Employment Law CYAN MAGENTAYELLOW BLACK Brian Willey Brian Willey Employment Law A E n m in Context In t second edition ro p d An Introduction for HR Professionals u l c o t io y n m This book is ideal for students taking an employment law module as part of a CIPD programme, an HRM or a fo business degree. It provides an invaluable reference for practising human resource or general managers who want r H e to increase their knowledge of the subject. R second edition n P Employment law is a matter of increasing importance for managers and human resource professionals. Approaching r t the subject from a human resources rather than a law perspective, this book aims to inform about the context in o Employment Law in Context f which employment law is enacted and promotes understanding of: e L s s a • The application of the law to HRM io • The social purposes behind the legislation n w a An Introduction for HR Professionals • The contextual issues that affect the implementation of the law ls i n The balance between knowledge of legal provisions and consideration of human resources is explored using a range of exercises and case studies, with the intention of giving HR and general managers the confidence to C analyse and deal with a greater variety of problems. o Each chapter follows a common framework which contains the following: n • Learning objectives t • Context – social, economic, political and technological e • Legal framework x • Policies and practices, looking at the application of the law t • Case studies and scenarios, inviting the reader to apply the concepts and legal provisions second edition Brian Willeyis a Principal Lecturer in Employment Relations and Employment Law; and Deputy Course Director of the MA/Postgraduate Diploma in Human Resource Management in the Faculty of Business at Kingston University. W i "I am impressed by the development of sociological debates alongside the legal debates as many legal l l e texts omit this important area." y Alan J Ryan, Senior Lecturer in Human Resource Management, De Montfort University Faculty of Business and Law Cover Image ©Ian Willey an imprint of www.pearsoneduc.com Employment Law in Context We work with leading authors to develop the strongest educational materials in business and management, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoneduc.com Employment Law in Context An Introduction for HR Professionals BRIAN WILLEY Second edition Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoneduc.com First published 2000 by Pitman Publishing, a division of Pearson Professional Ltd Second edition published 2003by Pearson Education Limited © Brian Willey 2000, 2003 The right of Brian Willey to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. ISBN: 0 273 67859-0 British Library Cataloguing-in-Publication Data A catalogue record for this book is available fro m the British Library 10 9 8 7 6 5 4 3 2 1 08 07 06 05 04 03 Typeset in 9.5/12pt Stone Serif by 35 Printed by Ashford Colour Press Ltd., Gosport The publisher’s policy is to use paper manufactured from sustainable forests. Contents Preface xiv Publisher’s acknowledgements xvii List of abbreviations xviii Table of cases xx Table of statutes xxvi Table of statutory instruments xxviii Table of statutory codes of practice xxx Table of European Community Law xxxi List of useful websites xxxiii 1 An introduction to employment law 1 Learning objectives 1 1.1 Structure of the chapter 1 1.2 Introduction 2 Substantive aspects · Procedural aspects Exercise 1.1 Future changes – where will the UK be in 2006? Political perspectives 1.3 The nature of legal regulation 8 Standards in law Exercise 1.2 How much freedom of expression? Processes for complaint · Effective remedies 1.4 The nature of voluntary regulation 31 Employer discretion · Grievance procedures · Disciplinary procedures · Consultation and collective bargaining · Third parties 1.5 Some underpinning principles 34 Substantive issues · The processes of employment relations 1.6 Conclusion 40 Further reading · References Part One The changing employment relationship 43 Introduction to Part One 45 Economically driven change · Changes in employment status · ‘New model’ employment regulation · Conclusion v vi Contents 2 Regulating the employment relationship 47 Learning objectives 47 2.1 Structure of the chapter 47 2.2 Introduction 47 Defining the employment relationship · Frontier of control · The parties’ expectations · Three sets of ‘rules’ · The role of the contract of employment 2.3 The context 50 Concepts of work and employment · The psychological contract · Individualism and collectivism · Diversity of employment status Exercise 2.1 A flexible workforce? 2.4 The legal framework 62 Introduction · Status: employee, worker or independent contractor? · The characteristics of the contract of employment · The terms of a contract of employment · Written information about contracts of employment · Terminating a contract of employment · Employment protection for ‘atypical’ workers 2.5 Conclusion 88 Exercise 2.2 Who hasemployment rights? References 3 Managing change in the employment relationship 91 Learning objectives 91 3.1 Structure of the chapter 91 3.2 Introduction 92 3.3 Context 92 Private and public-sector change: an overall view · The organisation’s culture · Strategic considerations · Operational factors · Economic considerations · Employment relations matters · Tensions with legal requirements · The incidence and experience of changes 3.4 The legal framework 102 Variation of contracts of employment · Flexibility in existing contractual terms Exercise 3.1 Some problems of managing variation Transfers of undertakings Exercise 3.2 Some problems of managing transfers ofundertakings Redundancy and redeployment Exercise 3.3 Some problems in managing redundancies 3.5 Employment policies and practices 126 Variation · Transfers · Managing redundancies Case study 3.1 Exercise 3.4 Further reading · References Contents vii Part Two Discrimination and equal opportunities 133 Introduction to Part Two 135 The concepts · The law · Voluntary action by employers · Conclusion · Further reading · References 4 Sex discrimination in the workplace 149 Learning objectives 149 4.1 Structure of the chapter 149 4.2 Introduction 150 Historic situation of women · Changing perspectives 4.3 The context 152 Participation in the labour market · Women’s pay · Social trends and influences · Political approaches 4.4 The legal framework 160 Structure of discrimination law · Grounds of unlawful discrimination · Access to statutory rights · Direct discrimination · Indirect discrimination · Claims relating to equal pay · Victimisation · Positive action and positive discrimination · Special provisions · Liability · Enforcement procedures · Remedies 4.5 Employment policies and practices 180 Human resource strategy · Recruitment and selection · Terms and conditions of employment · Working time · Training and development · Promotion and career progression · Dress and appearance · Retirement and pensions · Dismissal 4.6 Conclusion 187 Exercise 4.1 Some d iscrimination problems Further reading · References 5 Race discrimination in the workplace 191 Learning objectives 191 5.1 Structure of the chapter 191 5.2 Introduction 192 Population profile of Britain · The concepts 5.3 The context 198 The social background · Political approaches · Labour-market participation · Social issues 5.4 The legal framework 205 Grounds for unfair discrimination · The areas of employment protection · Direct discrimination · Indirect discrimination · Victimisation · Special provisions: ‘genuine occupational qualification’ · Positive action and positive discrimination · Liability · Enforcement · Remedies · Employing workers from overseas viii Contents 5.5 Employment policies and practices 220 Human resource strategy · Recruitment and selection · Pay and benefits · Working time · Training and development, promotion and transfers · Dress codes · Dismissal Case study 5.1 Exercise 5.1 Further reading · References 6 Disability discrimination in the workplace 229 Learning objectives 229 6.1 Structure of the chapter 229 6.2 Introduction 230 6.3 The context 230 Defining disability · The social context · Disability and the labour market · The employment context · Technological context · The political and historical background · The developing political and legislative context · Social welfare support 6.4 The legal framework 242 The coverage of the legislation · The meaning of disability · The meaning of discrimination · The duty to make reasonable adjustments · Liability · Burden of proof · Enforcement procedures · Remedies · The Disability Rights Commission · Managing long-term sick absence 6.5 Employment policies and practices 253 Management approach · Implications for contracts and agreements · Practical steps: the 1996 Code of Practice Exercise 6.1 Some discrimination problems Further reading · References Part Three Regulating performance and conduct 259 Introduction to Part Three 261 7 Harassment and bullying at work 263 Learning objectives 263 7.1 Structure of the chapter 263 7.2 Introduction 264 Growing concern about harassment · Definitions 7.3 The context 265 Power relations · Cultural factors · The characteristics of the workplace · The parties involved · Possible consequences Contents ix 7.4 The legal framework 269 The contract of employment · European equal treatment legislation · Direct discrimination and detriments · Dismissal · Liability for the harassment · Harassment by third parties · Action against the perpetrator · Possible remedies in law for the victim 7.5 Employment policies and practices 277 Defining harassment and bullying · Who might be possible victims? · Approach to allegations of harassment and bullying · Managerial roles and responsibilities · Informal procedures and counselling · Role of grievance procedure · Training · Communications · Role of disciplinary action · Consultation with trade unions · Monitoring 7.6 Conclusions 281 Case study 7.1 Exercise 7.1 Further reading · References 8 Information, privacy and surveillance 284 Learning objectives 284 8.1 Structure of the chapter 284 8.2 Introduction 285 8.3 The context 285 Technological developments · Social values and human rights · Economic and security considerations 8.4 The legal framework 288 The Data Protection Act 1998 · Privacy and surveillance · Whistleblowing and public interest disclosure legislation 8.5 Employment policies and practices 296 The Data Protection Act: the Employment Practices Data Protection Code · Privacy and surveillance · Whistleblowing 8.6 Conclusion 312 Further reading · References 9 Discipline and dismissal 313 Learning objectives 313 9.1 Structure of the chapter 313 9.2 Introduction 314 9.3 The context 315 The nature of the employment relationship · The common law of contract · Social standards · Political action · Assessing the law’s effectiveness 9.4 The legal framework 321 Introduction · The nature and purpose of discipline at work · Circumstances in which contracts of employment end · Fair and unfair dismissal ·