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Employment and Pensions Law (28 June – 12 July)

Employment News

Wages ‘would be £5,000 higher on average’ if productivity crisis were fixed

People Management – 8 July

According to the Office for National Statistics (ONS), stagnant productivity growth may be costing UK workers an average of £5,000 a year. Productivity rates are currently 4.5% lower than they were in 2008, which has restricted wage growth. The first quarter of 2019 saw the third consecutive quarterly drop.

ECJ holds that employers must record daily working time

Employment Law Blog – 5 July

The European Court of Justice considered the case of Federación de Servicios de Comisiones Obreras (CCOO) v Deutsche Bank SAE, ECJ 14.5.19 (C-55/18) and ruled that employers must set up an ‘objective, reliable and accessible system’ which allows them to record the number of hours worked each day by employees. This is to keep to the EU Working Time Directive.

Unreasonable non-compete clause could be rescued by severance

Lewis Silkin – 3 July

Lewis Silkin discuss the case of Tillman v Egon Zehnder Ltd, where the Supreme Court gave a landmark judgment about the limits of post-termination restrictions in employment contracts. The case discussed here involved a six-month non-compete clause where she could not engage directly or indirectly with any competing business.

Pensions News

One third of over-55s will work part-time in retirement to make ends meet

People Management – 4 July

5,000 UK employees were questioned for the Close Brothers Financial Wellbeing Index. It was revealed that 31% of respondents over the age of 55 expect to have to work part-time in their retirement to afford to live. The survey found that 36% of employees felt unprepared for retirement and 16% expect to rely on an inheritance to fund their retirement.

Supreme Court refuses government’s appeal in judges’ pensions discrimination case

Employee Benefits – 28 June

The London Central Employment Tribunal ruled that the Ministry of Justice and Lord Chancellor had discriminated against judges with regards to changes to the judicial pension scheme in January 2017. When the judicial pension scheme closed in March 2015, older judges who were full protection members or tapered protection members, were able to stay in the original scheme. In the latest development, the Supreme Court refused permission for the government to appeal in the ongoing age discrimination case.

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