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Employment Update

12 September 2008

Discriminatory shortlisting process

An Employment Tribunal has confirmed that an employer who advertised for candidates “in the first five years of their career” indirectly discriminated against a 61 year old claimant when it failed to shortlist her for the position. The claimant was plainly in an age group which would be disadvantaged by the employer’s approach. The employer also failed to justify its shortlisting decision on the basis of cost.

In Rainbow v Milton Keynes Council, Ms Rainbow had been a qualified teacher since about 1972. She reduced her hours after the head teacher assured her that she would have an option to do all long-term supply cover days and would be advised of part-time or job share posts and any full-time posts. This did not take place.

A teaching vacancy subsequently arose for a year 3 class teacher. The advertisement stated that it would suit candidates in the first five years of their career. Mrs Rainbow had experience of teaching this class and requested an application pack. She was told, however, to send a letter of application only. She did not receive the application form, job description or person specification.

Whilst the NUT complained on her behalf about the wording of the advertisement and it was subsequently amended, Ms Rainbow was not shortlisted for the job. Her rejection letter stated that she did not address planning and assessment in her application letter. She claimed, amongst other things, that she had suffered direct and indirect age discrimination in relation to the application process for the year 3 role and the decision not to shortlist her.

The Tribunal confirmed that the failure to shortlist her amounted to indirect age discrimination. It held that the rejection letter concealed the true reason for rejection, which was one of costs. It stated that if cost was to be put forward as justification for the decision not to shortlist Ms Rainbow, it should be combined with other reasons. The respondent had failed to put forward adequate evidence that the school’s budgetary position required the employment of a teacher within the first five years of employment and there was no evidence of any other financial strategy.

The Tribunal noted that there is no automatic bar on economic grounds coming into the equation on justification, certainly where combined with other reasons. The Tribunal stated that if cost is going to be put forward as a justification for an otherwise discriminatory practice, the evidence should be such that the respondent was more or less compelled to take the discriminatory decision for reasons of costs plus other reasons.

New Agency Work Commission launched

The Recruitment and Employment Confederation, which represents the recruitment sector, has launched an Agency Work Commission ahead of the second reading of the Temporary Workers Directive in the EU Parliament.

As reported in earlier updates, the Temporary Workers Directive intends to give temporary agency workers the right to the same basic working and employment conditions as would apply if they had been recruited directly to occupy the same job.

The aim of the Commission is to make practical recommendations to Government on how the new Directive can be implemented in such a way so as to avoid jeopardising jobs and creating administrative difficulties.

ACAS guide on job evaluation

Acas has launched a new guide which considers the benefits and risks of undertaking job evaluation in an effort to help make businesses less vulnerable to equal pay claims.

The guide explains how a job evaluation risk analysis should be established and implemented and is designed to help employers decide whether introducing a job evaluation structure is appropriate for their business.

BERR consults on European Works Councils

The Department for Business Enterprise and Regulatory Reform (BERR) has issued a consultation paper on the European Commission's proposals to recast the EC European Works Councils Directive.

The Directive sets out broad requirements for employers to set up a European Works Council (EWC), for the purposes of informing and consulting employees, where their workforce within the EEA meets certain thresholds.

The Commission’s objectives for amending the Directive include improving the effectiveness of informing and consulting employees in existing EWCs, improving certainty in the setting up and operation of EWCs and enhancing coherence between EWCs and other national level procedures.

The UK Government has not yet determined its position on the Commission’s proposals but will take into account a number of factors when assessing the proposed amendments. These include the need to:

  • support effective employee engagement
  • encourage more EWCs to be established
  • avoid imposing arrangements which impede and delay decision-taking by management
  • avoid imposing disproportionate costs on business

The consultation paper states that the French presidency and the Commission are seeking political agreement from member states and the EU Parliament on the revision of the Directive by December 2008. In light of the short timetable, the Government has shortened the consultation period and consultation will therefore close on 6 October 2008.

Increase to minimum apprenticeship earnings

It has been announced this week that the minimum weekly earnings for all apprentices in England will be increased from £80 to £95 a week next year. The increase follows a review of apprentice pay carried out this year. The new £95 minimum, to start from August 2009, is set to benefit an estimated 26,000 apprentices.

Sex and Power report published

The Equality and Human Rights Commission (EHRC) has published the latest report of ‘Sex and Power’, looking at women in top positions of power and influence across the public and private sectors.

The EHRC states that the survey suggests a worrying trend of reversal or stalled progress, with only a few significant increases. It indicates fewer women hold top posts in 12 of the 25 categories and, in another 5 categories, the number of women remains unchanged since 2007's report. Women's representation has increased in just 8 areas.

This year's report, which traditionally estimates the number of years it will take for women to achieve equality in key areas at the present rate of progress, indicates that, when compared to previous year's predictions, it will now take 15 years longer (a total of 55 years) for women to achieve equal status at senior levels in the judiciary, and women directors in FTSE 100 companies could be waiting a further 8 years (a total of 73 years).

Teleworking is on the up

The latest CBI/Pertemps Employment Trends Survey has revealed that almost half of all employers (46%) now offer teleworking to their staff, which is a significant increase from 14% in 2006. Employers believe that staff may be trying to cut their carbon footprint, or are avoiding a troublesome commute and poor transport infrastructure.

The survey, which was based on 513 respondents employing over 1 million staff, also showed that nearly all employers (93%) offer at least one form of flexible working and 57% offer at least three. Eight in ten (81%) requests were granted in the last year. The survey also revealed that 31% of employees reaching retirement age asked if they could postpone their retirement, emphasising the ongoing need for flexibility of the workforce.

Contacts

Margaret Davis
Peter Holt
James Warren
Richard Kenyon

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