May 2007

In Brief - Religious Discrimination - Support Teacher To Appeal

A Muslim support teacher, who lost her claim for direct discrimination, indirect discrimination and harassment on religious grounds after she was suspended from work and then dismissed for insisting on wearing her veil, is to take her case to the Employment Appeal Tribunal.

Mrs Aishah Azmi had said that she was willing to remove her veil in front of children, but not if a male colleague were present.

Revised Local Authority Licensing Law Guidance

The Licensing Act 2003 requires the Secretary of State to issue guidance to licensing authorities on the discharge of their functions under the Act. Revised draft guidance to assist local authorities in delivering the measures contained in the Act has been issued for consultation.

Protecting Your Designs

One of the less well-understood areas of intellectual property protection is that relating to the protection of designs. In part, this is because the protection of designs exists in two forms.

Design right, like copyright, is automatic and no formal application process is necessary. Design registration, on the other hand, needs to be applied for. In that regard, a design registration is similar to a patent.

Negligent Company Directors Banned For 15 Years

A recent case shows the seriousness with which the Secretary of State for Trade and Industry regards the conduct of directors when this is seriously negligent. The outcome was that two company directors have been banned from holding office as directors for 15 years.

Landlord Need Not Repair Item Not In Disrepair

A tenant who sought to claim from her landlord, after she was cut by broken glass, found that the Court of Appeal did not agree that her landlord was liable for her injury.

Insurance Policy Prevents Vat Recovery

The issue of VAT input tax recovery on motor vehicles has a long history of producing conflict between VAT-registered traders and HM Revenue and Customs (HMRC).

In general, no input VAT is recoverable on cars, although there are exceptions, in particular where the car is leased. One exception is when the car in question has no private use of any kind.

In Brief The End Of The Patent Office

From 2 April 2007, the Patent Office will be known as the UK Intellectual Property Office (UKIPO). The purpose of the change is to make it clear that UKIPO deals with all forms of intellectual property registration and not just patent applications.

In Brief Guidance On Cancer And Working

Changes introduced in December 2005 extended protection under the Disability Discrimination Act 1995 to those diagnosed with progressive forms of cancer.

The Chartered Institute of Personnel Development, together with the Working with Cancer group and the cancer information charity Cancerbackup, has produced guidance entitled 'Cancer and working: guidance for employers, HR and line managers'.

The guidance will prove useful to employers in responding to the needs of employees affected by cancer or other critical illnesses. It can be downloaded at

Handling Subject Access Requests

The Data Protection Act 1998 gives individuals the right to access information held about them by organisations. The Act governs how organisations can use the personal information they hold - including how they acquire, store, share or dispose of it.

The Information Commissioner's Office has published guidance for small- and medium-sized firms on how to deal with requests (called 'subject access requests') from individuals for information held about them.

Guidance On Reits

HM Revenue and Customs (HMRC) have now published guidance on Real Estate Investment Trusts (REITs), which became available on 1 January 2007.

Get It Right First Time

Two recent cases illustrate the wisdom of taking advice to make sure that before you sign an agreement, its terms have been reviewed and its meaning is clear.

Fraud On The Increase

A rise in reported business fraud of 40 per cent in 2006 means that fraud has reached new record levels and is estimated to be costing UK businesses £1.37bn annually. Most fraud is employee fraud.

The number of reported frauds which cost the individual firms involved more than £50,000 was up by a third, to 295 cases.

Fraud Act 2006 - New Weapon Against Rising Fraud

Recent reported increases in fraud (reports by accountants BDO Stoy Hayward and KPMG both indicate a rapidly increasing problem) will focus the minds of business managers on this issue. Fortunately, there is a new weapon against fraudsters - at least those whose frauds are detected - in the form of the Fraud Act 2006.

Delay Not Fatal In Pale Case

The result of the well-publicised 'Whiter Shade of Pale' case was not one which will make either side 'turn cartwheels across the floor'. In essence, the claim was that Matthew Fisher, a former organist with Procol Harum, should be treated as a co-writer of the 1967 million-selling smash hit featuring his distinctive organ work.

Defective Compromise Agreements

There are specific rules that normally apply when an employer enters into a compromise agreement in order to prevent an employee from taking action on a particular matter at the Employment Tribunal at a future date. A recent case has further illustrated the need for careful drafting of such agreements if they are to achieve their intended purpose.

Court Will Not Act To Give A More Commonsense Result

Although the current thinking of the courts is to consider contractual disputes from a practical commercial angle, they will not normally 're-write the contract' just because the meaning of the provisions of the contract in dispute might conflict with commercial common sense or if this would result in them being more in accord with normal business practice.

Site Waste Management Plans

The UK produces around 400 million tonnes of waste annually, of which approximately 72 million tonnes comes from construction sites. In an attempt to reduce this, the Government is introducing Site Waste Management Plans (SWMPs), which are due to become a legal requirement for the construction industry in England and Wales by spring 2008. The aim is to provide a structure for dealing with waste delivery and disposal at all stages during the construction process.

Small Firms To Get Ip Audits

Intellectual Property (IP) audits are to be offered to small businesses in the UK.
Up to 40 small firms, many of which have never before sought to protect their IP, will benefit from a 3-day 'IP audit', being piloted by the Patent Office in collaboration with four Regional Development Agencies. Two groups will be targeted - companies that have filed only one or two IP applications and those that have never filed.

Unpaid Rent Claim - Landlord Need Not Mitigate Loss

A common principle in English law is that of mitigation. This means that in cases involving a claim for damages, the person who has suffered the loss for which compensation is being sought is expected to take reasonable steps to minimise that loss.

In Brief - Pension Schemes - Consultation

The Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006, introduced under the Pensions Act 2004, are extended to employers with more than 100 employees from 6 April 2007. Previously, the Regulations only applied to employers with more than 150 employees.

Employers covered by the legislation are not permitted to make major changes to their pension scheme without first consulting with current and prospective members, or their representatives, for a period of at least 60 days, prior to the changes being introduced.

In Brief - Employers' Guide To The Age Discrimination Regulations

The Chartered Institute of Personnel and Development and the TUC have published guidance to help employers understand and implement the age discrimination laws, which came into force last October.

The guidance is called 'Developing a new mindset on age and retirement' and can be downloaded at http://www.cipd.co.uk/subjects/dvsequl/_mngagegd.htm?IsSrchRes=1.

Immigration - New Rules For Applicants Seeking Permanent Residency

From 2 April 2007, all those seeking permission to live in the UK permanently will need to demonstrate that they have the requisite language skills and knowledge of life in the UK to integrate successfully into British society. There will be two ways of doing this.

Grievances And Constructive Dismissal

When an employee raises a grievance because of bullying or harassment by other members of the workforce, it is sometimes very difficult for the employer to ensure that the outcome of the grievance procedure is satisfactory in the eyes of the person who has made the complaint. The Employment Appeal Tribunal (EAT) has considered in what circumstances the dissatisfied employee is entitled to resign and claim constructive dismissal (Abbey National plc v Mrs E Fairbrother).

Government Cracks Down On Minimum Wage Non-Payers

The Department of Trade and Industry (DTI) has announced a new policy for dealing with rogue employers who fail to pay the statutory national minimum wage, currently £5.35 per hour for adult workers.

Gay Man Wins Compensation For Discrimination

A case before a Scottish Employment Tribunal (ET) has seen a gay man awarded £118,309 after his claim of discrimination under the Employment Equality (Sexual Orientation) Regulations 2003 was upheld.

Jonah Ditton claimed that he was harassed and discriminated against, because he is gay, during the eight days he worked as a media sales manager for CP Publishing Ltd. before he was sacked.

Et1 Forms - Size Not An Essential Feature

Since 1 October 2005, all claims to Employment Tribunals, other than in specified proceedings, must be presented on a form ET1, prescribed in accordance with Regulation 14 of the Employment Tribunals (Constitution and Rules of Procedure) Regulations 2004.

Employment Status - Who Is An Employee?

Many employment law rights are only available to those who are employees. In the case of Ministry of Defence (MOD) v Kettle, the Employment Appeal Tribunal (EAT) examined the issue as to when, in determining whether a person is an employee or not, an Employment Tribunal (ET) can look outside the contractual document. Can it do so only if it finds the document to be a sham or if it finds a subsequent variation to the contract?

Child Maintenance: How Much Is Enough?

When couples with children break up, normally one of the big bones of contention is how much money should be paid by way of child maintenance by the parent who does not live with the children to the one who does. When the financial means of the couple are relatively modest, this is normally fairly straightforward as the limits of provision are clear. However, in 'high net worth' cases, it can be much more problematic.

In such cases, the issue of maintenance for children raises several questions, such as:

  • For how long should the maintenance be paid?
  • Associated Discrimination - Disability

    The EU Equal Treatment Framework Directive covers all aspects of employment and aims to ensure equal treatment of individuals, regardless of their religion or belief, disability, age or sexual orientation. As regards disability, the Disability Discrimination Act 1995 (DDA) was amended to implement the Directive in the UK.

    Whistleblowing - Actions To Prove A Point Not Protected Disclosure

    The Court of Appeal has agreed with the Employment Appeal Tribunal (EAT) in the important 'whistleblowing' case of Bolton School v Evans, which examined the causal nature of the link between the protected disclosure and the detriment suffered by the employee who made it.

    Is It Possible To Share The Children?

    Divorce can be an emotionally difficult time for any couple but when there are children involved the process can be even more challenging. Making the decision as to where the children should live is central in ensuring the best outcome is achieved for the children involved.

    Jane Flemming, a member of the team of experienced solicitors in the Family Law department at Sydney Mitchell Solicitors helps to explain that it can be possible to share the children after a separation.

    Do Children Deserve To Know?

    In the case of marriage breakdown where there are children involved, there is always the question as to how much information should the children be made aware of. Factors in deciding on what to tell the children and how much detail to go into really depends upon their age and level of maturity. In most occasions many feel it is important to keep the children informed right through the separation process and also on any issues that may occur after the separation has been completed.

    New Appointments

    West Midlands law firm Sydney Mitchell has appointed a new partner and two new associates.

    Based at the firm's Shirley office, Adam Oleskow is promoted to partner. Adam joined Sydney Mitchell's Residential Property department as an associate in 2003. He has been instrumental in developing new case management systems to ensure matters are dealt with rapidly and efficiently. Adam has a loyal client base, and will be joining the strong partnership team.

    Congratulations To All The Sydney Mitchell Participants In The May 2007 Knowle Fun Run

    The Sydney Mitchell team of runners successfully completed the course without being washed away. In spite of the terrible weather all ten of the Sydney Mitchell team of runners turned out and finished the course. Congratulations to Charles Fentiman, who got the fastest time with 34mins 35seconds.

    The weather was so dire there was a poor turnout for the locals who normally line the route in droves. The runners battled through and managed to keep their spirits high whilst turning in some pretty respectable times.

    Copyright And Email

    Copyright is a right which exists without any specific steps having to be taken. It applies whenever there is a work created which contains original skill or labour. It applies to written material and that includes email, as a recent High Court ruling has confirmed.

    Construction Industry Scheme Start Confirmed

    Contractors in the building industry are reminded that the new Construction Industry Scheme (CIS) is scheduled to start on 6 April 2007 and that the tax deduction rate for subcontractors registered for net payment is 20 per cent (not 18 per cent as previously proposed). Subcontractors who are not registered under the CIS will have tax deducted at 30 per cent.

    Witnesses To A Will

    Quite often, the question as to who should witness the signing of a will is treated as an afterthought, but when a will is contested, the ability to hear the evidence of the witnesses can be crucial.

    Unfair Dismissal - 'Polkey' Reductions

    Under section 98A of the Employment Rights Act 1996 (ERA), if an employer fails to follow the correct procedure in relation to the dismissal of an employee, this will not by itself make the employer's action unreasonable if he can demonstrate that he would have decided to dismiss the employee even if he had followed the proper procedure.

    Tupe And Contract Variations

    The purpose of the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) is to ensure that the transfer of a business has no prejudicial effects on its employees and that it does not subject them to less favourable treatment. Even though the legislation was amended in 2006, problems can still arise, particularly with regard to contractual variations made by reason of the transfer of a business.

    Time Limits And Unfair Dismissal

    An employee wishing to bring an unfair dismissal claim must do so within three months of their effective date of termination. Time limits for presenting claims to the Employment Tribunal (ET) are normally strictly enforced. If the deadline is missed, the Employment Rights Act 1996 states that the claim will only be accepted if it is presented... 'within such further period as the Tribunal considers reasonable in a case where it is satisfied that it was not reasonably practicable for the complaint to be presented before the end of that period of three months'.

    The Employment Status Of Agency Workers

    The employment status of agency workers has been the cause of many problems over the years. In the absence of legislation to clarify the position, Employment Tribunals (ETs) have to attempt to determine the exact nature of triangular agency relationships on a case-by-case basis.

    The Comparator In Sex Discrimination Cases

    When deciding whether an employee has been discriminated against on the grounds of their sex, a comparison must normally be made with someone else - 'the comparator' - in circumstances not materially different from the employee's own. Where there is no suitable comparator, a hypothetical comparator must be constructed. Unsurprisingly, problems often arise in sex discrimination cases in determining the correct comparator to be used and exactly which circumstances are relevant.

    The Burden Of Proof In Discrimination Cases

    Arguments over the operation of the burden of proof are common in discrimination cases.

    Stress - An Employer's Duties

    Dealing with stress in the workplace is a difficult issue for employers and certainly one that cannot be ignored.

    Statutory Dismissal Procedures - Automatically Unfair Dismissal

    Following the introduction of the statutory dismissal and disciplinary procedures in October 2004, employers considering disciplining or dismissing an employee are required to follow a minimum three-stage process. They must

    1. Inform the employee in writing of the reason why they are considering disciplining or dismissing them;

    2. Hold a meeting to discuss the reason. The employee should have had a reasonable opportunity to consider their response to the employer's statement before the meeting; and

    Sexual Orientation Discrimination - Banker Loses Appeal

    In May 2006, Peter Lewis, the former global head of equity trading at the bank HSBC, lost his £5m claim, under the Employment Equality (Sexual Orientation) Regulations 2003, that he was dismissed from his job because he was gay.

    Mr Lewis had been dismissed on the ground of 'gross personal misconduct' following an alleged incident of sexual harassment, at the bank's gym, which he denies.

    Review Of Workplace Dispute Resolution Procedures

    As part of the Department of Trade and Industry's initiative to simplify employment law, the Secretary of State for Trade and Industry, Alistair Darling, is overseeing a 'root and branch review' of the statutory dispute resolution procedures.

    Rest Breaks For Mobile Workers

    Under the Working Time Regulations 1998, a worker is entitled to a rest period of 'not less than eleven consecutive hours in each 24-hour period during which he works for his employer'. However, there are exceptions, one of which is where the activities of the worker in question involve the need for continuity of service, such as when mobile workers carry passengers on regular urban transport services.

    Proactive Prosecutions For Breaches Of Health And Safety Regulations

    The Health and Safety Executive (HSE) has successfully prosecuted a self-employed builder for contravening the Work at Height Regulations 2005.

    David Clark, from Chippenham in Wiltshire, was fined £2,000 with costs of £1,500 after construction inspectors found that none of the safety measures for working at height had been taken during work on the roof of a farm building. No nets or barriers had been put in place to ensure the safety of Mr Clark and the two other men carrying out the work.

    Minimum Wage - Employees Gas And Electricity Payments

    The Court of Appeal has upheld the ruling of the Employment Appeal Tribunal (EAT) in the case of Leisure Employment Services Ltd. v HM Revenue and Customs (HMRC), which dealt with the operation of the national minimum wage legislation.

    Informing And Consulting Employees - A Reminder

    Since April 2005, those who work for employers with 150 or more employees have had the right, under the Information and Consultation of Employees Regulations 2004, to be provided with information and to be consulted on major business decisions which affect them at work, with a view to reaching agreement on decisions likely to lead to substantial changes in work organisation or employers' contractual relations with their employees.

    Ancient Law Costs Landowners

    A couple who fell foul of an old law applying to their property are faced with a bill for building repairs plus legal costs amounting to an estimated total of £400,000, following a reverse in the House of Lords.

    Animal Welfare - Government Raises The Bar

    Although not widely publicised, new legislation is coming into effect which will make it an offence for a person responsible for animals not to take reasonable steps to make sure that their needs are met. It may be surprising that this is new law, but the position in England prior to 6 April 2007 (the end of March in Wales) is that the law only comes into play in most cases when an animal has been subjected to cruelty.

    Customs' Right To Seize Goods

    Most travellers know that large quantities of cigarettes and tobacco can be brought back to the UK from another EU country, provided duty and tax have been paid on them in that country and they are for personal consumption only. In this context, personal consumption includes gifts to family and friends.

    Competition Authorities - More Massive Fines

    The European Commission is adept at handing out massive fines for serious breaches of competition law and the recent €750m fine, levied on a cartel that included electronics giant Siemens, is no exception. Siemens received the largest fine of €423m.

    The Commission concluded that for 16 years Siemens and ten other companies were engaging in price-fixing with regard to tenders for electrical switchgear. The arrangements were such that they had agreed informal 'market shares' and non-competition agreements and had improperly shared commercial information.

    Watch Out For The Big Lad!

    A recent case will set warning bells ringing for those who manage sports teams involving children and for school sports teachers. It involved a rugby match in which a boy who was well over-age was selected to play for his school's under 15 team. He committed a tackle which resulted in a broken elbow for one of the opposing team's players, who was much smaller and less heavy than he.

    Wall Ownership Dispute Costs Loser £250k

    A dispute over the ownership of a boundary wall has cost the unfortunate loser more than a quarter of a million pounds in legal costs after the case went all the way to the Court of Appeal.

    The dispute arose when a couple named Wilson decided to create a store and garage by using their boundary wall. This meant increasing the height of the wall, which would have reduced the light to the conservatory of their neighbour, Mr Palfrey.

    University Not Liable For Asbestos Exposure

    Reading University has been found not to be liable for the death of a worker from mesothelioma. It was alleged that the man was exposed to asbestos when assisting in works to the University's library in the 1980s.

    Revocation Of Wills

    It is important to make sure that your will both reflects your current wishes as regards the disposal of your property and is correctly drafted.

    If a will no longer fulfils its intended purpose, the testator can revoke it: it is not necessary to make a new will. However, if a new will is not made or an invalid will is drawn up, the effect will be that the testator dies intestate and his or her property will be distributed according to the intestacy laws.

    Proper Accidents'

    The Court of Appeal has dismissed a £150,000 damages claim brought against the Royal British Legion by a woman who broke her leg when she fell into a hole in a patch of village green where a maypole used to be placed.

    Proceeds Of Crime - The Burden Of Proof

    The civil (as opposed to criminal) burden of proof is that of the 'balance of probabilities' - whether something is more probable than not.

    It is the civil burden of proof that is required under the Proceeds of Crime Act 2002, which allows the confiscation of assets which are obtained through conduct which is unlawful under the criminal law of England and Wales. Applications for confiscation are made by the Assets Recovery Agency (ARA).

    Post-Nuptial Agreements

    A wife was recently able to obtain a divorce settlement worth £10m when the post-nuptial agreement she had entered into was ruled invalid in the High Court, because she had signed it under excessive pressure.

    Mobile Phone Penalties Increased

    From 27 February 2007, the penalty for using a mobile phone whilst driving has been increased to £60 and three penalty points will be added to the licence of the driver involved.

    Megabucks Divorce Settlement Goes To Appeal

    Insurance magnate John Charman, whose fortune is estimated at over £130m, has launched an appeal against the £48m financial settlement awarded to his ex-wife Beverley.

    The award, the largest ever made by a British court, followed her refusal to accept his offer of £20m, which the tax exile famously described as 'enough for anybody'. He claimed that such a sum would be impossible to spend in a person's lifetime. In his view, the original judgment was 'poor and blatantly discriminatory'.

    Maintenance Agreement Overruled

    A wealthy man recently saw the amount payable under a maintenance agreement, which provided for his child, increased by the court and subsequently scaled back by the Court of Appeal. The man had never married the mother of the child, nor had he lived with her. He had, however, agreed to provide for the child's maintenance. The woman also had a second child who had a different father.

    Jail For Overzealous Divorcee

    A company director was recently sent to jail after taking what can only be described as a wildly overzealous approach to making sure his ex-wife was not cheating him by failing to disclose all her assets.

    Family Split Determines Outcome

    When families break up it is not uncommon for the children to 'take sides', although this is not normally as extreme in its effect as in a recent case.

    The case involved a couple named Garland who had two daughters, Beverley and Yvette. After the couple split up, Yvette became estranged from her father. He eventually remarried and from that time on she never spoke with him again.

    Death By Dangerous Driving - Sentencing

    A recent Court of Appeal decision dealing with appeals against sentences by six drivers found guilty of causing death by dangerous driving has provided assistance in ascertaining the length of sentence that is likely to be imposed in such cases.

    Damages Awarded For Dog Attacks

    Two victims of dog attacks have recently received compensation for their injuries.

    In Brief - Statutory Maternity, Paternity And Adoption Pay

    From 1 April 2007, the standard rate for Statutory Maternity Pay will increase from £108.85 to £112.75 per week (or 90 per cent of average weekly earnings if this figure is less). The Social Security Benefits Up-rating Order 2007 also applies the same rates to Maternity Allowance, Statutory Paternity Pay and Statutory Adoption Pay.