UK: Increases to statutory rates and new workers’ right to payslips from April 2019

  • Final regulations were approved on 28th March increasing the penalty for aggravated breaches of employment rights from £5,000 to £20,000, with effect from 6 April 2019.  These regulations also provide for two other changes to come into force from 6 April 2020: the extension of the right to a written statement to ‘workers’, and the reduction in the threshold for requesting an information and consultation procedure to 2% of total employees.  Additional regulations have also been made bringing into force from 6 April 2020 the removal of the Swedish derogation for agency workers (meaning that all agency workers will have a right to pay parity after 12 weeks) and the requirement for agencies to give agency workers a key information document.
  • From 6 April 2019, the cap on the unfair dismissal compensatory award increased from £83,682 to £86,444 and the cap on weekly pay (used to calculate the unfair dismissal basic award and statutory redundancy pay) increased from £508 to £525. This gives a maximum unfair dismissal award of £102,194 (subject to the additional cap on the compensatory award of 12 months’ pay).  The Vento guidelines for injury to feelings awards have also been updated: with effect from 6 April 2019 the bands will be £900- £8,800 for less serious cases, £8,800 to £26,300 for middle band cases, and £26,300 to £44,000 for the most serious cases.
  • From 6 April 2019 the weekly rate of statutory sick pay increased to £94.25 per week (from £92.05) and from 7 April 2019 the weekly flat rate of statutory maternity, paternity, adoption and shared parental pay increased to £148.68 per week (from £145.18).
  • The national minimum wage rates increased from 1 April 2019. Workers of 25 years and older will be entitled to be paid a minimum national living wage of £8.21 per hour (increased from £7.83), the rate for workers aged 21-24 will be £7.70 per hour and the rate for those aged 18-20 will be £6.15 per hour.
  • From 6 April 2019, itemised payslips have to be given to ‘workers’ as well as employees, and include hours details for the hourly paid. BEIS has published guidance here.
Anna Henderson
Anna Henderson
Professional Support Consultant, London
+44 20 7466 2819

UK: scope of hirer liability for compensation for breach of agency worker rules

Hirers of agency workers should consider carefully up front whether and how the Agency Worker Regulations apply and seek to ensure the agency complies, given that a hirer can be held liable for breach and ordered to pay just and equitable compensation even if the agency is also at fault.

In London Underground Ltd v Amissah, LUL initially accepted the agency’s assertion that the ‘Swedish derogation’ applied to workers it supplied, disentitling them from equal pay rights under the Regulations. LUL later changed its view and started paying the agency on the basis that the workers were covered by the Regulations, plus an amount covering the previous underpayment. The agency increased the pay rates to the workers, but failed to hand over the underpayment for the earlier period and subsequently went into liquidation.

The tribunal had found LUL to be 50% responsible for the breach as it had acted too slowly in ensuring the agency rectified the error, and the Court of Appeal has now confirmed that it was appropriate to apportion the compensation to be paid on the same basis, ie 50% to be paid by LUL, notwithstanding that in effect this would mean LUL was paying twice having already given the funds to the agency. Given that it was LUL’s choice to deal with the agency, it (rather than the workers) should bear the burden of the agency’s dishonesty. It would only be in exceptional cases that just and equitable compensation would be less than the amount for which it had been held responsible.

Anna Henderson
Anna Henderson
Professional Support Consultant, London
+44 20 7466 2819

UK: Government’s “Good Work Plan” sets out employment law reforms following the Taylor Review

The Government has today published its “vision for the future of the UK labour market”, the Good Work Plan, which builds on its earlier response to the Taylor Review (see our summary here) on the impact of digital platforms on modern working practices and the rights of workers.

This publication sets out what the Government describes as “ambitious” proposals for employment law reform, together with feedback from the four recent consultations on employment status, transparency, agency workers and enforcement.

The Government states that it has accepted the vast majority of the recommendations from the Taylor Review and proposes legislative changes “to ensure that workers can access fair and decent work, that both employers and workers have the clarity they need to understand their employment relationships, and that the enforcement system is fair and fit for purpose”.

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UK: Agency worker regulations require term by term comparison

The EAT has confirmed that once agency workers have accrued 12 weeks on one assignment, they will be entitled to the same pay and certain terms as comparable permanent employees at the end-user looking at each term individually, and it is not a defence that the agency worker’s overall package is at least as favourable. In this case the employer could not argue that the less favourable holiday and rest break entitlement was compensated by the agency worker’s higher hourly rate of pay.

However, because pay and holiday entitlement are viewed separately, it may be possible to pay the agency worker for the holiday entitlement in a lump sum at the end of the assignment or by identifying that part of the higher hourly pay rate that represents rolled-up holiday pay (in relation to a contractual entitlement in excess of statutory holiday), provided this is transparent and readily comprehensible. (Kocur v Angard Staffing Solutions)

Acas has published new guidance on the rights of agency workers, available here.

UK: Gig economy- Taylor Review released

The Taylor Review of Modern Working Practices “Good Work” was published yesterday. It considers how technology platforms have impacted working practices and the rights of workers, and examines whether our current legislative and regulatory framework is fit for purpose. The Review focuses on the importance of quality work: “fair and decent work with realistic scope for development and fulfilment” and recommends to the government certain employment and tax reforms.

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UK: Whistleblowing- Court of Appeal decision on agency workers

Employers should note that agency workers may be able to bring whistleblowing claims against both the end-user and the third party introducer. The fact that an individual is a worker for one party does not inevitably prevent them from also being a worker (under the extended definition for whistleblowing purposes) for another party. The Court of Appeal has agreed with an earlier EAT ruling (McTigue, summarised in our blog post here) that an agency worker can be a 'worker' for whistleblowing purposes for both end-user and agency, where between them they have 'substantially determined' the worker's terms. (Day v Health Education England)

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UK: Employers could face whistleblowing liability despite decision-maker’s ignorance of protected disclosure, and for claims from agency workers

The EAT has confirmed that the reason for a dismissal can be the employee's whistleblowing, even where the decision-maker is unaware of this, if their decision has been manipulated by a manager aware of the protected disclosure and motivated by a desire for retribution.

In Royal Mail Group v Jhuti, the employee's line manager fabricated evidence of poor performance, setting unattainable targets to punish her for whistleblowing. The decision-maker relied on this evidence to justify dismissal; she was aware that the employee had queried another employee's conduct but understood that the employee had retracted the allegations on the basis that it was a misunderstanding. The decision-maker accepted this without interviewing the employee, who was unwell. Although the decision-maker was not aware that there had been a protected disclosure and genuinely considered there to be poor performance, the line manager's motivation in bringing this about had to be taken into account. The dismissal was therefore automatically unfair.

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UK: Employers can redeploy permanent employees to vacancies in priority to agency workers

Agency worker regulations provide that an agency worker has the right to be informed of any relevant vacancies in the hiring company, so as "to give that agency worker the same opportunity … to find permanent employment". The EAT has confirmed that the right is simply one of information, and does not encompass a right to be considered for vacancies on an equal footing with permanent employees. Continue reading