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LEGAL PIPELINE

April does see the introduction of the new ‘Corporate Manslaughter’ offence. The Corporate Manslaughter and Corporate Homicide Act 2007 comes into force on 6th April 2008 and means that organisations will be prosecuted if the way their activities are managed leads to a person’s death and amounts to a ‘breach of a duty of care’ by management.

A proposal to extend Flexible Working Rights to include older children is currently under discussion. Currently, the right only applies to parents, guardians or carers of children under 6, or disabled children, under 18.

Also in April, is the introduction of a new requirement on employers to consult with prospective and active members of company pension schemes, before making significant changes to future pension arrangements.

Q. It has become apparent that our new Accounts Manager has lied on his CV about his experience and qualifications. What can we do?

A.  As he has less than 12 months’ service, he could be dismissed for breach of contract, with or without payment in lieu of notice. If the deceit is serious enough to amount to a breach of mutual trust and confidence, summary dismissal could be justified. A more cautious approach would be to follow the statutory disciplinary and dismissal procedure so that the individual has an opportunity to explain himself; however, obtaining financial advantage by deception is a criminal offence. It is important that proof of qualifications and references are obtained to verify important information prior to employment commencing.

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Q. One of our Consultants was recently subjected to sexual harassment at a lunch with a Client but is worried about losing the Client if she reports it. She insists on handling it herself. What are our legal responsibilities here?

A. Your legal duties here as an employer are to provide a safe working environment not only in the workplace but also at work-related social events, training courses, lunches, etc. You must ensure your employees are not subjected to unwanted conduct by other employees and by individuals they come into contact with while carrying out their duties. If no action is taken here, you could be held vicariously liable. You need to take steps to eliminate or prevent this situation from occurring again. If the employee is refusing to make a formal complaint, informal steps can be taken, such as re-assigning the Client to a male colleague or ensuring that the employee is accompanied on the next visit.

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Q. A member of my Administration Team is visiting a strip club during his lunch break. He is never late back but it is upsetting some other members of the team. Can I stop him?

A. The fact he is visiting this club during his own time is very hard to stop unless you can show that it is having a negative impact on the business or team. If he wears a uniform for example, that could be seen to be bringing the name of the business into disrepute, however, if not, it would probably be best to treat this as a disagreement between staff. If it cannot be resolved informally, the company’s formal grievance procedure may be needed. Ultimately, if the objections from the other employees continue to such an extent that they refuse to work with the employee, and the individual refuses to stop visiting the strip club, you may have grounds to dismiss due to the disruption the issue is causing in the workplace. All efforts should be made to resolve the issue before reaching this stage.

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Q. We have just received a quote for renewing our private healthcare policy and several members of the scheme have now reached 65. This increases the overall cost of the policy quite substantially. Can we exclude these workers from the policy?

A. Withdrawing any contractual benefit without the employee’s consent is breach of contract and could result in constructive or unfair dismissal claims. However, employment contracts often state that certain benefits are discretionary and, if the wording permits, can be withdrawn without consent. Withdrawing benefits from staff aged 65 or over is discriminatory under the Employment Equality (Age) Regulations 2006 unless this can be justified as a ‘proportionate means of achieving a legitimate aim’. Cost considerations alone are unlikely to justify discrimination, so other methods of cost saving within the business may need to be investigated rather than withdrawing benefits.

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Q. The Bank Holiday season is approaching and some of our part-time workers who do not normally work on Mondays are demanding they be given extra time off in lieu. What are our legal obligations?

A. This is quite a controversial issue with many employers taking the ‘normal working day’ approach meaning that a part-timer who does not usually work on a Monday will lose out. Whilst this does seem unfair, an employer is within their rights to refuse additional time off to those who do not normally work a Monday. A suggested course of action for employers is to pro-rata bank holidays for part-time workers in accordance with Department and Trade and Industry guidance.

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Q. Our Christmas Party resulted in several incidents of fighting and a member of staff claiming she was harassed. Should we have written rules of work-related social events?

A. Yes, you should provide clear guidance to all employees prior to any social or non-social event about acceptable standards of behaviour and the disciplinary sanctions that could result from breaking these standards. It is unreasonable to expect everyone to stay completely sober but alcohol consumption can be monitored. Avoiding a free bar will reduce excessive alcohol consumption. You are responsible for the acts of employees on or off site, so assigning supervisory roles to managers is a good idea.

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Q. I’ve heard that the new Corporate Manslaughter and Corporate Homicide Act (which places responsibility on the company for its employee’s negligent actions), includes driving offences?

A. This is true. The company may be held responsible for any driving offences or convictions committed whilst the employee is driving for business use regardless of whether it is in a company vehicle or not. For example, where an employee is driving to a meeting and takes a mobile call from a colleague causing an accident, it would be argued that the employer has not made policies on driving at work prominent enough and is thereby not compliant with prevailing Health and Safety legislation. Effective communication, monitoring of driving hours and clear and comprehensive driving-at-work policies are essential with this new legislation. Sanctions include unlimited fines, court orders and improvement notices.

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Shepherd Stubbs takes all reasonable steps to ensure that legal information is up-to-date and accurate, but makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the information provided. Information on this site is not intended to provide specific legal advice - in this case, clients should refer to their own employment law specialist.


 
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