Employment
Employment law is heavily influenced and controlled both by the UK and EU Parliaments and as a consequence is constantly changing and evolving.
Services for Business
It is particularly important that employers keep themselves up-to-date with the changes that affect them. We act for a wide range of business clients who experience problems in the workplace and we look to find cost-effective and practical solutions wherever possible to avoid costly disputes. We offer a comprehensive service for our clients from recruitment, advising on employment and director’s service contracts, to unfair dismissal claims and Compromise Agreements.
Services for individuals
Employment Law also affects individuals and we are able to guide you through what can be a difficult and complex process. We can provide practical and realistic advice and assistance on a wide range of areas including contract disputes, Compromise Agreements, and unfair dismissal.
Frequently Asked Questions
- What is Redundancy?
Redundancy is a reduction or ceasing of a particular kind of work. This can involve a reduction in the type of jobs required or a complete closure of a business or department. This could also involve a reorganisation of work where a business continues to trade but restructures its workforce to such an extent that different jobs are required and some posts are no longer needed.
- What is a Dismissal?
This is when an employer ends the employment. This can be with or without notice and includes a redundancy, when a fixed term contract comes to an end and is not renewed or when the employee ends the contract and the reason is the employer's conduct. A dismissal can be fair and the decision to dismiss reasonable. The employer must also show that the way the employee was dismissed was fair and followed certain procedures. Some examples of a fair dismissal would be if the dismissal was based on the misconduct or the capability of the employee. In this situation no compensation will be payable.
- What is unfair dismissal?
If the employer is unable to show that the reason for the dismissal was fair and the decision to dismiss was reasonable and/or the employer is unable to show that the way the employee was dismissed was fair and followed certain procedures a dismissal will be unfair.
- When should a claim be brought in the Employment Tribunal?
A claim should be brought in the Employment Tribunal within 3 months of the date of dismissal.
- What is a Compromise Agreement?
A Compromise Agreement is a legally binding agreement between an employer and employee when the parties want to agree terms and conditions when a contract of employment is to be brought to an end or a dispute is to be resolved. There are a number of different circumstances when such an agreement can be used eg. redundancy, by mutual agreement, dismissal, to settle an Employment Tribunal claim.
- Why enter into a Compromise Agreement?
The purpose of a Compromise Agreement is to provide certainty for both employer and employee. It is a requirement of the Compromise Agreement that the employee has received independent legal advice (usually a Solicitor or qualified Trade Union adviser). In most cases the employer will pay or contribute towards the legal expenses to enable an employee to receive legal advice on the agreement. The most important thing to understand about a Compromise Agreement is that it is binding on both parties and in signing the agreement and accepting the settlement terms there can be no claim brought in the Court or Employment Tribunal. All outstanding matters should be dealt with in the Agreement, such as any unpaid wages, bonuses, accrued but untaken holiday pay and it should specifically state all the potential claims that could otherwise be brought by an employee and which are now being compromised.
- Will tax be due on the compensation payment?
Whether tax is payable depends on how the payment is made up. An employee will usually have to pay tax and National Insurance on any wages and holiday pay. Generally, the first £30,000 of a payment made as compensation for loss of employment is tax-free. Redundancy payments up to £30,000 (both contractual and statutory) are usually tax-free. Payments in lieu of notice are tax free, provided that the employer does not have a contractual right to make a payment in lieu of notice and, in a redundancy situation, provided that the employer does not usually make a payment in lieu of notice as a matter of course. Benefits such as continued use of a mobile phone or company car are usually tax-free. Even if the payment is being made tax free, the Agreement normally makes it clear that if the Inland Revenue states that tax or National Insurance is payable, the employee will be responsible for paying it, not the employer.
- Will the employer give the employee a good reference?
There is generally no legal obligation on an employer to provide a reference. Any reference that is provided should be true, accurate and fair. If not, the employer may be guilty of misrepresentation. It is possible to incorporate a reference into the Compromise Agreement, in which case the reference becomes part of the agreement. It is usually a good idea to try to get a reference incorporated into the agreement and this should be done early on in negotiations.
The Employment Team
Solicitor