Re: Winter 2016 | Page 108

What’s new in employment law? National Minimum Wage The 1st October 2016 bought with it an increase in National Minimum Wage (NMW) rates whilst the National Living Wage remains static at £7.20 per hour. One hundred and ninety eight companies who breached the NMW legislation were named and shamed in August 2016, with many of those subjected to a heavy penalty as well. Employers should remember that employees who have been underpaid can bring a claim in the Employment Tribunal, so it is sensible to undertake a pay audit now to make sure staff are being paid correctly for the hours that they work. Discrimination The European Court of Justice (ECJ) recently decided that a person can not bring a (sex or age) discrimination claim out of an employer’s refusal to offer them an interview (and by extension a job) unless that person actually wanted the job in the first place. A German company advertised for legal graduates and required applicants to possess a good university degree in law, either completed within the past year or to be completed within the coming months, as well as relevant practical vocational experience – for example as an apprentice, trainee or student worker. K, a male lawyer and former manager with an insurance company, applied for one of the legal trainee positions. When his application was rejected, K wrote complaining of age discrimination and demanding compensation. He later added a sex discrimination claim to his complaints when he found out that all four vacancies had been filled by women. The national courts in Germany rejected his claim having found that he had only applied for the trainee role with the intention of seeking compensation. The claim was referred to the ECJ on the question of whether somebody who applies for a role only with the intention of seeking compensation is afforded the protection of anti-discrimination legislation. The answer was a short, sharp no; EU law can not be relied on for abusive or fraudulent ends. At least while we remain part of the European Union this decision is helpful to employers who might find themselves having to fend off vexatious claims of a similar nature. Gender Pay Reporting The Government has confirmed that the publication of the Gender Pay Gap Information Regulations has been delayed. Although they envisage that regulations will be laid before Parliament in the autumn it is a case of watch this space which isn’t to say that employers should cancel any pay audits already underway; quite the opposite. Employers should still prepare for the regime if they will have 250 or more ‘relevant employees’ as at 30 April 2017. By Sam Dickinson Need some advice to get your business off the ground? We’re the experts in business law. Call us on 0800 8494101 OFFICES ACROSS SUSSEX www.mayowynnebaxter.co.uk 106