Employment Act 2002 (c. 22)

(The document as of February, 2008)

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(a) to the High Court, or

(b) in Scotland, to the Court of Session as the Court of Exchequer in Scotland;

and on that appeal the court shall have the like jurisdiction as is conferred on the Commissioners by virtue of this paragraph.

Penalty proceedings before Commissioners

4 (1) An officer of the Board authorised by the Board for the purposes of this paragraph may commence proceedings for any penalty to which sub-paragraph (1) of paragraph 1 does not apply by virtue of sub-paragraph (2) of that paragraph.

(2) Proceedings under this paragraph shall be by way of information in writing, made to the General or Special Commissioners, and upon summons issued by them to the defendant (or, in Scotland, the defender) to appear before them at a time and place stated in the summons; and they shall hear and decide each case in a summary way.

(3) Part 6 of the Taxes Management Act 1970 (c. 9) shall apply in relation to a penalty determined in proceedings under this paragraph as if it were tax charged in an assessment and due and payable.

(4) An appeal against the determination of a penalty in proceedings under this paragraph shall lie to the High Court or, in Scotland, to the Court of Session as the Court of Exchequer in Scotland--

(a) by any party on a question of law, and

(b) by the defendant (or, in Scotland, the defender) against the amount of the penalty.

(5) On any such appeal the court may--

(a) if it appears that no penalty has been incurred, set the determination aside;

(b) if the amount determined appears to be appropriate, confirm the determination;

(c) if the amount determined appears to be excessive, reduce it to such other amount (including nil) as the court considers appropriate;

(d) if the amount determined appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the court considers appropriate.

Penalty proceedings before court

5 (1) Where in the opinion of the Board the liability of any person for a penalty under section 11 or 12 arises by reason of the fraud of that or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.

(2) Subject to sub-paragraph (3), proceedings under this paragraph shall be instituted--

(a) in England and Wales, in the name of the Attorney General, and

(b) in Scotland, in the name of the Advocate General for Scotland.

(3) Sub-paragraph (2) shall not prevent proceedings under this paragraph being instituted in England and Wales under the Crown Proceedings Act 1947 (c. 44) by and in the name of the Board as an authorised department for the purposes of that Act.

(4) Any proceedings under this paragraph instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part 2 of the Crown Proceedings Act 1947.

(5) If in proceedings under this paragraph the court does not find that fraud is proved but considers that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court.

Mitigation of penalties

6 The Board may in their discretion mitigate any penalty under section 11 or 12, or stay or compound any proceedings for a penalty, and may also, after judgment, further mitigate or entirely remit the penalty.

Time limits for penalties

7 A penalty under section 11 or 12 may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the Commissioners or the court, at any time within six years after the date on which the penalty was incurred or began to be incurred.

Interest on penalties

8 (1) After paragraph (p) of section 178(2) of the Finance Act 1989 (c. 26) (setting rates of interest) there shall be inserted--

" (q) paragraph 8 of Schedule 1 to the Employment Act 2002. "

(2) A penalty under section 11 or 12 shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment.

Interpretation

9 In this Schedule--

"the Board" means the Commissioners of Inland Revenue;
"General Commissioners" and "Special Commissioners" have the same meanings as in the Taxes Management Act 1970 (c. 9).

Section 29

SCHEDULE 2 Statutory dispute resolution procedures

Part 1 Dismissal and disciplinary procedures

Chapter 1 Standard procedure

Step 1: statement of grounds for action and invitation to meeting

1 (1) The employer must set out in writing the employee's alleged conduct or characteristics, or other circumstances, which lead him to contemplate dismissing or taking disciplinary action against the employee.

(2) The employer must send the statement or a copy of it to the employee and invite the employee to attend a meeting to discuss the matter.

Step 2: meeting

2 (1) The meeting must take place before action is taken, except in the case where the disciplinary action consists of suspension.

(2) The meeting must not take place unless--

(a) the employer has informed the employee what the basis was for including in the statement under paragraph 1(1) the ground or grounds given in it, and

(b) the employee has had a reasonable opportunity to consider his response to that information.

(3) The employee must take all reasonable steps to attend the meeting.

(4) After the meeting, the employer must inform the employee of his decision and notify him of the right to appeal against the decision if he is not satisfied with it.

Step 3: appeal

3 (1) If the employee does wish to appeal, he must inform the employer.

(2) If the employee informs the employer of his wish to appeal, the employer must invite him to attend a further meeting.

(3) The employee must take all reasonable steps to attend the meeting.

(4) The appeal meeting need not take place before the dismissal or disciplinary action takes effect.

(5) After the appeal meeting, the employer must inform the employee of his final decision.

Chapter 2 Modified procedure

Step 1: statement of grounds for action

4 The employer must--

(a) set out in writing--

(i) the employee's alleged misconduct which has led to the dismissal,

(ii) what the basis was for thinking at the time of the dismissal that the employee was guilty of the alleged misconduct, and

(iii) the employee's right to appeal against dismissal, and

(b) send the statement or a copy of it to the employee.

Step 2: appeal

5 (1) If the employee does wish to appeal, he must inform the employer.

(2) If the employee informs the employer of his wish to appeal, the employer must invite him to attend a meeting.

(3) The employee must take all reasonable steps to attend the meeting.

(4) After the appeal meeting, the employer must inform the employee of his final decision.

Part 2 Grievance procedures

Chapter 1 Standard procedure

Step 1: statement of grievance

6 The employee must set out the grievance in writing and send the statement or a copy of it to the employer.

Step 2: meeting

7 (1) The employer must invite the employee to attend a meeting to discuss the grievance.

(2) The meeting must not take place unless--

(a) the employee has informed the employer what the basis for the grievance was when he made the statement under paragraph 6, and

(b) the employer has had a reasonable opportunity to consider his response to that information.

(3) The employee must take all reasonable steps to attend the meeting.

(4) After the meeting, the employer must inform the employee of his decision as to his response to the grievance and notify him of the right to appeal against the decision if he is not satisfied with it.

Step 3: appeal

8 (1) If the employee does wish to appeal, he must inform the employer.

(2) If the employee informs the employer of his wish to appeal, the employer must invite him to attend a further meeting.

(3) The employee must take all reasonable steps to attend the meeting.

(4) After the appeal meeting, the employer must inform the employee of his final decision.

Chapter 2 Modified procedure

Step 1: statement of grievance

9 The employee must--

(a) set out in writing--

(i) the grievance, and

(ii) the basis for it, and

(b) send the statement or a copy of it to the employer.

Step 2: response

10 The employer must set out his response in writing and send the statement or a copy of it to the employee.

Part 3 General requirements

Introductory

11 The following requirements apply to each of the procedures set out above (so far as applicable).

Timetable

12 Each step and action under the procedure must be taken without unreasonable delay.

Meetings

13 (1) Timing and location of meetings must be reasonable.

(2) Meetings must be conducted in a manner that enables both employer and employee to explain their cases.

(3) In the case of appeal meetings which are not the first meeting, the employer should, as far as is reasonably practicable, be represented by a more senior manager than attended the first meeting (unless the most senior manager attended that meeting).

Part 4 Supplementary

Status of meetings

14 A meeting held for the purposes of this Schedule is a hearing for the purposes of section 13(4) and (5) of the Employment Relations Act 1999 (c. 26) (definition of "disciplinary hearing" and "grievance hearing" in relation to the right to be accompanied under section 10 of that Act).

Scope of grievance procedures

15 (1) The procedures set out in Part 2 are only applicable to matters raised by an employee with his employer as a grievance.

(2) Accordingly, those procedures are only applicable to the kind of disclosure dealt with in Part 4A of the Employment Rights Act 1996 (c. 18) (protected disclosures of information) if information is disclosed by an employee to his employer in circumstances where--

(a) the information relates to a matter which the employee could raise as a grievance with his employer, and

(b) it is the intention of the employee that the disclosure should constitute the raising of the matter with his employer as a grievance.

Section 31

SCHEDULE 3 Tribunal jurisdictions to which section 31 applies

Section 2 of the Equal Pay Act 1970 (c. 41) (equality clauses)
Section 63 of the Sex Discrimination Act 1975 (c. 65) (discrimination in the employment field)
Section 54 of the Race Relations Act 1976 (c. 74) (discrimination in the employment field)
Section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52) (detriment in relation to trade union membership and activities)
Paragraph 156 of Schedule A1 to that Act (detriment in relation to union recognition rights)
Section 8 of the Disability Discrimination Act 1995 (c. 50) (discrimination in the employment field)
Section 23 of the Employment Rights Act 1996 (c. 18) (unauthorised deductions and payments)
Section 48 of that Act (detriment in employment)
Section 111 of that Act (unfair dismissal)
Section 163 of that Act (redundancy payments)
Section 24 of the National Minimum Wage Act 1998 (c. 39) (detriment in relation to national minimum wage)
Schedule 3 to the Tax Credits Act 1999 (c. 10) (detriment in relation to tax credits)
The Employment Tribunal Extension of Jurisdiction (England and Wales) Order 1994 (S.I. 1994/1623) (breach of employment contract and termination)
The Employment Tribunal Extension of Jurisdiction (Scotland) Order 1994 (S.I. 1994/1624) (corresponding provision for Scotland)
Regulation 30 of the Working Time Regulations 1998 (S.I. 1998/1833) (breach of regulations)
Regulation 32 of the Transnational Information and Consultation of Employees Regulations 1999 (S.I. 1999/3323) (detriment relating to European Works Councils)

Section 32

SCHEDULE 4 Tribunal jurisdictions to which section 32 applies

Section 2 of the Equal Pay Act 1970 (c. 41) (equality clauses)
Section 63 of the Sex Discrimination Act 1975 (c. 65) (discrimination in the employment field)
Section 54 of the Race Relations Act 1976 (c. 74) (discrimination in the employment field)
Section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52) (detriment in relation to trade union membership and activities)
Paragraph 156 of Schedule A1 to that Act (detriment in relation to union recognition rights)
Section 8 of the Disability Discrimination Act 1995 (c. 50) (discrimination in the employment field)
Section 23 of the Employment Rights Act 1996 (c. 18) (unauthorised deductions and payments)
Section 48 of that Act (detriment in employment)
Section 111 of that Act (unfair dismissal)
Section 163 of that Act (redundancy payments)
Section 24 of the National Minimum Wage Act 1998 (c. 39) (detriment in relation to national minimum wage)
Schedule 3 to the Tax Credits Act 1999 (c. 10) (detriment in relation to tax credits)
Regulation 30 of the Working Time Regulations 1998 (S.I. 1998/1833) (breach of regulations)
Regulation 32 of the Transnational Information and Consultation of Employees Regulations 1999 (S.I. 1999/3323) (detriment relating to European Works Councils)

Section 38

SCHEDULE 5 Tribunal jurisdictions to which section 38 applies

Section 2 of the Equal Pay Act 1970 (equality clauses)
Section 63 of the Sex Discrimination Act 1975 (c. 65) (discrimination in the employment field)
Section 54 of the Race Relations Act 1976 (c. 74) (discrimination in the employment field)
Section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52) (detriment in relation to trade union membership and activities)
Paragraph 156 of Schedule A1 to that Act (detriment in relation to union recognition rights)
Section 8 of the Disability Discrimination Act 1995 (c. 50) (discrimination in the employment field)
Section 23 of the Employment Rights Act 1996 (c. 18) (unauthorised deductions and payments)
Section 48 of that Act (detriment in employment)
Section 111 of that Act (unfair dismissal)
Section 163 of that Act (redundancy payments)
Section 24 of the National Minimum Wage Act 1998 (c. 39) (detriment in relation to national minimum wage)
Schedule 3 to the Tax Credits Act 1999 (c. 10) (detriment in relation to tax credits)
The Employment Tribunal Extension of Jurisdiction (England and Wales) Order 1994 (S.I. 1994/1623) (breach of employment contract and termination)
The Employment Tribunal Extension of Jurisdiction (Scotland) Order 1994 (S.I. 1994/1624) (corresponding provision for Scotland)
Regulation 30 of the Working Time Regulations 1998 (S.I. 1998/1833) (breach of regulations)
Regulation 32 of the Transnational Information and Consultation of Employees Regulations 1999 (S.I. 1999/3323) (detriment relating to European Works Councils)

Section 50

SCHEDULE 6 Use of information for, or relating to, employment and training

Supply and use of employment or training information by Secretary of State etc.

1 In section 3 of the Social Security Act 1998 (c. 14) (use of information)--

(a) in subsection (1), after "war pensions" there is inserted ", or employment or training";

(b) in subsection (2)(a), after "war pensions" there is inserted ", or employment or training"; and

2 In section 122C of the Social Security Administration Act 1992 (c. 5) (supply of information to authorities administering benefit)--

(a) in subsection (1), after "social security" there is inserted ", child support or war pensions, or employment or training,"; and

(b) after subsection (7) there is inserted--

" (8) In this section and section 122D below "war pension" has the same meaning as in section 25 of the Social Security Act 1989. "

3 In section 122D of that Act (supply of information by authorities administering benefit), in subsection (1), after "social security" there is inserted ", child support or war pensions, or employment or training".

4 Section 3(3) of the Social Security Act 1998 (c. 14) (which is superseded by paragraphs 2 and 3) shall cease to have effect.

Supply of tax information for employment or training purposes

5 In section 122 of the Social Security Administration Act 1992 (c. 5) (supply of information held by tax authorities for fraud prevention and verification)--

(a) in subsection (2), after paragraph (a) there is inserted--

" (aa) for use in the prevention, detection, investigation or prosecution of offences relating to payments under section 2 of the Employment and Training Act 1973 (c. 50) or other payments by or to the Secretary of State for any purposes connected with employment or training; " ;

(b) in that subsection, after paragraph (b) there is inserted " or

(c) for use in checking the accuracy of information relating to employment or training and (where appropriate) amending or supplementing such information. " ; and

6 After that section there is inserted--

" 122ZA Supply of tax information to assess certain employment or training schemes

(1) This section applies to information which--

(a) relates to the commencement or cessation of employment or self-employment of persons who have participated in any designated employment or training scheme; and

(b) is required by the Secretary of State or the Northern Ireland Department in order to assess policy relating to such schemes.

(2) In subsection (1) "designated employment or training scheme" means any scheme which--

(a) is operated by the Secretary of State or the Northern Ireland Department (whether under arrangements with any other person or not) for any purposes connected with employment or training; and

(b) is designated by the Secretary of State for the purposes of this section.

(3) In subsection (1) the reference to the commencement or cessation of the self-employment of any person is a reference to the commencement or cessation of any trade, profession or vocation carried on by him.

(4) No obligation as to secrecy imposed by statute or otherwise on a person employed in relation to the Inland Revenue shall prevent any such information obtained or held in connection with the assessment or collection of income tax from being disclosed to--

(a) the Secretary of State;

(b) the Northern Ireland Department; or

(5) This section extends only to disclosure by or under the authority of the Inland Revenue.

(6) Information which is the subject of disclosure to any person by virtue of this section shall not be further disclosed to any person except where the further disclosure is made--

(a) to a person to whom disclosure could be made by virtue of subsection (4); or

(b) for the purposes of any civil or criminal proceedings relating to the Contributions and Benefits Act, the Jobseekers Act 1995 (c. 18) or this Act or to any provision of Northern Ireland legislation corresponding to any of them. "

7 In section 116 of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (supply of information held by tax authorities for fraud prevention and verification)--

(a) in subsection (2), after paragraph (a) there is inserted--

" (aa) for use in the prevention, detection, investigation or prosecution of offences relating to payments under section 1 of the Employment and Training Act (Northern Ireland) 1950 (c. 29) or other payments by or to the Department for Employment and Learning for any purposes connected with employment or training; " ;

(b) in that subsection, after paragraph (b) there is inserted " or

(c) for use in checking the accuracy of information relating to employment or training and (where appropriate) amending or supplementing such information. " ; and

8 After that section there is inserted--

" 116ZA Supply of tax information to assess certain employment or training schemes

(1) This section applies to information which--

(a) relates to the commencement or cessation of employment or self-employment of persons who have participated in any designated employment or training scheme; and

(b) is required by the Department or the Secretary of State in order to assess policy relating to such schemes.

(2) In subsection (1) "designated employment or training scheme" means any scheme which--

(a) is operated by the Department or the Secretary of State (whether under arrangements with any other person or not) for any purposes connected with employment or training; and

(b) is designated by the Department for the purposes of this section.

(a) the Department;

(b) the Secretary of State; or

(5) This section extends only to disclosure by or under the authority of the Inland Revenue.

(6) Information which is the subject of disclosure to any person by virtue of this section shall not be further disclosed to any person except where the further disclosure is made--

(a) to a person to whom disclosure could be made by virtue of subsection (4); or

(b) for the purposes of any civil or criminal proceedings relating to the Contributions and Benefits Act, the Jobseekers (Northern Ireland) Order 1995 or this Act or to any enactment applying in Great Britain corresponding to any of them. "

Supply of Inland Revenue tax credits information for employment or training purposes

9 In paragraph 2 of Schedule 5 to the Tax Credits Act 1999 (c. 10) (use and exchange of information)--

(a) in sub-paragraph (2)--

(i) after "and" there is inserted "(subject to sub-paragraph (2A))"; and

(ii) at the end there is inserted ", or employment or training";

(b) after that sub-paragraph there is inserted--

" (2A) An authorised officer may not require the supply under sub-paragraph (2) of information for use for the purposes of functions relating to employment or training. " ; and

Supply to Inland Revenue of employment or training information for purposes of tax credits

10 In paragraph 3 of Schedule 5 to the Tax Credits Act 1999 (use and exchange of information)--

(a) in sub-paragraph (1), after "war pensions" there is inserted ", or employment or training";

(b) in sub-paragraph (2), after "and" there is inserted "(subject to sub-paragraph (2A))"; and

" (2A) An officer of the Inland Revenue may not require the supply under sub-paragraph (2) of information which is held for the purposes of functions relating to employment or training. "

Supply of other Inland Revenue information for employment or training purposes

11 In section 121E of the Social Security Administration Act 1992 (c. 5) (supply of contributions etc. information held by Inland Revenue)--

(a) in subsection (2)--

(i) after "and" there is inserted "(subject to subsection (2A))"; and

(ii) at the end there is inserted ", or employment or training";

(b) after that subsection there is inserted--

" (2A) An authorised officer may not require the supply under subsection (2) of information for use for the purposes of functions relating to employment or training. " ; and

12 In section 115D of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (supply of contributions etc. information held by Inland Revenue)--

(a) in subsection (2)--

(i) after "and" there is inserted "(subject to subsection (2A))"; and

(ii) at the end there is inserted "or employment or training";

(b) after that subsection there is inserted--

" (2A) An authorised officer may not require the supply under subsection (2) of information for use for the purposes of functions relating to employment or training. " ; and

Supply to Inland Revenue of employment or training information for other purposes

13 In section 121F of the Social Security Administration Act 1992 (supply to Inland Revenue for purposes of contributions etc. of information held by Secretary of State)--

(a) in subsection (1), after "war pensions" there is inserted ", or employment or training";

(b) in subsection (2), after "and" there is inserted "(subject to subsection (2A))"; and

" (2A) An officer of the Inland Revenue may not require the supply under subsection (2) of information which is held for the purposes of functions relating to employment or training. "

14 In section 115E of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (supply to Inland Revenue for purposes of contributions etc. of information held by Department or Secretary of State)--

(a) in subsection (1), after "child support" there is inserted "or employment or training";

(b) in subsection (2), after "and" there is inserted "(subject to subsection (2A))"; and

" (2A) An officer of the Inland Revenue may not require the supply under subsection (2) of information which is held for the purposes of functions relating to employment or training. "

Section 53

SCHEDULE 7 Minor and consequential amendments

Finance Act 1989 (c. 26)

1 (1) Section 182 of the Finance Act 1989 (disclosure of information) is amended as follows.

(2) In each of the following provisions--

(a) subsection (1)(c) (offence of disclosure of information relevant to statutory sick pay or maternity pay held in the exercise of social security functions),

(b) subsection (2A)(a) (meaning of social security functions),

(c) subsection (4)(c)(iii) (offence of disclosure of information relevant to statutory sick pay or maternity pay held in the exercise of certain other functions), and

(d) subsection (5)(b) (defence of disclosure with consent),

for "or statutory maternity pay" there is substituted ", statutory maternity pay, statutory paternity pay or statutory adoption pay".

(3) After subsection (11) there is inserted--

" (11A) In this section, references to statutory paternity pay or statutory adoption pay include statutory pay under Northern Ireland legislation corresponding to Part 12ZA or Part 12ZB of the Social Security Contributions and Benefits Act 1992 (c. 4). "

Social Security Contributions and Benefits Act 1992 (c. 4)

2 The Social Security Contributions and Benefits Act 1992 is amended as follows.

3 In section 4 (payments treated as remuneration and earnings), in subsection (1)(a) (payments in satisfaction of entitlement to statutory sick pay or maternity pay), after "maternity pay;" there is inserted--

" (iii) statutory paternity pay; or

(iv) statutory adoption pay; " .

4 (1) Section 35 (maternity allowance) is amended as follows.

(2) In subsection (1), for paragraph (c) there is substituted--

" (c) her average weekly earnings (within the meaning of section 35A below) are not less than the maternity allowance threshold for the tax year in which the beginning of the period of 66 weeks mentioned in paragraph (b) above falls; " .

(3) In subsection (3)(c), for "above or in section 35A(2) or (3) below" there is substituted "or (c) above".

(4) After subsection (6) there is inserted--

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