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LawZone Employment Law Newswire #9



LawZONE Employment Law Newswire – Issue 9


10th May 2002

(In collaboration with Daniel Barnett, Barrister, 2 Gray’s Inn
Square Chambers)
Copyright LawZone and Daniel Barnett 2002

Editor’s Note
The Institute of Directors has issued a report claiming that new
employment legislation introduced over the last five years has
cost businesses 6 billion GBP. The new legislation includes the
Working Time Directive, minimum wage, parental leave, trade union
recognition and stakeholder pensions. The estimate also includes
the cost of time taken filling in forms.

And that assumes that everything runs smoothly. It’s mainly when
things begin to go wrong that the lawyers get involved and their
costs are on top of everything else the poor old employer has had
to put up with. Why are lawyer’s fees so high? The reason can be
found partly in the amount they have to spend on books and other
resources so that they can be up-to-date with all the new laws and
partly in the length of time they have to spend reading the
things. Learning the law is not a form of osmosis – the data and
information the lawyer needs does not flow from the books to the
brain through the ether without any physical effort. It takes
hours of hard work, at all times of the day and night, to acquire
the knowledge and it takes years of experience to use the
knowledge to its best advantage.

Which is why we are here. LawZONE helps the lawyer to acquire the
knowledge relatively easily. Learn from Daniel Barnett and you
are on the right track. In this issue he reports on recent cases
about Continuity of Employment, Agency Workers, TUPE, and the
Compensatory Award due when the minimum wage is not paid, amongst
other things. The sort of questions often asked in our Any
Answers section in fact, so you can put what you have learned into
practice. Go to
to see them all.

Use the site to its best advantage – it is a source of knowledge
and a source of work. It is useful or it would not be so popular.
Send copies of the relevant stories to your friends so that they
can reap the benefits too.

LawZONE: Your legal right of audience.

Steve Butler
LawZONE Newswire Editor
mailto:[email protected]

LawZONE newswires have over 30,000 subscribers: it is THE most
cost-effective way to reach over 80% of UK law firms and over 5000
in-house lawyers.
For LawZONE sales contact the Editor Joe Reevy at 01392 423607 or
mailto:[email protected]


UK in breach of Working Time Directive
According to various press reports, the European Commission has
upheld a complaint against the UK government, holding that the
Working Time Regulations do not properly implement the EC Working
Time Directive.
The Commission has issued infringement proceedings against the UK,
giving it two months to comply.


Continuity of Employment

CURR v MARKS & SPENCERS PLC – Employment Appeals Tribunal

An employee had a four year break in her employment, pursuant to
the Marks & Spencers’ Child Break scheme. There was no governing
contract of employment during those four years but the EAT held
that her continuity of employment remained unbroken during the
four year gap and she was entitled to a huge redundancy payment.

Agency Workers

ESSO PETROLEUM v JARVIS – Employment Appeals Tribunal

Esso engaged a number of workers through an employment agency. The
employment tribunal decided that they were ’employees’ of Esso,
within the meaning of the ERA 1996. The EAT overturned this
holding that they were not capable of being ’employees’, since
there was no contract in existence.

RCO v UNISON – Court of Appeal

The Aintree Hospitals’ NHS Trust decided to transfer much of the
work from one hospital to a nearby hospital, three miles away.
The issue was whether there was a transfer of undertakings in
relation to the cleaning and catering support services.
The Court of Appeal confirmed that a transfer had taken place.
Interestingly, Mummery LJ’s judgment was supportive of the ECJ’s
decision in Suzen, indicating movement away from the ‘let’s all be
rude about Suzen’ attitude which has appeared in so many recent

Compensatory Award / Minimum Wage

PAGGETTI v COBB – Employment Appeals Tribunal

An employee’s compensatory award was calculated on the basis of
his actual wage, which was 1.88 GBP per hour. The EAT overturned
this, holding that a tribunal should never base it on less than
the minimum wage (then 3.60 GBP ph) because to do so would be to allow
the employer to benefit from his breach of that Act.

Any Answers

The following employment matters have been raised, amongst others,
since the April LawZONE Employment Law Newswire.
Have a look and show off your expertise if you know the answers:

Advice on redundancy waiver in contract

Company Stress Policy

Can we reduce an employees salary?

Procedural Matters

Jurisdiction – Breach of Contract

MILLER BROS. v JOHNSON – Employment Appeals Tribunal

An employment tribunal has no jurisdiction to hear breach of
contract claims where the breach occurred after termination of
employment, even if the contract (being a compromise agreement)
arose because of the termination of employment.

Strange But True!!!!

Pinky’s Case
In Chile a woman called Pinky has complained because she was told
to use the name Andrea because Pinky was not serious enough. How
far did she get with her case? How far would she have got in the

Job Adverts for Prostitutes

A Dutch jobcentre is advertising for prostitutes for a brothel.
Good rates of pay and no experience needed.

If there are any issues you want covered in the LawZONE Employment
Law Newswire, contact me:

Daniel Barnett
mailto:[email protected]

To buy books by Daniel Barnett go to: – for free delivery

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About the LawZONE Newswire
The LawZONE Newswire is a free weekly newswire for lawyers and
people working in the law. LawZONE 158 was successfully delivered
to at least 13378 self-selecting subscribers. and the last
Employment Law Newswire was delivered to at least 8,000. LawZONE
is one of many similar “professional communities” managed by Sift
Ltd serving over 290,000 professionals.


DANIEL BARNETT is a barrister specialising in employment law,
practising from 2 Gray`s Inn Square Chambers. He writes and
lectures extensively on employment law matters and is the author
of `Avoiding Unfair Dismissal Claims` (Wiley, 1999) and co author
of `Handbook on Employment Law` (Law Society Publishing). He has
been interviewed on employment law matters in the national press,
on radio and on television. He is on the editorial committee of
`ELA Briefing` (IDS) and `Employment Lawyer` (Sweet & Maxwell).

Please note that as a barrister, Daniel Barnett may only give
advice to a particular person on a specific matter if instructed
to do so by a solicitor, a member of a recognised professional
body approved by the Bar Council for the purpose of direct
professional access work, or a BarDIRECT client.

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Copyright LawZone and Daniel Barnett 2002
All rights reserved.
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