Update 14/05/2015:

This case has now been referred back to the Employment Tribunal and British Gas has now appealed that again. It is unlikely to be before the end of 2015 when that appeal is heard. The Employment Tribunal it did not consider reference periods and how to quantify a claim for the commission element of holiday pay. The principle that commission must be included in holiday pay is established law now, the still open questions is how to quantify it.

Our best advise at the moment is that in cases where a worker has no normal working hours, or has normal working hours but their pay varies according to amount of work done or the time of work employers should use an average of the last 12 working weeks to calculate how much holiday pay should be paid. If your ways of working mean that 12 weeks would not be representative, such an a system where all commission is paid annually, then 12 weeks may not be the appropriate reference period. In any case we advise all employers to take legal advice on this as soon as possible. Fox Whitfield are already dealing with multiple claims where employers have not changed their policies and are facing claims.

Paul can be contacted on 0161 2831276 or paulw@foxwhitfild.com

www.foxwhitfield.com

Employment Law Solicitors – Head Office based in Manchester with offices located throughout the United Kingdom.

In a new twist on the law relating to holiday rights the European Court of Justice (ECJ) has held that holiday pay should take into account commission payments.

Currently the UK law, the Working Time Regulations, make it clear that employees are entitled to holiday pay based on their basic salary alone. This case suggests that is now incorrect as it is not compatible with European Law.

In this example an employee’s remuneration was made up of basic salary and commission. The commission was about 60% of the total remuneration. The ECJ said that the commission payments were directly linked to the performance of his work under his contract of employment. Therefore, the commission should be taken into account in the calculation of his statutory holiday pay.

This case is now being referred back to the Employment Tribunal which will need to consider how to interpret the Working Time Regulations following this decision. It is likely that they will do so in a way that will have far reaching implications for many businesses and their employees.

One possibility is that the Tribunal will say that statutory holiday pay should be based upon 12 month average normal pay. That would ensure that any commission payments paid over a year would be included. Another possibility is that they will use a shorter reference period of 12 weeks. This could mean sales forces trying to take their holidays immediately after busy periods to maximise their holiday pay. We shall have to wait and see how the details of this develop.

There are two other cases being heard in the EAT during the summer of 2014 looking at the extent to which overtime payments should also be included in the calculation of statutory holiday pay.

So what should employers do now?

1) Do nothing. Wait and see how these cases develop the law as they take their time going though the Tribunal and appeal systems. It may be that the UK courts limit the effect of the ECJ  decision.

2) Assume the UK law is going to have to change to comply with the European decisions.  Take the business decision to look at changing your holiday pay and commission rules and policies now. The risk of this is that we have yet to see how the UK courts will apply the law and you could end up having to change your rules twice.

So far, most employers seem to be waiting to see what happens next before making any changes.

We will update you as things become clearer, or more muddy.

Paul can be contacted on 0161 2831276 or paulw@foxwhitfild.com

www.foxwhitfield.com

Employment Law Solicitors – Head Office based in Manchester with offices located throughout the United Kingdom.

Fox Whitfield continues to grow and expand as Sarah Russell, employment lawyer joins the firm from Slater & Gordon.

Sarah qualified as a solicitor four years ago, and previously worked in-house for a FTSE 100 PLC.  Sarah’s recent experience has been predominantly representing employees.  She says that “for most people, seeking legal advice is the last resort in a stressful situation” and that  after their first meeting her clients frequently report feeling “much better”.  Sarah is transparent about costs and offers fixed fees where appropriate.

To accommodate her clients appointments are available in the evening and at weekends, as well as during office hours.

All sorts of people have instructed Sarah, including CEOs, company directors, doctors, engineers, HR and IT professionals, and sales staff.  She regularly negotiates on behalf of senior executives who want a “controlled exit” from their employment, and appreciates the importance of securing the client’s reputation, as well as getting an excellent financial package.

Sarah is passionate about helping those who have suffered unfair dismissal and/or discrimination.  She has enabled many disabled clients to obtain adjustments at work.  Sarah often assists working mothers whose flexible working requests have been declined, or who are being made redundant or mistreated on their return from maternity leave.  She recently negotiated a six-figure settlement for a senior employee at a big four accountancy firm who had suffered maternity discrimination.

Fox Whitfield quickly established a strong reputation for providing practical and honest advice at a cost effective price. They seek to resolve issues by working with clients and their individual situations rather than simply advising on the legal position. As a result, many clients moved to Fox Whitfield after finding their proactive and open approach a refreshing change.

Paul Whitfield explains “Rather than operating as a conventional law firm Fox Whitfield works in a modern and innovative way. Current technology means our lawyers work efficiently from satellite offices rather than being permanently based in one central office. Much of the physical infrastructure traditionally required by a law firm is no longer needed and the reduced office space and administration enables us to pass considerable savings on to clients without compromising on the quality of advice given.”

Sarah can be contacted on

Mob: 07985 106 233

Tel:  0161 2581338
Email: sarahr@foxwhitfield.com

Changes to the way that Employment Tribunals work

The Coalition Government are in the process of reviewing and changing employment law. In the latest development they have published details of changes to the way Employment Tribunals will work.

Unfair Dismissal

Employees who started a new job after April 6 this year will need to work for their employer for two years or more before they can claim unfair dismissal. Employees already employed before that date need only 1 years service.

Tribunal Costs

New fees will be introduced for employees who wish to use the Employment Tribunal system. For the first time there will be a fee to issue a claim and a further fee if the case goes to a full hearing.

The fees to issue a claim will range from £160 to £250 and the hearing fees range from an additional £230 to £950. The level of fee will depend upon the type of claim being brought but all but the simplest cases will incur the higher fees. If the employee is successful the Tribunal may order the employer to reimburse these fees. There will also be a system in place to waive fees for those who are unable to pay.

The fees are expected to be in place by summer 2013.

The purpose of the fees are to meet some of the Government’s costs in running the Tribunal system, which was £84 million last year. It is expected that this will also reduce the number of claims brought in the Tribunal, particularly low value claims.

Paul Whitfield can be contacted on 0161 283 1276 or paulw@foxwhitfield.com

Employment Lawyers In Manchester Open Two New Offices

When it comes to employment lawyers in Manchester, Fox Whitfield has successfully managed to grow and expand in a short period of time. Paul Whitfield founded niche employment law practice, Fox Whitfield, in February 2010. Since then he has established a broad base of both employer and employee clients both locally and as far away as Kent, London, Lincolnshire and Edinburgh. What has been particularly encouraging is the huge number of those new clients that are from personal recommendations.

Fox Whitfield quickly established a strong reputation for providing practical and honest advice at a cost effective price. They seek to resolve issues by working with clients and their individual situations rather than simply advising on the legal position. As a result, many clients moved to Fox Whitfield after finding their proactive and open approach a refreshing change.

This approach has successfully resolved a wide range of matters from High Court Injunctions to compromise agreements, HR Advice, unfair dismissals to complex employment tribunal hearings.

With almost a hundred new clients, Fox Whitfield is undertaking a phase of growth and investment, including opening two new offices in Warrington and Lincolnshire.

Paul Whitfield explains “Rather than operating as a conventional law firm Fox Whitfield works in a modern and innovative way. Current technology means our lawyers work efficiently from satellite offices rather than being permanently based in one central office. Much of the physical infrastructure traditionally required by a law firm is no longer needed and the reduced office space and administration enables us to pass considerable savings on to clients without compromising on the quality of advice given.”

Peter Krick will lead the new Lincolnshire Office.

Peter qualified in 1985, and deals with all forms of employment law, he also deals with civil litigation matters. Peter was previously head of employment at a regional firm and as such brings a wealth of experience to Fox Whitfield.

Jill Shields is to head Fox Whitfield’s new Cheshire office, based in Warrington.

Prior to Fox Whitfield Jill ran her own Employment Law consultancy providing all aspects of employment law and HR advice. This included a monthly fixed fee employment law helpline service which will be continuing under Fox Whitfield.

Paul Whitfield is delighted to be welcoming two solicitors of such calibre. They will both be central to the continuing expansion of both the Firm’s reputation and size.

Fox Whitfield’s solicitors are always happy to speak to potential clients without charge about individual situations to see if it would be worth taking formal advice. Wherever possible we undertake work on either fixed or capped fees agreed up front so there is no surprise with unexpected costs.

Contact Paul; 0161 283 1276 paulw@foxwhitfield.com

Contact Jill; 01606 891933 jills@foxwhitfield.com

Contact Peter; 01522 702164 peterk@foxwhitfield.com

Fox Whitfield is regulated by the Solicitors Regulation Authority [Roll Number 524972]