ICO: Brexit – do you need a Standard Contractual Clause (SCC)?
As previously advised in our March 2019 newsletter, the ICO has produced Brexit-related data protection advice. For those small or medium-sized UK-based organisations who receive data from EEA countries, they suggest you consider their guidance on how to keep the flow of data following Brexit. One of their pieces of advice …
Unfair Dismissal: Employee Shareholder Status not altered by subsequent service agreement
In Barrasso v New Look Retailers Limited UKEAT/0079/19 the EAT had to consider how ‘employee shareholder status’ is terminated, as it is not provided for under the Employment Rights Act 1996 (‘ERA’). The concept of ‘employee shareholder status’ was introduced in 2013. …
Contract drafting: Century old authority on restrictive covenants reversed by Supreme Court
In Tillman v Egon Zehnder Limited  UKSC 32 the Supreme Court was asked to consider an interesting contract drafting point. Ms Tillman worked for Egon Zehnder Limited, an executive search firm. When she left them, she sought to get out of her contractual six-month non-compete clause by …
Contract of Employment: Variation of a discretionary bonus
In Bluestones Medical Recruitment Ltd v Swinnerton UKEAT/0197/18/BA Mr Swinnerton made a claim for unlawful deduction from wages after he was not paid a bonus he claimed was due to him. His contract stated any bonus was discretionary but he claimed that when he had been promoted to General Manager there had been a further …
HMRC: New guidance published regarding change to IR35 rules
IR35 is the name given to tax legislation that is aimed at identifying individuals who supply services to clients via their own company and who are avoiding paying the full amount of tax that they should be. The rules have been changing for a while, with the most recent changes concerning those working in the public sector, but new …
Contract: When 'Bad Leaver' provisions may be considered a penalty or an unlawful deduction from wages
In Nosworthy v Instinctif Partners Ltd UKEAT/0100/18, Miss Nosworthy had entered in to a Share Purchase Agreement and Articles of Association with the company, which contained some common bad leaver conditions. The conditions meant that a shareholder who is also an employee who voluntarily …
Dismissal: Contractual duty of confidentiality
Large law firm, Linklaters, has just won an interim injunction against their former Director of Business Development and Marketing (Linklaters LLP v Mellish  EWHC 177 (QB)). In June 2018, Mr Mellish was given 6 months’ notice to terminate his contract and the firm confirmed he would be paid his contractual entitlements and a …
Long term disability: Implied term that long-term disability benefit recipient should not be dismissed for incapability
In Awan v ICTS UK Ltd UKEAT /0087/18/RN Mr Awan was a security agent employed by American Airlines (AA) at Heathrow Airport. Mr Awan’s employment contract provided that he was entitled to six months full sick pay and if still on sick leave after that time, …
Pensions: Employer made commitment to employees which it must fulfil
In a recent case before the Deputy Pensions Ombudsman (Determination in complaints by Mr D and Mr L, 5 June 2018 (PO-14197 and PO-14185)), complaints from two members were upheld because an employer did not maintain its commitment to keep their pensions in a post-TUPE pension scheme "broadly in line" with those of the …
Data Protection Update: New draft regulations and guide published
On 20 February 2018, the government published the draft Data Protection (Charges and Information) Regulations 2018. The plan is for these to be finalised and come into force on 25 May 2018 in line with the GDPR.
The draft regulations, which replace the Data Protection (Notification and Notification Fees) Regulations 2000 (SI 2000/ …
GDPR: Obtaining consent from employees
As you will be aware, the GDPR is coming and we are all busy preparing for it and the impact it will have on our businesses, but have you considered it in relation to your employees? If you read our article: The EU General Data Protection Regulation and Your Business you will note we drew attention to the matter of consent. This is particularly …
The Information Commissioner’s Office (ICO) has warned businesses to prepare now for General Data Protection Regulation (GDPR) ahead of the changes which will take place on 25 May 2018 when the EU General Data Protection Regulation takes effect, replacing the Data Protection Act 1998.
Employment Law Newsletter May 2017
- Holiday Pay: A series of deductions is broken by gaps of three months or more
- Working time and sleeping at work: It depends on the facts as to whether or not workers are entitled to the national minimum wage when “on call” or sleeping at work
- Notice of termination: in the absence of an express term, contractual notice of termination takes effect when the employee has personally taken delivery of the letter containing the notice
- The General Election – an overview on what each party says
- Deliveroo revises its contracts with couriers
- McDonald's offers fixed-term contracts to zero hours staff
McDonald's offers fixed-term contracts to zero hours staff
McDonald's has recently announced that it will offer its zero hours workers the opportunity to switch to guaranteed hours contracts (the announcement was made following staff complaints about difficulty in obtaining loans). This follows Sports Direct’s decision last year to move away from zero-hours contracts for directly …
Deliveroo revises its contracts with couriers
The takeaway delivery business has now removed a clause from their contracts which purportedly prevented them from taking the company to a tribunal. In the revised contracts, couriers can work for other businesses and do not have to wear Deliveroo-branded clothing.
As reported in our April newsletter Deliveroo is currently facing …
Restrictive Covenants: Effect of restrictive covenants in a Share Purchase Agreement
In Rush Hair Ltd v Gibson-Forbes & Anor  EWHC 2589 (QB) the parties had entered into an agreement for the purchase of shares in two target companies. The Share Purchase Agreement (SPA) provided for a proportion of the purchase price to be paid on completion with the remainder to be paid 6 months …
Tribunal jurisdiction: Mental capacity to enter into settlement agreement
In the case of Glasgow City Council v Dahhan  UKEAT 0024/15/1105 the EAT looked at the jurisdiction of the tribunal to consider the enforceability of a settlement agreement where one party did not have the mental capacity to enter into it. Mr Dahhan was a teacher employed by the Council who had brought claims …
TUPE: Correct approach for consideration of service provision change
In The Salvation Army Trustee Company v Bahi and others  UKEAT/0120/16 the issue at stake was whether a TUPE transfer had occurred. Coventry City Council contracted with a charity known as CCL (along with 21 others) to provide accommodation -based support for homeless men and women, and ex-offenders, in the city. The …
Disability: Reasonable adjustments can include protecting pay
In G4S Cash Solutions (UK) Ltd v Powell UKEAT/0243/15 the EAT upheld the ET’s finding that it was a reasonable adjustment for an employer to continue to pay (indefinitely) a disabled employee the same rate of pay despite having been moved to a more junior role on his return to work. The facts were that Mr Powell …
Contract law: Contract implied between group companies by Court of Appeal
Often group companies make intra-group arrangements, particularly where a service company may provide employees to another group company, as was the case in MF Global UK Ltd (In Special Administration), Re  EWCA Civ 569. Here, the Court of Appeal held that the arrangements in this situation were contractually binding. …
Employment Contracts - Written Statement of the Statutory Minimum Terms of Employment (Section 1 of the Employment Right Act 1966 (“ERA”)
The purpose of this article is to explain exactly what needs to be included in a Statement of particulars of employment.
Section 1 of the Employment Right Act 1966 (“ERA”) requires an employer to provide an employee, who has been …
Staff Handbooks: Appeal Decision in Department for Transport v Sparks and Others
We previously reported the decision of the High Court in the case of Sparks and Others v DfT in March 2015.
In that case several governmental agencies wanted to tighten up the absence management policy contained in the Staff Handbook. The issue was whether they could make a unilateral change to the policy. The …
Commercial Agent: What is a “new customer” under a contract for indemnity purposes?
In the case of Marchon Germany GMBH v Yvonne Karaszkiewwicz, Case C 315/14, 7 April 2016 (Curia), the ECJ has been examining the meaning of “new customers”. When a commercial agency agreement is terminated the agent has the right to a payment for certain things, thanks to the Commercial …
Bonuses: A smaller bonus not a breach of implied or express terms
In Patural v DG Services (UK) Ltd  EWHC 3659, Mr Patural’s employment terms provided that all employees were eligible for an annual discretionary incentive award (at the absolute discretion of the company). Such an award was to be determined in a manner broadly consistent with his peers at similar levels of …
Labour law: Top 8 issues for global business expansion in the UK
Having worked closely with many businesses over the years who have set up new operations within the UK, we at Dixcart Legal have put together this quick guide for those owners or managers who are considering expanding their business into the UK market. These are the top issues that will need consideration to ensure the best outcome …