The presenters argued that they were self-employed, but the court ruled that because they were told how, where and when to work, that the “assumed relationships were ones of employment”. However, the Treasury’s claim that the presenters acted in bad faith was dismissed. In a joint statement, the three presenters said, “We have endured eight years of HMRC investigation and eventual determinations to reach this point on what is clearly a difficult and unclear subject even for judges. It has been a depressing and stressful period for each of us. However, we are grateful that the judgement, in its entirety, shows we have acted in good faith throughout.”
The BBC has acknowledged responsibility for the contracts and has said it will help to resolve the cases. Around £200,000 of the bill is employers’ National Insurance, which the BBC will have to settle.
From April 2020, changes will be introduced to the Intermediaries legislation, more commonly known as the IR35 rules, which will place the onus on medium and large-sized private sector bodies to check whether contractors fall within the IR35 legislation.
These rules have been in place for public sector organisations contracting workers supplied through their own personal service companies (PSCs) since 2017.
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Redundancy Pay Cap 26 September 2019
The Employment Appeal Tribunal has held that if an employee claims contractual and statutory redundancy payments at a tribunal, the statutory redundancy pay does not count towards the £25,000 cap for a breach of contract claim.
Daniel Barnett’s employment law bulletin provides a summary of the case ‘Uradar v Lancashire Care NHS Foundation Trust’.
The Claimant’s enhanced contractual redundancy entitlement was £43,949.04, contractually deemed inclusive of statutory redundancy pay (here £5,868). After dismissing the Claimant in a redundancy exercise, the Trust refused to make any redundancy payments, asserting that it had offered suitable alternative employment. The tribunal upheld the employee’s entitlement to both statutory and contractual redundancy pay, the latter payment capped at £25,000 by the limit in the Extension of Jurisdiction Order 1994 . The tribunal held that the statutory redundancy pay was ‘subsumed’ with the contractual claim, so awarded £25,000 (not £25,000 + £5,868). The Employment Appeal Tribunal (EAT) held that the tribunal erred in law, there were two causes of action, statutory redundancy pay and breach of contract. The doctrine of ‘merger’ found in wrongful dismissal claims whereby tribunal and (uncapped) civil court claims can’t both be brought did not apply; the right approach here was to award £25,000 for breach of contract and £5,868 for statutory redundancy pay.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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