Some Reecent Employment Matters in 2010 - Advising Employers and Employees

Constructive Dismissal

· Advising on merits of constructive dismissal claims and construing value of evidence posed by employees

· Advising on alternatives to constructive dismissal claims

Disciplinary Proceedings / Grievances

· Successfully advising clients on the conduct of disciplinary proceedings resulting in sanctions being overturned

· Advising a client subject to a final written warning on the appeal of the decision and drafting grounds for appeal, resulting in the overturning of the decision

· Advising clients on grievance procedures and proper conduct resulting on desired outcome for clients

Discrimination

· Advising on merits of a large discrimination claim against a private company

· Advising and assisting in internal proceedings involving a claim for sexual orientation discrimination and disability discrimination and negotiating a settlement in the case

· Advising in a race discrimination claim against an investment bank

· Advising an SME in defending a sex discrimination

Employed/Self-Employed

· Advising a construction company on self-employed workers’ positions under the Construction Industry Scheme (CIS)

· Advising a successful bar on the employment of fixed-term employees and drafting requisite contracts

Employment Contracts

· Acting on behalf of senior local government employees in negotiation of revised terms

· Advising on contractual changes required of employers under new legislative introductions
Negotiating the removal of restrictive covenants from contracts for senior management employees of a large organisation

Maternity & Redundancy

· Negotiating settlement packages for employees leaving for maternity leave and at risk of redundancy

· Advising on automatic unfair dismissal claims resulting from dismissal due to maternity

Redundancy Law

· Advising on a large redundancy dispute involving the restructure of team of 100 employees

· Advising a union on employment matters affecting members

· Advising a fast growing SME on the merger of two departments and the conduct of redundancy consultation

· Advising on the removal of restrictive covenants reproduced in compromise agreements

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Below are cases relating to Compromise Agreements:-

Employment Law: Termination - Constructive Dismissal - Payment in Lieu of Notice (PILON) - PILON Payment or Termination Payment?

In this case of Clintonv HMRC [2010], an employer sought to terminate the employment of an employee and the employee sought to bring a claim for constructive dismissal against the employer.  The employer paid the employee a ‘termination payment’ sum substantially the same as the employee’s entitlement by way of payment in lieu of notice (PILON).  It was deemed by the Tax Chamber First Tier Tribunal (of the HMRC) that the payment was not made pursuant to a contractual entitlement but rather to extinguish the employee’s claim for constructive dismissal.

The significance of this decision was that the first £30,000.00 of the termination payment was therefore tax free, and the entire amount exempt from National Insurance contributions.  The drafting of the PILON clause in this case is what caused much of the dispute.

It is important that PILON clauses in employment contracts are appropriately worded so as to ensure there is no discrepancy at such time as an employee leaves an employer’s employment.