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The A-Z of employment issues for an Israeli Company in the United Kingdom . Daniel Naftalin 16 April 2012. Status of the relationship. Volunteer? Worker? Employee?. Taxation. Employees’ income taxed at up to 45% if >£150,000 (c. ILS 890,000)
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The A-Z of employment issues for an Israeli Company in the United Kingdom Daniel Naftalin 16 April 2012
Status of the relationship • Volunteer? • Worker? • Employee?
Taxation • Employees’ income taxed at up to 45% if >£150,000 (c. ILS 890,000) • Social security contributions required from employee (approx 2%) and employer (approx 13.8%) • Beware of IR35
Formation of the contract • Statement of terms • Express terms • Implied terms • Fiduciary duties
Statutory benefits • National Minimum Wage • Minimum notice periods • Statutory Sick Pay • Minimum holiday and rest breaks • Pension entitlements • Family friendly provisions: • Maternity • Paternity • Adoption • Parental leave • Time off for dependants • Right to request flexible working
Common contractual benefits • Car allowance • Season ticket loan • Private health care • Private dental care • Confidential Helpline • PHI cover • Enhanced sick pay • Enhanced maternity pay • Enhanced pension
Categories of protected worker • The protected characteristics under the Equality Act 2010: • Sex • Pregnancy and maternity • Race (includes colour, nationality, ethnicity) • Age (all age groups covered) • Disability • Religion/Belief • Gender reassignment • Sexual orientation • Part time workers • Fixed term workers • Temporary workers
Dismissal • Unfair Dismissal • Notice provisions under contract
Protecting against unfair competition • Restrictive covenants: • Can protect business, providing: • They are designed to protect a legitimate business interest; and • They go no further than is reasonably necessary in doing so. • Unlikely to be enforceable if longer than 12 months (but may only work if 3 or 6 months) • Database regulations • Garden leave provisions in contracts
TUPE • Employees transfer from previous employer • Entitled to same terms as before • Any dismissal for a reason relating to the transfer automatically unfair • Information and consultation obligations apply
Industrial relations • Trade unions: • Not common in private sector (particularly if not industrialised) • Recognition obligations triggered by sufficient interest • Statutory procedure • European works councils • Employee works councils under ICER (if more than 50 employees) • Consultation obligations in large scale redundancy situations (20 or more employees) • Consultation obligations under TUPE
Bribery Act 2010 • A criminal offence to: • bribe another person • accept a bribe • bribe a foreign public official (no exceptions for ‘grease payments’) • (for commercial institutions) fail to prevent a bribe • Wide territorial scope • Unlimited fines, prison, ban from public procurement contracts • Adequate procedures defence: make sure you have a policy and train your staff on it
Enforcement The Employment Tribunal • Discrimination • Unfair dismissal • Whistleblowing • Breach of contract up to £25,000 (High court / county court if over) • Unlawful deductions • Breach of Working Time Regulations Currently, no fees Costs generally not awarded unless misconceived or vexatious claims, or unreasonable conduct
Thank you Daniel Naftalin daniel.naftalin@mishcon.com 0207 440 7242