The 'Chocolate Snowman Appeal' is an amazing initiative that Anthony Collins Solicitors' (ACS) employees take part in every year.
As employer pension contributions are not received directly by an employee but paid into a pension fund, it has been established practice to exclude such payments from the calculation of a week’s pay (for example when calculating statutory redundancy pay or holiday pay). However, in University of Sunderland v Drossou UKEAT/0341/16, the EAT has upheld the employment tribunal’s decision to include employer pension contributions in the calculation of a week’s pay.
In this case, Ms Drossou was dismissed by the University on the grounds of an irretrievable breakdown in working relationships. The tribunal found that she had been unfairly dismissed and ordered compensation. When calculating Ms Drossou’s compensation, the tribunal found that a week’s pay should include employer pension contributions. Upon the University appealing the decision, the EAT agreed with the tribunal’s reasoning and confirmed that a week’s pay should include employer pension contributions.
This case alters a longstanding principle increasing the value of a statutory week’s pay under the Employment Rights Act 1996. A number of payments and remedies are based on the statutory week’s pay and, consequently, these will be increased. These include:
- Statutory redundancy payments;
- Holiday pay under the Working Time Regulations;
- Compensation under TUPE, the protective award made for failure by the employer to inform or consult; and
- Basic award and determining the upper limit on the compensatory award made for a successful unfair dismissal claim.
The implications of this decision will be of particular interest to employers who make large contributions under a defined benefit pension scheme. The average contribution to defined benefit pension schemes is 21.2% according to a 2015 ONS survey. A week’s pay for employees who participate in these schemes could, therefore, potentially, be over a fifth as much before this ruling.
There may be further litigation to challenge the validity of the EAT’s judgment but, in the meantime, employers should be aware of the adjustment to the calculations.
The Building Safety Bill (the Bill) is said to be the most significant and wide-ranging change to the regulatory environment for higher risk building (HRBs) for over 45 years.
On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (the Regulations) came into force; exit payments for the public sector were capped at £95,000.
The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
At the end of 2020, The Charity Governance Code was updated or 'refreshed' as it is termed on its website.
Anthony Collins Solicitors is today (Thursday 11 February) revealing the scale of its social impact during 2020.
In their first podcast of this series, current and future trainees will discuss their journey and route to securing a training contract at Anthony Collins Solicitors.
A recent prosecution by the Health and Safety Executive ("HSE") demonstrates the importance of organisations regularly inspecting, maintaining, and if necessary, repairing or replacing street furnitur
This is the second in our series of ebriefings on the Government's Green Paper: Transforming public procurement. The first one on public procurement principles can be found here.
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