The Looters' Legacy
As rioting spread across some major UK cities, an employment lawyer has advised affected businesses not to have an immediate 'knee-jerk' reaction.
Following the disturbances, which were described by London Metropolitan Police as the “worst it has seen in current memory for unacceptable levels of widespread looting, fires and disorder”, Jim Lister, Head of Employment Law at Pannone, said:
"Annoying as it may be for affected businesses, who are already struggling because of the economic climate, it is likely that unless they have a lay-off provision in their employment contracts, they will have to continue to pay staff who have turned up willing to work until the extent of the damage is fully understood.
"In many cases, it is probably too early to assess whether businesses will have to close entirely or whether premises can be repaired. Businesses should not assume that they can make staff redundant overnight. Before making staff redundant they will need to take stock and assess how soon the insurer can approve the necessary repairs and, in the case of the large retailers affected, they will need to consider redeployment to other stores."
Meanwhile, thousands more face the prospect of losing pay if they cannot get to work because of the riots. Jim Lister added:
“Strictly speaking employers are only legally obliged to pay workers who turn up and are able to work, therefore those who can’t get in are not entitled to pay. Often employers ask staff to use holidays, take the time unpaid or make up it at a later date.
“However, these are unforeseen circumstances and this approach could well have a negative impact on staff morale. In these difficult times it may be wise to bear in mind the fact that employees often work unpaid overtime and therefore adopt a flexible approach.”
Last Updated (Tuesday, 06 September 2011 13:30)

