Contracts and pay

The law is ever changing. Contracts must meet the minimum statutory provisions regarding holiday, maternity and sickness pay / leave.

Your staffing requirements may vary from initial start-up to established business.

You may sometimes want to use consultants or agency workers. It is important that you have the right contracts in place to reflect such a relationship.

Case studies

Case Study 1:

Type of client:
Global Investment company.

Area of law:
Contracts

Summary of dispute:
The company had recently lost a case where a senior manager had established that he was an employee rather than a self-employed consultant. One problem was the written contract. They asked us to review all their written contracts for employees and consultants, and their general arrangements for the provision of workers.

What we did for the client:
We suggested amendments to both their employment and consultancy contracts and advised them on the tribunal approach to setting aside written contracts. We also advised them on the impact of agency regulations, having reviewed their contracts with recruitment agencies, and various pay related matters such as the minimum wage and commission pay during holiday leave.

Outcome:
The company provided all its workers with amended written contracts which better reflected the reality of the working arrangements and the intention of the parties. They issued their interns with written contracts for the first time. We advised on how this process should be implemented. Acting on our advice, the company asked the recruitment agencies to amend the relevant contracts and arrangements.

Case Study 2:

Type of client:
Private school

Area of law:
Agency workers / pay.

Summary of dispute:
The school employed various workers through an agency. As far as the school was concerned, the workers received at least the national minimum wage. However, two workers complained that they received less than the minimum wage after the agency had taken various administrative payments.

What we did for the client:
We advised the school to ask the agency for a detailed breakdown of the payments the agency actually made to the workers as the school was only aware of the payments they (the school) made to the agency in respect of each worker. We further advised that as the school and the agency could both be held liable for any payment below the minimum wage under the relevant regulations it made sense to negotiate a settlement and save the costs of a claim from the relevant teachers.

Outcome:
After analysing the information, it turned out that the teachers were being under paid. The agency and the school agreed to share the necessary balancing payments. The school also adopted a practice whereby it required agencies to provide a warranty that the workers they provided received the minimum wage and regular information about the payments made to each worker.

Time is often of the essence where legal matters are concerned.

Contact us on +44 (0)20 7815 3200 or email clerks@fivepaperemployment.com 

to discuss your issue today.