Major Employment Law Shake-up Unveiled
The UK Government has announced wide-ranging plans for what it claims to be "the most radical reform to the employment law system for decades". The proposals were set out by the Secretary of State for Business, Dr Vince Cable, in a speech to the EEF manufacturers' organization. Some of the measures had been previously floated but others were novel, including:
- amending the UK's whistleblowing legislation so that complaints by employees about a breach of their own employment contract will no longer constitute a protected disclosure;
- seeking views on introducing compensated no-fault dismissals for "micro employers" with fewer than ten employees;
- simplifying and "slimming down" the processes required to carry out a fair dismissal, including potentially working with the conciliation service Acas to change their Code of Practice on Disciplinary and Grievance Procedures;
- consolidating the myriad regulations relating to the national minimum wage; and
- streamlining the current regulatory regime for the recruitment sector.
Employment Newsnotes (Issue 51, Summer 2011)
Employment Newsnotes (PDF) is an occasional publication by Lewis Silkin covering recent UK employment law developments in an accessible, succinct and entertaining way. The latest issue includes articles on:
- Dangers for employers in relying on surveillance film in disciplinary proceedings
- Controlling employees' use of social media in the workplace
- How employers should go about implementing a pay cut lawfully
- The Government's proposal to introduce financial penalties for employers losing Employment Tribunal claims
- The latest cases concerning employees claiming discrimination on grounds of their 'philosophical belief'
- Interns - are they entitled to be paid the national minimum wage?
- The potential sanctions for businesses employing people who are working in the UK illegally
- The prospects of former News of the World staff being able to claim stigma damages
Important Supreme Court Ruling on Employment Status
The UK's Supreme Court has held that for a contract to be deemed a 'sham', it is not necessary to show that the parties intended to deceive. It is enough that the reality of the situation is very different from the written terms and conditions.
The case, Autoclenz Ltd v Belcher and others [2011] UKSC 41 (PDF), concerned 20 car valeters. They claimed that they were 'workers' within the meaning of the National Minimum Wage Regulations 1999 and the Working Time Regulations 1998 and so entitled to the minimum wage and statutory paid annual leave.
The valeters had each signed a written contract describing them as "a self-employed independent contractor" with an express acknowledgement that they were not an employee. They paid their own tax (and indemnified Autoclenz for any liability to tax and/or national insurance) and were required to purchase their own overalls from Autoclenz.
Continue Reading...Salary Increases Seriously Limited for 2011 and 2012
As already known, the social partners did not succeed in concluding an inter-professional agreement for 2011-2012. In recent years, they always succeeded in doing so and thus fixed an indicative margin determining how remuneration costs could change in the two years subsequent to finalizing their agreement. Industry branches and afterwards companies could then proceed to remuneration negotiations within this margin. The margin was indicative, not binding.
In the absence of such agreement and after a Government attempt to mediate, the King can, by law, fix the maximum margin for changes in remuneration costs, by a Royal Decree which has been discussed in the Cabinet. Such a Royal Decree has now been published and this time the maximum margin is binding rather than indicative. This has far-reaching legal consequences.
Continue Reading...Ontario Government Freezes Minimum Wage
The Ontario government has announced that it will freeze the minimum wage rate at $10.25 per hour in 2011 after seven consecutive years of increases. Despite the minimum wage freeze, Ontario still has the highest provincial minimum wage rate in Canada.
10 Tips for Employers with Operations in China
The continuing growth of the Chinese economy means that even more foreign companies are looking to the People's Republic of China (or the PRC) to expand their operations. However, while many new operators in China are focused on lower labor costs or the vast potential market, these foreign businesses often neglect to fully educate themselves about Chinese employment laws and rules critical to their operations' success.
Indeed, the rapid evolution of the Chinese labor environment in the face of ongoing social changes presents many challenges for both foreign and domestic companies. Below, we summarize 10 key considerations for global businesses with employees in China and highlight some common mistakes.
Continue Reading...Significant Decisions in Workplace Law in 2010
In the last year, Canadian courts have tackled a wide range of legal issues that are relevant to employers. To keep employers up to date on developments in the law, Heenan Blaikie's national labour and employment law practice has prepared a paper entitled
"Recent Developments in Workplace Law" (pdf) which provides an overview of recent developments in employment, human rights, pensions, labour, workplace privacy, and occupational health and safety law.
State Minimum Wages in 2011
On January 1, 2011, the federal minimum wage will remain unchanged at $7.25/hr, but six states will increase their minimum wage requirement; two states--along with American Samoa and the Northern Mariana Islands--elected to keep their current rate; and Colorado has proposed an increase to its minimum wage. To learn more about states' minimum wage rates in 2011, please continue reading at Littler's Wage and Hour Counsel blog.
Ontario Court Certifies Class Action for Unpaid Overtime
In McCracken v. Canadian National Railway Company (pdf), the Ontario Superior Court of Justice has certified a class action proceeding by 1,550 current and former front-line supervisors against Canadian National Railway ("CN"). The lawsuit alleges that CN improperly classified front-line supervisors as managers thereby depriving them of overtime and holiday pay.
Continue Reading...New UK Coalition Government - Prospects for Employment Law
The outcome of the UK's general election on May 6 was a Conservative/Liberal Democrat coalition government headed by the Conservative Party leader David Cameron (prime minister) and Liberal Democrat leader Nick Clegg (deputy prime minister).
Coalitions are unusual in the UK - the last one being during the Second World War - so there is a real sense of the country entering uncharted political waters. It is too soon to be certain what the new administration's priorities will be in terms of potential employment reforms. However, a few clues can be gleaned from the Coalition's programme for government, outlined below.
Continue Reading...