Chambers Blog

On 13 August 2009 the EAT gave its decision in Amnesty International v Ahmed (UKEAT/0447/08/ZT). The case concerned Ahmed, a Sudanese woman, who was refused promotion to the position of Sudan Researcher by Amnesty as they believed that such an appointment would compromise their perceived impartiality and therefore their effectiveness. She resigned and claimed for race discrimination and constructive dismissal.

In their judgment, upholding the original tribunal's decision the EAT stated that this behaviour constituted direct discrimination contrary to sections 1(1)(a) and 4(2)(b) of the Race Relations Act 1976 as the decision not to appoint her was based solely on her ethnic origin and despite Amnesty's potentially justifiable reasons. (James v Eastleigh Borough Council [1990] 2 AC 751 applied). The claim for constructive dismissal failed.

  As the recession looms there will be many employers wishing to relieve themselves of staff to save costs. Many will prefer their employees to leave voluntarily and to sign compromise agreements. These when properly made lawfully prevent employees going to employment tribunals to  contest the circumstances of their leaving. Employers will sweeten the pill by agreeing to pay and ex-gratia lump sum. Barristers through the direct access scheme are amongst qualified lawyers who are allowed to sign these agreements to make them lawful as preventing employees from going to employment tribunals.

In case an employee has in fact been guilty of some behaviour which would otherwise have entitled the employer to dismiss, prudent employers can include a clause or warranty to the effect that the money payable under the compromise agreement will not in fact be paid if it is discovered that indeed the employee has been guilty of something which would have given the employer the right to dismiss. Such a clause can be termed a warranty along these lines, the employee agreeing as follows:

"You warrant as a strict condition of this agreement that there are no circumstances of which you are aware or of which you ought reasonably to be aware which would constitute a repudiatory breach on your part of your contract of employment which would entitle or have entitled the company to terminate your employment without notice."

In Collidge v Freeport plc [2008] IRLR 697 an employee was found to have been guilty of financial impropriety prior to a payment of £445k, under a compromise agreement and so no payment was made by the employer. The Court of Appeal upheld the judge's unsurprising finding that such a clause was a condition precedent for payment under the compromise agreement and the employer did not have to make the payment. Mr C's warranty was a condition, a sina qua non, of the employer's obligations to pay. The warranty was a pre-condition of the employers liability to perform its obligations under the contract.

Writen by Robert Rees, Barrister at New Walk Chambers, specialising in direct access, employment law and compromise agreements.

 The government has announced that the minimum pay for apprentices will rise to £95 per week. The increase will mainly benefit low-paid sectors such as care and hairdressing, described by the government as employing more women, rather than construction where apprentice wages are on average already higher than this.

This minimum is not under the auspices of the national minimum wage legislation, from which apprentices under the age of 19 or in their first year are exempt, but instead is a contractual rate between employers and the Learning & Skills Council. The government has however amended the Low Pay Commission's terms of reference to consider the future of the exemption, bearing in mind that by the time the school leaving age is raised to 18 in 2013 it is intended there will be around 500,000 apprentices in the UK.

Written by Joseph Neville, Barrister at New Walk Chambers, specialising in Employment law.

The government has announced a change in the National Minimum Wage legislation from October which will prevent waiters' tips counting towards the minimum. The current position is that an employer may pass all tips through its payroll such that the total amount received by the employee goes to satisfy the employee's entitlement to National Minimum Wage.

There are also some reports that the government may extend entitlement to the full rate to 21 year olds. This will be subject to advice from the Low Pay Commission and consultation.

The current rates of the National Minimum Wage are:

• £5.52 per hour for workers aged 22 years and older
• A development rate of £4.60 per hour for workers aged 18-21 inclusive
• £3.40 per hour for all workers under the age of 18, who are no longer of compulsory school age.

These limits are reviewed annually. The new rates from 1^st October 2008 will be:

• £5.73 per hour for workers aged 22 years and older
• A development rate of £4.77 per hour for workers aged 18-21 inclusive
• £3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age.

The application of the National Minimum Wage legislation can be legally complex, especially when combined with the right not to suffer unlawful deductions from wages, and workers' right to holiday pay. New Walk Chambers' employment specialists can help.

Written by Joseph Neville, Barrister at New Walk Chambers specialising in Employment Law.

The European Court of Justice has now handed down its judgment in the employment law case of Coleman v Attridge Law. This is where a non-disabled employee claimed disability discrimination based on being harassed due to her having a disabled son.

The court has confirmed that this ‘associative' discrimination is prohibited by the Equal Treatment directive. This applies for all forms of discrimination.

When a court decides on whether or not the decision can have effect under the UK's Disability Discrimination Act, or when the government amends the Act, this will be of considerable advantage to employees needing flexibility and time off work to care for disabled dependants.

Written by Joseph Neville, Barrister at New Walk Chambers, specialising in Employment Law.