Employment & Benefits, Lewis Silkin updates

United Kingdom

Contributed by Lewis Silkin
When to pay interns
  • United Kingdom
  • March 21 2018

Media outlets have reported that Her Majesty's Revenue and Customs has initiated a crackdown on unpaid internships, including sending letters warning that workers must be paid the national minimum wage and setting up teams to tackle the problem. Organisations that fail to pay the minimum wage to interns who are workers may be penalised and the individuals could bring claims for back pay.

Government response to Taylor review – a damp squib?
  • United Kingdom
  • March 14 2018

The government has published its Good Work Plan in response to Matthew Taylor's review of modern working practices. While the response sets out the government's intention to proceed with nearly all of the review's recommendations, it lacks specific proposals and much of the detail will be subject to further consultation. Acknowledging that employment status in particular is a complex area, the government has put forward no firm proposals.

Making a termination payment after April 5 2018
  • United Kingdom
  • March 07 2018

Income tax and national insurance contributions must be paid on all payments in lieu of notice from April 6 2018. The new rules emerged from a government consultation on the simplification of the tax treatment of termination payments. However, far from simplifying their taxation, the rules impose a complex administrative burden on employers and are likely to increase the costs to both employers and employees.

Further clarity on relevance of TUPE following share sale
  • United Kingdom
  • February 28 2018

How relevant are the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) in the context of a share sale? A recent Employment Appeal Tribunal decision provides a reminder that TUPE can easily come into play when a buyer is considering what to do with its newly acquired subsidiary. In this case, the buyer's actions led to an unexpected TUPE transfer and a £3.5 million bill.

TUPE and offshoring
  • United Kingdom
  • February 21 2018

The Employment Appeal Tribunal has issued a decision on the application of the Transfer of Undertakings (Protection of Employment) Regulations in the context of an offshoring of services and whether a transferring employee is entitled to protection of his or her salary terms if he or she relocates to the new place of operations in the transferee's home jurisdiction. The tribunal stated that the regulations permit variation of contracts, but the changes must be agreed by both the employee and the employer.

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