Littler Global Guide - United Kingdom - Q1 2017

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q1 2017 Global Guide Quarterly updates

New Rules on Regulatory References Come Into Force

Enacted Legislation

The new rules on Regulatory References came into force on March 7, 2017. The intention of these rules, which apply to full-scope regulatory reference firms, is that more detailed references for senior individuals would help to ensure that people performing senior roles are fit and proper to do so. The references will be required for specific roles and must be obtained from the individual’s current employer and previous employers in the past six years, at which they performed a relevant function, irrespective of whether the previous employer is an authorized firm or overseas.

British Gas Refused Permission to Appeal in Holiday Pay Case

Precedential Decision by Judiciary

In the most recent case about holiday pay and commission, the Supreme Court has refused British Gas permission to appeal in the Lock v. British Gas case. This case relates to the inclusion of commission payments in the calculation of holiday pay. This case will now be sent back to the Employment Tribunal to deal with the key practical issues, in particular the correct reference period of which average pay should be calculated.

CitySprint Courier Was Found to Be a Worker By an Employment Tribunal

Precedential Decision by Judiciary

There have been a number of cases in the UK surrounding worker status. Most recently in Dewhurst v. CitySprint a cycle courier, who was hired under a contract which described her as a self-employed contractor, was held to be a worker entitling her to additional rights, in particular holiday pay.

Court of Appeal Reconsiders Test to Determine Worker Status

Precedential Decision by Judiciary

On February 10, 2017, in Pimlico Plumbers v. Smith, the Court of Appeal reconsidered the two-pronged test to determine whether an individual is a worker, not an independent contractor, for purposes of the statutory protections afforded workers under the law. Care should be taken to distinguish whether an individual is an employee, worker, or independent contractor. This case is of particular interest as it is one of several high-profile cases relating to the gig economy.

Gender Pay Gap Reporting Requirements

Upcoming Deadline for Legal

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 applies to private and voluntary employers with 250 or more employees. The Regulations require that employees publish a report showing the pay data of male and female employees as of April 5, 2017, showing the median, average pay and bonus data, separated by quartiles. The figures must be accompanied by a written statement of accuracy, signed by a director and be published on the employer’s website. Employers will need to be preparing to collect the appropriate data and create procedures to comply.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.