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Horizon Scanning: Investigations and Enforcement
In this horizon scan, we focus on key developments affecting companies operating in the UK, including in light of the recent change in UK government.
Global | Publication | July 2018
The Constitutional Court ruled on July 26, 2018 that the client becomes the sole employer of labour broker employees earning below the earnings threshold that provide services to the client in excess of three months. In doing so the Court upheld the much criticised judgment of the Labour Appeal Court in NUMSA v Assign Services and Others and finally put to bed the interpretational dispute arising from the 2015 amendments to the Labour Relations Act, 1995 (LRA).
Section 198A(3)(b) of the LRA provides that where the employee of a labour broker is no longer providing temporary services (which is generally defined as a placement at a client in excess of three months), the employee is deemed to be the employee of the labour broker’s client. There were two main schools of thought on the interpretation of this clause: either the labour broker remains the employer and the client is also considered to be the employer for the purposes of the LRA, or the labour broker is no longer the employer and the client is the sole employer. This has become known as the dual employer and sole employer interpretations.
The Constitutional Court has now held once and for all in favour of the sole employer interpretation. The Court made the following findings:
Given that this judgment relates to the interpretation of legislation that came into effect during 2015, this interpretation can be applied retrospectively to disputes that arose since 2015 and prior to this judgment. It remains to be seen how labour brokers and their clients respond to the adoption of this interpretation.
Publication
In this horizon scan, we focus on key developments affecting companies operating in the UK, including in light of the recent change in UK government.
Publication
As you begin planning for the upcoming financial year, it is likely that legal operations projects are on your radar. However, securing the necessary budget can be challenging. Our roundtable on October 1, ‘Preparing for FY2025 - Building a compelling business case’, will help you create compelling business cases for your legal initiatives.
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On 3 September 2024, the ECJ delivered its judgment in Illumina’s appeal against the General Court’s (GC) judgment confirming the European Commission’s (EC) powers to review concentrations under the EU Merger Regulation (EUMR) in circumstances where no Member State has jurisdiction under national law.
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