What’s in store for 2015?
An overview of employment law affecting the recruitment sector
Ban on “overseas only” recruitment
- The ban on “overseas only” recruitment by employment agencies took effect on 5th January. Employment agencies and employment businesses are now restricted from advertising vacancies for roles based in Great Britain in another EEA country, without also advertising the vacancy in Great Britain.
- The restriction was introduced by the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2014
Limitation on backdated claims for unlawful deductions
- The Deduction from Wages (Limitation) Regulations 2014 came into force on 8th January. For more information on the effect of this legislation on backdated holiday pay claims, please click here.
Impact of Employment Tribunal Fees published
- An update on the impact of employment tribunal fees (which came into force in July 2013) was published on 12 January. This indicates that tribunals received 32,671 fewer single claim cases during the period October 2013 to September 2014, compared to the previous year. This is a 64% decrease in claims. Despite a number of judicial review proceedings in both England & Wales and Scotland, the challenges to the tribunal fees have been unsuccessful.
Holiday pay and commission is to be considered by the Employment Tribunal
- The Employment Tribunal is due to consider the issue of whether holiday pay should include commission in the case of Lock v British Gas Trading Limited. This case had been referred to the CJEU in 2014. For our report on the CJEU decision in Lock, click here.
- The Tribunal must now decide whether the Working Time regulations 1998 are consistent with the decision from Europe and also the crucial question of how holiday pay incorporating commission should be calculated.
- For more information on holiday pay claim cases generally, please click here.
Employment Status in Focus
- The Court of Appeal has held, in the case of Stack v Ajar-Tec that an unremunerated director was both an employee and a worker, with the corresponding employment rights. Mr Stack, the major investor with other business interests, nevertheless carried out some work for the company, albeit unpaid. Upon his dismissal, he claimed constructive unfair dismissal and unlawful deductions from wages.
- Reviews on employment status have been commenced by both the Office of Tax Simplification (OTS) and the Department for Business, Innovation and Skills (BIS).
More family friendly from 5th April…
- Shared parental leave will be available for parents of children born or adopted on or after 5th April. For more information, click here.
- Unpaid parental leave is extended to parents of children between the age of 5 and 18 (previously only available in respect of children up to the age of 5, or 18 if disabled).
- Employees no longer have to have 26 weeks’ service to be entitled to adoption leave and statutory adoption pay is brought into line with statutory maternity pay (i.e. the introduction of 90% earnings during the first six week period).
- Current rights to adoption leave are extended to individual fostering a child under the local authority run “Fostering for Adoption” scheme.
Employment Intermediaries and “false self-employment”: reporting requirements
- Last April brought in the new proposals for tackling what has been termed “false self-employment”. Although the first report will not be due until 5th August, the requirements relating to records, returns and penalties will apply from 6th April.
- For more information on the legislation tackling “false employment” by providing services through intermediaries, please see our article below.
- Consultation on the draft legislation closed on 4 February 2015.
National Minimum Wage Regulations
- These will come into force in April, consolidating and replacing all previous national minimum wage legislation.
- For a summary of the key employment law proposals expected from the major parties click here.
This guide is for general information and interest only and should not be relied upon as providing specific legal advice. If you require any further information about the issues raised in this article please contact the author or call 0207 404 0606 and ask to speak to your usual Goodman Derrick contact.