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Employment Law News

Penalty clauses redefined

Many employment contracts and settlement agreements contain clauses suggesting dire consequences if they are breached. When relied upon, employees often argue that they are “penalty clauses” and therefore void. Faced with two contrasting cases on the nature of a penalty clause, the Supreme Court has provided a new test to identify those clauses which are unenforceable as penalties.

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Complaint about terms and conditions was in public interest

Employees who make a complaint about terms and conditions regulating their and their colleagues’ employment may now be taken to have blown the whistle. The definition of what is in the ‘public interest’ – and therefore protected by whistleblowing legislation – has been widening and the latest case on the point has taken it further still.

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