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Bird & Bird UK Employment Law Update

January 2012

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Welcome

Welcome to the Employment Law Update for the UK.

In this edition we look at recent developments involving unfair dismissal and breach of contract, TUPE, confidentiality and fiduciary duties and the 48-hour week and entitlement to overtime. Please click on the title to view any article.

As always, please do not hesitate to contact any member of the Employment Group if you have any queries on the issues covered in the Update or any other matters.

Unfair dismissal and breach of contract

No damages for breach of contract in manner of dismissal

In Edwards v Chesterfield NHS Trust etc the Supreme Court has re-affirmed the rule that an employee's remedy for wrongful dismissal is limited to compensation for what he or she would have earned if his or her contract had been terminated on proper notice and, if appropriate, the salary he or she would have earned during the period for which the employer was conducting the contractual disciplinary procedure.

TUPE

When will a dismissal be automatically unfair?
Where there is a TUPE transfer, any dismissal will be automatically unfair if the principal reason for it was the transfer itself or a 'reason connected with the transfer' (TUPE reg 7(1)(b)).

Service provision change – when will TUPE apply?
The 2006 TUPE regulations introduced a new situation where TUPE might apply –where there has been a service provision change (SPC). To fall within the definition of an SPC there must first of all be 'an organised grouping of employees... carrying out activities... on behalf of the client'. We are now seeing cases coming through the EAT that are testing the limits of the statutory definition of an SPC.

Confidentiality and fiduciary duties

Duties owed by senior employees to their employer
In Customer Systems v Ranson and others the High Court considered the case of senior employees who set up in business in competition with their employer.

The 48-hour week and entitlement to overtime

Employer's conflicting obligations

Employers' statutory duties sometimes put them in a 'Catch 22' situation. Employees who do not sign an 'opt-out' from the 48-hour week cannot be required to work longer hours. But is it 'detrimental treatment' for an employer to identify such employees as those who will not be given an opportunity to work voluntary overtime?

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In this Issue

Unfair dismissal and breach of contract

TUPE

Confidentiality and fiduciary duties

The 48-hour week and entitlement to overtime

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If you have any queries on the issues covered in the Update or any other matters please do not hesitate to contact a member of the Employment Group.

Ian Hunter	ian.hunter@twobirds.com
Warren Wayne	warren.wayne@twobirds.com
Elizabeth Lang	elizabeth.lang@twobirds.com
Colin Kendon	colin.kendon@twobirds.com

The content of this update is of general interest and is not intended to apply to specific circumstances. The content should not, therefore, be regarded as constituting legal advice and should not be relied on as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.

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