The Court has determined that:

• Statutory entitlement to paid annual leave continues to accrue over periods of sick leave, even if the employee remains on sick leave for the entire year and does no work.
• Employees can take their statutory annual leave at the same time as their sick leave and still receive their standard rate of pay.
• Any payments made in lieu of leave on the termination of a worker’s employment must include any untaken statutory annual leave, even when that employee has been on sick leave for the entire duration of the leave year.

In the Stringer case, the practical effect of the judgement is that employees may be able to may be able to make a holiday pay claim to their employer under the deduction from wages provisions of the Employment Rights Act 1996, and not just under the 1998 Working Time Regulations.

The Pereda case determined that, should an employee fall sick shortly before a period of pre-arranged annual leave, they can request to take the period of annual leave that coincided with their sickness at a later date. The ECJ decided that an employee who has been off sick for all or part of the leave year and has missed their annual leave must be able to carry their leave over into the next year.

Taking the two rulings in combination, the upshot is that workers can decided to take their statutory annual leave at the same time as their sick leave, or they can choose to take their missed annual leave at a later date instead.

The Department for Business, Innovation and Skills will hold consultations on possible amendments to the Working Time Regulations in the light of these rulings.

Technorati Tags: Annual Leave, Sick Leave, Working Time Directive

Ms Wei Ji was a Chinese national working for the medical centre under a student visa. She was dismissed from the centre and later went on to claim unfair dismissal, stating that statutory dismissal procedures were not followed.

Her claim was successful, and Ms Wei Ji was awarded compensation by the Employment Tribunal. The medical centre appealed, claiming that Ms Wei Ji’s contract was tainted by illegality, so it could not be enforced and her claim was therefore invalid.

Under the terms of her visa, Ms Wei Ji was only entitled to work 20 hours a week, but she was actually working full-time at the centre, and working for a lower salary than the one shown on her permit.

The EAT dismissed the appeal, finding that the Employment Tribunal had made unchallenged findings of fact that Ms Wei Ji had completed her studies and so was entitled to work without restriction for a year after her graduation. The EAT also found that Ms Wei Ji did not collude with the San Ling Chinese Medicine centre to make a false declaration of her salary in order to obtain a work permit.

This decision comes in the wake of other recent judgements which have narrowed an employer’s ability to rely on illegality as a fair reason for terminating the employment of a worker.

Technorati Tags: Employment Appeal Tribunal, Illegal Working, Unfair Dismissal

The business editor of the Times, David Wighton, warns that this comparatively low employment rate may be masking a serious issue which could still threaten the economy: the problem of under-employment.

According to Wighton, data from the Office from National Statistics (ONS) shows that one of the defining features of this recession has been under-employment, where workers have agreed to a cut in hours to keep their job or have lost a full-time position but quickly found part-time work instead.

Using the ONS data, Wighton puts the under-employment - defined as people who would like to work more hours than they currently do - at roughly 10%, whereas before the recession the rate was around 8%.

So, while unemployment growth has been held in check by the new collaborative spirit in the workplace, with employers and employees working together to install anti-redundancy measures such as taking shorter hours and pay freezes, the under-employment figures show that this is clearly not an ideal solution to the problems caused by the recession.

As Wighton explains: “Under-employment is not a ‘get out of jail free’ card for the economy. Shorter hours and pay freezes mean modest pay packets, and modest pay packets coupled with debt-laden households do not bode well for consumer demand … Under-employment is here to stay.”

Technorati Tags: Recession, Under-Employment, Unemployment

According to the foundation, the number of people who find themselves repeatedly in and out of work has risen by 60% since 2006 - this shows that work is not a “sustainable route out of poverty” for many, and that new laws concerning job security and low pay are needed to help employees stay in work for longer.

The charity indicated that that 20% of poverty is “recurrent”, where people only escape poverty for a short time before returning to it.

Much of this is thought to be due to the recession, which has forced many workers to accept short-term contracts or temporary work.

Due to this, many people go from earning very little to earning nothing at all - they do escape relative poverty, but not for long.

The foundation claims that current government policy does not reflect this common phenomenon, and that laws need to be changed to provide further protection for people in this situation.

Poverty research manager at the foundation Chris Goulden commented: “A plain message from the research is that employment does not provide a sustainable route out of poverty unless job security, low pay and lack of career progression are also addressed.”

He added that, as employment grows less and less secure, “it is becoming ever clearer that getting a job does not provide a solution on its own.

“This raises the worry that when it comes to employment as a way of lifting people out of poverty, many are merely bumping along the runway and never taking off.”

The Department of Work and Pensions has promised to invest £5 billion in helping people to return to work.

A spokeswoman for the department said: “The Better Off in Work credit will guarantee that everyone who has been on benefits for six months will be at least £40 a week better off when they go into work, so that we can guarantee that work will pay.

“Together with the National Minimum Wage, tax credits address in-work poverty by guaranteeing minimum levels of income for families.”

Technorati Tags: Joseph Rowntree Foundation, Poverty, Worker's Rights

First announced last year, the regulations were put in place following a public consultation on the issue, which in turn was sparked by an incident in which evidence emerged that a number of employers in the public sector had been using blacklists to vet workers. Forty companies had subscribed to an illegal database to check worker’s union activities, which has since been shut down under data protection law.

The new regulations:

• Make it illegal for organisations to refuse to employ or dismiss workers due to their appearance on a blacklist.
• Make it illegal for employment agencies to refuse to provide services because an individual appears on a blacklist.
• Make provision for individuals or unions to pursue compensation or solicit action against those who compile, disseminate or utilise blacklists.

Lord Young, the employment relations minister, said: “Blacklisting someone because they are a member of a trade union is underhand, unfair and blights people’s lives.”

UCATT, the construction worker’s union, has already been critical of the regulations, calling them “weak” and stating that they fail to inform workers if they have been placed on a blacklist.

Technorati Tags: Blacklisting Regulations, Lord Young, UCATT

According to the survey, one in seven staff in small firms was unable to get to work on at least one occasion in the bad weather. This was despite the fact that just over half of the small businesses surveyed said that they were prepared for bad weather situations.

Four in ten of small businesses indicated that snow-covered roads caused a disruption of business services and goods delivery, while three in ten experienced a loss of growth and demand. A further 18% could not access their business premises, and 11% had to close completely.

Many businesses brought in special measures so that they could continue to function: 42% instituted policies for remote working, while 30% offered employees flexible working hours and 17% bought their own stocks of grit and salt.

The FSB wants to address this issue of business disruption due to increasingly erratic weather conditions, and is pushing for a national civil contingencies conference which will involve councils, regional development agencies, emergency services, school representatives and key business and Government figures, and will find new ways to keep Britain from grinding to a halt in bad weather.

The organisation also recommends:

• Mandatory Government guidance for local authorities including salt level recommendations.
• The Department for Children, Schools and Families, the National Association of Head Teachers and the Association of the Directors of Children’s Services should work together to create clearer guidance on when schools should be closed, and how to prevent closing them whenever possible.
• The Government’s Civil Contingency Secretariat should make greater efforts to promote and advise on business continuity planning.

The National Chairman of the FSB John Wright commented: “The FSB believes that local authorities have not learnt from last year’s bad weather quickly enough, and we are calling for a national civil contingencies conference, bringing together all the relevant parties, to prevent the UK from coming to a complete standstill and find ways to keep Britain moving.”

Technorati Tags: Federation of Small Businesses, Inclement Weather, Snow Disruption

The project, which runs for two years, is based in Derby but will cover the whole of England. It has been funded by the Department of Business, Innovation and Skills through the Union Modernisation Fund.

The aim of the project is to help all vulnerable construction workers, including those who are not members of UCATT. Initially, the project will target specific groups of the most vulnerable workers, including:

• Young workers and apprentices.
• Agency workers.
• Migrant workers.
• Workers who come into contact with asbestos.

At present, the project has two staff members, who will provide one-to-one advice to vulnerable workers, and will also supply training and literature to target groups. Information relating to the project will be disseminated by UCATT officials, partner organisations and other groups that have existing links to vulnerable workers.

The General Secretary of UCATT, Alan Richie, stated: “Construction is a highly casualised industry, and its very nature means that many workers are vulnerable either to poor employment conditions, low pay or injury. The new Vulnerable Workers Project will be a unique resource in providing help and assistance to workers when they most need it.”

While the project will be led by UCATT, a number of other organisations have already pledged their support and will provide guidance through a steering committee. Some of the organisations who are committed to the Vulnerable Workers Project include the Health and Safety Executive, Citizens Advice, Jobcentre Plus, Community Links and Manchester University Business School.

Technorati Tags: Construction Industry, UCATT, Vulnerable Workers Project

In the case, the High Court determined that it had authority to hear a claim for compensation under the regulations even though the claim in question stemmed from an agreement which was subject to Canadian law and arbitration.

The case of Ingmar v Eaton Leonard technologies had already established that the regulations could not be avoided simply by the choice of a non-EU law. In that case, the agent operated in the UK on behalf of a California-based principle, and California law had been used to govern the contract. The European Court of Justice, however, found that the mandatory provisions of EU law put in place by the regulations could not be evaded “by the simple expedient of a choice-of-law clause”.

In the case against Accentuate, the High Court determined that the previous ruling meant that it had to give effect to the regulations, even if both parties had contractually agreed to use a different system. The Court found that this must apply equally to an arbitration clause as it had to the choice of law clause in the prior case.

Where the regulations are found to apply, the agent concerned gains important benefits, such as the right to a potentially substantial payment when the agency is terminated. Generally, these benefits can not be avoided by an agreement between the agent and the principal. This new judgement means that they also cannot be evaded by a choice of non-EU law and arbitration.

Technorati Tags: Choice of Arbitration, Choice of Law, Commercial Agency Regulations

Of those who replied to the survey, 41% stated that they believed an incoming Government’s number one priority should be to reduce the budget deficit, while 22% indicated that reducing red tape should take precedence and 13% believed that streamlining the UK’s tax system was the most pressing issue.

When asked what would be the least damaging tax increase for their business, 36% said that a VAT rise would be least damaging, while a rise in National Insurance Contributions (NIC) was the least popular of all the options offered at just 6%.

Calculations made using the Treasury’s “Tax Ready Reckoner” show that raising VAT by one per cent to 18.5% would raise an additional £4.5 billion in revenue for the Government. Raising NIC by 1%, which the Government plans to do in 2011, would generate £5.1 billion in extra revenue.

Bearing these figures and the results of the survey in mind, the BCC is arguing that the NIC rise should be scrapped and replaced with a one per cent VAT rise, with targeted spending cuts making up the shortfall.

David Frost, the Director General of the BCC, commented: “The message from business is clear. After an election, we have to get a serious grip on the country’s public finances and escalating debt. Cutting the deficit means making tough decisions on spending, like freezing the public sector wage bill and reforming public sector pensions.

“Companies have and will continue to play their part in creating wealth and jobs, generating economic growth and driving recovery, but the right environment needs to be in place.

“Raising a damaging tax on business, like NICs, will be counter-productive. It will mean fewer jobs and less tax revenue in the long-term. While businesses fully understand the need to bring down the UK’s deficit, they are clearly saying that using VAT would be a less damaging way to achieve this.”

Technorati Tags: BCC, Employer Survey, National Insurance

The NEF argues that this radical change would help to tackle a number of current problems, including over-consumption, high unemployment, inequality and poor work/life balance.

The effects of the potential pension time-bomb which the UK could be facing in the future would also be lessened, as working less hours a week should ensure that employees remain fit enough to work in later life.

As an example of how this could work, the report points to Utah, where the state decided in 2008 to put all public-sector workers on a four-day week, and made significant energy savings, reduced absenteeism and increased productivity.

It also stated that 21 hours is already close to the average length of time spent in employment.

Andrew Simms, joint author of the report, said: “A lot of this is already happening. Job sharing is common practice … It’s going to be increasing. Maybe we’ll have less income and more time.

“Other than the benefit of having more time, what will happen is a reduction in inequality and the potential to be better-quality friends, partners and parents engaging more with communities.

“There is this issue of people retiring and their lives collapse. So this is a good opportunity for people to fulfil themselves. We are not saying this should be imposed. We’re suggesting that this should be more of a norm.”

Commenting on the report, a spokesperson for the Institute of Directors noted that many employers in the UK already offer “flexible working arrangements”.

“Work/life balance for employees is something our members take seriously because they see benefits to people’s lives,” the spokesman explained. He added that many businesses need continuity, which would not be maintained by an increase in part-time labour.

The report makes the point that, despite the spread of personal computers- which were intended to give us more leisure time away from the office - many people now work longer hours than they did 30 years ago. Since 1981, households with two adults have added an average of six hours to their weekly workload.

Technorati Tags: New Economic Foundation, Work/Life Balance, Working Hours