Employment Law E-Bulletin

March 2007

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This month's cases in detail

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GRIEVANCE ALERT

Following on from last month’s email bulletin about discipline and dismissal , this month we are addressing the second limb of the Government’s statutory procedures - the statutory grievance procedures (SGP).

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THIS MONTH'S IMPORTANT CASES

Extending the time limits

The recent EAT decision in the case of HM Prison Service V Barua the EAT has clarified exactly how the extension of time operates for those who raise a grievance before the end of the normal 3 month deadline for bringing a claim.

Requirements for the Modified Grievance Procedure

In the case of Bradford Metropolitan District Council v Pratt the EAT had a rare opportunity to clarify exactly what steps the employee needs to take in order to have complied with the modified grievance procedure.

Handling of Grievances

In Abbey National Plc v Fairbrother the EAT has made it clear that the “range of reasonable responses” test usually relied upon in unfair dismissal cases is also applicable when considering an employer’s handling of a grievance.

Read this month's cases in full

LEGISLATION UPDATE

Increase in Annual Leave

The DTI recently announced a proposal to increase the National Minimum Holiday Entitlement under the Working Time Regulations from 20 days to 28 days per annum.  This change effectively requires employers to add the 8 days bank holiday to the current 20 day statutory entitlement. It does not necessarily mean that employers cannot still require employees to work on bank holidays but merely increases the minimum holiday entitlement.

The plans are currently subject to consultation which does not close until April but it looks as if the increase will take place in two stages, rising from the current 20 days to 24 days on 1 October 2007 and from 24 days to 28 days on 1 October 2008.

Those employers who currently allow their employees to take bank holidays in addition to their annual leave will not notice any difference if this change comes into force.  It is only those who include bank holidays in the current 20 day leave entitlement or those who require employees to work on bank holidays who will need to adapt their entitlements but this stepped approach should give employers ample opportunity to prepare.

National Minimum Wage Enforcement

After DTI research showed that some 300,000 workers in the UK still receive less than the national minimum wage (NMW), the Government has introduced changes to the penalty procedure in order to encourage compliance.

Employers who are found not to be paying the NMW are issued with an enforcement notice.  This notice will now state that arrears must be paid within 7 days.  Previously, employers had 28 days to pay their NMW fines.

If employers fail to pay their fine within 7 days, they will now be issued with a penalty notice and could face a fine of at least £200 for each worker who remains unpaid.  This fine is in addition to the possibility of receiving a criminal record and the criminal penalty of a fine of up to £5,000.

For further information on any the issues featured here or any other employment law issue, call Burnetts on 01228 552222.

March 2007