Briefings
Employment: That was the year that was...
In our last briefing this year, we look back on some of the highlights from 2004.
2004 was the year that saw the House of Lords finally reintroduce some certainty by holding in Dunnachie v Kingston upon Hull CityCouncil that there can be no separate award for injury to feelings in an unfair dismissal case. However, it did hold in the cases of Eastwood and McCabe that although there can be no award for psychiatric injury caused by the manner of dismissal, if the action by the employer that caused the injury is separate from the act of dismissal itself, uncapped damages may be awarded. These can be as significant as the claim would be either for breach of contract or personal injury and so not subject to the limits that apply to unfair dismissal claims.
Whilst on the subject of psychiatric injury, the House of Lords also considered the case of Barber v Somerset County Council, dealing with employers' liability for work-related stress. The decision is a return to the position where employers will be liable for work-related stress if they know or ought to know that their employee is suffering from stress, and do not take steps to alleviate it.
2004 also saw a number of cases on disability discrimination, which extended the duty of employers to make reasonable adjustments. This is in addition to the amendments to the Disability Discrimination Act which came into force on 1 October, and which took away the ability for employers to justify a failure to make reasonable adjustments. It also introduced, amongst other things, a new classification of disability discrimination and removed the small employer exemption. Further amendments are expected next year.
At the same time, the Employment Tribunal rules also underwent an overhaul, with significant changes to the way in which claims are brought and responded to and the time limits that apply. A failure to comply with the time limits or a failure to submit claims or responses in the correct form could now mean that you are barred from proceeding.
But the biggest change of all was the introduction of the statutory disciplinary, dismissal and grievance procedures on 1 October. These rules affect the vast majority of dismissals and grievances and a failure to comply will have significant consequences. Most employers are still getting to grips with the new rules and whereas it is too early to see the effect on Tribunal claims and the level of compensation awarded for failures, the new rules are expected to have far reaching implications.
In next month's briefing, we will look at what is coming up in 2005. In the meantime, we wish you all a Happy New Year from everyone in the Employment Group.