The practice of fire and rehire has hit the headlines and been the topic of political debate in recent years. While the current UK government has rejected calls to outlaw entirely the practice, in early 2022 it committed to introducing a statutory code of practice to set out expected standards of behaviour and best practice.

Our blog from 13 February 2023 considered the draft code as the consultation was launched. We now provide an update on the content of the new Code and explores some challenges and tips for employers faced with navigating a change of terms and conditions once the Code comes into force, including the punitive sanctions for non-compliance, as well as a look ahead to what might change if we have a change to a Labour party government in the next 12 months.Continue Reading Developments with the UK’s ‘fire and rehire’ clampdown: what’s next?

The recent case of Dafiaghor-Olomu v Community Integrated Care [2022] EAT 84 is a good demonstration of the rough justice that is occasionally dispensed by the Employment Tribunal system.

It is well known that the amount of compensation that an employer can be ordered to pay for a straightforward unfair dismissal claim is subject to a statutory maximum amount of 52 weeks’ pay (commonly referred to as the “statutory cap”).  In Dafiaghor-Olomu v Community Integrated Care, Mrs Dafiaghor-Olomu won her unfair dismissal claim against her employer. At the remedies hearing, the tribunal awarded her £46,153.55 in compensation and the employer paid this amount in full. The claimant successfully appealed the outcome of the remedies hearing and her award was subsequently increased to £128,961.59 following a second remedies hearing. The claimant appealed again to the EAT in respect of the remedy.

The key question for the EAT to determine was how the statutory cap should be applied in this unusual scenario in light of the earlier payment of £46,153.55. In particular, the EAT had to decide whether:

  1. The employer should be given credit for the earlier payment of £46,153.55 before the statutory cap was applied leaving the employer with an outstanding balance to pay of £74,200 (the statutory cap at the time of dismissal); or
  2. The statutory cap should be applied to the total award first, and then the employer given credit for the earlier payment of £46,153.55, leaving the employer with an outstanding balance to pay of £28,046.45.

Continue Reading Unfair Dismissal Compensatory Awards – The Cost of Compliance

Covid-19 related reluctance or refusal to attend the workplace is nothing new, but as we enter a new phase of the pandemic, ‘Living with Covid’, developing case law will be of interest to employers who require or expect workers to attend the workplace on a full or hybrid basis. This blog considers the current guidance on workplace attendance, the recent Employment Appeal Tribunal’s (EAT) decision in Rodgers v Leeds Laser Cutting (a case looking at whether an employee had protection against unfair dismissal when refusing to attend work due to Covid related concerns), and some practical considerations for employers.

The UK government’s ‘Living with Covid’ plan came to full fruition in England on 1 April 2022, with remaining Covid-specific guidance now largely obsolete, and replaced with general public health guidance. This essentially treats Covid like other respiratory illnesses for individuals and business to manage, leaving employers with discretion on how to manage ongoing Covid risks in the workplace, and individuals encouraged to exercise personal responsibility. 

Employers are no longer required to consider Covid specifically in their risk assessments, nor have specific Covid mitigation measures in place, although they must continue to comply with their general health and safety obligations. Similarly, ‘work from home if you can’ guidance has been removed, although individuals with symptoms of a respiratory infection (including Covid), and who have a high temperature or do not feel well enough to work, or anyone with a positive Covid test, are advised to try and stay at home, working from home if possible, and to avoid others. Individuals who cannot work from home are advised to discuss options with their employer. Continue Reading Covid-19 related refusal to attend the workplace

The practice of ‘fire and rehire’ (i.e. dismissal of an employee and offering re-engagement on new, usually lesser, terms) as a way to facilitate a change to terms and conditions of employment has been under the spotlight in recent years. It is not a new strategy as a way of making changes to employment contracts, nor is it unlawful if handled properly, but the tactic has been subject to increased scrutiny in recent years as cases of misuse by some employers have hit the headlines.

In autumn 2021, legislation curbing dismissal and re-engagement was shelved by the government and replaced with a commitment for updated and more detailed Acas guidance. That guidance (which is not binding) focusses on the importance of thorough and constructive consultation with staff to explore all alternative options to terminating employment, describing fire and rehire as ‘a last resort’.

Fast forward a few months, and the government has announced that we can now also expect a new Statutory Code of Practice on fire and rehire intended to crackdown on the inappropriate use of the tactic, with increased punitive financial sanctions for non-compliance.

As always, the devil will be in the detail. The new Code is expected to set out the consultation process to be followed where there are proposed changes to terms and conditions, and to give practical steps for employers to follow. It is also expected that an additional 25% penalty (on top of the existing punitive sanctions) will be levied where an employer deploys fire and rehire tactics without first having made reasonable efforts to reach agreement through consultation, or where there is otherwise unreasonable non-compliance with the Code.
Continue Reading Fire & rehire clampdown: will a new Statutory Code of Practice help?

COVID-19 has thrown up numerous and multi-varied concerns for employers and employees alike. One notable area of consideration and concern has been the delicate and difficult issue of dismissals related to health and safety reasons. A recent case has shed more light on how Tribunals may deal with the pandemic-related workplace issue of employees’ refusal to work on health and safety grounds, due to fear of COVID-19.

Rodgers v Leeds Laser Cutting Limited ET/1803829/2020

Case Facts

This case considered the availability and legitimacy of fears over exposure to/contracting COVID-19 at work acting as grounds for statutory protection against unfair dismissal.

The Claimant refused to come into work after another colleague began to show symptoms of COVID‑19, and self-isolated. He informed the Respondent that he would not return to work until lockdown eased, as he was concerned for his very young child, who has sickle cell disease. After a month of refusing to attend work, the Respondent was dismissed.

The Claimant did not have sufficient service to claim ordinary unfair dismissal, so instead claimed that he had been automatically unfairly dismissed for exercising his rights to leave the workplace and take steps to protect himself where he reasonably believed there was a serious and imminent danger, under sections 100(1)(d) and (e) of the Employment Rights Act 1996.
Continue Reading COVID-19, health and safety and dismissal

Welcome to our monthly newsletter, with a summary of the latest news and developments in UK employment law. A PDF version of this newsletter can be accessed here.

This issue will provide recent case law updates, law reform and legislative developments, COVID-19 updates and any other news over recent weeks.

Case law updates

Collective redundancy consultation: The European Court of Justice (ECJ) has ruled on the reference period and threshold numbers required for the Collective Redundancies Directive, and has concluded that where the threshold number of dismissals is met at any point across the relevant reference period, then dismissals occurring both before and after that point are subject to collective consultation rules. This raises questions as to whether section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), which applies the Directive in the UK (and which excludes the need to count employees whose proposed dismissal consultation has started) is compatible with the Directive. In the absence of amendments to TULRCA to clarify the situation, employers planning redundancies will need to have this case in mind, with an understanding of past redundancies as well as anticipated ones, when assessing whether the relevant thresholds for collective consultation are met. [UQ v. Marclean Technologies – NB: no English transcript is currently available]

Discrimination: The Court of Appeal has upheld the ‘cost plus’ basis for seeking to justify indirect discrimination, i.e., cost savings alone cannot be a legitimate aim and will rarely succeed as a defence, although it may be a factor where there is ‘something else’ (including where an employer is subject to financial constraints and is required to reduce its costs). Although not changing established principles, this case acts as a reminder that cost in itself should not be relied upon to rationalise potentially discriminatory practices. Incidentally the court also said that the phrase ‘cost plus’ should be avoided as inelegant. [Heskett v. Secretary of State for Justice]

Health and safety detriments: Following a judicial review, the High Court has held that the UK failed to properly implement the EU Health and Safety Framework Directive in the Employment Rights Act 1996 when only providing protection against detriment on health and safety grounds to employees and not also to workers. The Independent Workers’ Union of Great Britain, which initiated the proceedings, is calling for the government to urgently amend UK legislation to reflect this decision, which would significantly expand the scope of protection at a time when health and safety is particularly pertinent. [HC: IWUGB v. DWP]

Settlement agreement – COT3: Where arguments are being made to set aside a COT3 settlement due to misrepresentation, it is permissible for the tribunal to consider without prejudice communications. [Cole v. Elders Voice]

Summary termination: A firm was entitled to rely on a self-employed stockbroker’s repudiatory breach of contract to summarily terminate their relationship, notwithstanding the firm also having committed a repudiatory breach. [HC: Palmeri v. Charles Stanley & Co]

Tribunal hearings: An appeal against a decision to hold a merits hearing in person rather than remotely during the pandemic has been dismissed, reiterating the strong case management discretion held by judges. [Omooba v. Michael Garrett Associates]

Tribunal procedure – applications to amend pleadings: The Employment Appeals Tribunal has provided detailed guidance on the procedure to be followed when considering applications to amend, including how arguments in support of such an application should be approached, the matters to consider before such an application is made, and the importance of showing the consequences of the amendment being refused. This also reminds us that the tribunal has wide case management powers, and the appellant courts will seldom interfere. [Vaughan v. Modality Partnership]

Whistleblowing: The Court of Appeal has upheld the principle that multiple separate communications taken together could amount to a protected disclosure even if none of them, taken separately, would do so. Whether it is appropriate to take this approach is a matter of common sense and fact dependent, and it is not necessarily an error for the tribunal to fail to consider the composite approach. In the present case, the claimant failed to clarify which of his 37 communications should be grouped together, and the specific protected disclosure which arose from that combination. [Simpson v. Cantor Fitzgerald Europe]Continue Reading UK Employment Law update – December 2020

In two decisions both rendered on 17 July 2019, the French Supreme Court ruled that the Macron scale (a mechanism introduced on 24 September 2017 to provide for caps and floors on damages for unfair dismissal) complies with international conventions ratified by the French government. These decisions were rendered through a specific procedure (demande d’avis) in which the French Supreme Court does not judge a case but is invited to take a legal position on a specific issue in order to harmonize legal practice.

These decisions should have ended the dissension of several French industrial tribunals which had set aside the Macron scale, considering it to be in breach of article 10 of the Termination of Employment Convention of the International Labor Organization and article 24 of the European Social Charter, both of which provide for adequate protection and appropriate compensation in the event of unfair dismissal.
Continue Reading Macron scale of damages for unfair dismissal: the lower French industrial tribunals strike back

A recent European Court of Human Rights (ECHR) case (Barbulescu -v- Romania) has attracted much publicity in the UK press as giving employers the green light to read employees’ private emails. Is that correct and does this case really change things?

Background

Mr Barbulescu was employed as an engineer in charge of sales. His employer had a strict policy of not permitting private use by employees of its computer and telecommunications systems. Mr Barbulescu was asked by his employer to set up a Yahoo Messenger account so that Mr Barbulescu could communicate with customers.

Sometime later, the employer notified Mr Barbulescu that it has been monitoring his account and they believed that he had been using it for private communications. Mr Barbulescu denied this at which point his employer presented him with a 45 page transcript of all his Yahoo Messenger communications, including private communications with his fiancée and brother. Mr Barbulescu was dismissed for breaching the employer’s policy on personal use of computer systems.

Mr Barbulescu subsequently brought employment claims in the Romanian courts alleging that his dismissal was void since the employer had breached his right to privacy by accessing his private communications. Mr Barbulescu was unsuccessful before the Romanian courts but his case was brought before the ECHR. Mr Barbulescu’s argument was that Romania had failed to protect properly his Article 8 right to respect for his private and family life, his home and correspondence.
Continue Reading Do employers have the right to read employees’ private emails?

In Ramphal v Department for Transport (EAT – 2015), the EAT has provided guidance on the appropriate level of HR involvement in disciplinary proceedings.

The case concerns an employee who was dismissed for gross misconduct relating to his expenses and use of hire cars. It was clear from evidence given at the employment tribunal that the disciplinary officer had initially decided that the claimant was guilty of misconduct and to give a final warning but, having received advice from HR, had changed his mind and dismissed for gross misconduct. The employment judge concluded that the disciplinary officer was entitled to change his mind having received HR advice, but went on to find that the dismissal was unfair for other procedural reasons. The employment judge awarded no compensation on the basis that there was a 100 per cent chance that the claimant would have been dismissed anyway, and because the claimant was 100 per cent to blame for his own dismissal.
Continue Reading HR Influence in Disciplinary Proceedings Can Render Dismissals Unfair