Welcome to the August edition of Up to Date. Included in this issue; Holiday pay: EAT rules that voluntary overtime payments must be included in holiday pay; Whistleblowing: purposive approaches and protection in Chesterton and Osipov and more...
Holiday pay: EAT rules that voluntary overtime payments must be included in holiday pay
The EAT has upheld a Tribunal decision that voluntary overtime, stand-by and call out payments must be reflected in holiday pay, provided such payments amount to "normal remuneration". Importantly, the EAT held that the worker does not have to be contractually obliged to carry out the work in order for the related payment to be included in holiday pay (Dudley Metropolitan Borough Council v Willetts and others).
Whistleblowing: purposive approaches and protection in Chesterton and Osipov
In an article written for Thomson Reuters, Managing Associate, Annabel Mackay, discusses two recent decisions on whistleblowing which have significant implications for employers. First, in Chesterton Global Limited v Nurmohamed (Chesterton), the Court of Appeal considered the public interest test for the first time. Second, in International Petroleum Limited and others v Osipov (Osipov), it was decided that two non-executive directors could be jointly and severally liable with an employer for dismissal–related detriments.
Unfair dismissal: employer pension contributions included in a "week's pay" when calculating the compensatory award
For the first time the EAT has upheld a decision that an employer's pension contributions should be included in "a week's pay" when calculating the maximum compensatory award for unfair dismissal. This was the case despite the fact that employees do not receive their employer's pension contributions as income in their hand. This decision means that in certain types of unfair dismissal claim the maximum compensatory award will be higher than traditionally thought (University of Sunderland v Drossou).
Restrictive covenants: non-compete covenant void for preventing the employee from holding minor shareholdings in competing businesses
We recently reported on the High Court decision in Egon Zehnder Ltd v Tillman where a 6-month non-compete restriction was upheld against an employee who rose from consultant to partner within a relatively short period of time. However, the Court of Appeal has overturned this decision on the basis that the covenant prohibited the employee from holding a minor shareholding in a competing business for investment purposes.This meant that the covenant was impermissibly wide and unenforceable.
Brexit and your EEA migrant workers – where are we?
In our May 2017 edition of Up to Date, we considered the positions of the two main political parties on Brexit and immigration in the run up to the General Election in June. Three months later, with the election a dim and distant memory and the European Union (Withdrawal) Bill, also known as the "Repeal Bill", making its way through Parliament, we take stock of where were are now.
Corporate Governance: Government publishes nine-point plan for reform
The Department for Business, Energy and Industrial Strategy has published proposals for the reform of the UK's corporate governance regime. The proposals are aimed at improving business performance and creating "an economy that works for everyone". There are nine principal proposals for reform across three specific aspects of corporate governance: (i) executive pay; (ii) strengthening the employee, customer and supplier voice; and (iii) governance in large privately-held businesses. Our Corporate Governance team consider the proposals in detail here.
Discrimination: "Vento" bands of compensation for injury to feelings increased
The Presidents of the Employment Tribunal in England and Wales and Scotland have published their response to the consultation on increasing the bands of compensation for injury to feelings in discrimination cases. The response confirms the new bands that will apply to claims presented on or after 11 September 2017.