Policy News Journal - 2014-15

Lock's commission depended not on the time worked, but the outcome of that work, i.e. sales achieved. Mr Lock could not earn commission whilst on leave, and therefore would lose income by taking it. He brought a claim for his 'lost' holiday pay after taking leave in December 2011 to January 2012. Following the ECJ's decision last year, the employment tribunal has held that Mr Lock's holiday pay should include an element for his commission. It has done so by inserting new words into regulation 16(3) of the Working Time Regulations 1998 as follows:- "(e) as if, in the case of the entitlement under regulation 13, a worker with normal working hours whose remuneration includes commission or similar payment shall be deemed to have remuneration which varies with the amount of work done for the purpose of section 221."

This will impact on future holiday pay entitlement. The impact on back-claims is reduced by the two year cap on backdated claims which takes effect on 1 July 2015

For those that require more information, book the CIPPs Holiday Pay and Leave training course.

TUPE (Transfer of Undertakings (Protection of Employment))

Revised TUPE rules come into force

4 February 2014

Changes have been made to the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), which protect the employment terms and conditions of employees who are transferred from one organisation to another. The regulations have been improved to make sure both employers and staff are treated fairly when a transfer takes place. Under the new regulations:  Businesses will now be able to renegotiate terms and conditions in collective agreements 1 year after a transfer has taken place, provided that the overall change is no less favourable.  Micro businesses will be able to inform and consult employees directly when there are no existing appropriate representatives. Under existing TUPE regulations businesses usually have to inform, and sometimes also consult, employee representatives such as trade unions representatives; for micro businesses with 10 or fewer employees, there are often no representatives which means that they have to be specifically elected for this purpose; this change will make this process much less bureaucratic.  The new employer will be able to engage in pre-redundancy consultation with employees, with the consent of the old employer.  Contractual changes will be permitted for economic, technical or organisational reasons with the agreement of the employee and or where a contractual right of variation exists.  In cases where employees’ terms and conditions are provided for in collective agreements, only the terms and conditions in the collective agreements that are in place before the date of transfer will apply; any future changes will not bind the new employer, unless it has taken part in the bargaining process that brought about the changes.  The test for service provision changes will make clear that activities carried out after the change in provider must be fundamentally the same as those carried out by the previous person who has ceased to carry them out; this means that if businesses The regulations also clarify the existing law in a number of areas:

CIPP Policy News Journal

08/04/2015, Page 94 of 521

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