Employment Appeal Tribunal (EAT)

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As we start the summer holidays, the Supreme Court’s judgment on holiday pay is a timely reminder of the complexities of calculating holiday pay for certain workers.

Holiday pay has been a hot topic in UK employment law over recent years, with the latest Supreme Court decision in Harpur Trust v Brazel addressing the calculation of pay for workers who work irregular hours for part of the year on permanent contracts. Dismissing the appeal, the Supreme Court agreed with the earlier decisions that holiday pay should not be pro-rated, but instead calculated by looking at average earnings over the relevant reference period prior to leave being taken, even if it meant that the worker received proportionately more paid holiday than a full time worker.Continue Reading Holiday Pay: the latest instalment

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

Despite menopause being a natural part of the ageing process, there is a general lack of awareness of its symptoms and effects, often resulting in menopausal women* experiencing a lack of support, as well as discrimination and harassment. This blog looks at the legal issues, and what employers can and ought to be doing to create a supportive and empathetic workplace culture.

Some of these issues were highlighted in a recent Employment Appeal Tribunal (EAT) decision, Rooney v. Leicester City Council, which was handed down shortly ahead of World Menopause Day on 18 October 2021. This case acts as a timely reminder of the challenges that menopausal women face in the workplace and the fact that more can be done to raise and demonstrate understanding and awareness of what remains a taboo subject.

Mrs Rooney was a childcare social worker for Leicester City Council until she resigned from her post. She brought a number of claims against her employer, including a claim for disability discrimination, relying on menopause as her disability. She cited symptoms including insomnia, fatigue, light-headedness, confusion, stress, depression, anxiety, palpitations, memory loss, joint pain, migraines and hot flushes that left her physically and mentally unable to cope over a couple of years, and having to spend prolonged periods in bed. She received hormone replacement therapy and was under the care of a specialist menopause clinic.
Continue Reading Menopause in the workplace

It is becoming increasingly common for employees to make covert recordings of meetings held with their employer. The reasons behind these recordings vary from a simple desire to keep a record of what is said to attempts to entrap their employer and use the recording against it in court proceedings.

The Employment Appeal Tribunal (EAT) recently considered the issue of covert recordings in Phoenix House Ltd v. Stockman. The EAT had to decide whether an employee’s covert recording breached the implied term of mutual trust and confidence. In its decision, the EAT provided helpful commentary on covert recordings which may assist employers to navigate this difficult area.Continue Reading Covert recordings at work on the rise in the UK

Does pay for regular voluntary overtime need to be included in the calculation of holiday pay? Yes, says the Court of Appeal in a decision which confirms several prior Employment Appeal Tribunal (EAT) decisions that the entitlement to holiday pay under the Working Time Directive (WTD) must include pay for regular voluntary overtime. As we explain below, the outcome is more complex in practice as tribunals will now have to decide, on a case-by-case basis, whether a particular pattern of voluntary overtime is sufficiently regular and settled to fall within the category of regular voluntary overtime.

Background

Under article 7 of the WTD, EU member states must ensure that workers have the right to at least four weeks’ paid annual leave. The WTD does not expressly specify how statutory holiday pay is to be calculated. However, it is well established that holiday pay should equate to ‘normal remuneration’. Normal remuneration has been interpreted to include not only basic salary but also remuneration which is intrinsically linked to the tasks the worker regularly performs.

The EAT held in Bear Scotland v. Fulton and others that compulsory non-guaranteed overtime (i.e., overtime that is compulsory for the employee if the employer requires it but which is not guaranteed to be provided) must be included in the calculation of holiday pay. The EAT also held, in Dudley Metropolitan Borough Council v. Willetts and others, that holiday pay should correspond to normal remuneration so that workers should not be discouraged from taking their annual leave entitlement; in other words, pay during holidays should not be below the rate a worker would expect to receive had they been working. For a payment to be treated as normal, it should have been made over a sufficient period of time on a regular or recurring basis.

The calculation of holiday pay has also been considered by the European Court of Justice (ECJ), which held in Hein v. Albert Holzkamm GmbH & Co. KG that remuneration received for overtime does not, in principle, form part of normal remuneration. However, where the employment contract requires the worker to work overtime on a broadly regular and predictable basis then that overtime should be included in the calculation of holiday pay.
Continue Reading Court of Appeal: holiday pay must include regular voluntary overtime

The Equality Act 2010 makes it unlawful to subject an employee to detriment because they have raised (or are threatening to raise) a complaint about discrimination – so-called “victimisation.”

Over the last year or so there have been conflicting judgments from the Employment Appeal Tribunal on the issue of ex-employees and whether they are protected from victimisation.

Today the Court of Appeal handed down its judgment in Jessemey –v- Rowstock Limited [2014] EWCA Civ 185 and confirmed that ex-employees are protected from victimisation by their former employer. The judgment is not, at the time of writing, available online but please contact us if you would like a copy.Continue Reading Victimisation under the Equality Act 2010 – ex-employees are now protected (again!)

The application of UK employment law to employees working outside the UK is a big issue for multi-national companies and employers in the shipping industry. If you have an employee who works for you outside the UK, can you be sure that they are not entitled to UK employment rights?

Not always – and there has been a great deal of case law over the last few years which indicates just that. Some employees working outside the UK may have UK employment rights – international employers should remain aware of that risk to avoid surprise claims.

But which employees will have such rights? A new case this week in the Employment Appeal Tribunal ("EAT") might provide some help in answering that question, at least in relation to employment protection derived from EU law, such as discrimination claims. We take a look at Hasan v Shell International Shipping Services (PTE) Ltd, and consider if this case takes us any further in defining the true scope of UK employment law.Continue Reading “European” employment law applies in Europe only