Use of the Government’s coronavirus job retention scheme by companies in administration: Re Carluccio’s Limited [2020] EWHC 886 (Ch) – Radcliffe Chambers

‘In a judgment handed down on Monday 13th April 2020 in Re Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch), Snowden J considered the application of the Government’s Coronavirus Job Retention Scheme in administrations both as a matter of principle and in respect of the logistics and practicalities involved for office holders. Matthew Weaver considers the judgment and its implications in this briefing.’

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Radcliffe Chambers, 16th April 2020

Source: radcliffechambers.com

CV19 and Corporate insolvency – Thomas More Chambers

Posted April 21st, 2020 in chambers articles, coronavirus, employment, insolvency, news by sally

‘On March 28, 2020 the government announced emergency insolvency initiatives to assist businesses through the CV19 lockdown and its aftermath. With UK SME’s (i.e. under 250 employees) facing an unprecedented existential threat from CV19, it is clear that help is needed to enable them to keep trading if they possibly can. The Government’s Coronavirus Job Retention Scheme will clearly help in the short term with employees but what of the underlying business structures? What help is there to keep companies away from the insolvency courts?’

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Thomas More Chambers, 14th April 2020

Source: www.thomasmore.co.uk

COVID-19 and employment law in the UK – OUP Blog

‘The last couple of weeks have seen a raft of new legislation in the United Kingdom, hurriedly passed to deal urgently with the coronavirus situation. It has clearly been drafted quickly, with guidance that goes well beyond the legislation, and so this has led to some confusion as to what exactly the law now says.’

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OUP Blog, 21st April 2020

Source: blog.oup.com

Covid 19 Employment Law Series: Covid-19 and Loss of Earnings – Parklane Plowden

‘It is to be expected that the current pandemic will result in employers seeking to rely on economic hard times with a view to curtailing employees’ claims for loss of earnings and financial benefits. This will typically be through reliance on the contention that the employees would have been dismissed in any event and any compensation for loss of remuneration should therefore, be extinguished or reduced. In some cases, there will be genuine grounds for such a stance, whilst opportunism could be the driver in others. Thus far, there is no indication that significant job losses are predicted in central and local government and in public services sector. What is said hereafter is applicable principally to employment outside the public sector. This article deals both with ordinary unfair dismissal claim and claims in Great Britain based on protected status where there is no cap on compensation.’

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Parklane Plowden, 7th April 2020

Source: www.parklaneplowden.co.uk

Tribunal “incredulous” after firm secretary ends up in client’s will – Legal Futures

‘An employment tribunal has expressed its “incredulity” at the way a solicitor’s former secretary befriended one of his clients and ended up in the client’s will.’

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Legal Futures, 21st April 2020

Source: www.legalfutures.co.uk

Carluccio’s, Covid-19 and Catch 22: The Furlough Scheme and paragraph 99(5) of Schedule B1 to the Insolvency Act 1986 – Hardwicke Chambers

‘The judgment Re Carluccio’s Ltd [2020] EWHC 886 (Ch) provides some much-needed clarity on the interrelation of the Furlough Scheme and the requirements of insolvency legislation. It is to be commended for its clarity and for the fact that it had to construe the workings of the Furlough Scheme in the absence of any statutory guidance as to its implementation. It is to be hoped that, when the Government comes to enact the necessary legislative measures (including perhaps amendments to Schedule B1 and IR 2016), that it does so with this judgment very firmly in mind.’

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Hardwicke Chambers, 14th April 2020

Source: hardwicke.co.uk

Mass Redundancy in a Covid-Crisis: Don’t Forget the Basics – Thomas More Chambers

Posted April 21st, 2020 in chambers articles, coronavirus, emergency powers, employment, news, redundancy by sally

‘Employers looking to make 20 or more employees redundant must comply with rigorous procedural safeguards under the Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”). Although the disruption caused by Covid-19 may force many employers to suddenly and unexpectedly consider a collective redundancy exercise, these safeguards remain unchanged by HM Government’s recent emergency legislation. Failure to follow the correct procedure can expose employers to liability for protective awards, although the current pandemic may well assist in establishing a defence of “special circumstances”.’

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Thomas More Chambers, 16th April 2020

Source: www.thomasmore.co.uk

Rowing back on vicarious liability – Law Society’s Gazette

‘Two judgments from the Supreme Court have set restrictions on the scope of vicarious liability. In Barclays Bank v Various Claimants [2020] UKSC 13 the test was whether the tortfeasor was in fact the ‘employee’ of the employer. The claimants alleged that they had suffered sexual abuse by a GP hired by the bank to carry out medical assessments of employees.’

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Law Society's Gazette, 20th April 2020

Source: www.lawgazette.co.uk

Case Comment: Barclays Bank Plc v Various Claimants [2020] UKSC 13 – UKSC Blog

‘Alaina Wadsworth, Chris Horsefield and Ben Brown, who all work within the Insurance & Reinsurance Group at CMS, comment on the decision handed down by the UK Supreme Court earlier this month, in the matter of Barclays Bank Plc v Various Claimants [2020] UKSC 13.’

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UKSC Blog, 20th April 2020

Source: ukscblog.com

Covid 19 Employment Law Series: Insolvent Employers, Redundancy, and Covid 19 – Parklane Plowden

Posted April 21st, 2020 in chambers articles, coronavirus, employment, insolvency, news, redundancy by sally

‘Covid 19 has already had a tragic impact upon the health of many in the UK. One notable other consequence however, has been the impact upon the British economy.’

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Parklane Plowden, 3rd April 2020

Source: www.parklaneplowden.co.uk

Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch). The first judicial decision on the Government’s Furlough Scheme – Parklane Plowden

‘In a judgment handed down by Snowden J on a bank holiday on 13 April 2020 in the matter of Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch), we have the first decision regarding the application of the Government’s Coronavirus Job Retention Scheme (“the Scheme”). The Scheme allows employers to claim for 80% of an employee’s salary (up to a maximum of £2500 per month) if staff are kept on the books doing no work (furloughed) rather than dismissed as redundant.’

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Parklane Plowden, 16th April 2020

Source: www.parklaneplowden.co.uk

What are the impacts of Coronavirus on employer’s duties under common-law and the HASAWA 1974? – Church Court Chambers

Posted April 20th, 2020 in chambers articles, coronavirus, employment, health & safety, news by sally

‘It is an employer’s duty to protect the health, safety and welfare of their employees and other people who might be affected by their business. Employers must do whatever is reasonably practicable to achieve this. Employers have duties under health and safety law to assess risks in the workplace.’

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Church Court Chambers, April 2020

Source: churchcourtchambers.co.uk

Can dismissal for self-isolating be automatically unfair? – St John’s Buildings

Posted April 20th, 2020 in chambers articles, coronavirus, employment, equality, news, unfair dismissal by sally

‘Most of us are now up to speed (as far as possible) with the principle, and maybe practice, of furlough, but one thing that has yet to be tested is the ability of unfair dismissal protection to safeguard employees that are unable to attend or carry out work in line with current guidelines. At one point (specifically, 23.03.2020), there was a proposal to introduce provisions creating an automatic unfair dismissal where that dismissal was for ‘coronavirus-related’ reasons, and where the employer was entitled to reimbursement of statutory sick pay or payment under the coronavirus job retention scheme. That would have been to ensure that businesses being forced to close would also not result in mass job losses when funding to retain those jobs was available as an alternative to dismissal. At the date of writing, that proposal has not progressed, nor is there any other proposal to safeguard employees from any other ‘coronavirus-related’ dismissal. Whilst ordinary unfair dismissal principles will assist those employees with at least two years’ continuous employment, I wanted to consider a couple of options potentially open to employees not qualifying for that protection.’

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St John's Chambers, 16th April 2020

Source: stjohnsbuildings.com

Coronavirus and employer’s liability, some likely issues – Old Square Chambers

Posted April 20th, 2020 in chambers articles, coronavirus, employment, health & safety, news by sally

‘Despite the major disruption to daily living and the emergency legislation that has been rushed into effect in response to the outbreak of coronavirus (SARS CoV 2) and the resulting disease (Covid 19), the duty of employers to ensure the health and safety of their employees has remained undiminished. It is at times like these, when the work of many health care workers and others who provide essential services involves exposure to a greatly increased risk of serious injury or death, that the protection of such employees becomes all the more important. The admiration and gratitude of the nation is little consolation if the entitlement to basic health and safety measures is reduced on the ground of force majeure.’

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Old Square Chambers, April 2020

Source: www.oldsquare.co.uk

Employee Dismissal Rights when Shielding: An Overview – Doughty Street Chambers

Posted April 20th, 2020 in chambers articles, coronavirus, employment, equality, news, unfair dismissal by sally

‘If your employer dismisses you as a result of you being unable to work due to you being in the shield group then you may have a claim for automatic unfair dismissal under s100(1)(d) or (e) of the Employment Rights Act 1996 (“ERA”), no minimum qualifying period of employment is required to bring this claim.’

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Doughty Street Chambers, 14th April 2020

Source: insights.doughtystreet.co.uk

Health & Safety at Work and COVID-19: Adjusting to the New Normal? – 39 Essex Chambers

Posted April 20th, 2020 in chambers articles, coronavirus, employment, health & safety, news by sally

‘How does this new and rapidly changing situation interact with the duties on employers to ensure the health and safety of their employees?’

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39 Essex Chambers, 8th April 2020

Source: www.39essex.com

Covid 19 Employment Law Series: The Coronavirus Job Retention Scheme – Parklane Plowden

‘The Chancellor, Rishi Sunak, announced the Coronavirus Job Retention Scheme (“CJRS”) on 20th March 2020 with the aim to protect jobs during the crisis. A recent estimate is that this could cost £30-£40 billion over three months[1] and the take-up by businesses is much higher than expected such that 50% of companies are putting most of their staff into the scheme. We are all becoming familiar with the term ‘furlough’ (i.e. to allow or force someone to be absent temporarily from work) and up to nine million workers are now expected to be furloughed. The Scheme was necessarily hastily written in response to an unforeseen crisis and, despite government guidance issued on 27th March 2020 which was updated on 4th April 2020 and then again on 9th April 2020[4], employment lawyers are finding themselves advising on the gaps in the regime. The online service through which employers can make a claim is expected to be up and running by the end of April 2020 however in the interim employers, with the help of their advisors, are having to interpret the guidance to inform significant business decisions.’

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Parklane Plowden, 14th April 2020

Source: www.parklaneplowden.co.uk

Pandemic Law by Twitter: How the Coronavirus Job Retention Scheme has already changed – Old Square Chambers

‘The Updated Guidance alters the scope of the CJRS in significant ways, most importantly by extending it to individuals who are not employees but are taxed through PAYE, and answers a number of questions about the way the CJRS is intended to work which were left unanswered by the Original Guidance.’

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Old Square Chambers, 6th April 2020

Source: www.oldsquare.co.uk

Covid 19 Employment Law Series: Frustration: (Largely) unprecedented measures for unprecedented times? – Parklane Plowden

‘A contract may come to an end by operation of the doctrine of frustration when an unforeseen event makes performance impossible or radically different to what the parties originally intended. The doctrine applies to employment contracts as it does to other types of contract. However, it is an issue rarely encountered by employment lawyers. Tribunals are generally reluctant to find that an employment contract has been frustrated, largely because the doctrine allows employers to sidestep statutory protections afforded to employees. However, unprecedented times call for unprecedented measures, and frustration may become a useful tool in certain employers’ fight against the disruption caused by the Covid 19 pandemic.’

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Parklane Plowden, 1st April 2020

Source: www.parklaneplowden.co.uk

Coronavirus job retention scheme: what employers should do – OUT-LAW.com

‘The UK Treasury has now published the formal rules of the Coronavirus Job Retention Scheme in the form of a Treasury direction, as well as announcing that the scheme will run until at least 30 June 2020.’

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OUT-LAW.com, 17th April 2020

Source: www.pinsentmasons.com