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LATEST NEWS

Case law: Unfair dismissal

Steele and another v William Hill Organisation Ltd [2008] All ER (D) 80 (Aug)

The employees worked as assistants at a betting shop which was owned by the employer.

Between 23 November 2006 and 12 January 2007, an audit was conducted into the shop’s affairs. The results showed an unusual number of late bets having been accepted by the employees, specifically at times when the manager of the shop had not been on duty.

There were 35 repaid void bets over the audit period, with a total sum of just over £1,000. There had also been a number of payments out on winning late bets.

The matter was initially investigated by the employer’s Regional Security Manager. Following the conclusion of that investigation, the employees faced disciplinary meetings. In the event, they were both found guilty of fraud and summarily dismissed without notice or payment in lieu of notice.

An internal appeal was unsuccessful. Thereafter, the employees commenced proceedings in the employment tribunal alleging unfair dismissal.

The tribunal allowed the claims. It observed that there had been defects in the employer’s investigation and, further, that the findings of fraud against the employees was unreasonable on the evidence. The employer appealed.

It submitted, inter alia, that the tribunal had erred in its approach to determining the unfair dismissal claims. The appeal would be dismissed.

 


Helpdesk: Statutory redundancy

Q: We have received a resignation letter from an employee who wishes to terminate their employment immediately.

 

The employee has been with the company for two years and our contract states that the minimum notice period required on either side is one month.

 

We are not very happy with the fact that the employee has failed to give us adequate notice. Can we withhold any holiday pay?

A: The contract of employment exists to ensure that employees are protected from certain conditions at work.


Both parties have a right to be given notice and where the employer fails to give the employee adequate notice of termination then they are obliged to make a Payment In Lieu Of Notice (PILON).

Where the employee fails to give notice the employer can hold them in breach of contract and can sue the employee for damages but cannot withhold holiday pay that has accrued.

In accordance with the Employee Relations Act 1996, the effective date of termination will be “the date on which the termination takes effect”.

It is always advisable to try to settle any contentious issues informally.



Do you have a burning payroll question?

When Payroll Alliance corporate members and students do, they simply phone the Payroll Alliance Help Desk for an answer. For information about membership and this service call 020 8401 1828/9.

 

Payroll Alliance is committed to offering the very best in payroll learning support and course materials. Their practical courses are designed to be of immediate relevance to your work. Because they recognise varied needs at different stages of your career, they offer a progressive approach to your career development with a variety of training and qualifications courses to choose from.

 

The corporate memberships also give you access to all the necessary information and support available to meet your needs. All our industry standard publications can be accessed electronically or in hard copy format and provide you with everything you need to run a successful payroll department.

 

To comment on any of the stories or issues in this week’s newsletter email PHR’s Editor Kavitha Sivasubramaniam: kavitha.siva@lexisnexis.co.uk.


 
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