In Brief - Employment Law - Spring 2006

Update to TUPE Regulations

Implementation of the long-awaited reform of the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) is expected in April 2006.

Changes are being made which are intended to improve the operation of the legislation for all those involved in business transfers. Further details can be found on the Department of Trade and Industry website.

Statutory Maternity, Paternity, Adoption pay and Sick Pay Increases

The Chancellor of the Exchequer announced in his pre-budget report on 5 December 2005 that as from April 2006, the rates for statutory maternity, paternity and adoption pay will increase from £106 to £108.85 per week. The standard rate of statutory sick pay will increase from £68.20 to £70.05 per week.

New Statutory Code of Practice on Racial Equality in Employment

The Commission for Racial Equality has published its revised statutory Code of Practice on racial equality in employment. The new Code will take legal effect from 6 April 2006. From that date, employment tribunals will take its recommendations into account as evidence in any legal proceedings brought under the Race Relations Act.

The Code of Practice can be found at the Commission for Racial Equality website.

Dual Vicarious Liability for Negligence

Vicarious liability is the obligation which falls on one person, for example an employer, as a result of the actions or omissions of another, like an employee.

The Court of Appeal has ruled that liability for the actions of an ‘employee’ can fall on more than one ‘employer’, where both exercise control over the worker in question, even though this involves an employer who is not technically the employer of the employee responsible.

Given the facts of the case under consideration, the Court decided to examine the possibility of holding both the general and the temporary employer vicariously liable where there is negligence on the part of a ‘borrowed employee’ and came to the conclusion that the assumption that dual vicarious liability is not possible could no longer be sustained.

The finding of dual liability may be a fairer outcome and should also enable cases of this nature to be settled more easily.