The Practical Lawyer


Restrictive covenant – single share?

An employee of an executive search company resigned to work for a competitor. Her ex-employer sought an injunction, relying on a six-month restrictive covenant not to be ‘directly or indirectly engaged or concerned or interested in any business carried on in competition’.
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CGT – entrepreneurs relief

The Budget has tightened up the qualifying conditions that have to be met for entrepreneurs relief (which exempt gains on the sale of a ‘trading’ business from capital gains tax). 
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Annual holiday – not claimed

The ECJ had held that a ‘worker’ does not automatically lose the accrued right to paid annual leave because of a failure to ask for it. 
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Harassment – ‘fat ginger pikey’

An ET has held that it was not harassment to call a fellow employee a ‘fat ginger pikey’. This was despite the fact that the employee had type 1 diabetes.
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Staff handbook – changing

A staff handbook will generally be a guide to the organisation’s procedures, without being intended as a contractual document. 
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Restrictive covenant – no signature

An employee started work in 2008, and was promoted in 2011, and 2016. The company sought to enforce restrictive covenants, and produced three contracts (2008, 2011 and 2012), none of which was signed.
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Restaurant tips – cash or card?

If you leave a tip in a restaurant, does it go the individual who served you, or does it go to the employer (perhaps to be paid into a tronc, with a percentage being distributed to all staff)?
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Termination payments – NI

From 6 April 2019, employers will have to pay NI on any part of a termination payment that exceeds £30,000. Note that this is employer NI (it is not payable on employee NI).

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Zero-hours – holiday pay

Zero-hour contract ‘workers’ do have employment rights. These include the national minimum wage, holiday pay and statutory rest breaks.

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Right to be accompanied – postponement

The right to be accompanied to a disciplinary hearing is set out in ERA 1999. In essence, a ‘worker’ has the right to choose any companion to attend a disciplinary hearing, as long as they are from within three categories of individuals:

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