Employment Law

The Control Test

The Control Test, established in the nineteenth century, assesses the level of control an employer has over an individual to determine if they are an employee under a contract of service.

• The court examines the control over the work, method of work, and suspension/dismissal of the individual.
• If the employer dictates what, how, and when work is done, it indicates an employment contract.
• Criticism arose when nurses in a hospital were not considered employees due to control by surgeons during duties in the operating theatre.

The Integration Test

The Integration Test evaluates the level of integration of an individual in the employer's business to determine if they are an employee.

• If fully integrated, the individual is considered an employee under a 'contract of service'.
• An employee's work is integral to the business, subject to internal rules, while an independent contractor remains outside the organization.
• Examples include a resident surgeon being an employee due to integral role in the hospital and a trapeze artist in a circus being an employee for various tasks performed.

The evolution of these tests was necessitated by the changing landscape of businesses, technology, and specialization, making it harder for employers to exert the same level of control over employees as before.

Constructive Dismissal and Wrongful Dismissal

- Constructive dismissal and wrongful dismissal are important concepts in employment law.
- Employees have rights regarding redundancy, unfair dismissal, and compensation.
- The maximum compensatory award for unfair dismissal is £105,707 or 52 weeks' gross salary, whichever is lower.
- Employees made redundant are entitled to a certain notice period and compensation during that time.

Redundancy Rights and Protections

- Employees have redundancy rights, consultation rights, and may be entitled to enhanced redundancy pay.
- Employees on maternity, adoption, or shared parental leave have extended redundancy protections.
- The government proposed earlier rights for pregnant employees and increased protections during redundancy processes.

Statutory Redundancy Pay and Notice Period

- Employees eligible for redundancy payment are entitled to at least the minimum statutory redundancy payment.
- The amount of redundancy pay depends on the employee's age, years of service, and gross weekly wage.
- Employees must be given statutory minimum notice of dismissal based on their length of service.

Employer's Right to Redundancy

- Employers have the right to make employees redundant, which is recognized as a potentially fair reason for dismissal.
- Redundancy payments aim to compensate employees for job loss and security based on specific criteria.
- Redundancy may occur due to factors like lower demand, completion of contracts, technological changes, or organizational restructuring.

Statutory Limits and Employee Protections

- The maximum compensatory award for unfair dismissal is £105,707.
- The minimum basic award for unfair dismissal in health and safety cases is £7,836.
- Employees have rights to statutory minimum notice and protections during redundancy processes.
- The Employment Rights (Increase of Limits) Order 2023 introduced changes to statutory limits and protections…