Employment

In times of economic uncertainty, it is essential for individuals and businesses to be well-informed about their legal rights. Economic downturns and market fluctuations can often lead to disputes or unexpected financial challenges. This blog outlines how a solid understanding of legal rights can offer protection and reassurance during turbulent times. The Impact of Economic Uncertainty Economic uncertainty can manifest itself in numerous ways, such as: Increased Risk of Employment Disputes: Businesses facing financial pressures may consider redundancies or restructuring, leading to complex employment issues. Property Market Fluctuations: Slower property transactions and renegotiations in rental or sale agreements can [...]

Statutory Maternity Pay Recovery Rate to Increase – What You Need to Know From 6 April 2025, the recovery rate for smaller employers claiming Small Employers Relief (SER) for Statutory Maternity Pay (SMP) will increase. This change is aimed at easing the financial burden on small businesses and will see the compensation rate rise from the current 3% to 8.5%, allowing eligible employers to recover 108.5% of the statutory maternity pay they have paid out. What Is SER? SER is designed to help small businesses manage the costs associated with employees on maternity leave. For businesses with a gross [...]

Court of Appeal Confirm Ofsted Inspector Was Unfairly Dismissed The Court of Appeal in Hewston v Ofsted rules that Employment Tribunal was wrong to find that the summary dismissal of an Ofsted inspector for inappropriate physical contact with a child during a school visit was fair. Background Hewston was employed by Ofsted as an inspector. During a school inspection, a group of schoolchildren returned from the rain and Hewston brushed rainwater from one child’s hair and placed his hand on the child’s shoulder. In response to a complaint from the school, which claimed the child felt uncomfortable, the matter [...]

Is it Possible for a Company with Model Articles of Association to Operate with a Sole Director? This has been a longstanding question in the legal world. Historically, inconsistent and contradictory case law did not give a clear answer. However, the High Court case of KRF Services (UK) Ltd [2024] seems to have offered more clarity on the Court’s view on this topic. The Old Position One of the reasons as to why the answer to this question has been uncertain is because historically there has been conflicting case law. These being Hashmi v Lorimer- Wing and Fore Fitness [...]

Is it time for you to consider cutting staff perks? Variation of Terms Manchester United FC recently announced the end of free hot meals for its staff as part of a cost-cutting exercise. This leave the question, can you also cut-back on staff perks? Contractual vs. Discretionary Perks The first step is to determine whether the perks are contractual entitlements or discretionary benefits. If any of the perks are contractual entitlements, you will only be able to withdraw them with explicit employee consent. Without consent, you risk being in breach of contract. It is therefore crucial for you to [...]

High Court Declines to Enforce Non-Compete Clause for Senior Trader on Sick Leave In a recent ruling, the High Court declined to enforce a non-compete clause for a senior trader who had been on sick leave during their 12-month notice period. This case, Dare International Ltd v. Stephen Soliman (SS) and Ashley Hikmet (AH), provides valuable insights into how courts handle post-termination restrictive covenants (PTRs), especially when an employee has been absent from work for a significant period. Case Overview SS and AH resigned from Dare in late 2023 and early 2024, respectively, with 12-month notice periods. Both were [...]

Solicitor Wins Age Discrimination Case After Forced Retirement at 63 An Employment Tribunal has recently found that a leading Leeds-based law firm, Walker Morris LLP, unlawfully discriminated against a senior partner, Martin Scott after he was forced to retire at the age of 63 following the firm’s mandatory retirement policy. Background of the Case Scott had been a solicitor for 40 years and a partner at Walker Morris since 1992. He claimed that he was forced out of the firm in 2023 when his application to extend his tenure by another two years was rejected. Walker Morris LLP, a [...]

Our perspective on the pros and cons of payment in lieu of notice clauses A payment in lieu of notice (PILON) clause allows employers to lawfully terminate an employee’s contract immediately provided they receive payment for their contractual notice period. This practice can be beneficial in various scenarios, but it also comes with potential drawbacks. Here, we explore the pros and cons of PILON clauses. Pros of PILON Clauses Immediate Termination - PILON enables employers to end the employment relationship instantly, which can be crucial if the employee's continued presence could be detrimental to the business. Protection of Sensitive [...]

Employer’s take note! New Sick Pay Policy: Low-Paid Workers to Receive 80% of Salary from Day One of Illness In a significant move to support low-paid workers in the UK, the government has announced that more than 1 million workers will now be entitled to 80% of their weekly salary as sick pay from the first day of illness. This change aims to provide financial security to those who are most vulnerable when they fall ill. Current Statutory Sick Pay System Under the current system, employees must be ill for more than 3 consecutive days and earn an average [...]