interlaw.org.uk

Consumers defeat banks

Some good news for consumers today in that the major banks have lost a High Court challenge they brought to the principle that they will be liable retrospectively for any mis-sold payment protection insurance (ppi) policies. The decision has significant implications in that :-

• around 3 million people may now receive compensation
• The FSA estimates PPI providers will need to pay up to £1.3 billion in compensation for new complaints in the next 5 years, and up to £3.2 billion as a result of the obligation legally to  review previous PPI sales and advise customers affected by mis-selling.

Mock prenuptial agreement for the Royal Couple

We would highly recommend taking a look at a very amusing post on the divorce blog of some well known divorce lawyers in London. There are rumours that Prince William and Kate may have signed a prenuptial agreement. these agreements are becoming increasingly important. If you have any suggestions as to what might be added in the mock agreement, please do let us know, but obvioulsy, nothing libellous or abusive please !

5 good reasons to tread carefully with fixed term employees

Employers often believe that they are on safer ground, in employment law terms, if they have some employees on fixed term contracts, being under the misapprehension that the fixed term nature of the agreement lessens the employees entitlements to statutory employment law rights of other employees, As these points demonstrate, such a belief can prove very costly.

1. Fixed-term employees can be given less valuable benefits

Incorrect – under the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 an employee can start a Tribunal claim for any less favourable employment terms or any other detrimental act by the employer due to fixed-term status

2.  A fixed term employee can waive entitlement to statutory redundancy payment

Incorrect – a fixed-term employee is entitled to the same statutory redundancy payments as any other employee as long as they qualify for length of service and the dismissal is due to redundancy.

3. If a fixed term contract has expired the employee can’t claim unfair dismissal

Incorrect – not renewing a fixed-term contract is still a dismissal, and as such the employee needs to follow procedure and be able to justify the dismissal.

4.  The ACAS Code does not apply to fixed-term employees

Generally incorrect – the Acas rules do say that they don’t apply if a dismissal is based on expiry of the contract but this does not mean that the rules do not apply if the fixed term employee was dismissed on misconduct or capability grounds.

5.  It is ok to keep renewing  fixed term without the employee becoming permanent

Incorrect – if an employee has worked on a fixed term basis for 4 years or more he or she can ask an Employment Tribunal for a declaration of permanent status.