Government training scheme unlawful
Court of Appeal
Parliament is entitled to impose sanctions, including loss of JSA, on those who fail to participate in a scheme under the regulations, provided that the scheme itself is authorised. The appeal court found the umbrella scheme was unlawful in its construction, because it was not specific enough: simply naming the scheme was insufficient. So these schemes were unauthorised.
The court’s decision was not based on social, economic or political grounds. In fact, the CA agreed that people receiving benefits should be required to try to find work, and that the rules governing schemes must be flexible. However, the Government could not bypass Parliament as it was effectively trying to do with these regulations.
Comment
The Government and companies involved in invalid work schemes may now be open to claims for compensation and payments of benefits previously denied to scheme participants. HR professionals should be wary of these schemes as they are now subject to attack. That said, the Government intends to appeal the decision and bring in replacement legislation as a matter of urgency.
Becky Marsden is a trainee and Paul Mander is a partner and co-head of the employment team at Penningtons Solicitors
Source; People Management
