or college must be registered as a sponsor.


    • Tier 3 is a limited quota system for low-skilled workers to fill temporary shortages in specific industries. It is brought into effect only when needed.
    Guidance for sponsors The UK Border Agency published revised guidance for sponsors on 5 October 2009, separating the guidance for employers (tiers 2 and 5) and for education providers (tier 4). The guidance can be accessed via tinyurl.com/l6q2mc.

    Short-term visitors
    New rules were introduced from 27 November 2008 for a range of visas for short-term (up to six months) visitors to the UK, covering business visitors (coming to attend conferences or carry out specific work-related activities); sports visitors for specific events; entertainer visitors to take part in certain events (including charity shows); and student visitors for students on short courses.

    Workers registration scheme for workers from eastern Europe
    Since 1 May 2004 nationals of Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia have had the right to work in the UK. The employer has to carry out a check (as above) to show they are a national of the country. If they are from an A8 state (any of the countries other than Cyprus and Malta), the employer should advise them to register immediately with the Home Office's workers registration scheme. This requirement was expected to end on 30 April 2009, but has been extended to 30 April 2011.

    The employer must check within one month of the person starting work that they have registered with the scheme, and the worker must remain registered until they have completed 12 months' work. A copy of the employee's registration certificate will be sent to the employer and should be kept. It is an offence for an employer not to comply with these rules, with a fine of up to £5,000.

    Stricter rules, based on the old work permit system, apply to workers from Bulgaria and Romania.

    Sources of information
    Information about all aspects of immigration is available from the UK Border Agency (formerly Immigration and Nationality Directorate, and then Borders and Immigration Agency) at www.ukba.homeoffice.gov.uk/employers and its employers' helpline on 0845 010 6677.

    The Immigration, Asylum and Nationality Act 2006 is at www.opsi.gov.uk/acts/acts2006/20060013.htm.

    Go back to contents
    Go to archived items about recruitment (VSLH2 chapter 26)


    TUPE CASES AND GUIDANCE

    Added 16/4/09. This information is included in s.29.7 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Information Commissioner's Office issued in June 2008 guidance on the data protection implications of a transferring employer's obligation to provide information about employees to the transferee (the receiving employer) in a transfer under the TUPE regulations — the Transfer of Undertakings (Protection of Employment) Regulations 2006. For information about the obligation to provide this employee liability information, see www.sandy-a.co.uk/vslh/26recruitment.htm#tupe.

    The ICO's guidance emphasises that the TUPE obligation to provide details of employees' identity, age, remuneration, and any disciplinary or legal action in the two years before the transfer overrides the data protection requirement not to disclose such information. All disclosed information must be accurate, up to date and secure, and the transferee must use the information only for the purpose of TUPE, for example assessing potential liabilities linked to the transfer. Information which is not required under the TUPE regulations should, if it is required for other purposes, be anonymised if possible.

    The ICO's Disclosure of employee information under TUPE can be accessed via tinyurl.com/4en9nr.

    On a separate TUPE matter: since 2006 there has been uncertainty about situations where a transferee is bound by a collective agreement negotiated between the transferor and a trade union, and a pay increase is negotiated by the transferor and union after the transfer has taken place. The employment appeal tribunal held in Whent v Cartledge in 1996 that the transferee is bound by the pay increase, even though the transferee was not a party to the negotiations. This changed in 2006 when the European Court of Justice ruled that the acquired rights directive does not apply to contractual changes agreed after the transfer.

    But in February 2009 the employment appeal tribunal ruled that the UK can interpret the acquired rights directive in a way that is more favourable to employees. This decision, in Alemo-Herron & others v Parkwood Leisure Ltd, is at www.bailii.org/uk/cases/UKEAT/2009/0456_08_1201.html. The decision is being appealed, but in the meantime any employer which has taken on employees covered under a collective agreement with their previous employer — or is considering taking on such employees — should take legal advice about the potential implications.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
    Go back to contents
    Go to archived items about recruitment (VSLH2 chapter 26)


    MINIMUM WAGE

    Updated 22/11/09. This information is included in s.30.2 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 1 October 2009 the national minimum wage is £5.80 per hour for over-21s, £4.83 for 18-21 year olds, and £3.57 for 16 and 17 year olds who are above school leaving age and are not apprentices. The accommodation offset rate (the amount that can be taken into account for living accommodation) is £4.51 per day (£31.57 per week).

    Information for employees and employers about all aspects of minimum wage, including an interactive website for workers and employers to find out how the minimum wage applies to them, is available from Business Link via tinyurl.com/ylbb37m. Information is also available from HM Revenue & Customs via www.hmrc.gov.uk/paye/payroll/day-to-day/nmw.htm. From 22 September 2009 the minimum wage helpline was replaced by a new pay and work rights helpline for workers and employers at 0800 917 2368, covering minimum wage, working time rights and agency workers' rights.

    The National Minimum Wage Act 1998, setting out the basic legislation, is at www.opsi.gov.uk/acts/acts1998/19980039.htm.
    The National Minimum Wage Regulations 1999 (Amendment) Regulations 2009 are at www.opsi.gov.uk/si/si2009/uksi_20091902_en_1.

    From 1 October 2010 the adult rate will apply to 21 year olds, and minimum wage may be extended for apprentices. Apprentices are currently exempt from minimum wage if they are under 19, or are 19 or over and in the first year of their apprenticeship. There is a minimum rate of pay of £95 per week (from 1 August 2009) for apprentices.

    Go back to contents
    Go to archived items about pay (VSLH2 chapter 27)


    TIPS, GRATUITIES AND MINIMUM WAGE

    Updated 22/11/09. This information is included in s.30.2.2 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Following the court of appeal decision in Annabels (Berkeley Square) Ltd and others v HM Revenue & Customs, regulation 31(1)(e) of the National Minimum Wage Regulations 1999 — which said that tips paid to staff through the employer's payroll count towards minimum wage — has been amended. From 1 October 2009, no tips or service charges can count towards minimum wage whether paid to workers through the payroll, through a tronc (a system for pooling tips, paying them into a troncmaster's account, and distributing them to staff), or paid direct to the employee by customers.

    Go back to contents
    Go to archived items about pay (VSLH2 chapter 27)


    PAYE FORMS AND FILING

    Updated 21/3/09. This information is included in s.30.4 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 6 April 2009 all employers with 50 or more employees, and from 6 April 2011 employers with fewer than 50 employees, must file certain PAYE forms online. These are P45(1) when an employee leaves, P45(3) when an employee starts work, and P46 when an employee starts work and does not have a P45. When an employee of any age starts to receive a pension, a new form P46(Pen) or a P45(3) has to be submitted. P46(Pen) replaces the current pension notification forms P160 and PENNOT. Details on registering for HM Revenue & Customs' online PAYE service are at www.hrmc.gov.uk (click on PAYE for employers, on the Do it online menu).

    The old A5-sized P45 is no longer valid. Only the new A4 form, which includes the employee's date of birth and gender, may be used.

    Go back to contents
    Go to archived items about pay (VSLH2 chapter 27)


    TAX ALLOWANCES AND NATIONAL INSURANCE THRESHOLDS

    Updated 14/6/09. This information is included in ss.30.4.1 and 30.4.6 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 6 April 2009 the basic personal allowance is £6,475 (£124.50 per week). Basic rate tax remains 20% for earnings from £0 to £37,400, with 40% higher rate for earnings above £37,400. The government has proposed a 45% top rate for earnings above £150,000, from 6 April 2011.

    The starting point for national insurance contributions (the primary threshold) went up on 6 April 2009 to £110 per week, and the upper earnings limit for employee's NIC to £844 per week. Employee's NICs remain 11% between the primary threshold and upper earnings limit and an additional 1% on earnings above the upper earnings limit. Employer's NICs remain 12.8%.

    The lower earnings limit (the lowest level of earnings that can count towards entitlement to statutory sick pay and statutory maternity, paternity and adoption pay) went up to £95 per week.

    The tax and national insurance rates and thresholds for 2007-08, 2008-09 and 2009-10 are at www.hmrc.gov.uk/rates/index.htm.

    Go back to contents
    Go to archived items about pay (VSLH2 chapter 27)


    STATE PENSIONS AND NATIONAL PENSIONS SAVINGS SCHEME

    Updated 14/6/09. This information is included in ss.30.5 and 30.6.9 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Under the Pensions Act 2007:

    • the state pension age will rise from 65 to 66 between 2024 and 2026, to 67 between 2034 and 2036, and to 68 between 2044 and 2046;
    • the basic state pension will be linked to earnings (as it used to be) rather than inflation (as it now is);
    • the number of years' contributions needed for a full basic state pension will be reduced to 30 (it is currently 39 for women and 44 for men);
    • weekly credits will be introduced for carers;
    • from around 2030 the state second pension, which tops up the basic state pension, will become flat-rate;
    • personal pensions will be simplified.
    National pensions savings scheme / Personal accounts
    The Pensions Act 2008 will require, from 2012, every "jobholder" aged 22-75 who earns between £5,035 and £33,540 and is not in an employer's occupational pension scheme to be automatically enrolled in the national pensions savings scheme and get a personal account unless they opt out. Jobholders with earnings less than the qualifying amount or aged 16-21 can opt in to the scheme. A jobholder is anyone working under in Great Britain under a contract, including a temporary contract.

    It is expected that jobholders in the scheme will have to contribute a minimum 4% of their salary, matched by 1% tax relief and a minimum 3% from the employer. The employer's contribution will be phased in, at 1% in 2012, 2% in 2013 and 3% in 2014.

    Topping up
    Also under the 2008 Act, from 6 April 2009 people who reach state pension age between 6 April 2008 and 5 April 2015 and who already have at least 20 qualifying years on their national insurance record, are able to pay class 3 national insurance contributions for an additional six qualifying years (in addition to the six years which can already be paid for). This provision is intended primarily for women and carers who have had substantial periods when they were not working and did not make (or were not credited with) NI payments.

    At present women need 39 qualifying years and men 44 for a full state pension. The amount of the pension is reduced if the person does not have the full number of years. Paying class 3 contributions makes up for the missing years.

    Further information
    Information about pensions and pension reform in general is at www.dwp.gov.uk/lifeevent/workage/wa_pensions.asp and www.dwp.gov.uk/pensionsreform.
    Information about class 3 NI contributions is at www.hmrc.gov.uk/nic/class3.htm.

    The Pensions Act 2007 is at www.opsi.gov.uk/acts/acts2007/ukpga_20070022_en_1.
    The Pensions Act 2008 is at www.opsi.gov.uk/acts/acts2008/ukpga_20080030_en_1.

    Go back to contents
    Go to archived items about pensions (VSLH2 chapter 27)


    PENSION LIABILITY ON INCORPORATION, MERGER OR WINDING UP

    Updated 31/3/08. This information is included in s.30.6.5 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2008 came into effect on 6 April 2008, easing some of the requirements when an organisation which is a member of a multi-employer defined benefit or final salary pension scheme, such as the Pensions Trust Growth Plan, have a cessation event. The regulations are at www.opsi.gov.uk/si/si2008/uksi_20080731_en_1.

    As defined under the Pensions Act 1995 s.75 and the Occupational Pension Schemes (Employer Debt on Withdrawal) Regulations 2005, a cessation event includes, for example, an incorporation where the assets and liabilities of the unincorporated organisation are transferred to the new incorporated body, a merger where all or part of organisation's undertakings are transferred to an existing or new organisation such that the original organisation no longer has any members in the pension scheme, winding up an organisation, withdrawing from the pension scheme, or reaching a point where the organisation has no more active members in the scheme and no eligible employees to whom membership can be offered. It will presumably also occur if a charitable company converts to a charitable incorporated organisation (CIO) when this structure becomes available, unless legislation exempts this situation.

    Under the 2005 regulations, when a cessation event occurs the organisation's withdrawal debt crystallises, which means it potentially becomes payable in full — even in an incorporation or merger where the organisation's employees are going to remain in the pension scheme under the new organisation to which they are being transferred. Under the withdrawal debt, the organisation could become immediately liable for the full cost of pensions for its employees who are entitled to draw pensions now or in future, if these have not yet been fully covered by contributions to the pension scheme. And because of legal changes in the way the debt must be calculated, the debt is likely to be significant. One organisation with three employees in the Pensions Trust Growth Plan calculated that it would owe more than £70,000 if its withdrawal debt crystallised; a large organisation calculated its debt at £20 million. But it is important to emphasise that the debt does not become payable unless there is a cessation event.

    Under the 2008 regulations:

    • Where the cessation event is that there are no more members in the scheme, there is a 12-month grace period during which time the employer will presumably try to get at least one employee to join.
    • For other cessation events the pension provider and employer can agree a withdrawal arrangement under which the employer pays a specified amount based on how much has already been paid into the scheme. The employer puts in place a guarantor, agreed by the pension provider, who will if required pay the remainder of the potential debt.
    • In an arrangement specifically intended for "ongoing organisations with low levels of liquidity such as charities", the Pensions Regulator can agree with the pension provider an approved withdrawal arrangement, under which the employer can pay a lower amount. Where the cessation event is a winding up to incorporate or merge, the guarantor will presumably be the new incorporated or merged organisation.
    Please note that I am not a specialist on pensions. These issues are complex and if you are in a multi-employer pension scheme and could be in a situation where a "cessation event" will or might occur, you must take specialist advice from your pension provider, auditor and legal advisor.

    Background information on the 2005 regulations is available in NCVO's briefings on how the regulations affect members of the Pensions Trust Growth Plan (October 2006) at tinyurl.com/yo9v3m, and on implications for the voluntary and community sector in general (April 2007) at tinyurl.com/2h5dba, and in the Charity's Commission's Defined benefit pension schemes: Questions and answers (January 2007) at tinyurl.com/yq4leo. But none of these appears to have been updated to include the 2008 regulations.

    Go back to contents
    Go to archived items about pensions (VSLH2 chapter 27)


    STATUTORY SICK PAY

    Updated 25/1/09. This information is included in s.31.6.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    For employees earning £95 per week or more, the statutory sick pay rate for sickness absence on or after 6 April 2009 is £79.15 per week.

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    ACTIVE AND INACTIVE ON-CALL TIME

    Added 8/1/09. This information is included in s.31.2.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    After years of uncertainty about what constitutes on-call time for the purposes of the Working Time Regulations 1998, the European Court of Justice eventually confirmed in 2003 that on-call time includes time when a worker is required to be at or near a place of work specified by the employer, even if they are sleeping or doing something other than working. If they are not required to be at a place of work, working time includes only the time they are actually working.

    However the EU working time directive, on which the working time regulations are based, is in process of being revised. In June 2008 the EU social affairs council, part of the EU law-making process, said that on-call time should be divided into active (when carrying out work for the employer) and inactive, and that inactive on-call time should not count as working hours. The EU parliament then voted in December 2008 that all on-call time, even if inactive, should count as working time, unless national law allows otherwise.

    Where there is a conflict between the council and the parliament, the issue has to be conciliated between them with a final decision by the EU council of ministers, and this process is happening now.

    Time when on call but sleeping is not working time for the purposes of minimum wage.

    A European parliament press release about the situation to date is at tinyurl.com/6gqpe8.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    THE WORKING TIME OPT-OUT:
    STILL IN PLACE


    Updated 4/5/09. This information is included in s.31.2.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Under the Working Time Regulations 1998 an individual worker may agree at any time to opt out of the 48-hour working week limit, but cannot be forced to do so. However the EU working time directive, on which the working time regulations are based, is in process of being revised, and in June 2008 the EU social affairs council said that the provision for opting out should be retained, but with a limit of 60 hours per week averaged over three months for opted-out workers. If inactive on-call time is counted as working time the maximum should be 65 hours.

    Then EU parliament voted on 17 December 2008 that opt-outs should not be allowed, there should be an absolute maximum 48 hours per week working time but it should be averaged across 12 months rather than the current 17 weeks or the social affairs council's proposed three months, and EU member states which allow opt-outs should cease to do so within three years of the new EU directive being adopted.

    A conciliation process collapsed on 28 April 2009, with the differences between the European Commission, the EU parliament and member states unable to be resolved. The current working time directive — as interpreted by decisions of the European Court of Justice such as the one above — therefore remains in force.

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    INCREASE IN STATUTORY ANNUAL LEAVE

    Updated 14/6/09. This information is included in s.31.4.2 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Statutory annual leave increased from 4.8 weeks to 5.6 weeks (from 24 days to 28 days for a person working a five-day week) on 1 April 2009. Some employers include the eight bank holidays as part of the statutory entitlement. The change in effect ensures that all full-time workers working a five-day week will from April 2009 get their entitlement of 20 days under the EU working time directive, plus time off equivalent to the bank holidays. For part-time workers, the entitlement is pro rata.

    Employees whose entitlement went up in April should have been given written notice of the change by the end of April. There is no need to re-issue contracts of employment. Before giving notice of the change, it is essential to look closely at contracts of employment, and at the holiday entitlement that employees have been given if it is different from what is in their written contract. The exact wording may make a difference to their new entitlement.

    • If the contractual entitlement is for "statutory leave plus bank holidays", full-time employees are from 1 April 2009 entitled to 28 days/5.6 weeks plus bank holidays. If the employer does not want to give bank holidays on top of the increased statutory leave, a variation (change) to the contract will need to be agreed with each affected employee or through a recognised trade union.
    • If the contractual entitlement is only for "statutory leave", with no mention of bank holidays, full-time employees are from 1 April 2009 entitled to 28 days/5.6 weeks — unless in reality they have been getting bank holidays on top of their 24 statutory days and this has become an implied (implicit) part of their contract, in which case advice should be sought about whether they are entitled to statutory leave plus bank holidays.
    • If the contractual leave entitlement is already stated to be 20 days/4 weeks or more plus bank holidays, this will remain unchanged (because it will add up to at least the 28 days statutory requirement).
    • If the contractual leave entitlement is for less than 28 days/5.6 weeks, with no additional entitlement to bank holidays, it will have to be increased to 28 days/5.6 weeks.
    The employer will not be able to pay the worker for statutory leave not taken, except on termination of employment. The transitional arrangement that was in place from 1 October 2007, under which employers could pay employees for up to four days' statutory annual leave if they did not take it during the leave year, ended on 1 April 2009.

    Business Link has detailed information about statutory annual leave and the April increases, including templates for notifying employees about the change and how to calculate entitlement for part-time, casual and other atypical workers. The Business Link guidance can be accessed via tinyurl.com/9v7p7y.
    ACAS's booklet Holidays and holiday pay, at www.acas.org.uk/index.aspx?articleid=806, is more comprehensive than the Business Link information. But be warned, its calculation on page 7 for working out holiday pay for casual workers is incorrect. (They say they will correct it.)

    The Working Time (Amendment) Regulations 2007 are at www.opsi.gov.uk/si/si2007/20072079.htm.

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    HOLIDAY PAY AND LONG-TERM SICKNESS

    Updated 14/6/09. This information is included in s.31.4.7 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The European Court of Justice ruled in Stringer v HM Revenue & Customs on 20 January 2009 that annual leave entitlement under the working time directive accrues during sick leave, and even if a worker is absent for a full leave year, they are entitled to four weeks' paid annual leave during that year. The ECJ decision is limited to the four weeks' leave entitlement under the EU working time directive, and does not cover the additional 1.6 weeks statutory entitlement in the UK (see above) or contractual holiday pay.

    The ECJ also ruled that a worker who ceases to be employed while on sick leave and has not taken their four weeks' annual leave entitlement is entitled to an allowance (pro rata) in lieu of leave not taken.

    After the ECJ decision, the Stringer case was referred back to the House of Lords to decide how the the decision applied in the UK. The House of Lords ruled on 10 June 2009 that where a worker has not been paid for annual leave entitlement under the working time regulations, the worker can claim either under the working time regulations or as an unauthorised deduction from wages (which could allow the claim to go back longer than a claim under the working time regulations).

    The ECJ decision left it up to national courts to decide whether annual leave can be taken during the year of absence (so in effect four weeks during the absence become annual leave rather than sick leave), or the annual leave can be carried over to the next leave year, but I don't think this issue was covered in the House of Lords' decision.

    The situation with regard to employees who are on long-term sick leave, or who were on long-term sick leave and were not paid for annual leave, remains complex and confusing, and legal advice should be sought.

    The ECJ decision can be accessed via tinyurl.com/dyrz7m.
    The House of Lords decision in HM Revenue & Customs v Stringer and others is at www.bailii.org/uk/cases/UKHL/2009/31.html .

    Contractual holiday continues to accrue during sick leave, no matter how long the person is off ill, unless the contract says it does not. Employers may want to consider revising future contracts to say that contractual holiday does not accrue during sickness absence of more than a certain period.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    Go to archived items about disability discrimination (VSLH2 chapter 25)
    Go to archived items about dismissal (VSLH2 chapter 30)


    FIT NOTES TO REPLACE SICK NOTES

    Added 14/6/09. This information is included in s.31.6.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Department for Work and Pensions is consulting until 19 August 2009 on a proposed fit note to replace sick notes. Instead of simply saying an employee is unfit for work, the fit note will include proposals to help the employee return to work on a phased basis. The fit note is expected to come into use in spring 2010.

    The DWP press release about the consultation, with a link to the 65-page consultation document, can be accessed via tinyurl.com/qdhzwz.

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    TIME OFF FOR PUBLIC DUTIES

    Added 14/6/09. This information is included in s.31.7 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Employees have a statutory right to time off, which may be either paid or unpaid, for specified public duties. A Department for Communities and Local Government public consultation on whether the right to time off should be extended closed on 19 December 2008, and a summary of responses was published on 19 March 2009. The proposed extension would include members of probation boards, court boards and youth offender panels; board members of probation trusts; lay advisors for multi-agency public protection arrangements; and co-opted overview and scrutiny committee members. DCLG is also looking at whether the right should be extended to board members of registered social landlords, and tenant management and arm’s length management organisations.

    The consultation was also about ways to encourage participation in voluntary sector boards, but DCLG did not propose a statutory right to time off for this.

    The consultation responses can be accessed via tinyurl.com/c327af.

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    RIGHT TO REQUEST
    TIME OFF FOR TRAINING


    Updated 7/1/09. This information is included in s.31.8.2 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The government has proposed a new statutory right, expected to come into force in 2010, allowing employees to request time off for training that would benefit them and the employer. This new right, to be called time to train, will be similar to the right to request flexible working. It is proposed that the time off would not have to be paid if the training is "off the job" (as opposed to on the job training), and that employers would not be obliged to contribute to the cost of the training. The right would only apply to employees with more than 26 weeks’ continuous service with the employer.

    Responses to the Department for Innovation, Universities and Skills' consultation on time to train are at www.dius.gov.uk/consultations/con_180608_timetotrain.html.

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    STATUTORY MATERNITY, PATERNITY AND ADOPTION LEAVE AND PAY

    Updated 21/3/09. This information is included in ss.32.2 to 32.4 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Statutory maternity pay (SMP) is 90% of the woman's weekly earnings for the first six weeks. For the remaining 33 weeks of the 39-week SMP period, SMP is a flat weekly rate or 90% of average weekly earnings, whichever is less. For payment weeks starting on or after 6 April 2009, the flat rate is £123.06.

    Statutory paternity pay and statutory adoption pay are £123.06 per week or 90% of the employee's average weekly earnings, whichever is less.

    An employer who paid, or was liable to pay, gross class 1 national insurance contributions of £45,000 or less in the individual employee's qualifying tax year can recover 100% of the SMP, SPP or SAP, plus 4.5% compensation. Employers who do not qualify for this small employer relief can recover 92%.

    The government's intention is to increase SMP and SAP from 39 to 52 weeks and to introduce additional paternity pay and leave, but these changes are not definite. They were expected to come into effect for babies due on or after 6 April 2010, but may be delayed because of the economic situation.

    CIPD's very clear factsheet on maternity, paternity and adoption rights is at www.cipd.co.uk/subjects/emplaw/maternity/matpat.htm.
    Other information is available at www.acas.org.uk and www.tuc.org.uk.

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    Go to archived items about maternity, paternity and adoption leave (VSLH2 chapter 28)


    NON-CASH BENEFITS DURING MATERNITY AND ADOPTION LEAVE

    Updated 14/6/09. This information is included in s.32.2.6 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Women are entitled during their 26 weeks of ordinary maternity leave (OML) and 26 weeks of additional maternity leave (AML) to all of their contractual rights and benefits apart from remuneration. Their rights include non-cash benefits such as a private use of a company car or mobile phone, gym membership, or contractual annual leave. And when calculating length of service for contractual benefits such as seniority and pension rights, both OML and AML must be included. The same rules apply for adoptive parents entitled to ordinary and additional adoption leave.

    Some employers have arrangements, called salary sacrifice or flexible benefits schemes, under which employees contractually give up some salary in return for non-cash entitlements such as childcare vouchers. HM Revenue & Customs has issued guidance on the non-cash benefits, including those provided under salary sacrifice schemes, that need to be provided during maternity or adoption leave. The guidance is at www.hmrc.gov.uk/specialist/salary_sacrifice.htm.

    The Maternity and Parental Leave etc and the Paternity and Adoption Leave (Amendment) Regulations 2008 are at www.opsi.gov.uk/si/si2008/uksi_20081966_en_1.

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    FLEXIBLE WORKING TO CARE FOR CHILDREN

    Updated 21/3/09. This information is included in s.32.5 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 6 April 2009 the statutory right to request flexible working arrangements is extended to apply where the child is aged under 17. Prior to this, the right applied only if the child was under six (or 18 if the child receives disability living allowance), and to carers of adults. The right to request flexible working to care for children applies to parents, adopters and foster carers, and their partners.

    There has been considerable confusion about whether the right to request flexible working was going to be extended up to the day before the child's 16th birthday, or 17th. The statutory instrument confirming that the right applies until the day before the child's 17th birthday is the Flexible Working (Eligibility, Complaints and Remedies)(Amendment) Regulations 2009 at www.opsi.gov.uk/si/si2009/uksi_20090595_en_1

    Flexible working might include, for example, compressed hours, flexitime, home working, job sharing, teleworking, term-time working, shift working, staggered hours, or annualised hours. Once the employer and employee have agreed a flexible working arrangement, it is a permanent change to the contract of employment unless the agreement specifies otherwise.

    The extension of the right to request only until the 17th birthday creates an anomaly if something happens so that a child aged 17 starts to need care, but is not entitled to disability living allowance. In this situation the parent would not be entitled to request flexible working until the child turns 18, and the parent gains the right to request as the carer of an adult. (This anomaly is an example of how daft the law can be sometimes. Would it really have been unacceptably complex or costly to extend the right to cover parents of 17-year-olds?)

    ACAS guidance and publications on flexible working are at www.acas.org.uk/index.aspx?articleid=1616.
    Business Link's guidance can be accessed via tinyurl.com/cl8dnp.

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    TIME OFF FOR DEPENDANTS
    DOES NOT HAVE TO BE EMERGENCY


    Added 25/1/09. This information is included in s.32.8 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Under the Employment Rights Act 1996 s.57A all employees, regardless of length of service, are entitled to reasonable time off to deal with unexpected or sudden situations relating to dependants, or to make long-term arrangements for dealing with the situation. "Reasonable time off" depends on the employee’s specific circumstances, but in most cases would not be more than a few hours or one or two days.

    The right is intended to cover only unexpected situations. This has been interpreted to mean an emergency that happens without prior warning. But in a case involving an employee who asked 10 days in advance for a day off when she knew her childminder would not be available and alternative childcare was not available, the employment appeal tribunal said that a situation had to be unexpected, but did not have to be sudden or an emergency.

    The decision in Royal Bank of Scotland plc v Harrison is at www.bailii.org/uk/cases/UKEAT/2008/0093_08_2706.html.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    CODE OF PRACTICE ON DISCIPLINARY AND GRIEVANCE PROCEDURES

    Updated 15/6/09. This information is included in s.33.2.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 6 April 2009 the statutory disciplinary, dismissal and grievance procedures (DDP) have been completely repealed, but transitional provisions apply where a disciplinary, grievance or dismissal procedure started before 6 April, or the event triggering a disciplinary or grievance procedure or dismissal occurred before then. These transitional provisions are summarised on the Department for Business, Enterprise and Regulatory Reform (now Department for Business, Innovation and Skills) website at tinyurl.com/dydoyx, but there's a clearer summary on barrister Daniel Barnett's website at www.danielbarnett.co.uk/disputeres.htm. If in doubt about whether the old or new procedures apply, specialist advice should be sought or the old procedures should be followed.

    For disciplinary and grievance procedures triggered on or after 6 April 2009, the statutory procedures are replaced by an ACAS code of practice on discipline and grievance, setting out the basic principles of good practice. It does not have force of law and failure to comply with it is not in itself unlawful. However an employer's unreasonable failure to comply with the code can be taken into account by the employment tribunal and can lead to an increase of up to 25% in any award made by the tribunal, and an employee’s failure to comply can lead to a reduction of up to 25% in any award.

    In practice the three stages of the statutory disciplinary and grievance procedures still remain under the new code (written notice, meeting, right of appeal) but without the detailed rigid requirements that could lead to an employer or employee being penalised for a technical breach of the procedures.

    The intention of the new procedures is that disciplinary and grievance issues should, if possible, be dealt with through informal discussion. If this is unsuccessful, the key elements in a fair and transparent procedure are defined as dealing with issues promptly, acting consistently, carrying out an investigation to establish the facts, informing the employee of the issue, ensuring the employee can put their case at a disciplinary or grievance meeting before any decisions are made, ensuring the employee has the right to be accompanied, and ensuring the employee’s right to appeal against any formal decision.

    Dismissals for a disciplinary reasons should follow the code, but failure to follow it does not make the dismissal automatically unfair as it was under the statutory procedures. The code does not apply to redundancy dismissals, termination of fixed-term contracts, or retirement dismissals.

    The code's section on keys to handling disciplinary issues provides guidance on investigations and who should conduct them, the sort of information employees should be provided with before any disciplinary meetings, the role of a companion, gross misconduct, dismissals, and appeals. All parties have an obligation to make every effort to attend disciplinary meetings. In some situations expired disciplinary warnings can be taken into effect (see expired warnings). One change from the statutory procedures is that the employer must inform employees of their right to be accompanied by a companion.

    Another significant change from the statutory procedures is that disciplinary warnings have to be dealt with procedurally in the same way as dismissals, which means there must be provision for appeal against a warning.

    The keys to handling grievances state that employees should raise grievances formally in writing, without undue delay, with their line manager if they have a concern that cannot be resolved informally. It is made clear that a grievance meeting can be adjourned if an investigation is necessary. The employer's decision has to be in writing, and employees have to appeal if they are not satisfied with the decision, rather than going direct to the tribunal.

    Unlike under the statutory procedures it is no longer necessary for an employee to go through a grievance procedure before bringing a claim in the employment tribunal, but failure to do so could be held to be unreasonable and could lead to a decrease of up to 25% in any award to the employee.

    The code includes sections on overlapping grievance and disciplinary cases and on collective grievances.

    The final version of the code was approved by Parliament on 12 March 2009 and is at www.acas.org.uk/dgcode2009.
    The final version of ACAS's guidance, which is more detailed than the code, is at www.acas.org.uk/index.aspx?articleid=2179.
    Further information, including details of extended opening hours from April for the ACAS helpline and the increased emphasis on mediation as a way to solve workplace disputes, is at www.acas.org.uk/index.aspx?articleid=2126.

    The Employment Act 2008, which brings in the new provisions, is at www.opsi.gov.uk/acts/acts2008/ukpga_20080024_en_1.

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    ACAS/CIPD GUIDE TO MEDIATION

    Added 16/1/09. This information is included in s.33.2.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    ACAS and CIPD (Chartered Institute of Personnel and Development) issued in September 2008 Mediation: An employer's guide. It acknowledges that mediation — where an independent third party works with the parties in conflict to help them develop solutions — is not suitable for all workplace disputes, but encourages its wider use. This is in keeping with the new emphasis, from 6 April 2009, on resolving disciplinary matters and grievances informally rather than through the employment tribunal (see above).

    The mediation guide is at www.acas.org.uk/CHttpHandler.ashx?id=949&p=0,
    with a summarised version at www.cipd.co.uk/subjects/empreltns/general/mediation.htm.

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    STATUTORY REDUNDANCY PAY

    Updated 22/11/09. This information is included in s.35.7.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    For redundancies taking effect on or after 1 October 2009, the maximum weekly pay for calculating statutory redundancy pay is increased from £350 to £380.

    For a range of briefings on redundancy (and alternatives to it) see the recession resources section of this website at www.sandy-a.co.uk/managing.htm#recession.

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    INFORMATION AND CONSULTATION REGULATIONS

    Updated 3/5/09. This information is included in s.36.2.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Information and Consultation of Employees Regulations (TICER), implementing the EU Information and Consultation Directive, are in effect from 6 April 2005 for organisations with at least 150 employees, 6 April 2007 for organisations with 100-149 employees, and 6 April 2008 for those with 50-99 employees. They require employers to inform/consult on business developments, employment developments, and substantial changes in how the work will be organised.

    But under the regulations, employers do not need to do anything unless 10% of employees (minimum 15, maximum 2,500) trigger a request for negotiating an information and consultation agreement. Where this happens, the negotiation will be based on standard provisions which can ultimately be imposed by the Central Arbitration Committee. This is not the case for pre-existing agreements before the regulations come into force, which can be tailored to the organisation's circumstances and do not have to comply with the default provisions.

    The regulations are at www.opsi.gov.uk/si/si2004/20043426.htm.
    The Department for Business, Innovation and Skills' summary guidance is at www.berr.gov.uk/files/file26480.pdf.
    ACAS's good practice advice and on-line training materials, developed jointly with the DTI, CBI and TUC, are at www.acas.org.uk/index.aspx?articleid=1598.

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    Go to archived items about employer-employee relations (VSLH2 chapter 32)


    EMPLOYMENT STATUS INDICATOR FOR SELF-EMPLOYED WORKERS

    Added 14/6/09. This information is included in s.38.3.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Treating someone as self-employed — paying them without deduction of tax and national insurance — when they should legally be on PAYE can land the employer with a very large bill tax and NI which should have been deducted, plus interest and penalties. To avoid this risk, employers (referred to as engagers) and workers can use the HM Revenue & Customs employment status indicator (ESI) to determine whether a person should be treated as an employee and taxed under PAYE, or is a contractor and can be taxed under self-assessment.

    The ESI is at http://www.hmrc.gov.uk/calcs/esi.htm and is filled in anonymously. The results of the ESI can be relied on in the event of an HMRC enquiry into the worker's status for tax, national insurance or VAT purposes, if the answers to the ESI questions accurately reflect the terms and conditions under which the worker is contracted, the ESI has been completed by the engager or their authorised representative, and the engager can produce a copy of the ESI result.

    The ESI cannot be used to check the employment status of company directors and other individuals who hold office, agency workers, and anyone providing services through an intermediary (IR35 arrangements).

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    CRIMINAL RECORD CHECKS

    Updated 3/5/09. This information is included in s.41.4 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Criminal Records Bureau issued on 6 April 2009 a revised code of practice for registered bodies and other recipients of CRB disclosure information. The revised code is intended to ensure organisations do not breach the spirit and requirements of the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975 by submitting ineligible disclosure applications; registered bodies correctly verify the identity of disclosure applicants; sensitive and personal data in disclosures is correctly managed and used by registered bodies; and registered bodies treat their applicants fairly when considering sensitive disclosure information. Registered bodies which fail to comply with the code may be suspended or deregistered.

    The code is available at www.crb.gov.uk/Default.aspx?page=5299. Copies of the previous code should be discarded. The CRB website includes detailed guidance on the code's obligations.

    The fee for higher level (standard and enhanced) Criminal Records Bureau checks is £26 for standard disclosures and £36 for enhanced. The fee is waived for checks on volunteers, defined in the Police Act 1997 (Criminal Records) Regulations 2002 as "a person engaged in an activity which involves spending time, unpaid (except for travel and other approved out-of-pocket expenses), doing something which aims to benefit some third party other than or in addition to a close relative".

    A standard disclosure (also referred to as a criminal record certificate) lists convictions which are "spent" under the Rehabilitation of Offenders Act 1974, unspent convictions and cautions. Where the work regularly involves caring for, training, supervising or being in sole charge of young people under 18 or vulnerable adults an enhanced disclosure (called an enhanced criminal record certificate) is available, listing in addition police information such as suspicions that did not lead to a caution or conviction.

    Higher level (standard and enhanced) checks are available only in relation to professions or positions specified in various exception orders made under the Rehabilitation of Offenders Act 1974 — mostly positions involving access to children or vulnerable adults, work in health or education, and certain professions such as accountancy. The Police Act 1997 (Criminal Records)(Amendment) Regulations 2006 clarifies positions for which enhanced disclosures can be obtained. These regulations are at www.opsi.gov.uk/si/si2006/20060748.htm.

    In exceptional cases, where a care worker may be allowed to start work in a care home, for a domiciliary care agency, or as an adult placement carer before a CRB check has been issued, a POVAFirst check can be done by the CRB separately (fee £6).

    From 12 October 2009 standard disclosures will no longer be available for any work with children or vulnerable adults. All disclosures for such work will be enhanced.

    An electronic application system, e-Bulk, became available on 17 April 2009 for registered bodies which make more than 3,000 CRB applications annually.

    Because of widespread concern about CRB checks being carried out where there is no statutory entitlement to do so — in particular in relation to volunteers, where the checks are free — the Office of the Third Sector published guidance in June 2008 on CRB checks for organisations that use volunteers. The guidance warns that organisations which carry out free checks when they are not entitled to do so could be required to pay the fee for the checks. Criminal Records Bureau checks: Guidance for volunteering and other resources on legal aspects of volunteering can be downloaded via tinyurl.com/5lrnvb. Note that the OTS has acknowledged that the section on when checks are required for trustees of children's and vulnerable adults' charities is incorrect, and will be amended when the publication is re-issued. In the meantime, for guidance on trustee checks, see the Charity Commission's CC30 Finding new trustees: What charities need to know at www.charitycommission.gov.uk/publications/cc30.asp.

    Detailed information about CRB checks is available on the CRB website at www.crb.gov.uk. The CRB has a webpage outlining how to obtain information from 23 foreign countries, at www.crb.gov.uk/Default.aspx?page=2243.

    CIPD (the Chartered Institute for Personnel and Development) updated in March and April 2009 its guidance on employing people with criminal records, risk assessment in relation to employing people with criminal records, and recruitment of people working with children and vulnerable adults. These are at www.cipd.co.uk/subjects/dvsequl/exoffenders/crimrec.htm,
    www.cipd.co.uk/subjects/dvsequl/exoffenders/crimrecra.htm and
    www.cipd.co.uk/subjects/recruitmen/general/recruitypw.htm.

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    VETTING AND BARRING SCHEME

    Updated 22/11/09. This information is included in s.41.7 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Many of the requirements in relation to work with children and vulnerable adults under the Protection of Children Act 1999, the Care Standards Act 2000 and related legislation are gradually being repealed and replaced by a new vetting and barring scheme (VBS) under the Safeguarding Vulnerable Groups Act 2006. Full details are available from the Independent Safeguarding Authority (ISA) and Criminal Records Bureau.

    The dates below relate to England and Wales; different dates apply to Northern Ireland, and Scotland has a separate scheme. Until the new rules are implemented, existing rules under the Protection of Children Act, Care Standards Act and related legislation continue to apply.

    20 January 2009:

    • Decisions about whether new referrals should be registered with the ISA or barred from work with children and/or vulnerable adults are made by the ISA.
    12 October 2009:
    • The Protection of Children Act (POCA) list and list 99 have been integrated into a single list of people barred from working with children, and the Protection of Vulnerable Adults (POVA) list is a separate but aligned list of people barred from working with vulnerable adults.
    • These lists are being operated by the ISA, with access via an enhanced CRB check. Standard CRB checks are no longer available for work with children or vulnerable adults.
    • The range of regulated positions from which people can be barred has been increased, especially in relation to work with vulnerable adults.
    • It is an offence for a barred individual to seek or undertake work, whether paid or unpaid, with children or vulnerable adults, or for an employer knowingly to take on a barred person.
    • There is a new duty on employers, social services and professional regulators to notify the ISA of relevant information about individuals who pose a threat to children or vulnerable adults.
    From 26 July 2010:
    • An individual starting work or changing roles, whether paid or unpaid, in regulated or controlled activities with children or vulnerable adults may (but does not have to) apply to be registered with the ISA before starting the work.
    • ISA registration will be through the Criminal Records Bureau, with a combined CRB/ISA application form and a one-off £64 fee — £36 for an enhanced criminal record check and £28 for the ISA registration. The fee will be waived for unpaid volunteers, but if they subsequently get paid employment (with the same organisation or a different one) the fee will have to be paid, either by the volunteer or the organisation they become employed by.
    • The CRB will send information to the ISA, which will decide whether the individual will be registered or will be barred from working with children and/or vulnerable adults. The ISA's decision will be based on an individual's criminal history and on referrals from employers and other bodies. Regulations set out which offences should result in automatic barring from working with children and vulnerable people, and how long adults and young people who are barred should have to wait before asking for the bar to be removed.
    • All employers, including domestic employers (of nannies, private tutors and teachers, care workers etc) will be able to make free, instant online ISA checks to see if a person is registered or is barred from work with vulnerable groups.
    • Employers will be able to register with the ISA and express an interest in a person's ISA's registration status.
    • The ISA will continuously monitor criminal records and information from employers, social services and professional regulators, and will review registration decisions as any new information becomes available. If the monitoring results in barring of an individual, employers who have registered an interest will be notified. Employers will not, however, be notified of criminal offences, convictions or other information that does not result in barring — these will continue to be available only through CRB checks.
    From November 2010:
    • Anyone taking on work, paid or unpaid, in a regulated or controlled activity must apply for ISA registration. Compulsory registration was expected to start on 12 October 2009, but has been postponed.
    • A person does not have to be registered if they are under 16. The purpose of this is to allow young people to gain work experience working with children or vulnerable adults.
    • People who are already in regulated or controlled activities when compulsory registration starts can continue working. Their registration with the ISA will be phased in over five years.
    • It will be an offence, with a fine of up to £5,000, for an employer to employ a person, whether paid or unpaid, to work with children or vulnerable adults who is not registered with the ISA, or to fail to check the system. It will not be an offence to continue to employ a person who was working for the organisation immediately before the ISA started operating and does not yet have to register.
    Information about the Independent Safeguarding Authority and the vetting and barring scheme is at www.isa-gov.org.uk and www.crb.gov.uk. The vetting and barring scheme contact centre is on 0300 123 1111.

    The Safeguarding Vulnerable Groups Act 2006, setting out the legislative framework for the scheme, is at www.opsi.gov.uk/acts/acts2006/20060047.htm,
    with explanatory notes at www.opsi.gov.uk/acts/en2006/2006en47.htm.
    Various amendments to the SVGA are in part 8 of the Policing and Crime Bill, which can be accessed via tinyurl.com/c2g2vo.

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    SUPPORT FOR ORGANISATIONS WORKING WITH
    CHILDREN AND YOUNG PEOPLE


    Added 3/5/09.
    The NSPCC, in partnership with Children England (formerly National Council of Voluntary Child Care Organisations), is setting up a National Safeguarding Unit for the Third Sector in England which will establish an agreed framework of safeguarding standards for work which children and will promote and support implementation of these standards throughout the sector. Information about the unit is at www.nspcc.org.uk/inform/nsu_wda63026.html.

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    REGISTRATION OF CHILDCARE PROVIDERS

    Added 19/9/08. This information is included in s.41.3.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 1 September 2008 Ofsted has introduced new registers for providers of childcare. Unless exempt, providers of childminding or daycare for children in the early years foundation stage, from birth until 31 August following their fifth birthday, must register on the early years register. Providers of childminding and daycare for children older the the EYFS stage but under eight must be on the compulsory part of the general childcare register (also just called the childcare register). Providers who provide care for children in both age groups must be on both registers.

    There are a number of exemptions from the obligation to register, including:

    • some nannies, childminders and babysitters;
    • temporary childcare such as a crèche or playscheme that is provided for two hours or less per day;
    • temporary childcare that is provided for four hours or less per day, is offered on a day to day basis with no longer term commitment to clients, is available only for clients who intend to remain on the premises or in the immediate vicinity, is held on the premises for no more than 14 days in a year, and is notified in writing to Ofsted at least 14 days before the first day it is offered;
    • some, but not all, activity-based provision (school study support or homework support, sport, performing arts, arts and crafts, and religious, cultural or language study) for children who are at least three years old;
    • open access childcare (but not childminding) where a child who is older than the EYFS limit is allowed to leave the premises unaccompanied;
    • provision for children under three at maintained, special and independent schools, if the child will turn three before the end of their first term at the school.
    The Childcare (Exemption from Registration) Order 2008 is at www.opsi.gov.uk/si/si2008/uksi_20080979_en_1.

    A booklet Registration of childcare providers from September 2008 is available from Ofsted via tinyurl.com/4b8cxe.

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    REGISTRATION OF CARE WORKERS

    Updated 5/3/09. This information is included in s.41.3.2 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The government announced in February 2006 that all care workers in England looking after vulnerable older people, adults and children — whether in residential, domiciliary or day care settings — will have to be registered, trained and vetted. Following consultation, it was announced in February 2007 that the first group to be registered will be domiciliary care workers, and on 23 April 2009 it was finally announced that voluntary registration of domiciliary care workers with the General Social Care Council will start from 2010. Information is available from the GCSC at www.gscc.org.uk. Different provisions apply in Wales, Scotland and Northern Ireland.

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    VOLUNTEERING

    CHILDCARE AND OTHER CARE COSTS AND NATIONAL MINIMUM WAGE

    Updated 16/2/09. This information is included in s.39.4.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The National Minimum Wage Act 1998 s.44 said that 'voluntary workers' — volunteers who receive any money or benefit — are entitled to minimum wage unless the only money they receive for their volunteering is reimbursement of expenses incurred in carrying out their duties and, in some very specific situations, subsistence payments to cover meals and living expenses; and/or the only benefit in kind they receive from their volunteering is training whose sole or main purpose is to improve the work they do as a volunteer, and subsistence or accommodation reasonable for the work.

    This is clearly a very narrow definition but in practice HM Revenue & Customs, who enforce minimum wage, did not treat reimbursement of expenses incurred in order to volunteer as entitling the person to minimum wage. But as part of a review of minimum wage in 2007, the Department for Business, Enterprise and Regulatory Reform said that reimbursement for such costs, in particular childcare and other care costs, is a benefit and should entitle volunteers who receive it to minimum wage.

    Following a campaign by volunteer-using organisations against BERR's approach, s.14 of the Employment Act 2008 amended s.44 of the NMWA from 13 January 2009, to make clear that reimbursement of expenses to enable a person to volunteer does not trigger entitlement to minimum wage. This includes travel to the place of volunteering, and childcare and other care costs.

    The Employment Act 2008 is at www.opsi.gov.uk/acts/acts2008/ukpga_20080024_en_1.

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    EQUAL OPPORTUNITIES


    EQUALITY BILL

    Updated 14/1/10. This information is included in chapters 28 and 42 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Equality Bill (formerly called the Single Equality Bill) was introduced into Parliament in April 2009. It is expected to receive royal assent in spring 2010 and come into force in October 2010, but this could be delayed by a general election. It will replace all the existing equal ops legislation and cover nine protected characteristics — age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation (clauses 4-12,16-17). The Bill is intended to simplify the law, sort out the disparities between the different discrimination "strands", extend some existing protections, and introduce new protections.

    The Government Equalities Office's overview of the Bill, at tinyurl.com/njgxcc, lists the following as the main changes. Please note that the clause numbers are in the bill as originally presented. Some of them have changed because of amendments and additions, but they will be close to the original position.

    • A new duty for government departments and key public bodies such as local authorities and NHS bodies to consider, in their strategic decisions, reducing socio-economic inequalities (clauses 1-3). This will apply only at strategic level — not to decisions about individuals. In the original bill this duty did not apply to Scotland, but an amendment introduced by the government in December 2009 extends it to Scotland.
    • Extending discrimination by association to cover association on the basis of any of the protected characteristics (clause 13). Discrimination by association covers, for example, discrimination against or harassment of a person because they are married to, or a carer of, a person with a disability.
    • Extending the legal protection that disabled people have so that it reverts to the position before the House of Lords decision in the Malcolm case (clause 14).
    • An amendment provides further protection against discrimination for disabled people, including restricting the use of pre-employment questionnaires about health or disability during the recruitment process. Until a candidate has been shortlisted after an interview, questions about health and disability will only be able to be asked where there is a genuine occupational requirement for the person to be disabled, or where they are asked for the purpose of making reasonable adjustments so the person can apply for the job or take part in the recruitment process, monitoring diversity in applications for jobs, supporting positive action in employment for disabled people, or national security vetting.
    • Making it clear that breastfeeding is allowed in public places (clause 13(7)).
    • Banning age discrimination against people aged 18 or over in the provision of goods, services and facilities or when carrying out public functions, except where age-based treatment is justified or beneficial (clauses 26-27). This is expected to come into force in 2012.
    • Requiring landlords and managers of residential premises to make reasonable adaptations to communal areas to enable a disabled resident to use the premises, but the resident can be required to pay for the adaptations (clause 34, sch.4 para.7).
    • A ban on secrecy clauses which prevent employees discussing their own pay (clause 72).
    • Power to require private sector employers with 250 or more employees to report on gender pay (clause 73), but this will not be implemented until at least 2013 and only if sufficient progress on reporting has not been made.
    • Preventing discrimination against members or members' guests by associations or private clubs with more than 25 members, unless the organisation is set up specifically for men or for women, or for people with a shared characteristic (clauses 95-98,101, sch.16). Gay clubs or organisations for people of a particular religion or another shared characteristic would not be unlawful.
    • Allowing political parties to take positive measures to bring in candidates from under-represented groups, and allowing women-only shortlists for parliamentary candidates until 2030 (clauses 99-101).
    • Allowing employment tribunals to make wider recommendations in discrimination cases, requiring an employer to take specific steps in relation to the workforce as a whole rather than just in relation to the worker who has made the complaint (clause 118).
    • Extending the current race, disability and gender equality duties, which require public bodies to reduce inequality, to cover age, sexual orientation, religion/belief, and gender reassignment (clauses 143-151). The single equality duty will apply only to public bodies, but organisations which receive public sector funding or contracts are likely to have to comply with it as part of their grant or contract conditions. A consultation on the equality duty, including proposals for public procurement (below) and publication of gender pay reports, took place from June to September 2009. The consultation document is at tinyurl.com/kkfqbm.
    • Clarifying that public bodies can use public procurement to promote equality, for example by requiring contractors bidding for public sector contracts to demonstrate how they promote equality (clause 149).
    • Redefining positive action to allow preference to be given to a job applicant from a group which is under-represented in the workforce, where there are two equally well suited applicants (clauses 152-153). This will not allow preference to be given to a person from an under-represented group who is less qualified.
    The Bill also:
    • extends protection for transsexual people, and clarifies the definition of gender reassignment to recognise that not all transsexuals undergo surgery (clause 7);
    • harmonises the definition of direct discrimination (clauses 13-17);
    • harmonises the definition of indirect discrimination (clause 18), and extends indirect discrimination protection;
    • replaces the different justification tests in disability discrimination law with a single objective justification test, and revises the threshold for making reasonable adjustments (clauses 19-21);
    • harmonises the definition of harassment (clause 24);
    • brings in the same approach to victimisation in discrimination law as in employment law (clause 25);
    • makes employers liable for third party harassment (harassment by customers etc) in relation to all the protected characteristics, not just sexual harassment as the law now stands (clause 37);
    • simplifies the definition of disability (sch.1), and removes the list of capacities in "normal day-to-day activities";
    • standardises the genuine occupational requirement provisions for all the equality strands, while continuing to allow specific exemptions where these are justified (sch.9).
    Clauses 186-187 set out exceptions allowing charities to restrict their activities or services to specific groups in certain circumstances, and schedule 14 contains provisions for single-sex educational charities and endowments. On a quick reading, these seem to restate provisions that are in the current legislation. Clause 188 contains provisions for sport.

    Following a government consultation in spring 2009, an amendment to the bill allows dual discrimination claims to be brought on two combined grounds, such as race and sex. This has been criticised because it does not allow a claim to be brought on more than two grounds. An explanation of the dual discrimination provisions is at www.equalities.gov.uk/pdf/peers%20breifing%201st.pdf. [Note: 'breifing' is how it is spelt in the web address.]

    The government is considering whether to allow bodies such as trade unions and the Equality and Human Rights Commission to bring representative actions on behalf of a number of people, rather than claims having to be made by individuals.

    Information about the bill and a link to the bill are available from the Government Equalities Office at www.equalities.gov.uk/equality_bill.aspx.

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    DISCRIMINATION IS UNLAWFUL REGARDLESS OF MOTIVE

    Added 14/1/10. This information updates s.28.1.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    In a case involving Amnesty International, the employment appeal tribunal said in August 2009 that discrimination on the basis of ethnic origin is unlawful even if there is a benign reason for it. The case involved a Sudanese woman who was not hired as a researcher on Sudan, because she came from the north of Sudan and could have been perceived as being associated with ethnic groups linked with the Sudanese government. This, Amnesty argued, could compromise its perceived impartiality, and could put the researcher at risk to her health, safety and security.

    The EAT expressed unease at having to decide that Amnesty's action was unlawful, saying it could have implications for employers whose employees work in situations of acute political or ethnic tension. However, it said, race discrimination law does not allow for a defence of justification even in situations like this.

    The decision in Amnesty International v Ahmed is at www.bailii.org/uk/cases/UKEAT/2009/0447_08_1308.html .

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    A DEROGATORY REMARK MAY BE HARASSMENT

    Added 14/1/10. This information updates s.28.1.6 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    While working out her resignation notice, a woman of Indian origin was told by her manager, "We will probably bump into each other in future, unless you are married off in India." The employee was upset by this remark and after taking out a grievance which was not satisfactorily resolved, she claimed harassment on racial grounds.

    Under the Race Relations Act 1976 s.3A as amended in 2003, harassment is defined as unwanted conduct which has the purpose or effect of violating a person's dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for the person. In its decision on 12 February 2009, the employment appeal tribunal said that earlier definitions of harassment, from before the statutory definition, should be largely disregarded.

    The EAT accepted that the purpose of the comment had not been to harass the employee, but it had had that effect and therefore fell within the statutory definition — although it was close to the borderline. At the end of its decision the EAT said that employers and tribunals need to be sensitive to the hurt that can be caused by racially (and other) offensive comments or conduct, but it is also important "not to encourage a culture of hypersensitivity or the imposition of legal liability in respect of every unfortunate phrase".

    The decision in Richmond Pharmacology v Dhaliwal is at www.bailii.org/uk/cases/UKEAT/2009/0458_08_1202.html .

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    DISCRIMINATORY JOB ADVERTS

    Added 14/1/10. This information is included in s.28.1.9 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    In the 1984 case of Cardiff Women's Aid v Hartup, it was ruled that a case about a discriminatory job advertisement could be brought only by the Equality and Human Rights Commission (or previously, the Commission for Racial Equality etc) rather than by an individual. However, following a European Court of Justice decision in 2008, the Race Relations Act 1976 was amended to allow a claim to be brought by an individual who is deterred from applying for a job because of an advertisement which is discriminatory on the basis of race. Employers need to ensure that job advertisements are not worded in a way that could put a person of a particular racial or ethnic group or groups, or persons with other characteristics where discrimination is unlawful, off applying.

    The Race Relations Act 1976 (Amendment) Regulations 2008, which amend s.1(1A)(b) of the Race Relations Act 1976, are at www.opsi.gov.uk/si/si2008/uksi_20083008_en_1.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    HAIR LENGTH AND SEX DISCRIMINATION

    Added 14/1/10. This information updates s.28.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Requiring a male employee to cut his shoulder length hair is not sex discrimination if it is part of a dress code that overall is "gender neutral", an employment tribunal ruled on 4 January 2010. A Metropolitan Police trainee claimed he was treated unfairly because he was required to cut his hair when a woman would not have to. But the EAT said the dress code, which requires employees' standard of dress to be "smart, fit for purpose, and portray a favourable impression of the service", was gender neutral, because a woman who breached the code in another way would be treated the same as the man had been.

    The decision in Dansie v The Commissioner of Police for The Metropolis is at www.bailii.org/uk/cases/UKEAT/2009/0234_09_2010.html.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    COMPARATOR FOR DISABILITY DISCRIMINATION

    Added 9/3/09. This information is included in s.28.7 and 42.7 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    Under the Disability Discrimination Act 1995 disability discrimination may be direct ("We won't let you in the restaurant because you are blind", or "We are dismissing you because you have an a severe back injury") or disability-related ("We won't let you in because you have a dog", where the reason for the dog is related to the disability, or "We are dismissing you because you have been off work for a year", where the absence is because of the injury).

    Since the Clark v Novacold case in 1999, the comparator in disability-related discrimination cases has been a non-disabled person to whom the disability-related reason does not apply (because they are not disabled). The type of questions to be asked in the above examples would be "Would a person who is not blind, and who therefore does not bring a dog to a restaurant, be denied entry the restaurant? Would a person who does not have a serious injury, and has therefore not been off work for a year, be dismissed?" If the answer is no, a disabled person who is refused admission or is dismissed is being treated less favourably than the non-disabled person.

    In the case of London Borough of Lewisham v Malcolm and another on 25 June 2008, the House of Lords controversially said that Clark v Novacold had been wrongly decided, and the correct comparator should be a non-disabled person to whom the reason for the treatment does apply. The questions would be "Would a person who is not blind and brings a dog to a restaurant be denied entry? Would a person who does not have a serious injury or other disability, but has been off work for a year, be dismissed?" If the answer is yes, the disabled person is not being treated less favourably.

    The Malcolm case involved service delivery (the provision of housing) and it was unclear whether it would also apply to employment cases. On 5 February 2009, in Child Support Agency v Truman, the employment appeal tribunal confirmed that the Malcolm decision does apply in employment cases.

    These decisions make it much easier for a service provider or employer to show that the reason for their allegedly discriminatory action was not for a disability-related reason — because they can now say that anyone with a dog, or anyone with a long-term absence, would have been treated the same. Similarly it will be much more difficult for a disabled person to show that the reason for their treatment was related to their disability. This outcome is contrary to the purpose of the Disability Discrimination Act, which is to protect disabled people in situations such as these — not to make it harder for them to show that they have been treated less favourably.

    A service provider or employer must be able to show, if course, that they made reasonable adjustments as required under the DDA (in the above examples, to allow blind people to use the restaurant, or to enable the employee to return to work). Failure to do so is in itself discriminatory.

    The Malcolm decision is at www.bailii.org/uk/cases/UKHL/2008/43.html.
    The Truman decision is at www.bailii.org/uk/cases/UKEAT/2009/0293_08_0502.html.
    The Solicitors Journal has a useful article at tinyurl.com/bfe4rb.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    DISABILITY DISCRIMINATION BY ASSOCIATION

    Updated 9/3/09. This information is included in s.28.1.2 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Disability Discrimination Act 1995 as originally worded applies only to discrimination against a disabled person (as defined in the Act and subsequent legislation). But in a decision on 17 July 2008 the European Court of Justice confirmed that the EU Directive for Equal Treatment in Employment and Occupation makes it unlawful to directly discriminate against or harass a non-disabled worker because of their association with a disabled person — in this case, a non-disabled mother looking after her disabled child.

    Following this decision, the employment tribunal confirmed on 27 November 2009 that all relevant sections of the Disability Discrimination Act 1995 should be read as applying not only to a disabled person but also to a person associated with a disabled person.

    The case was brought by Sharon Coleman, who had asked for flexible working to look after her four-year-old disabled son. Her employer, Attridge Law Solicitors, had granted flexible working to other mothers whose children were not disabled, but did not allow it for Coleman. She resigned, claiming unlawful discrimination on the basis of her son's disability. This kind of discrimination by association is called associative discrimination and was recognised as applying in some types of discrimination cases, but was not covered by the DDA as worded. Now it is.`

    At the moment, parents of children under age six (or under 18 if the child is disabled) and carers of adults are entitled to request flexible working. However the employer can, for a variety of reasons, refuse the request. Now that Coleman has won her case in the ECJ, employers will need to consider whether flexible working to care for a disabled person is a reasonable adjustment under the DDA.

    The equal treatment directive also applies to religion/belief, sexual orientation and age, so it could become unlawful to discriminate on the basis of someone's association with a person of particular religion, sexual orientation or age. (See Discrimination on grounds of another person's religion, below.)

    For briefings on the ECJ and employment tribunal decisions from Bates, Wells and Braithwaite, who represented Sharon Coleman, see www.bwbllp.com/Updates/Detail.aspx?UpdateID=201 and www.bwbllp.com/Updates/Detail.aspx?UpdateID=222.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    ANTI-GAY INNUENDO AGAINST A HETEROSEXUAL MAN

    Updated 8/1/09. This information is included in s.28.5 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The sexual orientation regulations prohibit less favourable treatment on grounds of sexual orientation, defined as an orientation towards people of the same sex, the opposite sex, or both sexes. In an employment appeal tribunal decision on 20 February 2008, persistent homophobic banter against a heterosexual man who was known to be heterosexual (but who lived in Brighton and had attended boarding school) was held to be not unlawful, because it was not about his own sexuality, his perceived sexuality or the sexuality of people with whom he associated. However the court of appeal overtured this decision on 19 December 2008, saying that the regulations do cover harassment even if it is not about the victim's own or perceived sexual orientation.

    The court of appeal decision in English v Thomas Sanderson Ltd is at www.bailii.org/ew/cases/EWCA/Civ/2008/1421.html.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    DISCRIMINATION ON GROUNDS OF ANOTHER PERSON'S RELIGION

    Added 9/3/09. This information is included in s.28.4 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    An employment appeal tribunal decision in November 2008 confirmed that discrimination and harassment on the basis of someone else's religion is unlawful. The case involved an advice centre in Wolverhampton, where an employee and a volunteer of the Radivassis faith became resentful when their work ended but Hindus — including the project manager and a senior advice worker — remained in post. The two former workers and other Radivassis gained control of the board, and following concerns expressed by a regulator (the Office of the Immigration Services Commissioner) they started disciplinary action with a view to "getting rid of the manager because he was a Hindu". After a disciplinary procedure described by the employment tribunal as inappropriate and quite inadequate, the manager was dismissed, claimed unfair dismissal and discrimination on the basis of religion, and won his case.

    As part of the process of dismissing the manager, the advice worker was interviewed several times, including by panels of five and seven board members. He was suspended and then called to a disciplinary hearing, even though he had initially been told his own position was safe and the board only wanted to get rid of the manager. The advice worker felt he was being bullied, harassed and intimidated into providing evidence against the manager. He subsequently resigned and won his claims for constructive unfair dismissal and wrongful dismissal, but the employment tribunal said that he had been discriminated against on the basis of the manager's religion rather than his own, and had therefore not been discriminated against. The advice worker appealed, and the employment appeal tribunal found that even though he had been discriminated against and harassed on the grounds of someone else's religion, this was unlawful under the Religion or Belief Regulations.

    The decision in Saini v All Saints Haque Centre and others extends the protection given under the Religion and Belief Regulations. It is at www.bailii.org/uk/cases/UKEAT/2008/0227_08_2410.html.
    The Employment Equality (Religion or Belief) Regulations 2003 are at www.opsi.gov.uk/si/si2003/20031660.htm.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    MANDATORY RETIREMENT AGE IS LAWFUL

    Updated 15/1/10. This information updates ss.28.6.1 & 34.2.8 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Employment Equality (Age) Regulations 2006 do not require an employee to retire at 65 or any other age, but they do set a default retirement age (DRA) which allows employers to require retirement at 65, or another age over (or in some cases under) 65 set by the employer, even if the employee wants to continue working. Heyday, a membership group linked with Age Concern, challenged these retirement provisions in the High Court on the basis that forced retirement — denying people 65 or over the right to continue working — is incompatible with the European Equal Treatment Directive. The court agreed in December 2006 to refer the case to the European Court of Justice.

    In its judgment on 5 March 2009, the ECJ said that a statutory provision requiring a person to retire at age 65 or any other age set by the employer is not incompatible with the directive, provided it is "objectively and reasonably justified by legitimate aims, such as those related to employment policy [or] the labour market", and is also an appropriate and necessary means of achieving those aims.

    The ECJ referred the case back to the High Court, to decide whether the provision in the Age Regulations could be justified — in effect weighing one set of social and economic objectives (the government's encouragement to older workers to continue working past 65) against another (enabling employers to plan for the future by knowing when employees will retire).

    In its decision on 25 September 2009 the High Court said a default retirement age could be justified, on the basis of employment certainty and planning. However, the judge said he did not think it would have been set at 65 if the regulations were being brought in now, and that his decision might have been different if the government had not announced its decision to bring forward its review of the default retirement age.

    Although a mandatory retirement age is lawful, requiring an employee to retire is an unfair dismissal unless the procedural requirements in the age regulations are strictly followed. Details of these are available from Business Link via tinyurl.com/yclnjaw and ACAS via tinyurl.com/ybryd6r.

    The decision in Age UK, R (on the application of) v Secretary of State for Business, Innovation and Skills and others is at www.bailii.org/ew/cases/EWHC/Admin/2009/2336.html.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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    REVIEW OF DEFAULT RETIREMENT AGE

    Added 15/1/10. This information updates ss.28.6.1 & 34.2.8 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Department for Business, Innovation and Skills' review of the default retirement age (see above) has been brought forward from 2011 to 2010. The review will consider how the default retirement age is working in practice, the reasons employers use mandatory retirement ages (requiring their employees to retire at a specific age unless the employee's request to continue working is granted), the experience of employers operating without a mandatory retirement age, whether there should be a statutory default retirement age, and if so what it should be. In his decision in the Heyday case Mr Justice Blake said, "I cannot presently see how 65 could remain as a DRA after the review", so we can probably assume that if there is a DRA it won't be 65.

    Information about the pre-review consultation, which closes on 1 February 2010, can be accessed via tinyurl.com/yzxe77l.

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    HEALTH AND SAFETY

    H&S RESOURCES

    Updated 14/6/09. This information is included in chapter 40 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Health and Safety Executive (HSE) website at www.hse.gov.uk, which contains masses of useful information on all aspects of health and safety law and good practice, is gradually being completely updated. Guidance is also available from the Trades Union Congress (TUC), CIPD, and a range of other organisations.

    The big news is that from September 2009 many HSE priced publications, including guidance and approved codes of practice (ACOPs), will be free to download in PDF format from the HSE website.

    Recent new or updated resources include:

    HSE has a mini-website specifically for governing body members (management committee/trustees/directors) in organisations of all sizes, to help them understand their health and safety duties and promote h&s at work. The "Leading health and safety at work" website is at www.hse.gov.uk/leadership.

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    STRICTER PENALTIES FOR BREACH OF HEALTH & SAFETY LAW

    Added 22/3/09. This information is included in s.40.1.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    From 16 January 2009 some health and safety offences that could only be tried in the magistrates' court can now be tried in the county court; most H&S offences that are triable in the courts can result in imprisonment; and the maximum fine for offences tried in the magistrates' court is increased from £5,000 to £20,000. In incorporated bodies, board members and senior managers can be tried if the offence occurs with their consent or due to their neglect.

    The Health and Safety (Offences) Act 2008 is at www.opsi.gov.uk/acts/acts2008/plain/ukpga_20080020_en.

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    CORPORATE MANSLAUGHTER

    Updated 31/3/08. This information is included in s.22.3.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    A person who kills someone through a grossly negligent act or omission (failing to do something), without intending to kill them, can be charged with manslaughter. Where the person is acting on behalf of an incorporated body, the organisation can also be charged, but until recently could be found guilty of corporate manslaughter only if it could be shown that a single manager or member of the governing body was the "controlling" or "directing mind" of both the organisation and the immediate cause of death.

    Under the Corporate Manslaughter and Corporate Homicide Act, from 6 April 2008 an incorporated body can be prosecuted and face an unlimited fine for corporate manslaughter (called corporate homicide in Scotland), even if there is no controlling mind. Instead, there has to be gross failure by senior management, and the overall picture of how the organisation's activities were managed by its senior managers will be considered. This could include gross failure to ensure safe working practices, safe premises, safety for consumers or members of the public, or any other serious breach of duty of care. The Act covers all of the UK, and also applies, with some exceptions, to public sector bodies.

    The Act has been criticised because the incorporated body will be charged (and, if found guilty, fined), without individual senior managers or governing body members being prosecuted. As at present, an individual manager or governing body member will be able to be prosecuted only if they were personally grossly negligent. The Act has also been criticised because it does not cover gross management failure at junior management level (though arguably, failure to deal with this could be a senior management failure). Trade unions and others have called for individual managers and governing body members to be personally liable under corporate manslaughter law, and/or for health and safety law to be extended to include specific statutory duties for which individual managers or governing body members can be found guilty.

    Quite apart from anything that happens with manslaughter charges, individual employees, managers and in some cases governing body members can be fined or even imprisoned, and an incorporated organisation can be fined, for breach of health and safety or similar laws. And a person who has been injured, or the estate of a person who has been killed, can bring a negligence claim against an individual, manager, incorporated organisation or members of the governing body of an unincorporated organisation. So the new corporate manslaughter provisions are unlikely to make much difference to voluntary organisations.

    The Act is at www.opsi.gov.uk/acts/acts2007/20070019.htm, with explanatory notes at www.opsi.gov.uk/acts/acts2007/en/ukpgaen_20070019_en_1.

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    NEW H&S POSTER AND LEAFLET

    Added 14/6/09. This information is included in s.40.2.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    A new version of the HSE poster was published on 6 April 2009, setting out in numbered lists the obligations of employers and workers in relation to health and safety, and what to do if there is a problem. The H&S leaflet, which has had to be given to employees at workplaces where the employer does not prominently display the poster, has been replaced by a pocket card.

    The existing poster and leaflet can be used until 5 April 2014, provided they are readable and the addresses of the enforcing authority and the Employment Medical Advisory Service (both available from the HSE infoline on 0845 345 0055) are up to date.

    Welsh, easy read and large print leaflets will be produced, and an MP3 version will be available on the HSE talking leaflets website.

    Posters and leaflets can be purchased from bookshops or from the HSE Books on 01787 881165.

    Further details are at www.hse.gov.uk/pubns/books/lawposter.htm.

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    EXAMPLE RISK ASSESSMENTS

    Updated 22/3/09. This information is included in s.40.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The HSE website includes a range of example risk assessments, including charity shops, food preparation and service, office-based businesses, and village halls (also suitable for small community centres and similar premises). The example risk assessments can be accessed via www.hse.gov.uk/risk/casestudies/index.htm.

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    GOOD PRACTICE FOR SCHOOL AND YOUTH GROUP TRIPS

    Updated 22/3/09. This information is included in s.40.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    The Department for Children, Schools and Families' "Learning outside the classroom manifesto" emphasises the importance of school trips and similar youth activities, and aims to reduce the bureaucracy and culture of fear around such activities. A new learning outside the classroom website at www.lotc.org.uk includes good practice guidance and resources, and since February 2009 organisations which are regularly visited by such groups can apply for a quality badge which confirms that they are managing safety effectively, so the burden of risk assessment on teachers or youth group leaders is reduced. Further information is available on the LOTC website.

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    DUTY OF CARE AND WORKPLACE STRESS

    Added 21/4/08. This information is included in s.40.5.1 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
    In order to bring a claim against an employer for work-related stress, the employee must be able to show that the employer was in breach of its duty of care to the employee, and the employee's illness was reasonably foreseeable and was caused by the employer's breach. The court of appeal decision in Dickins v O2, on 16 October 2008, clarified these requirements, and may make it easier for employees to bring such cases.

    Dickins started work with O2 as a secretary but was promoted to senior roles for which she had no training. She complained about this, requested less stressful work, regularly came in late and repeatedly requested time off work, including asking for a six-month sabbatical. O2 offered a confidential counselling service but did not provide less stressful work or time off. Her anxiety and depression led to her being signed off work and her employment was subsequently terminated, after which she brought a claim for damages for personal injury.

    The county court and court of appeal both said that she had repeatedly made clear to O2 that she could not cope and was becoming ill, so her psychiatric illness was foreseeable; the offer of counselling was not in itself an adequate response under the circumstances and the employer was therefore in breach of its duty of care; and O2's failure to deal with the situation had contributed materially to her psychiatric breakdown. The courts' decisions interpreted the Hatton principles less rigidly than they have been interpreted in the past.

    The decision in Dickins v O2 plc is at www.bailii.org/ew/cases/EWCA/Civ/2008/1144.html.

    For summaries and articles about cases, do a Google search on key words in the case name or content.
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