The Government has confirmed the level of fees for bringing an employment tribunal claim, to be introduced from next year. Professional support lawyer Elizabeth Stevens reports.
Following the consultation that was issued in December last year (see our previous briefing), the Government has issued its response confirming plans to introduce fees for bringing a claim in the employment tribunals.
Fees will be charged in two stages: the first will be payable when a claim is issued; the second will be payable prior to the hearing. The level of the fee will be determined by the type of claim:
Level one claims are generally straightforward claims involving a defined sum of money, such as unauthorised deductions from wages and redundancy payments. Such claims will require an initial fee of £160 when the claim is issued, followed by a further £230 is the case proceeds to a hearing, making a total fee of £390.
Level two claims are those involving more complex issues, including unfair dismissal, discrimination and equal pay. Such claims will require an initial fee of £250 followed by a hearing fee of £950, making a total of £1200.
Fees in claims involving multiple claimants will be increased by a factor depending on the number of claimants. A fee of £600 will be introduced for judicial mediation (which is currently free of charge). Fees will also be introduced for bringing an appeal to the Employment Appeal Tribunal.
Those on low incomes will be subject to the remission system that currently applies in the civil courts, meaning that they may not be required to pay the full fees. In addition, the tribunal will have the discretionary power to order the losing party to pay the fee incurred by the successful party. This will mean that if an employer loses a claim brought against it in the employment tribunal, it may be ordered to reimburse the fees paid by the claimant.
One of the Government’s stated aims for introducing fees is to encourage parties to think carefully about whether to lodge a formal claim, or whether it can be settled informally via mediation or conciliation. The Government wants to ensure that tribunals are used as ‘the option of last resort to resolve employment disputes’. The introduction of fees will also go some way to meeting the £84 million cost of running the employment tribunal system.
It is proposed that the new fee structure will be introduced from summer 2013.
A copy of the consultation response is available here
The firm’s Franchising Team is boosting its international profile by sponsoring a team of three students who are undertaking the 9,500 mile journey from Goodwood to Ulaanbaatar, Mongolia. The Rally’s rules state that maximum engine capacity is 1,200 cc and that the car must be less than 10 years’ old. In other words a “banger”. So the team of Teddy Chadd, Poppy Rainer and Pete Henriques, known as the “Three Mongateers”, is driving a turquiose 1.2 litre Vauxhall Aguilawith LP’s banner.
The route takes the team through Europe and on to Turkey, Armenia, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhastan and Russia before arriving in Mongolia around 6 weeks later. The Vauxhall Aguila is making good progress and has just crossed the border into the Czech Republic. The money raised by Teddy and his team will be split 50:50 between Help For Heroes and Lotus Children’s Centre Charitable Trust.
Whilst Western Europe has a developed franchising sector many of the other countries which the Vauxhall Aguila will encounter are somewhat behind the curve. Jonathan Chadd, head of Leathes Prior’s Franchising Team explains:
“Much of the impetus in franchising over the last 25 or so years has come from the US and Western Europe. We have seen an accelerated impact of franchising in countries like Australia and Brazil. However, whilst India and China are fast becoming franchising heavyweights much of the rest of Asia is still deemed to be a relatively untapped market. The principal benefit of franchising is it allows developed businesses with globally recognised brands to be adopted and replicated by entrepreneurs in developing countries with relative ease. We are delighted to have been able to support the rally and the initiative of the Three Mongateers in participating and raising funds for such good causes. We have asked them to report back on their experiences and in particular to identify the opportunities that exist for franchising and licensing into the diverse Asian countries through which they will pass.”
Steeles Law called in to Wymondham based communication solutions provider and fellow Chamber member APR Telecoms on Friday to deliver the champagne prize won through its Norfolk Show business card draw.
Steeles Law Business Development Executive Matt Reed presented the bottle to Matthew Coe, who is part of the executive team at APR Telecoms.
This year’s Show saw Norwich, Diss and London based firm Steeles Law increase its presence at the event, with a spot in the new All About Business networking marquee, in addition to its continued sponsorship of the bandstand.
Steeles Law Property Disputes Associate Jean Parkinson and Trainee Solicitor Laura Tanguay discuss the recent gas safety prosecution of the London Borough of Hammersmith and Fulham.
The most recent statistics available from the Health and Safety Executive (“HSE”) reveal that there were 264 gas related incidents in the last recorded year, causing a total of 18 fatalities and 399 non-fatal injuries. But despite these tragic outcomes – and indeed, the serious consequences of flouting gas safety legislation – we are presented with another example in the news of a local authority landlord in breach of its obligations.
On 11 July 2012, the local authority was fined £83,600 for failing to arrange annual safety checks on gas appliances in its tenanted properties. Investigations by the HSE revealed the authority failed to provide adequate certification in respect of appliances in many of its properties between April 2008 and July 2010.
At the hearing, Westminster Magistrates’ Court heard evidence that the various breaches had been uncovered following a tenant complaint that gas safety certificates were not available. Upon inspecting that property, it was found that the gas safety record had expired on 4 April 2008 – 15 months previously.
By law, landlords are required to arrange annual gas safety checks (undertaken by a Gas Safe registered engineer) and maintain gas safety records for every tenanted property in its portfolio as per the Gas Safety (Installation and Use) Regulations 1998 (the “Regulations”).
The local authority in this instance was prosecuted under Regulation 36(3)(a) of the Regulations. Under Regulation 36(3), landlords must:
1. check every gas appliance for safety within 12 months of being installed by the landlord and every 12 months thereafter;
2. check every gas appliance owned or installed by the landlord for safety within the 12 months prior to a new lease commencing; and
3. keep records in the manner prescribed by the Regulations of appliances checked and retain these for a period of 2 years thereafter.
The authority pleaded guilty to all nine breaches of the Regulations and was fined a total of £83,600 and ordered to pay full costs of £15,553. At the Crown Court, a breach of these Regulations can in fact be punishable by imprisonment and/or an unlimited fine.
There are a host of further gas safety requirements in addition to the above to which landlords must adhere, a summary of which can be found on the HSE website. Should you have any further questions or queries, please do not hesitate to contact Jean Parkinson on JParkinson@steeleslaw.co.uk.
On Tuesday 10th July, Norfolk training company, the Red Cat Partnership, travelled to London to be honoured in the House of Commons by the President and Chair of the Board of Governors of the Chartered Institute of Environmental Health (CIEH).
Husband and wife team, Sarah Daniels and Richard Mills, who established The Red Cat Partnership in April 1999, made the trip to receive the awards for CIEH Health & Safety Training Centre Of The Year, as well as CIEH Trainer of the Year, for their delivery of the CIEH Level 4 Award in Health & Safety in the Workplace. They were joined by Sarah Moss, one of their course delegates, who is Branch Office Administrator for the Samaritans in Norwich. Sarah beat nearly 2000 other candidates who took the course in 2011 to be awarded Highest Scoring Student of the Year, with an impressive result of 95%.
This is the second consecutive year that The Red Cat Partnership has been awarded these highly prestigious honours from the CIEH, which is the professional voice for environmental health; setting standards, accrediting courses and establishing qualifications for the education of members and other environmental health practitioners. In addition, the CIEH gives information, evidence and policy advice in the public and private sectors, as well as providing qualifications for over 50 certification training programmes, hosting events and supplying support materials on topics relevant to health, wellbeing and safety, to develop workplace skills and best practice.
The Red Cat Partnership is based in central Norwich and offers a wide range of courses and expert consultancy in health & safety and food safety compliance. They are one of over 6,000 training centres for the CIEH, which enforces the highest standards from all of their registered centres, trainers and staff, as well as presenting clear guidance on what to expect from trainers and training centres and outlining procedures for candidate enquiries.
The CIEH awards aim to recognise the trainer and training centre which has supported the delegate who achieves the highest exam score for their Level 4 Award in Health & Safety in the Workplace, worldwide. The awards are results based and companies cannot nominate themselves or others. Instead the awards are judged by the CIEH based on exam results and course delivery.
The course itself is delivered over five days and is designed for owners, senior management and those in a supervisory role of small to medium sized businesses, and for those who have a hand in higher level management of larger businesses, such as hotel managers or residential care home managers. It aims to equip delegates in applying the basics of an appropriate management cycle to their business, and to have a more detailed understanding of key Health and Safety issues, such as hazard areas. Assessment is by a formal written exam, and a controlled assignment, in the form of a case study of the delegate’s own business, which is also carried out under exam conditions.
Richard Mills, Director of The Red Cat Partnership, said: “We work very hard to use a wide variety of activities and case studies to ensure the five day course is interesting and stimulating, as well as an effective learning environment. The course itself is equivalent to degree-level studies and requires a great deal of work, so it is important that our delegates are passionate and enthusiastic about their learning experience.”
Sarah Daniels, Director of The Red Cat Partnership, said: “We are obviously over the moon to have been honoured by the CIEH for the second consecutive year. It is particularly rewarding that these awards are based on the success of our delegates, which obviously speaks volumes and there is no better testament to the successful delivery of any course than when our delegates achieve outstanding results. We would like to congratulate Sarah for doing so fantastically well and to thank her for her passion and enthusiasm.”
Sarah Moss, Branch Office Administrator for the Samaritans, said: “The course was extremely interesting and informative – I really enjoyed the five days with Sarah and Richard and felt I learnt a great deal. The course was invaluable in introducing me to the legislation underpinning health and safety, as well as helping me to identify and understand workplace hazards and how to assess and reduce risk. The course also helped me to understand how to manage health and safety in the workplace, so that by the end of the course I felt well-equipped to go on and apply what I had learnt in a practical way, in my role with the Samaritans.”
Heather Griffin, Deputy Director for the Samaritans, said: “Achieving her CIEH Level 4 Award in Health & Safety in the Workplace has been invaluable for Sarah in her role with us here at the Samaritans. For her to be honoured with this award, therefore, really is the icing on the cake and we would like to thank Sarah and Richard at The Red Cat Partnership for supporting Sarah in achieving such a great result.”
For details of the next course contact the RedCat Team on 01603 502136
Emma Alfieri, fromSteeles Law’sfamily law team, reports that the recession is having a real impact on couples wishing to separate or divorce.
This is due to the recession having diminished the value of many assets:
Splitting one household into two is becoming increasingly difficult. Stagnant or in some cases falling house prices, reduced savings and volatile investment and pension funds, are acting as a ball and chain for many parties wishing to separate. So much so, that some couples are delaying bringing divorce proceedings due to a lack of funds and diminished asset values.
Conversely, some individuals are using the current economic climate to their advantage. For the higher earner, commencing divorce proceedings during the recession could mean benefiting from a reduced settlement based on lower asset values and lower income.
Where couples do decide to separate or divorce, the way in which the assets are shared is becoming less straight forward.
This is due to mortgage lenders now having tougher lending conditions and requiring larger deposits. In some cases we are finding that lenders are not prepared to lend at all, perhaps due to a low income or not taking certain benefits or child maintenance income into account.
Other issues can arise when for instance one party wishes to buy out the other party’s interest in the family home. We are regularly seeing that mortgage lenders are unprepared to release one party from a joint mortgage. There are other options that divorcing couples can consider, such as a “Mesher order” or a “transfer with chargeback”, however some individuals who may have been homeowners for a long time are finding that they are forced to rent. This is a more recent development as prior to the recession lenders were less cautious and it appeared simpler to meet both parties’ future housing needs.
Due to the above, there is also a renewed focus on other assets such as pensions which are becoming a critical consideration in terms of the overall settlement.
Whilst the changes we are seeing may appear to be rather depressing at an already difficult time, our specialised family law team are experienced in getting over these hurdles and working towards overcoming the issues that the recession brings.
For further information, or for an informal chat with one of our family team please contact us on 01603 598000 or visit www.steeleslaw.co.uk.
OpenContact has been awarded the contract to manage telephone bookings and customer service calls for The View from The Shard. The Shard, the iconic, landmark building on the London skyline, designed by Master Architect Renzo Piano will be the tallest building in Western Europe. The View from The Shard is nearly twice as high as any other viewing platform in London and will offer an unparalleled encounter with an incredible building that invites guests to experience the most spectacular views of London past, present and future like never before.
The View from The Shard spans floors 68, 69 and 72 at a height of 800ft or 244m. The visit provides guests with a multi-sensory experience and exhilarating 360° views for 40 miles across London. Opening on 1st February 2013, tickets for The View from The Shard are available by pre-booking and are now on sale online at www.theviewfromtheshard.com. Norfolk based OpenContact beat national competition to be the partner that will help to deliver the customer experience required by The View from The Shard as a premium visitor attraction to local, national and international audiences.
OpenContact will be reporting to The View from The Shard’s management team including Anders Nyberg, Chief Executive and Sandy Clark, Operations Director.
OpenContact’s Head of Client Services, Steve Gregory said: “The Shard is an international icon and work of art. The View from the Shard will enable visitors to unlock London’s culture, architecture and history and we are thrilled to be involved in one of the most significant international launches of 2013.”
Anders Nyberg, Chief Executive Officer, Shard Viewing Gallery Management Group said: ‘We are delighted to have OpenContact on board to help us provide the highest level of customer experience for The View from The Shard. OpenContact’s expertise in managing customer services for visitor attractions will help us to ensure that our guests have the best possible experience, even before they arrive.’
About OpenContact: Established over 11 years ago in Norwich, OpenContact is an outsourced customer contact centre designed to manage customer encounters on behalf of our clients and deliver the customer experience they need. Still family owned and operated, Fiona Temple and her team always create a bespoke service to match every client’s specific requirements and deliver to them consistently.
OpenContact’s work includes: GoApe, UK General Insurance, Mattressman, Harrod Horticultural, National Trust, Booking.com and Christian Aid
About The View from The Shard A premium visitor experience, The View from The Shard offers guests an unparalleled encounter with an incredible building and the creativity, history and culture of London.
The View from the Shard is the highest viewing point from any building in Western Europe, nearly twice as high as any other view in London.
Guests will reach The View from The Shard through a two-stage, state of the art lift experience with music and light effects, which build anticipation, excitement and exhilaration. Guests will arrive at level 68 before ascending to The View on level 69, a triple-height, light-filled main level where the view is revealed and London past, present and future is laid before you like you’ve never seen it before.
On level 72, guests have the opportunity to experience the elements with part of the building exposed through the fractures where the shards of glass come together and the opportunity to gaze at the giant glass shards disappearing into the sky.
Guests exit via a small boutique on level 68 prior to descending in the lifts back through reception where they will have an opportunity to browse the main boutique as well as purchase a souvenir photograph.
The View will be open from 9.00am to 10.00pm to enable guests to enjoy the experience by day and night.
Advance adult tickets for The View from The Shard are £24.95 and available by pre-booking, a system that ensures an unpressured, premium quality experience with no waiting and no queues.
The new legislation may improve the image of enforcement, but will it achieve the correct balance between the rights of creditors and those of debtors? Steeles Law’s Tom Bailey and Denise Cushine investigate.
Vicki Mitman, a solicitor in the firm’s Franchising team, recently attended the bfa Affiliate and Midlands Regional Forums. The bfa works closely with its members and affiliate members to help advance knowledge and expertise within the franchise industry and acts as the voice of ethical franchising in the UK providing information and advice to businesses looking to expand their current operations through franchising and to people considering joining a franchise. At forums, bfa members and professional advisors share information and ideas along with discussing current market trends and debating certain “hot” topics.
At the forums last week the following issues were discussed:
– How to grow franchising
– What franchisors do to launch a new franchise
– How to motivate franchisees in a mature network
– How franchisors use their networks to help them recruit new franchisees
– Review of the bfa Annual Conference (21/22 June 2012) – including ideas and discussion topics for the next annual conference.
– Update on the bfa/NatWest survey – the survey monitors the performance, attitude and opinions within the franchise industry. The survey revealed that the annual contribution to UK turnover within the franchising industry is now £13.4bn and that there are 929 active franchises. Both the annual turnover and the number of active franchises have increased quite considerably from 2011.
– bfa News and Update – including the launch of franchisee membership and the upcoming roundtable discussions and social evening on 19 July 2012
Leathes Prior is an affiliate member of the bfa and has specialised in franchising for over 30 years.
Steeles Law Head of Real Estate Michael Fahy and Trainee Solicitor Laura Tanguay consider the Court of Appeal decision of Helena Partnerships Ltd v HMRC [2012] EWCA Civ 569 regarding the charitable status of housing associations.
Last month, the Court of Appeal unanimously dismissed an appeal by housing association, Helena Partnerships Ltd (“HPL”), against a decision that it was not established for charitable purposes only; the upshot of which being that it did not qualify for a £6 million refund of corporation tax paid on rents received pursuant to the charitable exemption.
In 2001, HPL changed its memorandum and articles so that its objects included activity carried out by a social landlord “for the benefit of the community”. Later, in 2004, HPL became a registered charity. The issue on the appeal was whether HPL had been established for charitable purposes only in the period of 2001 to 2004; if held to be a charity, it could claim back a substantial amount of corporation tax paid during this time.
Held
The Court held that HPL’s objects were not exclusively charitable. Providing social housing was not, in itself, enough to establish HPL as a ‘charity’. Although it’s activities were said to be carried out ‘for the benefit of the community’, they were not limited to this as some of the housing stock was rented to private individuals who were not considered to be ‘in need’.
Lloyd LJ went on to say that the provision of housing accommodation, “otherwise than for those in some relevant charitable need”, was not a purpose “within the spirit and intendment” of the preamble to the Statute of Charitable Uses 1601. In order for a housing association to come within the scope of the preamble it was considered that the provision of housing would need to be restricted to the relief of need.
Comment
It is not sufficient for an organisation to assert, or for its governing document to state, that its activities or operations are to be undertaken for the benefit of the community. More is required and its purposes must fall within the scope of the preamble to the Statute of Charitable Uses.
If you require advice on any issues raised in this article please contact Michael Fahy on 020 7421 1720 or mfahy@steeleslaw.co.uk
Norwich and Diss based law firm Steeles Law has recently recruited a new Marketing Manager and Business Development Executive, signalling a major investment in these areas for the future growth of the Whiting Road based business (which also has established offices in Diss and a city based team in Central London).
Matt Reed joins the team as Business Development Executive, a new position at Steeles Law, bringing with him with 12 years’ direct sales experience in a variety of industries, including IT/software sales, education, advertising and financial services.
Gemma Pendleton is the new Marketing Manager, having previously worked for another Norwich based law firm in a similar role and with extensive prior experience in the voluntary, e-commerce and professional services sectors.
Commenting on the new appointments, Stephen Drake, Managing Principal, said: “Steeles Law has always considered itself as a modern, forward thinking firm. Over 20 years ago, we were the first local law firm to take a place on one of the modern business parks on the outskirts of the city – a move which is now being echoed by many other firms wishing to become more accessible to the modern client. With the appointment of Matt and Gemma, we are again adapting to the changing landscape of the legal profession, following the advent of the Legal Services Act last year, to future proof our business and ensure that we continue to provide the personal, high quality service that our clients have come to expect.”
Steeles Law’s Head of Employment, Oliver Brabbins, considers the implications of a recent Court of Appeal decision in which an employee who set up a business competing with his employer was held not to be in breach of his contract of employment.
In this case, the employee (R) had been recruited straight from university as an applications consultant by a specialist IT consultancy firm, Customer Systems plc (CS). During the period of his employment, from 2001 to 2009, R was promoted a number of times and in his final year of employment he was responsible directly or indirectly for 59 per cent of the group’s total revenue. Crucially to the case, however, R’s contract of employment remained unchanged during the period of his employment. The original contract he entered into in 2001 contained a confidentiality provision, but no post-termination covenants to restrict his activities after his employment ended.
R resigned and left CS in February 2009. Both before and during his notice period, he had made preparations to establish a competing business, including discussing potential work with existing clients of CS.
CS brought a claim against R for breach of his contractual obligations, and breach of his fiduciary duty to the company by failing to report his contact with the clients to CS. A ‘fiduciary duty’ is essentially a duty to act in the company’s best interests and is a duty owed by all directors, but not necessarily employees, of a company. The company’s claim was upheld by the High Court.
R’s appeal to the Court of Appeal has since been successful. The Court did not agree with the judge’s conclusion that there was no material difference between R’s situation and that of a director. The judge had failed to take into account the express terms of R’s contract and had failed to properly consider whether, as an employee of the company, R had any fiduciary duties at all. In the Court’s view, there was nothing to suggest a fiduciary duty applied to R, and there was no express contractual term prohibiting him from contacting clients or setting up in competition.
Comment
This case illustrates very well the danger of failing to ensure that contractual documentation is regularly reviewed and updated to ensure that it accurately reflects the relationship between the parties and provides adequate protection for the employer. A contract of employment for a junior employee will rarely be suitable for an employee who has been promoted to a more senior position and who is likely to pose a much greater risk to the employer’s business when he or she departs.
Confidentiality provisions and post-termination restrictions (“restrictive covenants”) should always be carefully tailored, depending on the nature of the business and the position of the individual employee within that business. When an employee is promoted, proper consideration should be given to the question of whether a new contract of employment is appropriate to reflect the employee’s seniority.