Welcome
Welcome to the Employment Law Update for the UK.
In this edition we look at recent developments involving termination dates, TUPE, duty of confidentiality, fiduciary duty and compromise agreements. 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.
Recent cases
Termination date
PILON terminates contract
In the recent case of Societe Generale v Geys [2011] EWCA Civ 307, the Court of Appeal has overturned a High Court decision which we reported in May 2010. This regarded the date on which an employment contract terminates when the employer exercises a contractual right to terminate by giving a payment in lieu of notice (PILON).
TUPE
Dismissal 'transfer-related' even if no transfer contemplated
Spaceright Europe v Baillavoine and others UKEAT/0339/10represents another in a line of recent cases where the EAT has considered how the TUPE regulations apply where an administrator has been appointed to manage the business of the employer company.
Employee's duty of confidentiality
Only exists where employee is aware of confidential information
The Court of Appeal has considered, in the case of Vestergaard Frandsen v Bestnet Europe Ltd [2011] EWCA Civ 424, the extent of an employee's duty of confidentiality. Such a duty may arise, in appropriate circumstances, even if there is no express term in the employee's contract.
Employee with fiduciary duty
Must account for 'secret profits'
The recent Scottish Court of Session decision in the case of Samsung Semiconductor Europe v Docherty [2011] CSOH 32 is a reminder of another unwritten duty that some employees may owe to their employer: An employee does not necessarily have to be a director of the company to be a 'fiduciary', ie in a position where they must put their employer's interests before their own.
Compromise agreements
Duty of independent advisor
The Court of Appeal has upheld the EAT in the case of McWilliam v Glasgow City Council UKEATS/0036/10 as to the statutory requirements of a compromise agreement under what is now s147 Equality Act 2010. A discrimination claim can only be compromised and settled under the auspices of ACAS or by way of a statutory compromise agreement.
