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Spring Budget 2021—Tax analysis of employment measures

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Workers not able to displace a recognised independent union (R (on appln of IWGB) v SoS for BEIS)

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Employment weekly highlights—4 March 2021

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Intermediaries legislation—IR35 (HMRC v Atholl House Productions Ltd)

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Featured Employment content

Contractual redundancy payments

An employee is entitled to a statutory redundancy payment when:•he has been continuously employed for not less than two years•he has been dismissed,...

Unfair dismissal remedies—general

Coronavirus (COVID-19): The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020),...

Letter—from employer placing employee on garden leave

[To be typed on employer’s headed notepaper][Enter name and address of employee][Enter date]by handDear [enter name]Garden leaveI refer to [[enter...

Letter—TUPE (9) from employee objecting to transfer

[Strictly private and confidential][Address][Date]Dear [enter name(s) of relevant individual(s) at the transferor],Proposed transfer of [enter...

Practice notes

Qualifying period for unfair dismissal

For employees starting fresh employment on or after 6 April 2012, the right not to be unfairly dismissed generally only arises when the employee, by...

9th Nov

Practice notes

No response, rejected response or claim not contested: employment tribunals

Coronavirus (COVID-19): All proceedings in employment tribunals in England, Wales and Scotland during the coronavirus (COVID-19) pandemic and until...

9th Nov

Precedents

Application—additional information (further and better particulars)

[Insert date][Insert] Employment Tribunal[Insert address]To the [insert] Employment Tribunal[Insert name of case, eg X v Y]Claim Number: [insert claim...

9th Nov

Precedents

Letter—TUPE (3) letter from transferee to transferor to inform of proposed measures

[To be typed on headed notepaper of transferee][Strictly private and confidential][Address][Date]Dear [enter name(s) of relevant individual(s) at the...

9th Nov

Practice notes

Definition of dismissal in unfair dismissal

To succeed in a claim of unfair dismissal, the claimant must establish that they were dismissed by the employer. A contract of employment may...

9th Nov

In-house

Precedents

Letter—long-term sickness absence (6): to employee confirming dismissal on notice (following final written warning)

[To be typed on headed notepaper of employer][Date]Dear [insert name of employee],Re: [insert name of employer] (the Company)Following our most recent...

9th Nov

Practice notes

Unfair dismissal time limit

Three months beginning with the effective date of terminationAn unfair dismissal claim must generally be submitted to the employment tribunal within...

9th Nov

Practice notes

Employment tribunal case management

Coronavirus (COVID-19): All proceedings in employment tribunals in England, Wales and Scotland during the coronavirus (COVID-19) pandemic and until...

9th Nov

Practice notes

The basic award

Coronavirus (COVID-19): The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020),...

9th Nov

Practice notes

Striking out and unless orders in employment tribunal proceedings

Coronavirus (COVID-19): All proceedings in employment tribunals in England, Wales and Scotland during the coronavirus (COVID-19) pandemic and until...

9th Nov

In-house

Precedents

ET3 grounds of resistance—unfair dismissal: protected disclosure

1Paragraph 1 of the Grounds of Claim is admitted.2As to paragraph 2 of the Grounds of Claim, it is denied that the Claimant’s colleagues were...

9th Nov

Precedents

Costs warning letter (employment tribunal)

[ON YOUR LETTERHEAD][Name and address of other party, or other party’s solicitor]Dear [insert contact name][Insert subject of letter, eg names of...

9th Nov

Practice notes

Calculating pension loss in employment tribunal claims

Pension loss will generally only arise in cases where an individual has lost their job and the pension provision that went with that job. An...

Produced in partnership with Keith Bryant QC of Outer Temple Chambers. 12th Jan

Precedents

Application—postponement or adjournment of hearing

[Insert date][Insert] Employment Tribunal[insert address]To the [insert] Employment Tribunal[Insert case name]Case No: [Insert case number]...

9th Nov

Precedents

ET1 grounds of claim—direct sex discrimination, sexual harassment and constructive dismissal

[Insert in para 8.2 of claim form ET1:]1The Claimant was employed by the Respondent as a [job title]. She worked at the Respondent’s premises at...

9th Nov

Practice notes

Collective agreements

Collective agreements are agreements negotiated between one or more trade unions and employers or employers' associations and which relate to one or...

9th Nov

Most recent Redundancy content

Q&As

Where an employer wishes to reduce costs by replacing a number of employees with freelance contractors, is this still a redundancy situation and a potentially fair reason for dismissal? If the contractors are personal service companies, is there a risk TUPE applies?

Whether there is a redundancy situationFor the purposes of determining whether, in the context of an unfair dismissal claim, the reason for dismissal...

11th Feb

Q&As

Will the Redundancy Payments Office make payment to the former employee of an insolvent business where the employee entered into a settlement agreement with the former employer?

An employee may apply to the Department for Business, Energy and Industrial Strategy (BEIS) to pay the statutory redundancy payment out of the state...

11th Feb

Q&As

Is a laid off employee who wishes to claim a statutory redundancy payment through the lay off and short-time provisions of the Employment Rights Act 1996 entitled to receive notice pay or a payment in lieu of notice once they have resigned?

In order to receive a statutory redundancy payment, a laid-off employee must resign from their employment, after having notified their employer of...

11th Feb

COVID-19

Q&As

Where the employer has sought to vary the terms of employment by reducing the employee’s entitlement to contractual redundancy pay, but the employee did not agree to the change, do the old contractual redundancy terms or the new terms apply?

For information on contractual redundancy payments generally, see Practice Note: Contractual redundancy payments.A contract can be made up of all or...

11th Feb

Q&As

If an employee receive dividends as well as a salary, should the dividends also be included when calculating a week’s pay for notice and redundancy pay purposes?

Redundancy payThe amount of a statutory redundancy payment is calculated by reference to a week’s pay, in accordance with sections 220–229 of the...

11th Feb

Q&As

Does the duty to collectively consult arise as soon as the HR1 is submitted, even if the employer subsequently decides to make fewer than 20 people redundant?

The Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992) sets out a significant obligation upon employers to carry out...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 11th Feb

Q&As

What claims can be brought for failing to meet collective redundancy consultation obligations, and for breach of Transfer of Undertakings (Protection of Employment) Regulations 2006? Can all affected employees claim the protective award, or just those dismissed under the process/those whom the employer fails to transfer?

By virtue of section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), where an employer is proposing to dismiss...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 11th Feb

Q&As

In a collective redundancy situation where the statutory information and consultation obligations apply and there are trade union representatives in place, can the employer ask the employees if they would also like to elect employee representatives, whom the employer would then consult in addition to the trade union representatives?

Section 188(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992) requires an employer who is proposing to dismiss as...

11th Feb

Q&As

Where, on a redundancy, the employee is offered a renewed or new contract of employment which differs from his original contract and a trial period takes place, what is the effect of the employer deciding that the employee is not suited to the role and terminating the contract during the trial period?

Consideration of alternative employment on a redundancy is relevant to:•the fairness of the redundancy procedure—see Practice Note: Redundancy—fair...

11th Feb

Q&As

What potential claims may be available to a part-time employee when their application for voluntary redundancy is not accepted, but a full-time colleague's application is accepted?

Voluntary redundancyAs a matter of good practice, an employer should always consider ways of avoiding compulsory redundancy. One of the ways in which...

11th Feb

Q&As

For the purposes of determining whether or not an employer’s obligations to inform and consult with employee representatives under the Trade Union and Labour Relations (Consolidation) Act 1992 have been triggered in a potential collective redundancy situation, how does one delineate the relevant 90-day period when it comes to dismissals taking place in batches?

The statutory collective consultation obligations under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992)...

11th Feb

Q&As

Where an employee’s employment is terminated by reason of redundancy while she is on maternity leave, is the employer obliged to continue to pay employer’s pension contributions for the balance of the maternity leave period?

On termination of employment an employee’s entitlement to contractual pay and benefits will normally cease. This includes pension benefits—unless the...

11th Feb

Q&As

If the employee, who has been given notice of termination of employment by reason of redundancy, is subsequently found guilty of gross misconduct at a hearing held after their notice period has expired, is the employer entitled to withhold paying them their redundancy pay?

A worker is entitled to a redundancy payment when:•he or she is an employee•they have been continuously employed for not less than two years•they have...

11th Feb

Q&As

On a collective redundancy, if the employer needs to arrange for employee representatives to be elected, does the 30-day period for consultation run from the date of the letter to employees setting out redundancy proposals and asking them to elect representatives, or from the date of the first meeting with the employee representatives?

For information on the statutory obligations to inform and consult on a collective redundancy generally, see Practice Note: Collective...

11th Feb

Q&As

If a potentially redundant employee is offered alternative employment in the same role but on reduced pay, would that amount to ‘suitable alternative employment’? What impact might such an offer have on their right to a statutory redundancy payment?

This Q&A considers alternative employment for fair dismissal purposes and the question of suitable alternative employment for statutory redundancy...

11th Feb

Q&As

On a relevant transfer under TUPE 2006, where the transferee proposes to dismiss transferring staff after the transfer but the collective redundancy consultation obligations do not apply, can the transferee (with the transferor’s permission) consult with potentially redundant staff before the transfer, with a view to effecting dismissals on the day of the relevant transfer (or shortly after it)?

The provisions in sections 198A–198B of the Trade Union and Labour Relations (Consolidation ) Act 1992 (TULR(C)A 1992) enable the transferee, for the...

11th Feb

Q&As

Where an employee has been seconded on a fixed-term contract but their original contract is then to be made redundant, would notice start when the original contract technically comes back into effect, or would notice be served from the date the employer decides to make the employee redundant?

The answer to this Q&A will entirely depend on the contractual terms of the secondment and of the original employment.For example, Precedent:...

11th Feb

Q&As

What is the meaning of ‘affected’ employees in the context of the statutory obligations to inform and consult employees collectively in a redundancy situation? Is the number of ‘affected’ employees relevant to the triggering of those statutory obligations and/or the level of any protective award?

In the context of the statutory obligations to inform and consult employees collectively in a redundancy situation under section 188 of the Trade...

11th Feb

Q&As

If an employee who is on an annualised contract is made redundant, should their statutory redundancy payment be calculated on the basis of their contractual hours, or a 12-week average?

Calculation of a statutory redundancy paymentA statutory redundancy payment is calculated by (sections 162 and 227(1)(c) of the Employment Rights Act...

11th Feb

Q&As