What did we get up to last month?
We read a number of reports concerning the introduction of the National Living Wage which came into effect on 1 April 2016. If the reports are to be believed, a number of employers have looked to balance their payroll costs by removing some benefits which had previously been provided to staff. Organisations including B&Q, Tesco, John Lewis, Zizzi and Caffe Nero are all reported to have cut contractual benefits including overtimes rates and paid breaks as well as other perks, such as free lunches, in response to the increase in basic wage for staff aged 25 and over. George Osborne has warned employers that reducing benefits in light of the increased minimum wage entitlements is not "within the spirit of the law" and could adversely effect employers' reputations. There is, however nothing that the Government can actually do about it as the law currently stands.
Making contractual changes to benefits in order to accommodate increased salary costs is possible, but will not be easy in most cases. If this is something that your organisation is considering, do get in touch to chat through your options with us.
We really enjoyed hosting the most recent workshops in our HR Breakfast Club series. If you missed it, this month we covered the topic of "gross misconduct" and talked about the key ingredients of a fair misconduct dismissal, tips for improving disciplinary procedures and disciplinary rules; and a discussion about some recent dismissal cases for gross negligence, fighting and inappropriate emails. If you couldn't make it, hopefully we will see you at the next one!
Any plans for next month?
We have chosen the dates for our next HR Breakfast Clubs so keep the dates free in your diaries:
Peterborough: Tuesday 5 July 2016
Huntingdon: Wednesday 6 July 2016
Nottingham: Wednesday 13 July 2016
Peterborough: Thursday 14 July 2016
Just the one case to take note of this month:
In Nayak v Royal Mail Group, the EAT upheld the Tribunal's decision that Royal Mail had fairly dismissed Mr Nayak for "some other substantial reason" when it believed that he no longer had the right to work in the UK. Mr Nayak had a Tier 1 (Post-study) visa that expired on 1 December 2010. Before the expiry of this visa, he applied for a Tier 4 (General) student migrant visa, but some 4 years' later, the outcome of this visa application had still not been established. The Home Office had confirmed to Royal Mail in 2012 that while a visa application was outstanding, the individual retained the right to work in the UK. However, given the amount of time that had elapsed, Royal Mail became concerned that the application had in fact not been granted and that Mr Nayak consequently had lost the right to work in the UK; in its previous experience, employees' visa applications had been processed relatively swiftly.
Royal Mail conducted an extensive and thorough investigation, which included asking Mr Nayak on numerous occasions to provide an update as to his application, as well as advising him to make a subject access request to the Home Office under the Data Protection Act in order to obtain an up-to-date copy of his file. However, Mr Nayak did not comply with any requests and provided no information. Royal Mail eventually dismissed Mr Nayak, believing that he no longer had the right to work in the UK, having seen no evidence to the contrary.
Both the Tribunal and the EAT found that the dismissal was fair; that Royal Mail had a genuine belief that Mr Nayak had lost the right to work in the UK; that there were reasonable grounds for that belief; and that the investigation and decision were reasonable in all the circumstances.
The crucial factor in this case was the extensive investigation that Royal Mail had carried out. It would likely have been insufficient to dismiss simply because a long period of time had passed since the application was made, or if Mr Nayak had only been asked for an update once or twice.
This month's mini quiz – just for fun!
1. According to a recent survey, what percentage of pet owners pulled a 'sickie' at work in order to care for their pet?
a) 20%
b) 30%
c) 40%
2. ACAS have just published new guidance to help managers and employees manage what?
a) Time off to care for sick pets or look after new pets
b) Sex discrimination in the workplace
c) Excessive workloads
3. What was abolished for young apprentices with effect from 26 April 2016?
a) Employer's national insurance contributions
b) The obligation to provide a written statement of terms
c) The entitlement to daily rest breaks
Answers to the mini quiz are: 1. c; 2. b; 3. a
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