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The A-Z of employment issues for an Israeli Company in the United Kingdom
Daniel Naftalin16 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
RegulationsCurrently, no feesCosts generally not awarded unless misconceived or vexatious claims, or unreasonable conduct
