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Mental disabilities   Does a doctors certificate stating 'stress' or 'clinical depression' demonstrate a disability?

Asthma and employers’ responsibilities   Is asthma a disability?

Avoiding common redundancy pitfalls   Find out how to avoid potential costly mistakes

Compromise agreements   Discover how they can help with redundancy

Tribunal Insurance   The modern way to reduce employment legislation risk

 

Mental disabilities

The Disability Discrimination Act (DDA) came in to force in 1995. Cases have been coming through thick and fast and it is only now that the Act is becoming clearer as the tribunals and courts have had an opportunity to consider the Act.

 

The meaning of disability according to the act (schedule 1)

  • "a physical or mental impairment which has a substantial and long-term adverse effect on (the person’s) ability to carry out normal day to day activities."
  • ‘Long term’ means that the disability has lasted 12 months or is expected to last 12 months. It does not have to be continuous and can be intermittent.
  • Mental impairment loosely described as ‘stress’ or ‘clinical depression’ on Doctor’s certificates may be considered insufficient to demonstrate disability. The Act says that the illness must be a well recognised clinical psychiatric condition or illness.

 

In the case of McNicol v Balfour Rail Maintenance Ltd [2002], Mr McNicol suffered by back pain. It was established that there was no physical cause and was diagnosed as ‘functional overlay’, which is a psychological condition in which the individual continues to feel pain even though the cause no longer exists. This, however, is not a recognised clinical psychiatric condition and the Employment Tribunal rejected the claim that McNicol was suffering from a disability.

 

In the case of Morgan v Staffordshire University [2002], Mrs Morgan, a catering worker had been assaulted by her female supervisor. She was offered alternative employment but there was no assurance that she might not come across her assailant again. Mrs Morgan resigned and claimed constructive dismissal and disability discrimination. During her employment she had taken time off with Doctor’s certificates for stress, anxiety and depression. Her mistake at the tribunal was that she relied on just the GP’s certificates and no ‘informed medical evidence’ showing a diagnosis of a clinical condition was produced. The Employment Tribunal rejected her claim of Disability Discrimination.

 

It is not the job of the Tribunals to collect necessary medical evidence – however they may allow an adjournment for the parties to do so employers, however, have an obligation to address stress as part of their management of health and safety.

 

The DDA is still a complex area of employment law and needs to be handled with care and with professional advice. We believe that employers faced with a potential disability issue would do well to obtain advice and support from occupational health professionals and employment law advisers.

 

If you have disability issues at work and would like advice contact us on 01473 890037.

 

Asthma and employers’ responsibilities

In 1997 asthma was claimed as a disability under the Disability Discrimination Act 1995 in the case of Cox v The Post Office. Cox had been dismissed for his poor attendance record. The tribunal considered whether it was a physical impairment  which had a substantial adverse effect on the employee's ability to undertake normal day to day activities. Cox had also suffered from the condition for a number of years. What happened:

 

The tribunal confirmed that Cox's dismissal over disability-related absences was discriminatory and unfair.

 

The TUC also highlight a case study of a school cook who developed occupational asthma. With the help of her union, the cook secured compensation, which included back pay totalling £200,000. Could your organisation afford that? To ensure compliance with current legislation it is important for employers to be aware of:

  • The causes of asthma.
  • How to deal with employees that suffer with asthma prior to joining the organisation
  • How to deal with employees who contract asthma whilst in their employment and comply with current legislation.

 

For occupational health advice and assessments, pre-employment and during employment health screening please contact Picasso HR Ltd on 01473 890037

 

Avoiding common redundancy pitfalls

When you are faced with making an employee redundant, there are many traps for the unwary. A claim of unfair dismissal may be brought against an employer if:

  • the affected employee believes that it was not a true redundancy situation or
  • the procedure was unfairly conducted or the employer behaved unreasonably.

 

Here are some issues employers need to be aware of based on our knowledge and experience;

1.

It is essential to establish whether it is a ‘true’ redundancy situation as defined by the Employment Rights Act 1996. For the purpose of the Employment Protection (Guernsey) Law 1998, an employee is dismissed by reason of redundancy "if the dismissal is attributable wholly or mainly to -

  • the fact that his employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased, or intends to cease, to carry on that business in the place where the employee was so employed; or
  • the fact that the requirements of that business for employees to carry out work of a particular kind, or for employees to carry out work of a particular kind in the place where the employee was so employed, have ceased or diminished or are expected to cease or diminish;"
2. When an employer realises that redundancies are inevitable, he should give as much warning as possible to those whose job is at risk, having correctly identified the ‘pool’ for selection.
3. Consultation is a vital part of the process. The law requires: 90 days for over 100 employees facing redundancy at one workplace, 30 days for 20 or more and reasonable consultation for under 20. If there is a recognised union then the union must be consulted, otherwise employee representatives can be elected. It is also important to understand the purpose of the consultation, which is to explain to the employees why their jobs are at risk, discuss alternatives to redundancy and to explore alternative jobs within the Company. Recently we helped a client to agree with their employees shorter hours per week though effective and genuine consultation, thus saving job loses. If the employer does not consult properly, an Employment Tribunal can make the employer pay a "Protective Award".
4. Having decided on the ‘pool’ for redundancy, the employer needs to work out the staffing and workforce skills required. The employer must decide on what basis or criteria the employees to be made redundant should be selected. It is always good practice to involve the Union or employee representatives in the establishing of the process, to show impartiality and fairness. The selection may be based on ‘Last in first out’ or a selection criteria that is objective so far as is possible. Factors such attendance record (making sure that an employee with a disability is not disadvantaged), length of service and disciplinary record can all be objectively measured. However, there may also be subjective areas brought in such as skills, knowledge, performance, attitude and flexibility. The more subjective the elements introduced, the greater the likelihood of a finding of unreasonableness at a tribunal. The selection criteria should ideally be set up as a matrix with a scoring system.
5 It is important not to fall foul of any discrimination legislation. An employer could choose to examine sickness or absence records However, absences related to illnesses which constitute a disability under DDA 1995 should be disregarded, as should periods spent on maternity leave. For example, making all part-time workers redundant may constitute indirect discrimination against women.
6 The following are automatically unfair reasons for redundancy selection under the law. Redundancies that:-
  • Are related to trade union membership
  • Are because an employee is pregnant or for any other reason connected with her pregnancy
  • Are because the employee asserted a (relevant) statutory right, e.g. refusing to sign the 48 hour per week opt-out clause.
  • Are connected with health and safety
  • Involve a protected shop worker who is refusing to work on Sundays.
7 Should alternative employment be available within the organisation, which is offered to the employee, then the employee is entitled to a four week trial period.
8 Ideally, employers should have a written redundancy procedure but if they don’t, then they must follow custom and practice if redundancies have taken place in the past.
9 Ensure that all communication with employees is recorded and that the final dismissal letter outlines how the redundancy and final salary will be calculated. The employee will be entitled to pay during the notice period, any other benefits due under the employee’s contract, any holiday accrued and of course redundancy pay. Note that statutory redundancy pay is currently capped at £260 for each completed year of service and multiplied according to the employee’s age and length of service and is not taxable.
10 Do not forget that employees must be given a right to appeal on the grounds of selection for redeployment, loss of redundancy pay or related matters. This will be to the next level of management if possible. Not all organisations will have a management structure.
11 If the employee is working out their notice period then they will have the right to reasonable time off to seek employment and attend interviews.
12 As a final cautionary note, employers should think twice before making payments in lieu of notice to confirmed dismissals. This is because it will deprive the employee of an opportunity to appeal or continue to look for alternative employment within the company during the notice period. If there is no express contractual right to bring the contract to an end summarily and make a payment in lieu, the employer will be in breach of contract by requiring the employee to leave before the expiry of the notice period.

 

 

Compromise agreements

If an employer wants to ensure that no claim is brought against him by his employee, he will ask the employee to sign a Compromise Agreement. A Compromise Agreement consists of payment of a sum of money to an employee, in return for which he agrees not to bring any proceedings relating to his employment against the employer. The first £30,000 is not taxable.

 

Compromise agreements can also be used in other situations when employment is terminated and an employer wants to avoid litigation. If you would like a Compromise Agreement drawn up or more information please call us on 01473 890037 or e-mail us.

 

An employer would be well advised to take professional advice before making redundancies.

 

Tribunal Insurance

Imagine this. You are the model employer. You have done everything by the book. You have taken advice and you are totally confident about the case against your employee. You sack the employee. 4 weeks later you are the not so pleased recipient of an IT3 form indicating that the ex-employee feels so aggrieved that you are being taken to an employment tribunal. You have already invested time and energy dealing with all the paperwork and communication, now you will have to take your eyes off the business to prepare for the tribunal case. However, worse is to come. Much worse. Despite you believing you have a cast iron case, the tribunal sees otherwise and you get stung for a huge amount of money – taken from your profit. Completely out of the blue, unforeseen, unplanned. Find out how to remove the uncertainty here

 

The only surprises business people like are at Christmas and birthdays. Businesses like to know where risk is present and to deal with that risk. Tribunal insurance protects companies against these unforeseen events.

 

How does our insurance work.

A company must demonstrate that they are competent employers and are adequately implementing employment legislation. This is easily achieved by working with Picasso HR for employment advice on a regular basis. Insurance premiums are paid on the basis of annual payroll. In the event of any incident that could ultimately result in a tribunal claim being brought against an employer, the employer must first seek advice from our HR advisors. This could involve the following for example:

  • Long term sickness or absenteeism
  • When a member of staff requires maternity benefits
  • When interviews go wrong
  • When considering redundancies

 

Insurance covers costly legal fees and most awards of compensation.

 

Picasso HR is able to provide insurance for employment disputes. For more information call us on 01473 890037

 


The information in this newsletter is of a general nature and is not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action.

For further information, advice or assistance on any of the matters raised in this newsletter please contact Picasso HR on 01473 890037.

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