Tuesday, February 23, 2016

Recruitment and Employment Seminar

Tuesday, February 23, 2016

 
Phil Kerridge, Director at Rogers & Norton, was recently invited to take part in a lunch time seminar organised by HR GO Recruitment at the St Giles House Hotel, where he spoke to around 40 invited guests.
 
Phil talked about the perils and pitfalls of social media in the work place and highlighted it’s increase in popularity during the last 10 years. He also discussed the impact that it has had on companies and how it has altered the dynamics of the employee/employer relationship. He has personally seen a rise in issues caused by employees using social media and stressed that it is important that employers have a specific social media policy and that it is published and understood by the workforce.

“It is such a permanent and spontaneous form of communication, it is vital the employers ensure that their staff understands the full implications of actions they take”.

Wednesday, February 17, 2016

More success for Rogers and Norton's litigation team

Wednesday, February 17, 2016

Rogers and Norton’s litigation team have successfully secured an agreement for HMRC not to pursue notices issued under Paragraph 4 (2) a of Schedule 11 to the Value Added Tax Act 1994.

Peter Hastings comments “Notices were issued seeking security of  £140,000  in relation to VAT, PAYE and NICS. We lodged an appeal to the First Tier Tax Tribunal for our client in which we challenged HMRC’s figures for VAT and also raised a number of novel legal arguments.  HMRC has confirmed no further action will be taken on these notices and therefore the Appeal has been successful.  As reported before, we have seen an increase in such notices being issued by HMRC, which are issued by HMRC if they consider that there is a risk to the Revenue. Non-compliance can also lead to prosecution and it is essential that a company and its officers who are served with such notices seek our advice immediately.  This is another success that we have achieved, and which is excellent news for our client.”


The team is currently acting for businesses and individuals on a number of Border Force and HMRC matters including Appeals to the First Tier Tax Tribunal and also advising businesses on the Alcohol Wholesale Registration Scheme.

Tuesday, February 9, 2016

Employment Law Bulletin; February 2016

Welcome

February. The month of hearts, chocolates and helium balloons.
Even if your offices aren’t filled to the brim with roses, Valentine’s Day should remind every employer that love can – and often does – blossom at work. There’s no getting away from that, and it’s not necessarily a bad thing. Happiness breeds productivity.
But when two workers are in a relationship, there’s always potential for distraction, tension, jealousy, conflicts of interest. What if the relationship breaks down? You could be left with two employees who can no longer work together, or who draw you into a claim for bullying, harassment or constructive dismissal (for example).
The key point is: keep an eye on what’s happening around you and have policies that cover workplace relationships. That doesn’t mean a blanket ban on employees getting together. But it’s worth having some company rules that require couples to behave professionally and to understand what’s expected of them while they’re at work.  

Monitoring employees’ messages Barbulescu v Romania

Mr Barbulescu was dismissed for breaching his employer’s rules on the personal use of the internet at work. On his work-related Yahoo account were found to be messages to his brother and fiancĂ©e about his health and sex life.
Was it right for the employer to have accessed those messages and for them to have been used in the disciplinary and subsequent court proceedings? Mr Barbulescu argued that there had been a breach of his right to respect for private life and correspondence.
The case went to the European Court of Human Rights which found against Mr Barbulescu. Although workers have a reasonable expectation of privacy at work, this isn’t absolute. The employer had a total ban on the private use of work equipment, and this was an important fact. It had accessed Mr Barbulescu’s Yahoo account (set up for work purposes) believing that it contained business-related messages only, and for the purpose of checking that Mr Barbulescu was fulfilling his work duties. This was a proportionate interference with his rights. The employer hadn’t accessed other data and documents stored on the computer, and the monitoring was therefore limited in scope and was proportionate.
So, far from living up to some of the headlines it generated, this case really came down to basic rules about monitoring and data protection. Yes, employers are entitled to check that their employees are fulfilling their working duties, but only if done properly and it’s proportionate. Making clear what your position is on private communications at work is the first step. Then it’s about having a clear monitoring policy that’s communicated and carried through.  

Legal highs at work You probably have an alcohol and drugs policy. But does it cover ‘legal highs’?

These are substances that imitate the effects of illegal drugs. They’re generally stimulants, ‘downers’ or hallucinogens, and their use can have serious consequences. According to Acas, there were 129 reported deaths in England, Scotland and Wales in 2014 where new psychoactive substances were implicated.
If you haven’t yet read Acas’; guidance on dealing with legal highs at work, take a look here.
The broad advice is to: – deal with the use of legal highs in the same way as you would other drugs or alcohol, and build this into your policy. Remember that even though legal highs aren’t unlawful, you can still control their use in the same way as you ban or restrict the consumption of alcohol at work. – think about focusing in your policy on the effect the drugs have, rather than on the drugs themselves. That should make it easier to identify legal highs during drug testing; the compounds that make up legal highs are changing all the time. – educate staff on the signs of drug use – encourage users to get help.  

Rights for zero hours workers

As of 11 January 2016, people working under zero hours contracts have better legal protection.
The Exclusivity Terms in Zero Hours Contracts (Redress) Regulations 2015 are now in force. They make it automatically unfair for an employer to dismiss a zero hours contract employee for failing to comply with an exclusivity clause, irrespective of their length of service. Workers (including employees) have the right to bring a claim if they have been subjected to a detriment for the same reason.
The Regulations follow last year’s banning of exclusivity clauses – those terms in zero hours contracts that tie workers into working only for that employer. Employers who still try to enforce this sort of arrangement could now find themselves on the end of a claim.  

Instruction to speak English wasn’t discriminatory
Kelly v Covance Laboratories

It can take a brave employer to ban the use of certain languages in the workplace. But in this case, the employer was found to have a legitimate reason for insisting on English-only.
Russian-born Ms Kelly worked at a lab that carried out animal testing. After being told that she was not allowed to speak Russian at work, she brought claims including race discrimination against her employer.
The reason this claim failed at tribunal and at the Employment Appeal Tribunal (EAT) was because the instruction to not speak Russian at work was not about race or national origin; it was about security. Covance had been the subject of unpleasant attention from animal rights activists and was concerned by Ms Kelly’s behaviour. She used her mobile phone at work, disappeared into the bathroom with her phone for excessive periods and spoke on her phone in Russian. There were fears that she might be an animal rights infiltrator and it was felt necessary that English-speaking managers in the business could understand conversations that were taking place.
Although it can be discriminatory to impose certain language requirements at work, in this case another employee in similar circumstances, speaking another language (apart from English), would have been treated in the same way as Ms Kelly. There was no discrimination.
Her harassment claim failed on the same basis: the instruction to not speak Russian wasn’t given because of Ms Kelly’s race or national origin. It was because of her behaviour in the context of her employer’s operations and the risks it faced. In addition, the instruction didn’t have the effect or purpose of violating Ms Kelly’s dignity or creating an adverse environment for her (essential elements of harassment).
Treat this case with some caution. You’d need a really good business reason that justifies a restriction or ban on the use of certain languages at work. And you’d need to apply your language requirement fairly across your workforce, underpinned by a clear policy.  

Disclosure of criminal convictions
R (P and A) v Secretary of State for Justice

The High Court has found fault with the system of criminal records checks in England and Wales, saying that it’s incompatible with the right to privacy and family life under the European Convention on Human Rights.
Under the current scheme, two or more convictions have to be disclosed, whatever the circumstances. This won’t always be proportionate. The offences might have happened a long time ago and might have been very minor, but if there’s more than one conviction, these must be disclosed when applying for certain jobs – indefinitely. And this can lead to people being penalised throughout their lives for mistakes they made when they were younger.
Two people brought a case arguing that point. One, who wanted to work as a teaching assistant, said that having to disclose details of her conviction for stealing a 99p book in 1999 (while suffering from a mental illness), and a second conviction for not attending court, was disproportionate and breached her privacy. Another claimant had been convicted of two minor crimes in 1981 and 1982. He argued that he shouldn’t have to disclose those convictions years later. They won.
The Home Office might appeal, so watch this space.  

An 84-hour working week can be lawful
Matja Kumba T M’bye and others v Stiftelsen Fossumkollektivet

The Working Time Directive says that workers shouldn’t work more than 48 hours per week, unless they opt out of that limit. Workers are also entitled to certain daily and weekly rest breaks.
This case was about therapists at a treatment centre for young people with drug and alcohol problems. Shift patterns were to change so that workers would work for seven days and then have seven days off. Those who didn’t agree to that were dismissed and offered reengagement on the new terms.
The European Free Trade Association Court held that an 84-hour week can be lawful. There is flexibility in the rules to allow for different working patterns in certain types of jobs. Here, in a cohabitant care arrangement, continuity of care was said to be beneficial to patients. That being so, it might have been impossible for these workers (who had opted out of the 48-hour limit) to be given the rest periods to which they might otherwise be entitled. An 84-hour week was not incompatible with the Directive.
The rules on rest breaks, including compensatory rest periods, can be tricky, so get advice on your particular circumstances to check that your workers are getting their full entitlement, and before implementing any changes.  

And finally….. This year’s Oscars. Where to begin?

Claims of a lack of diversity gathered huge pace in a short time, with prominent figures making their views known on the absence of non-white acting award nominees for the second year running.
It’s an issue that crosses very easily into employment law. Every employer could be scrutinised and judged on the characteristics of staff. What if your workforce is underrepresented in one way or another? What if its average age points to a paucity of older workers? Are you missing out on the benefits that diverse workforces can bring?
Our laws should ensure equality of opportunity, and recourse if someone with a protected characteristic (race, sex, age, religion or belief etc) has been treated unfairly. What the build-up to the Oscars has done, if nothing else, is draw attention once again to equality – or the perceived lack of it – still being an issue, everywhere.

Friday, February 5, 2016

Help for first time buyers

Friday, February 5, 2016

From 1 December first-time buyers have been able to save in a Help to Buy Individual Savings Account (HTB Isa), earning up to 4% and the government will add money to it. As with a traditional cash ISA, the interest you earn will be free of both income and capital gains tax. In addition, when savers take money out to buy a house or flat, the government will add 25% to whatever is in the account, up to a maximum of £3,000.

Who is eligible?

You must be a UK resident, and a first-time buyer. Indeed you cannot have owned a property anywhere in the world. If you have already opened a cash ISA in the same tax year, you will almost certainly need to close it.

What property can you buy?

The property must be purchased with a mortgage. It cannot be a second property, or for buy-to-let purposes. The maximum purchase price is £250,000, or £450,000 in London. You do not have to buy a property through the government’s Help to Buy scheme.

How much money can you pay in?

In the first calendar month, you can kick start the ISA with up to £1,200. This does not have to be paid in one go. But you may want to open the account early in the month to take most advantage of it. In subsequent months, you can pay in up to £200.

How much of a bonus will the government pay?

The government will add 25% to the account at the point you choose to buy a property. The minimum it will add is £400, meaning you need to save at least £1600. The maximum it will add is £3000, when you have saved £12,000.

The bonus is paid on the total amount in the account – in other words including the interest. But even if the account pays an interest rate of 2% a year, it will still take over four years of saving the maximum amount to earn the £3,000 bonus.

How will the bonus be paid?

Your solicitor or conveyancer will apply for the bonus when you buy a property. If there is no house purchase, your savings will continue to receive the interest payable on the Isa account.

Can you open an HTB Isa with a friend?

No. Only individuals can open an account. But two people buying a property together can each use their bonuses, giving them up to £6,000 to set against the purchase price.
What if you have already got a cash Isa?

You can open one cash ISA in any tax year. So you can still have cash ISAs from previous years, and open a HTB ISA too. If you have already opened a cash ISA in the current tax year, you cannot continue to hold that, and open an HTB ISA. So you will have to close the cash ISA.
Up to £1,200 can be transferred directly to the HTB ISA; the rest can be put into a stocks and shares Isa, or a non-Isa account.

The only exception to this is if your Isa manager offers an “umbrella” or “portfolio” arrangement, in which case it may be possible to maintain both a cash and an HTB Isa from the same tax years.

How long is the offer open for?

You will be able to open a HTB ISA up to 30 November 2019. After that date, you can continue to save in existing accounts. But all bonuses must be claimed by December 2030.

Steve Clarke comments “it has been increasingly difficult for first time buyers to scrape together a deposit without accessing the bank of Mum & Dad – this gives first time buyers the chance to earn a good interest rate on their savings and get free money from the Government. Why wouldn’t you take advantage of it?

The conveyancing department is currently very busy, so it is good to see initiatives such as this that will help support the momentum in the housing market”

Contact the Rogers & Norton conveyancing team on 01603 666001 or email web@rogers-norton.co.uk for more info.

Tuesday, February 2, 2016

100% of income from child maintenance to be taken into account

 

Tuesday, February 2, 2016
The Ipswich Building Society has just announced that all of its residential mortgages will be available to divorcees with 100% of the income from child maintenance taken into account when assessing affordability, provided it is supported by the Child Support Agency or Court order which has at least five years left to run.

Often divorcees will have considerable difficulty in trying to find a lender who will provide them with a mortgage even in circumstances where they have demonstrated their ability to pay an existing mortgage.

The government seems keen at present on ensuring that people make agreements directly with each other in respect of child maintenance.  However, lenders usually require evidence by order or at the very least a solicitor’s letter.  It is essential that you ensure your child maintenance is paid directly to your account by standing order.  The lender will need to see this as evidence of an agreement.  Also consider paying the child maintenance agency £20 to formally assess and approve the agreement in writing if it is not part of your consent order.

Kerry Rowell comments “being able to raise a mortgage either to purchase a new property or to release an ex-spouse from their obligations under a mortgage is often key to achieving finality in a divorce or separation.”

Below is a list of lenders showing the extent to which each will consider the child support you receive, arrange for a recommended IFA to consider them with you:-


Takes Child Support into Account (With CSA/Court Order)

Cambridge Building Society – may make an exception to the above where there is a proven track record.

Clydesdale and Yorkshire Banks – looks at borrowers on a case by case basis.

Co-operative Bank – takes 100% of maintenance into account but wants to know this is sustainable.

Metro Bank

Virgin Money –Will take it into account if the assessment or order has been in place for 2 years.

NatWest/RBS – doesn’t always insist but will look for sustainability.


Takes Child Support into Account (Without Court/CSA Order)

Santander – Will require evidence of payment for at least 3 months i.e standing order
Tesco Bank – As above

Barclays – If no court order then Barclays will consider you if child support has been paid continuously for 12 months.

Source ‘This is Money’