Jan:Feb 2017 Credit Management magazine

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HR MATTERS HR ROUNDUP Gareth Edwards summarises two recent high profile-cases and reports on Macmillan’s cancer discrimination survey. IN Rush Hair v Gibson Forbes & Anor, the High Court upheld restrictive covenants preventing competition in a geographical area and the solicitation of employees for a period of two years. In 2008 a limited company owned and controlled by Ms Gibson-Forbes took a franchise agreement with Rush Hair. Under the agreement, Gibson-Forbes' company opened and operated a Rush Hair salon in Windsor. Gibson-Forbes was successful and opened two further Rush Hair franchised salons in Maidenhead and Egham, both operated by a second company that she controlled. In 2015 Rush Hair agreed with Gibson-Forbes to buy the shares in the two companies operating the salons in Windsor, Egham and Maidenhead. The parties entered a share purchase agreement (SPA) which contained restrictive covenants preventing Gibson-Forbes from soliciting named members of staff and opening a competing business within two miles of the existing salons for two years. The restrictions applied to Gibson-Forbes herself, not any limited company she may operate through. They also applied for two years. Restrictions contained in employment contracts rarely exceed 12 months. Gibson-Forbes set up a competing business and hired staff in breach of the restrictions. The competing business was operated by a limited company, not Gibson-Forbes herself. Rush Hair issued legal proceedings. The High Court decided that the restrictions were enforceable. In terms of the two-year period, the court made it clear that a less rigorous approach applies to restrictions contained in a SPA when compared to restrictions in a contract of employment. In terms of the restriction only applying to Gibson- Forbes, and not any limited company she operated through, the court noted that Gibson-Forbes was well known to operate her businesses via limited companies and the restriction would have no real commercial application if given a narrow interpretation. CANCER DISCRIMINATION A survey, published by Macmillan Cancer Support, has revealed that 18 percent of people diagnosed with cancer believe that they experience discrimination upon their return to work. The survey of 1,009 cancer patients also identified several other points. Namely that 14 percent of those diagnosed with cancer give up work or are made redundant; that 15 percent said they returned to work before they felt ready to do so; and a number of patients said they felt guilty for taking time off for medical treatment. The survey seems to indicate that employers are not offering the right support and reasonable adjustments to employees who have suffered or are suffering with cancer. Employers are required to make reasonable adjustments where there is a provision, criteria or practice which places a disabled employee at a substantial disadvantage compared to those who are not disabled. The duty also extends to adjustments to physical features of the workplace and the provision of auxiliary aids. Examples of reasonable adjustments that may be relevant in these circumstances include allowing the employee to have a phased return to work and offering flexible working to allow the employee time to attend medical appointments. FOLLOWING IN UBER'S FOOTSTEPS Following the decision in the recent Uber case, where two of its drivers successfully argued they were workers and were therefore entitled to workers’ rights, it seems delivery riders for Deliveroo may soon follow the same route. Deliveroo provides a service that delivers restaurant food to a location of the customer's choice, be it their home or their office. To deliver the food, Deliveroo uses 'riders' who are classed as self-employed, meaning that they do not currently have any of the rights afforded to workers or employees such as paid holiday and sick pay. The riders only receive payment for the deliveries they make and therefore do not get paid for waiting time. The Independent Workers Union of Great Britain (IWGB) has asked Deliveroo for recognition to allow the union to engage in collective bargaining and negotiate certain conditions, including pay for the riders. However, in the UK, collective bargaining does not apply to independent contractors, only workers. As such, IWGB has threatened to bring legal proceedings against Deliveroo, which will decide whether the riders are workers, if Deliveroo refuses the request for Union recognition. When an employment tribunal is considering the employment status of an individual, it will have regard to the day-to-day reality of the work being undertaken and may seek to disregard any label given to the individual by the employer. The decision in the Uber case is likely to encourage thousands of those working in the gig economy to seek worker status and enhance their rights to entitlements such as the minimum wage and paid holiday. Gareth Edwards is a partner in the employment team at Veale Wasbrough Vizards. gedwards@vwv.co.uk. 48 January / February 2017 www.cicm.com The recognised standard
THE CICM MAGAZINE FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS CM April 2016.indd 1 22/03/2016 11:42 THE CICM MAGAZINE FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS CM September 2016.indd 1 23/08/2016 14:30 THE CICM MAGAZINE FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS CM July/August 2016.indd 1 21/06/2016 12:00 THE CICM MAGAZINE FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS CM June 2016.indd 1 20/05/2016 11:19 CM Credit Management magazine for consumer and commercial credit professionals CREDIT MANAGEMENT CM APRIL 2016 £10.00 FALLING STAR THE INDUSTRY SPEAKS OUT ON THE EU REFERENDUM www.cicm.com CREDIT MANAGEMENT CM SEPTEMBER 2016 £10.00 DESERT STORM THE CHALLENGE OF DOING BUSINESS IN SAUDI www.cicm.com CREDIT MANAGEMENT CM JULY / AUGUST 2016 £10.00 TOOTH AND NAIL SPEAKING OUT ABOUT DIRECT DEBIT CLAWBACKS www.cicm.com CREDIT MANAGEMENT CM JUNE 2016 £10.00 BROKEN CHINA THE DRAGON RUNS OUT OF PUFF THE CICM'S HIGHLY ACCLAIMED MAGAZINE www.cicm.com SPECIAL FEATURES IN DEPTH INTERVIEWS ASK THE EXPERTS GLOBAL NEWS LEGAL MATTERS INTERNATIONAL TRADE CURRENCY EXCHANGE HR MATTERS MOBILE DIGITAL EDITION EDUCATIONAL STUDIES THE LEADING JOURNAL FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS TO SUBSCRIBE CONTACT: T: 01780 722903| E: ANGELA.COOPER@CICM.COM CICM MEMBER EXCLUSIVE Your CICM lapel badge demonstrates your commitment to professionalism and best practice TAKE PRIDE IN WEARING YOUR BADGE To request a new badge email: cicmmembership@cicm.com The recognised standard www.cicm.com January / February 2017 49
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Page 3 and 4: CONTENTS JAN/FEB2017 www.cicm.com R
Page 5 and 6: Our working capital solutions are f
Page 7 and 8: PSR TAKES STEP TOWARDS WHOLESALE CH
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