News

• Workers aged 22  - from £5.73 to £5.80 per hour
• Workers aged 18 to 21 - from £4.77 to £4.83 per hour
• Workers aged 16 and 17 - from £3.53 to £3.57 per hour

These rates will take effect in October

Topping up wages with tips to be stopped
The Government is to introduce legislation to prevent tips being used to top-up wages in order to meet the national minimum wage ("NMW").  This change will come into effect on 1 October 2009.

While some employers were worried about the administrative burden that the change could impose on them and expressed a wish that it be delayed until the economy had recovered, the change was supported by around three quarters of the respondents to the Government's consultation on the issue.

The Government has stressed that as well as the obvious benefits for employees, the change is also good news for customers, who will now be confident that their tips will always go directly to staff.

Comment:
Under current legislation, tips that are collected by the employer and paid through the payroll system can count towards the NMW.  The Government has also announced that it will be working with interested groups to analyse the possibility of producing a best practice guide on tipping and a logo indicating employers' tipping practices.

Consultation on Agency Workers Directive
The Department for Business, Enterprise and Regulatory and Reform (BERR) has launched its consultation on the implementation of the Agency Workers Directive.  Member States, including the UK, have until 5 December 2011 to implement the Directive.  The UK is proposing to implement the Directive on the basis of a CBI/TUC agreement reached in May 2008 which allows for equal treatment to apply only after a temporary agency worker has been in a job for 12 weeks. 

BERR is seeking views on a number of key issues, including the definitions of pay, holiday entitlement and duration of working time, the 12 week qualifying period, how the principle of "equal treatment" should be established, liability for non-compliance with obligations under the Directive and dispute resolution.  

The consultation closes on 31 July 2009.  The consultation paper can be accessed via the following link: Consultation Paper

Stressed employees? - 10 key signs
One of the potential impacts of the current economic downturn, is that some employees are apparently left feeling unsure and stressed about their future, while others are stressed due to increased roles and responsibilities after colleagues have been made redundant.  With this in mind it is important for employers to be aware of how stress might manifest itself and what the psychological, emotional and behavioural traits of a stressed employee can be.  Psychiatrists indicate that stress occurs when one's perception of a threat exceeds one's perceived ability to cope.  These perceptions mean that stress is different for each person with the 10 key signs being:

• Weight loss/gain
• Frequent flus and colds
• Increasing propensity to suffer accidents
• Frequent mood swings: tearful, apathetic, hostile
• Presenteeism - "The lights are on but there's no one home"
• Decreased concentration
• Forgetfulness
• Decreased alertness
• Prone to errors
• Drinking alcohol, more than usual

Comment:
Employers need to be mindful of their statutory obligations under the Health and Safety at Work Act 1974. A substantial reduction in the workforce could increase the pressures within the business heightening its risk profile, and employers should be aware of stress at work issues (as highlighted by the recent case of Dickins v O2 which we reported in our bulletin of 3 November 2008).

Recent Cases

Fireman wins £45,000 for unfair dismissal
Bridge v Lancashire Fire and Rescue Service

The Employment Tribunal in Manchester has held that a senior fireman, with 26 years' service, was unfairly dismissed.  Mr Bridge (B) a Crew Manager, was awarded £45,000 in damages after being dismissed for gross misconduct and sexual harassment following an incident in November 2007.  He was involved in doctoring the station cook's ID badge to make the name into an offensive word.  It emerged during evidence that B had suggested the changes but that it was another colleague who had actually written the offensive comment.  This colleague was only given a final written warning and continues to work at the fire station.

The Tribunal held that Fire Service had not taken into consideration B's clear conduct record and also that it had not considered imposing a lesser sanction.

Comment:
It is important for the employer to make clear when coming to a decision to dismiss that the individual's conduct record and length of service have been considered as well as consideration of whether a lesser sanction would be appropriate.  It is something most employers would automatically consider but it is always useful to make it clear in any conclusions document or dismissal letter that these issues were considered.