Employment Law
(20 Things for an Employer to Know!)
As at December 2000,
Unfair Dismissal
1. English domestic law requires an employee to have worked continuously for one year in order to have the right not to be unfairly dismissed.
2. The Employment Tribunal is the new name for the old Industrial Tribunal
3. Aclaim should be brought withing 3 months of the date of dismissal
4. The general limit on awards is now £50,000, but is unlimited on certaint types of employment cases
5. It is important not to react emotively to an employee problem. The procedure and the way you dealt with it can be very important
Mobility Clause
6. It is still worthwhile to insert such a clause in your Contracts of Employment, but do not rely on them too much
7. Such clauses must be operated reasonably and you cannot force an employee to move, if it would be unreasonable in all the circumstances
8. If work is running low at one workplace, you may not be able to rely on the Court to require the Employee to work at another. You may be forced to pay redundancy.
Garden leave
9. Can you give notice to an employee and then ask him to stay at home "tending the garden" for its period?
10. Yes, if there is an express clause in the Employment Contract.
11. If not, one has to look at whether the Contract is one under which the Employee is simply entitled to receive his remuneration or one under which he is entitled to exercise his skill.
Payment in Lieu
12. If there is a contractual obligation to make such a payment, then it is fully taxable and does not fall within the £30,000 limit for tax free redundancy payments.
Restrictive Covenants
13. These have a tendency to prevent an employee earning his living and the Courts try to strike them down.
14. For example, if they purport to apply "howsoever the contract is terminated" they may be struck down as void since they could allow an employer to terminate the Employment Contract wrongfully and yet rely on the restriction.
Non Solicitation
15. Your ex employee will no doubt wish to take "his clients" with him.
16. Obviously you will take practical steps to ensure that you and your staff get close to those clients, perhaps during any period of garden leave.
17. Police your computer and written records. An injunction can be obtained to prevent the physical removal of items.
18. As ever with such matters, evidence is essential and you will need to prepare properly for any dispute.
19. You may find that money spent now in properly drafted employment contracts will save you expense in the long run, or give you a better chance of success if the unfortunate circumstances arise.
Conclusion
20. These are just some of the areas which should be addressed in any properly drawn service contract.
Michael Breeze
Leoanrd Kasler & Company
Sunday, 13. October 2002