Individuals employed by a limited company whose shares are acquired by new owners, remain employed by that company despite the change of ownership, so the TUPE rules do not apply, according to a recent ruling.
Legal Alert - July 2017
A monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.
Case law: Court clarifies when an express variation of an agreement varies other terms by implication
Parties wishing to expressly vary existing agreements should consider whether their express variations vary other terms of the agreement by implication, taking into account recent Court of Appeal guidance.
Case law: Employee's refusal of alternative job offer on redundancy can be reasonable even if the reason for the refusal is not disclosed
Employers should ask employees who refuse offers of alternative employment on redundancy why they have done so before withholding statutory redundancy pay, or unlawfully withholding that pay unlawfully if the employee's refusal is reasonable on grounds of, for instance, ill-health.
Case law: Limited company articles of association should be interpreted in the same way as commercial contracts
Parties in a dispute over the meaning of their limited company's articles of association will welcome clarification that the same principles of interpretation apply as to commercial contracts, according to a recent ruling.
Case law: Employees' daily rate of pay set at 1/365 of their annual salary unless employment contracts say otherwise
Employers should ensure that the contracts of employees on annual salaries, who do not work fixed hours, specify what daily rate of pay applies for various purposes, such as calculating deductions for days on strike, otherwise the law will impose a daily rate which the employer may disagree with.
Case law: Spouse who made no contribution to short marriage, either as breadwinner or homemaker, not entitled to equal split of assets
A spouse divorcing after a short marriage, with no children and who made no contribution to the marriage either as breadwinner or homemaker, may not be entitled to the usual 50/50 split of assets generated during the marriage, a recent ruling makes clear.
Case law: Third party funders paying for litigation can have 'security for costs' orders made against them
Parties to litigation who are funded by third parties should ensure their third-party funders have agreed to be responsible for the other party's legal costs if they lose, a recent case makes clear.
Employers may dismiss employees for capability, without offering to redeploy them in another role, if they honestly believe the employee falls short of the basic standards required of all their employees, to the extent it can be inferred that they would be incapable of undertaking any other role in the organisation.
Case law: Overtime necessary to complete jobs after shift end should be included when calculating holiday pay
Employers whose employees are required to work overtime after their shift has ended, in order to finish off work on emergency or other matters, should ensure they include such overtime when calculating employees' holiday pay under the Working Time Regulations, a ruling makes clear.
Case law: Employers should not necessarily rely on leavers to tell the truth about plans to set up in competition
Employers whose employees resign should be wary of relying on answers to questions about their lawful future plans as, dependent on their seniority, they may not be under an obligation to tell the truth, according to a recent ruling.