Employment Update - May 2010
  Workplace Bullying - Employers Watch Out

Recent allegations of bullying within 10 Downing Street have raised the profile of a subject which receives relatively little coverage outside the employment tribunals, in spite of indications that instances of intimidatory behaviour are widespread in the workplace.

Workplace bullying is not only unpleasant and demotivating but it has also been claimed to cost British business £14 billion annually. Surprisingly, there is no specific law relating to workplace bullying, although different forms of offensive behaviour may breach the law - for example, claims relating to homophobic bullying and harassment can be brought under the Employment Equality (Sexual Orientation) Regulations 2003. Other forms of victimisation or harassment may be in breach of the Sex Discrimination Act 1975 or the Race Relations Act 1976. Where an employee brings a claim under discrimination law, there is no statutory cap on the amount a tribunal can award in compensation.

In addition, there are remedies available to employees under the general law. Bullying, in law, is a form of harassment and an employer who fails to prevent bullying can, even without being negligent, be liable to pay damages under the Protection from Harassment Act 1997 for harassment by one employee of another in the course of his or her work.

Employers who are themselves guilty of bullying staff or those who fail to take action to prevent workplace bullying could therefore face a costly settlement for compensation or damages, a fine or even a custodial sentence.

In a recent case, a bank employee earning £45,000 annually, who suffered a breakdown after she was subjected to a long-running campaign of bullying, was awarded £828,000 in damages.

Victims of bullying are often too frightened to take action to protect themselves. It is essential that employers take seriously their responsibility for preventing bullying and harassment in the workplace. Positive action must be taken to eliminate employee behaviour of a kind that could cause distress and anxiety to others. It is important that all workers understand that such behaviour will not be tolerated. Policies should state clearly that any instance of bullying will be taken seriously and the perpetrator dealt with severely.

The Advisory, Conciliation and Arbitration Service (ACAS) provides useful information on this topic, including an e-learning course on understanding and preventing bullying in the workplace. This is available on the ACAS website and is free once you have registered to use the e-learning resources.

The Government has also published guidance for employers on the DirectGov website.


National Minimum Wage Cheats - Watch Out!

HM Revenue and Customs (HMRC) are intent on cracking down on employers who fail to pay workers the National Minimum Wage, particularly those who use migrant labour to undercut competitors.

To this end, HMRC has established a Dynamic Response Team, made up of highly skilled specialist officers who will concentrate on the most high-profile and complex cases. The team will work in tandem with other government departments and local authorities to ensure that employees are paid what they are entitled to and that effective action is taken against employers who break the law, pursuing civil and criminal prosecutions where appropriate.

The crackdown was announced by the Department for Business, Innovation and Skills. Business Minister Pat McFadden said, "The Government and HMRC are doing more than ever to make sure that those entitled to the Minimum Wage are receiving it. Evasion hurts both workers and responsible employers who play by the rules, so we are stepping up our fight against non-payment of the minimum wage."

Communities Secretary John Denham added, "Tackling the abuse of migrant workers is an important part of building a fair society. Employers undercutting the wages of local workers put unfair pressure on businesses struggling to compete and cause resentment in the community."

There are approximately one million low-paid workers who benefit from the National Minimum Wage. Since April 2009, HMRC have helped around 14,000 workers recover over £3.5 million in wage arrears. This included more than £640,000 alone in the hospitality sector, which is noted for its low levels of pay.


Current National Minimum Wage Rates

On 1 October 2009, the National Minimum Wage for workers aged 22 and over rose to £5.80 an hour. The rate for 18- to 21-year-olds was increased to £4.83 per hour and the rate for 16- and 17-year-olds to £3.57 per hour.

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Information on this website does not consitute legal advice.  Reading this material is not a substitute for taking advice from a solicitor.
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