Happy New (Financial) Year! April 6th marks the new fiscal year as well as the start of the long-awaited General Election. It also marks the first of the two semi-annual dates on which the government introduces new legislation and alters allowances; which Herbert Smith call “Red Tape” day. I’ve already written about the most high-profile new measure coming into force: the new “fit note” system. Melanie Hatton at the “Law Donut” blog comments that it is too early to say whether fit notes will benefit employers or not, but makes the very useful point that employers should keep written records of reasons for those occasions when they don’t follow the G.Ps recommendations.
Contingency Fee Agreements in Employment Tribunals are finally put on a statutory basis from today with the Damages-Based Agreement Regulations 2010 coming into force. Contingency Fees have been allowed in ETs for years (but not in litigation in the courts) and are now regulated. A contingency fee is a type of “no win no fee” agreement whereby the representative charges a simple percentage of the compensation awarded to the client employee. It is a much neater, simpler and totally different solution from the “conditional fee agreements” used by lawyers in personal injury, commercial, defamation and other court based disputes. Usefully Employed produced a very helpful summary of the provisions of the regulations. The main points to note are that the agreement must be in writing, must specify the claim or proceedings to which it relates, have a maximum recovery fee of 35% including VAT and say why the recovery fee has been set at the level it has and state the circumstances in whichthe client is deemed to have won. Furthermore the agreement can only be terminated (1) by the representative if the client is behaving or has behaved unreasonably, and (2) the client cannot terminate the agreement when liability has been admitted, a settlement has been agreed or it is less than seven days before the ET hearing. Usefully Employed identifies a potential glaring omission from the Regs: what happens when the client requests the lawyer to act in a way that would breach professional obligations and rules of conduct? Surely that would allow the lawyer to terminate? It isn’t specifically mentioned in the Regs but I would have thought that the lawyer could rely on the “unreasonable behaviour” provision.
With a nod to the brave new world of Alternative Business Structures shortly to emerge from its legislative cocoon the Regs. apply to all persons “providing the advocacy services, litigation services or claims management services to which the damages-based agreement relates” – in other words not just lawyers but all representatives. Usefully Employed reminds us that barristers are prevented from charging contingency fees on the work they do by their own professional rules.
Employees with at least 26 weeks service at businesses with more than 250 staff today acquire the right to request time off for training or study. Next year the right will be extended to all employees. According to the Business Link website “Employees’ requests can be to undertake accredited programmes leading to a qualification, or for unaccredited training to help them develop specific skills relevant to their job, workplace or business.”
Down to the nitty gritty: SSP stays at £79.15 per week, Statutory Maternity/Paternity/Adoption Pay goes up to £124.88 per week. SMP remains payable for only 39 weeks, not the 52 the government has talked about, although that remains its aim. The next Red Tape day will be 1st October.
As ever please contact me (via Dale Langley & Co) if you need further assistance: 0207 464 8433 or michaelscutt@dalelangley.co.uk
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