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Friday 9 December 2016

MH Employment Update

Rocky Times Ahead For The Gig Economy?

There has been a lot of attention in the media recently about the so-called gig economy, that is, the method of working in which temporary positions are common and organisations contract with independent workers for short-term engagements, as opposed to the traditional employment model. Two recent news items have highlighted the considerable unrest and legal uncertainty in this sector.

App-based taxi provider Uber hit the headlines at the end of October when an employment tribunal held that two of its drivers were not self-employed contractors as Uber claimed, but were ‘workers’. This meant they are entitled to the national minimum wage, paid annual leave and whistleblower protection. Uber’s arguments that it is merely a technology platform as opposed to a transport provider and that its drivers are self-employed contractors offering their services to passengers via the Uber app were rejected comprehensively.

MH Contact Bob Cordran

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Friday 20 November 2015

MH Employment

National Living Wage

On 8 July 2015, the National Living Wage (“NLW”) was introduced by George Osborne in the first Conservative Budget of this parliament. The NLW, due to come into force in April 2016, will act as a ‘top up’ wage for those aged 25 and over. It has been introduced by the government with the intention of providing a higher wage for ‘more experienced workers’ and raising the UK standards of pay to the levels set by other advanced economies. The ‘top up’ will result in an increase of the total NLW to £7.20. This is set to increase to approximately £9 an hour by 2020 and according to the Office of Budget Responsibility (“OBR”) is likely to result in a pay rise for millions of people. However the OBR also warns that the introduction of the NLW may cost up to 60,000 jobs.

Tuesday 9 June 2015

MH Employment

Holiday Pay – Latest Developments

Under the Working Time Regulations 1998 (“Regulations”), workers are entitled to be paid during statutory annual leave at a rate of a week’s pay for each week of leave. Following two recent decisions of the European Court of Justice, the Employment Appeal Tribunal (“EAT”) has held that the UK’s rules on how a week’s pay is calculated do not provide workers with the holiday pay to which they should be entitled to under the European Working Time Directive (from which the Regulations are derived). The Directive requires workers to receive during any period of leave their “normal remuneration” or pay representative of the pay the worker would expect to receive if the worker was not on leave.

UK employers have generally paid holiday pay based on a worker’s basic pay, disregarding any bonuses, commission payments or overtime unless it is compulsory for the worker to perform the overtime and is paid regardless of whether the overtime is performed.

Friday 24 October 2014

MH Employment

Shared Parental Leave

The Government is introducing a new concept of statutory shared parental leave and pay into the existing statutory maternity and paternity leave and pay regime. It is intended to inject more flexibility into how parents choose to structure initial childcare arrangements and to assist in shifting any entrenched view of the mother as the primary carer.

The new right will be introduced on 1 December 2014 and will apply to children expected to be born or adopted on or after 5 April 2015.

Currently eligible mothers are entitled to 52 weeks’ statutory maternity leave, of which 39 weeks are paid. Eligible fathers can take up to 2 weeks’ paid statutory paternity leave. There is also a right for fathers to take additional statutory paternity leave in certain circumstances but this right will be replaced by the shared parental leave right.

Tuesday 22 April 2014

MH Employment

TUPE Update

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) – the notoriously complex rules which require employers who take over a business, or take over certain contracts from another employer, to take on the employees who worked in the business or the contract acquired – have recently been amended (again).

The changes, enacted by the snappily-titled Collective Redundancies and Transfer of Employment (Protection of Employment) (Amendment) Regulations 2013 came into force on 31 January 2014.


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