Employment Law Update Issue 110 - February 2010
 
Nigel Harrison, Partner and Bill Lamplugh, Solicitor

Nigel Harrison, Partner (left)

Born in the West Midlands, Nigel spent several years in industry working as a Mechanical Engineer before qualifying with Hatchers as a solicitor in 1998 specialising in employment law and personnel related matters.

In his spare time, Nigel's interests include tennis, fly-fishing, the great outdoors, and spending time with his young family.

Bill Lamplugh, Solicitor (right)

Since qualifying as a solicitor in 1973 Bill has worked in Shrewsbury dealing with a variety of legal work, including employment law, personal injury claims and civil litigation. After retiring as Managing Partner of another local firm of solicitors. Bill then joined Hatchers as a consultant solicitor working with the employment team, consolidating our expertise.

Bill is a keen scuba diver and enjoys walking in the countryside.

Our specialist employment team can provide you with practical advice upon how this complex and rapidly changing area of law affects you.

  • Recruiting staff
  • Disciplinary and grievance procedures
  • Employment tribunals
  • Unfair dismissal
  • Redundancy
  • Compromise agreements
  • Equal pay
  • Employment policies and handbooks
  • Drafting and reviewing contracts of employment
  • Family friendly rights
  • Handling disciplinary matters fairly
  • Discrimination
  • Harassment and bullying
  • Company takeovers and their effect on the employment relationship

 

Office address:
Park House (Park Plaza)
Battlefield
Shrewsbury
SY1 3AF
T: 01743 452852
F: 01743 452853

Email : n.harrison@hatchers.co.uk
Website : click here

 
 
Welcome to the latest issue of our free employment law update. In this month's issue we look at:
 
 
  • ROUND UP OF RELIGION AND BELIEF DISCRIMINATION We provide an overview of some of the most recent cases. [more...]

  • STIGMATISED Employees can sometimes be stigmatised for bringing a claim against their employer. We look at a case in which the Court of Appeal said that employees are entitled to claim ?stigma loss? in certain, specific circumstances. [more...]

  • IT'S THAT BASIC Every year the Low Pay Commission sets a basic rate under the National Minimum Wage regulations. We look at a case in which the appeal tribunal said that if an employee?s hours always attract premium rates, their pay must still be calculated using that basic rate. [more...]

  • IN BRIEF Legislation to give new rights to Britain?s 1.3 million agency workers rights should become law in October next year. We provide a brief outline of the main provisions. [more...]


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ROUND UP OF RELIGION AND BELIEF DISCRIMINATION

Following the introduction of the Employment Equality (Religion or Belief) Regulations in 2003, discrimination against employees on grounds of religion or belief in employment, vocational training and the provision of goods, facilities and services was outlawed. We provide an overview of some of the most recent cases.

Direct and indirect discrimination

In London Borough of Islington v Ladele, the Court of Appeal said that Ms Ladele, a committed Christian, had not been directly discriminated against for her religious views when she was threatened with dismissal for refusing to carry out civil partnership services.

The Court of Appeal said that the Council had not been motivated by her religious beliefs, just by her refusal to officiate at civil partnerships. Had she agreed to perform all her assigned civil partnership duties, the Council would not have taken disciplinary action.

Although she had clearly been put at a disadvantage (and therefore potentially indirectly discriminated against), the aim of fighting discrimination was a legitimate aim for the Council to have and it was entirely rational for it to require staff to act in a non-discriminatory way.

There was a similar outcome in the case of McFarlane v Relate Avon Ltd in which Mr McFarlane, a committed Christian, was dismissed for refusing to provide relationship counselling to same-sex couples. He claimed he had been discriminated against under the regulations.

The Employment Appeal Tribunal (EAT) said that he had not been dismissed because of his faith, but because of his refusal to comply with Relate’s equal opportunities policy. Any other counsellor would, therefore, have been treated in exactly the same way. It also dismissed his claim of indirect discrimination on the basis that the dismissal was a proportionate means of achieving a legitimate aim.

In yet another case in which the claimant was unsuccessful - Chondol v Liverpool City Council - the EAT said that Mr Chondol (a social worker and committed Christian) had not been treated less favourably by the Council because of his beliefs, but because he had been improperly foisting them on service users. It was satisfied that the Council would have treated other members of staff in similar circumstances in the same way.

And in Eweida v British Airways, the EAT said that to prove indirect discrimination, the onus is on employees to show that a particular provision, criterion or practice put a particular group (in this case, Christians) at a disadvantage because of that religion or belief.

As Ms Eweida had not provided any evidence that others shared her religious conviction about openly displaying a cross, she could not claim indirect discrimination even though she personally had suffered a particular disadvantage in that she was not allowed to attend work wearing her cross and was not therefore being paid.

It was not enough for her to claim that there was bound to be other Christians who felt the same way as her. She had to actually demonstrate that was the case in order to prove indirect discrimination.

Meaning of “belief”

The regulations do not just protect workers with religious views, however, but also those with “philosophical” beliefs. In Nicholson v Grainger plc the EAT said that strongly held beliefs about climate change and the environment could constitute a “philosophical belief” for the purposes of the regulations.

However, the belief must fulfill certain criteria, as follows:

  • It must be genuinely held
  • It must be a belief and not an opinion or viewpoint
  • It must be a belief as to a weighty and substantial aspect of human life and behaviour
  • It must attain a certain level of cogency, seriousness, cohesion and importance
  • It must be worthy of respect in a democratic society, not be incompatible with human dignity and not conflict with the fundamental rights of others
  • It should have a similar status to a religious belief, although it could be a one-off such as pacifism or vegetarianism which did not have to be shared by others, provided it satisfied the above criteria
  • It did not need to constitute or "allude to a fully-fledged system of thought", as long as it satisfied the criteria above

 

Harassment

The regulations also provide workers with protection against harassment because of someone else’s religion or belief.

In the case of Saini v All Saints Haque Centre and ors, the EAT held that Mr Saini had been subjected to  harassment by members of the board of directors who pressurised him to provide information to help them get rid of another member of staff. As the animosity being shown to that other member of staff by the board was because he was a Hindu, the board was pursuing an anti-Hindu (and therefore discriminatory) policy.

If Mr Saini was being harassed to get rid of Mr Chantel, it must also be because of that policy which amounted to harassment on the ground of religion.

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STIGMATISED

Employees can sometimes be stigmatised for bringing a claim against their employer. In Chagger v Abbey National plc and anor, the Court of Appeal has said that employees who find it impossible to get another job because they brought proceedings against a previous employer, are entitled to be compensated for that “stigma loss”.

What happened?

Following his dismissal on the ground of redundancy in April 2006, Mr Chagger successfully brought a claim of race discrimination and unfair dismissal. At a subsequent remedies hearing a few months later, the tribunal agreed with him that no one else in the financial sector would now employ him because of the stigma attached to taking legal proceedings against Abbey and awarded him £2,794,962.27 to compensate for future loss, among other things.

The Employment Appeal Tribunal (EAT) disagreed. It said that the tribunal should have asked whether he would have been dismissed if there had not been any discrimination. It also held that future loss should be limited to the period Mr Chagger would have remained with Abbey, had there not been any discrimination. As for “stigma loss” it said that Abbey was not liable since that resulted from the conduct of other, “third party employers” and was not the direct consequence of anything that Abbey itself had done.

The Court of Appeal agreed with the EAT that tribunals must ask what would have happened had there been no unlawful discrimination, and that atribunals must assess the chances of a claimant being dismissed lawfully and reduce the compensation to be awarded accordingly.

The EAT was wrong, however, in its approach to assessing future loss. Instead, this should be decided by estimating when he might expect to get another job on a salary equivalent to his Abbey salary. As Mr Chagger had made extensive efforts to find another job, including those at a lower grade, which were all unsuccessful, the tribunal had been entitled to assess future loss “on the basis of loss of career.”

As for “stigma loss”, the Court of Appeal said, relying on the decision of the House of Lords in Malik v BCCI, that the original employer must remain liable for it. Although Malik concerned a different kind of stigma, the Court concluded that “the mere fact that third party employers are the immediate cause of the loss does not free the original wrongdoer from liability”.

The Court made clear that, in most cases, stigma loss would not need to be considered as a separate head of loss and would “simply be one of the features which impacts on the question how long it will be before a job can be found”. In cases such as this where Mr Chagger tried endlessly, but failed, to get a job, the tribunal was entitled to conclude that he would be highly unlikely to find another job in that sector.

In exceptional cases, however, tribunals were able to award compensation specifically referring to the impact of stigma on future job prospects, even if it was the only head of future loss.

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IT'S THAT BASIC

Every year the Low Pay Commission sets a basic rate as allowed for under the 1999 National Minimum Wage (NMW) regulations. In Hamilton House Medical Limited v Hillier, the Employment Appeal Tribunal (EAT) said that if an employee’s hours of work always attract premium rates of pay, the rate on which they are calculated must be the basic rate set under the regulations.

What happened?

Ms Hillier had worked for the Civil Service Benevolent Fund since 1998 when her current employer bought the care home where she worked. Her terms and conditions transferred over under the Transfer of Undertakings (Protection of Employment) Regulations.

Under her original contract, her basic rate of pay was £4.38 per hour plus a geriatric lead allowance. She then started working nights for which she was paid time and a third for weekday nights and time and two-thirds for weekend nights.

Her payslips from 2000 to 2002 showed she was paid a basic rate of £4.85 with enhanced rates for weekday nights and weekend nights. However, later pay slips showed a rate for night working only and not the basic rate. Her employer froze her rate of pay from the date of the transfer. She claimed that her employer was in breach of the NMW regulations because her basic rate of pay was below the minimum rate.

And the tribunal agreed. It said that by continuing to pay her at the flat rate that she was on in 1998, her employer had failed to pay her the national minimum wage in relation to her basic pay.

It concluded that Hamilton House Medical “cannot look at the night rate as the final figure. What the Claimant was entitled to was the national minimum wage plus a third or two thirds according to which day she worked. To fail to pay her that is an unlawful deduction of wages."

The employer appealed, arguing that if an employee is always paid at premium rates, then those rates become their basic rate which would mean that Mrs Hillier’s pay was actually above the NMW.

The EAT said that the key issue was the meaning of the words  "The lowest rate per hour payable to the worker in respect of time worked by him involving those duties during the pay reference period” in regulation 31(1)(c)(i) of the regulations.

It decided that the lowest rate payable during the reference period clearly had to be the minimum sum due under the contract of employment, as the regulation was intended to cover payments under the contract and not some other arbitrary amount. The employer had confused the word “paid” with “payable”. 

It pointed out that the philosophy of the regulations was “clearly that an employee's basic minimum wage before overtime enhancement or other allowances should not fall below the statutory minimum and it seems to me that it would be completely contrary to the purpose of the legislation if that obligation could be avoided simply because an employee chooses to normally work those hours when she would be in receipt of some  enhancement”.

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IN BRIEF

Legislation to give Britain’s 1.3 million agency workers important new rights was laid before Parliament recently. They should be on the statute book before the end of this Parliament and become law by October next year. 

As agreed in 2008 by the TUC and CBI, the changes will give agency workers the right to the same pay, holidays and other basic working conditions as directly recruited staff, but only after 12 weeks in a job.

Their right to the same pay will apply not just to the basic hourly rate, but to pay for all work done, including bonuses that are directly related to the performance of the agency worker personally.

But, as set out in the Directive, they will not extend to some of the wider benefits that permanent staff can enjoy in the context of their longer-term relationship with their employer, such as occupational pensions and sick pay.

The regulations include provisions to deal with repeat contracts which are designed to prevent workers acquiring their rights. Agencies and hirers will have to pay awards of up to £5,000 to a worker if a tribunal finds that the anti-avoidance rules have been breached.

And to provide a greater deterrent in low-value cases there will be a general minimum award of two weeks’ pay, which is subject to tribunal discretion if that level of award does not seem reasonable.

Agency workers will also be entitled to other benefits from the first day of their assignment, such as:

  • information about internal vacancies to give them the same opportunity as other workers to find permanent employment
  • equal access to on-site facilities such as child care and transport services.
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