UK: covert recording by employee may not be gross misconduct

The Employment Appeal Tribunal has ruled that covert recording by an employee will not always be a breach of the implied duty of trust and confidence. It will normally amount to misconduct, but will not automatically be gross misconduct justifying dismissal. Relevant factors will include the purpose of the recording, which “may vary widely from … Read more

UK: ‘bad leaver’ provision triggered by resignation was not a penalty

The Employment Appeal Tribunal has ruled that ‘Bad Leaver’ provisions in Articles of Association requiring forfeiture of shares were not subject to the law on penalty clauses where triggered by an employee voluntarily resigning on notice, as repayment did not arise on a breach of contract. The fact that the employee had separately contracted not … Read more

UK: Government consultation on regulation of confidentiality clauses in settlement agreements and employment contracts

Further to its response to the Women and Equalities Select Committee report last December (see here), the Government is consulting until 29 April 2019 on proposals to regulate confidentiality clauses (commonly referred to as “NDAs” or non-disclosure agreements) in employment contracts and settlement agreements.  The Government has rejected calls to ban the use of such … Read more

UK: Unilateral variation to terms may not be effective even where employees continue to work without expressly reserving their position

Employers wishing to change terms of employment should bear in mind that imposing a change unilaterally may not be effective even if the change is of immediate practical effect and the employee continues to work without expressly stating that this is ‘under protest’. The employee’s agreement to a change wholly to the employee’s disadvantage will … Read more