contracts of employment

Government outlines its proposals for reforms to confidentiality clauses (NDAs)

The spotlight is continuing to shine brightly on the issue of sexual harassment in the workplace, and employers need to be alive to the government’s proposals for reform which, after a fairly slow start, are now coming thick and fast. The trend towards increasing protection for employees is moving ever upwards, and employers need to ensure they keep pace with the developments, particularly given the potentially criminal implications relating to sexual harassment offences, and the impact on entering into future settlement agreements. Earlier this month (as outlined in a previous Be Aware alert), the Government Equalities Office launched a consultation …

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Holiday and casual workers: the 12.07% formula challenged

A recent decision of the Employment Appeal Tribunal (EAT) casts doubt on the practice of employers fulfilling their obligations to allow paid annual leave to casual workers by providing for holiday accrual at the rate of 12.07% of hours worked. Facts Brazel was a part-time music teacher, retained on a zero hours contract.    She worked mostly during term-time and her hours fluctuated weekly.  She had a contractual right to 5.6 weeks’ paid holiday, mirroring her statutory right,  and she was required to take holiday during school holidays. By way of holiday pay, Brazel was paid 12.07% of the actual hours worked …

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April 2018 tax reforms will impact on employers making termination payments

Employers who are planning to make termination payments to departing employees on or after 6 April 2018 need to be aware of important reforms which will take effect on 6 April 2018. The key point for employers to note is that the value of all notice periods not worked will become taxable and subject to both employer and employee National Insurance Contributions (NICs), regardless of whether there is a contractual payment in lieu of notice (PILON) clause, or not.  This is a critical change to the existing position, where currently the value of a notice period can generally be paid …

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