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Don’t look back in anger: biggest lessons learned from 2008

17/12/08

In this article...

This year has seen some seismic shifts in employment law, courtesy of a regular stream of headline decisions from the courts and tribunals. So how does the land lie now for employers? Sara Woffenden runs through the headline decisions from 2008, and assesses the impact of the year’s developments.

Holiday entitlement during long term sick leave

The background

Back in 2002, the Employment Appeal Tribunal held (in Kigass Aero Components v Brown that workers on long term sick leave do not accrue annual leave, as employees must be at work in order to be able to take holiday. The ECJ has now been asked to consider if this was correct.


The decision

In Stringer and others v Her Majesty's Revenue and Customs, the Advocate-General said that employees on long term sick leave do accrue annual leave and have a theoretical entitlement to holiday; but they can’t actually take any holiday while they are on sick leave. However, if employment is terminated while an employee is on long term sick leave, they will be entitled to be paid in lieu for any untaken holiday.


The practical impact

Until the ECJ hands down its decision (probably at the start of 2009), the position under Kigass remains good law, i.e. that employees on long term sick leave do not accrue annual leave. However, be aware that this may change in the New Year, as the ECJ usually follows the Advocate-General’s opinion.

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Agency workers are not ‘employees in disguise’

The background

In James v London Borough of Greenwich, Mrs James had been engaged by the London Borough of Greenwich as a long term agency worker. The Court of Appeal was asked to consider whether such an arrangement should give rise to an implied contract of employment.


The decision

The Court of Appeal said that even long term agency workers are not ‘employees in disguise’: in most circumstances, a written contract between the end-user client and the agency should be sufficient to explain the status of temporary worker. Therefore, there is no need to imply an employment contract.


The practical impact


Provided an express contract is in place with an agency, it is now harder for agency staff to argue that they have become employees, simply by the passage of time.  

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Disability-related discrimination weakened

The background

Mr Malcolm was a tenant of the London Borough of Lewisham. He was evicted after he sublet his flat, in breach of his tenancy agreement. Mr Malcolm argued, in The Mayor and Burgesses of the London Borough of Lewisham v Malcolm, that he had only acted in that way because of his disability (schizophrenia) and that, therefore, he had been subjected to ‘disability-related’ discrimination.


The decision

Overturning the long-established case of Clark v Novacold, the House of Lords said that Mr Malcolm had not been discriminated against, because Lewisham had treated Mr Malcolm in exactly the same way as any other tenant who had broken the terms of their tenancy agreement; he was not entitled to any ‘special treatment’ because of his disability.


The practical impact

This decision has made it virtually impossible for disability-related discrimination claims to succeed. The knock-on effect of this is that it is now more likely that claimants will bring their claims under the reasonable adjustment provisions in the Disability Discrimination Act (DDA). For more information on the ramifications of this decision, see this month’s News Round-Up.


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Disability Discrimination Act extended

The background

Ms Coleman (who is not disabled) alleges that because of her caring responsibilities for her disabled son, she was subjected to disability discrimination by her former employer. In Coleman v Attridge Law and anor, the ECJ was asked to consider whether the DDA should cover complaints of disability discrimination where the complainant is not disabled themselves. The current wording of the DDA refers only to discrimination against disabled employees.
The decision
The ECJ said that the DDA should be interpreted so that it applies to all discrimination on the grounds of disability, not just to discrimination aimed at disabled people.
The practical impact
Employment tribunals are now likely to read additional words into the DDA, so that it applies to ‘associative discrimination’, i.e. discrimination on the general grounds of disability. The current wording of the DDA will be amended in due course, to reflect the ECJ’s decision.

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In brief…

How much further forward are we now than we were at the beginning of the year? In summary, we now know that:

  • for the time being, employees on long term sick leave do not accrue holiday, but this may change if the Advocate-General’s opinion is followed;
  • agency workers are now less likely to be deemed employees;
  • disability-related discrimination claims are unlikely to succeed, but reasonable adjustment claims are likely to increase;
  • Employment Tribunals are now likely to read additional words into the DDA so that it covers ‘associative discrimination’.


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Disclaimer

This update is intended to give general information about legal topics and is not intended to apply to specific circumstances. Its contents should not, therefore, be regarded as constituting legal advice and should not be relied on as such. In relation to any particular problem that you may have you are advised to seek specific legal advice.

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