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Take care when dealing with sick leave

Dealing with sick leave can be a minefield for companies, with the threat of tribunals and compensation if not handled correctly.

Apart from annual holiday entitlement, an employee might need time off work for reasons including:

  • short-term and long-term sickness, including mental health conditions
  • helping a child, partner or relative
  • bereavement
  • medical appointments
  • pregnancy-related illnesses and appointments, including IVF
  • bad weather conditions, making travelling to work difficult or impossible 

Each workplace might have different rules on what they see as acceptable reasons for absence.

For this reason, every workplace should have its own absence policy, so it is important to be aware of pitfalls.

A recent employment tribunal case reflected the risks that adopting a pre-judged approach can take.

The case – Mr C Kane vs Debmat Surfacing Ltd – involved a driver for the company claiming unfair dismissal in pursuant to Section 98 Employment Rights Act 1996. The driver had taken periods of absence due to ill-health, including from chronic obstructive pulmonary disease.

On one such absence, from 9 March 2020 until 30 March 2020, he was seen by a manager from Debmat smoking outside a social club on the first day he was off sick.

What followed saw company management call the claimant, who claimed he had “been bad in bed all day with his chest”, denying he had been in the club that day, although admitting he had the following day.

The situation was compounded on 21 March when the claimant was not able to attend work because he was shielding as directed by the NHS, before the company launched an investigation on 23 March for “dishonesty and breach of company regulations”.

In interview and subsequent correspondents, the company eventually suggested if the driver had been “unfit for work and on antibiotics, [he] shouldn’t be in the pub”, saying his actions were inappropriate and he was dismissed for a breach of trust and dishonesty.

The tribunal highlighted flaws concerning the investigation, such as no written evidence, and questions on whether a fair disciplinary procedure followed. Crucially, and acknowledged by respondent, going to the Social Club while on sick leave was not deemed gross misconduct.

“There is no rule the respondent can point to which says that an employee cannot socialise in whatever way they deem appropriate whilst absent from work through illness,” the judgment states. “The respondent made a gross assumption, without evidence, the claimant should not be at the Social Club because of the nature of his condition and because he should be shielding.”

Even so, the judge concluded there would have been just a 25 per cent chance of the claimant being dismissed if the respondent had conducted a fair procedure.

On the face of it, the case is comforting for people who are off sick and concerned that being seen by their bosses in public, whether down at the pub or other social setting rather than being tucked up in bed, is going to cause them grief.

Even so, it is also a reminder that a cynical or selective approach to sick leave policies – especially encroaching (or passing judgment) on an employee’s personal life can backfire.

More generally, as many employers have seen a significant drop in sickness rates during the COVID-19 pandemic with the establishment of flexible working policies are a key factor, an old-school, heavy-handed approach to sick leave is just not fit for purpose.

For help and advice on matters relating to employment law, contact our expert team today.

What is an executor, what do they do, and how do I appoint one?

It is only natural that you want someone responsible and trustworthy to be in charge of your estate once you’re gone. That person (or persons) is called the executor.

In this blog, we are going to explore what exactly an executor does, who can be an executor, and how many can be appointed.

Who can be an executor?

An executor can be almost anyone, including a friend, business partner or family member, providing they are over the age of 18 and are of sufficient mental capacity – meaning they can make competent decisions.

Solicitors are also commonly assigned as executors due to their broad knowledge of the probate system.

What does an executor do?

An executor is in charge of administering the deceased’ estate. They are responsible for paying any outstanding taxes and debt and distributing the estate as described in the deceased’ Will. A general list of duties may include:

  • Calculating the value of the estate
  • Paying debts, such as mortgages or credit card loans, out of the estate
  • Accounting for Inheritance Tax (IHT)
  • Applying for a grant of probate
  • Paying funeral costs out of the estate
  • Distributing assets to beneficiaries
  • Acting as a trustee if a trust is established

Are executors paid?

Unless they are carrying out the role as a legal professional, executors cannot usually charge for their time or services.

They can, however, recover “reasonable expenses” they incur in the course of their duties. These are defined as costs that “would not have arisen were they not acting as your executor” and “only cover the executor themselves”.

If you appoint a solicitor as your executor, any costs – usually taken directly from the estate – will be agreed at the outset.

Can I appoint multiple executors?

Yes, it is common – and indeed beneficial – to appoint more than one executor. This usually ensures that at least one executor is alive and has the mental capacity to deliver your final wishes. Joint executors are also useful in the event of a dispute, as they can help to ensure fair decisions are made.

If more than one executor is named but it is agreed that just one will administer the estate, the surplus executor can choose to renounce their duties (providing they have not started any administration work) or serve a Notice of Power Reserved. The latter indicates that the executor does not plan to have an active role in the estate administration but may do so at a later date should something happen to the primary executor.

How do I appoint an executor?

You can appoint up to four executors in your Will. You should speak with your named executors beforehand and have them agree in writing to deliver your wishes as planned.

Without a named executor, a court will appoint a family member or other suitable person to administer your estate. 

Get expert advice today

For help and advice with related matters, including drafting a Will and appointing an executor, please get in touch with our later life planning team today.

New employment watchdog to protect rights of UK workers: what you need to know

A “powerful” new workers’ watchdog will be created to protect the rights of employees in the UK, it has been revealed.

According to the Government, the new body will take over the responsibilities of the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate, and HM Revenue & Customs’ (HMRC) minimum wage enforcement agency.

It means the new watchdog will be responsible for enforcing the National Minimum Wage (NMW) and National Living Wage (NLW), the HMRC’s “Naming and Shaming” scheme, modern slavery, whistleblowing, and statutory holiday, bereavement and sickness pay – including Jack’s Law.

The Government also warned that harsher measures could be introduced for rogue employers, including “bans on goods made in factories where workers have been underpaid”.

But the new body will also provide helpful guidance for employers, ensuring they stay compliant and up to date with employment rights.

Announcing the move, Business Minister Paul Scully said the “one-stop shop” approach will help improve enforcement through “better co-ordination and pooling intelligence”.

“The vast majority of businesses want to do right by their staff, but there are a minority who seem to think the law doesn’t apply to them. Exploitative practices like modern slavery have no place in society,” he said.

“This new workers’ watchdog will help us crack down on any abuses of workers’ rights and take action against companies that turn a blind eye to abuses in their supply chains, while providing a one-stop shop for employees and businesses wanting to understand their rights and obligations.”

The announcement comes after a comprehensive consultation period, demonstrating that existing enforcement activity could be made more effective for vulnerable workers.

To access the outcome of the consultation, please click here.

For help and advice with related matters, please get in touch with our expert corporate law team today.

Start preparing for the end of the furlough scheme

While we are still in the grip of the Covid 19 pandemic and the full opening up of the country is still in the balance, many employers need to turn their attention to the end of the Coronavirus Job Retention Scheme (CJRS), better known as furlough.

The scheme was put into place by Chancellor Rishi Sunak at the start of the outbreak and saw the Government pay up to 80 per cent of wages up to £2,500 a month. It was originally supposed to end at the end of May 2020, but has since been extended until the end of September this year.

It has been crucial to helping companies stay afloat and protecting jobs that would otherwise have been lost.

With the final deadline on 30 September 2021, businesses need to be ready for the day when support is no longer available and how to handle the return of staff or whether cutbacks need to be made.

Firms should decide when they need staff back and plan for a return to work, whether from home or in the office and the costs that will be involved.

Decisions need to be made on who to ask back and what roles are most important. The need is to focus purely on the role, not the person, to avoid discrimination.

Flexible furlough, where staff remain on furlough on a part-time basis, remains an option until September, so firms should consider using it.

Other considerations include:

· Give staff as much notice as possible of their return. If you specified how much notice you would provide them in the original furlough agreement, stick to this timeframe.

· You need to contribute 10 per cent to the furlough grant from July, and 20 per cent from August. This may prove costly if some staff are to remain on furlough.

·   Staff back from furlough, whether flexibly or completely, will need to be paid in full for the time that they work. It is essential that you make sure their pay packets are correct.

· Keep costs down by freezing recruitment/training or hold off on pay rises for staff. If training or pay rises are contractual, get the employee’s agreement before making the change.

· Encourage communication by make sure staff feel comfortable in coming forward with any concerns they may have.

· If you are not able to bring staff back off furlough and are unlikely to do so after September, redundancies can be considered. Always make sure you follow a fair procedure.

· As an alternative to redundancy, those employees who have been taken off furlough can be re-furloughed up until 30 September 2021.

The time to act is now as the end of the scheme will be upon us before we know. It gives time to consider difficult decisions and if staff are affected by cutbacks, time for proper consultation.

For help and advice on matters relating to employment law, contact our expert team today. 

Still time to settle commercial property rent arrears

As the moratorium on business evictions comes to an end this month, landlords have confirmed there is still ‘breathing space’ to come to an arrangement over arrears.

Despite the moratorium coming to an end on 30 June, according to a group of commercial property giants, landlords and tenants have until the end of the year to find a solution to billions of pounds worth of pandemic-related rent arrears.

It comes as the Government says that its Code of Practice, published in response to the impacts of COVID-19 on landlords and tenants in the commercial property sector, is intended to reinforce and promote good practice amongst landlord and tenant relationships as they deal with income shocks caused by the pandemic.

The code supports businesses to come together to negotiate affordable rental agreements. It builds upon the discussions already taking place by giving those tenants and landlords affected by the crisis the tools to come to a mutually beneficial agreement and ensuring that best practice becomes common practice.

It is a voluntary code and does not change the underlying legal relationship or lease contracts between landlord and tenant and any guarantor, although both would be anxious to avoid costly legal battles.

A ban on business evictions came in last year and was most recently extended to the end of June. However, while the real estate sector hopes to offer more time for resolving historic bills, it wants new rents to be paid on time when a moratorium on business evictions ends.

Proposals to resume a “normal market operation” from 30 June come as the retail market starts to spring back into life from the latest lockdown.

Landlords British Land, Landsec and the British Property Federation recently set out their suggestions in response to the Government’s call for evidence on the best way to withdraw or replace measures that have helped high street firms ride out the virus crisis.

While some tenants have agreed rent holidays or deferrals with landlords during the pandemic, a number have not and had been worried they will not be able to pay the outstanding rent, after suffering months of closures in lockdowns.

Under the latest proposal from the property sector, normal rents would resume from the June quarter date and payments owed from before then will be ring-fenced. All parties would have until December to come up with plans, such as full repayments, deferrals or discounts for example.

Payments could be deferred until after this date if an agreement has been reached. Where an occupier and property owner are unable to reach a settlement, they would submit to binding arbitration.

For help and advice on matters relating to the commercial property sector, contact our expert team today.