Tax Credits Act 1999

Section 7.

SCHEDULE 3 Rights of employees not to suffer unfair dismissal or other detriment

The right not to suffer detriment

1 (1) An employee has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by his employer, done on the ground that—

(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 6(2)(a) or (c) above;

(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under section 9 above, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right; or

(c) the employee is entitled, or will or may be entitled, to tax credit.

(2) It is immaterial for the purposes of paragraph (a) or (b) of sub-paragraph (1) above—

(a) whether or not the employee has the right; or

(b) whether or not the right has been infringed;

but, for that sub-paragraph to apply, the claim to the right and, if applicable, the claim that it has been infringed, must be made in good faith.

(3) Except where the employee is dismissed in circumstances in which—

(a) by virtue of section 197 of the [1996 c. 18.] Employment Rights Act 1996 (fixed term contracts), Part X of that Act (unfair dismissal) does not apply to the dismissal; or

(b) in relation to Northern Ireland, by virtue of Article 240 of [S.I. 1996/1919(N.I.16).] the Employment Rights (Northern Ireland) Order 1996 (corresponding provision for Northern Ireland), Part XI of that Order does not apply to the dismissal,

this paragraph does not apply where the detriment in question amounts to dismissal within the meaning of that Part.

Enforcement of right not to suffer detriment

2 (1) An employee may present a complaint to an employment tribunal or, in Northern Ireland, an industrial tribunal that he has been subjected to a detriment in contravention of paragraph 1 above.

(2) The provisions of—

(a) sections 48(2) to (4) and 49 of the [1996 c. 18.] Employment Rights Act 1996 (complaints to employment tribunals and remedies); or

(b) in relation to Northern Ireland, Articles 71(2) to (4) and 72 of the Employment Rights (Northern Ireland) Order 1996 (complaints to industrial tribunals and remedies),

shall apply in relation to a complaint under this paragraph as they apply in relation to a complaint under section 48 of that Act or Article 71 of that Order (as the case may be), but so that references in those provisions to the employer are construed in accordance with section 6 above.

Right of employee not to be unfairly dismissed: Great Britain

3 (1) After section 104A of the Employment Rights Act 1996 (the national minimum wage) there shall be inserted—

“104B Tax credit

(1) An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that—

(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 6(2)(a) or (c) of the Tax Credits Act 1999;

(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under section 9 of that Act, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right; or

(c) the employee is entitled, or will or may be entitled, to working families' tax credit or disabled person’s tax credit.

(2) It is immaterial for the purposes of paragraph (a) or (b) of subsection (1) above—

(a) whether or not the employee has the right, or

(b) whether or not the right has been infringed,

but, for that subsection to apply, the claim to the right and, if applicable, the claim that it has been infringed must be made in good faith.”

(2) In section 105 of that Act (redundancy as unfair dismissal) in subsection (1)(c) (which refers to any of subsections (2) to (7A) of that section applying) for “(7A)” there shall be substituted “(7B)” and after subsection (7A) there shall be inserted—

“(7B) This subsection applies if the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was one of those specified in subsection (1) of section 104B (read with subsection (2) of that section).”

(3) In section 108 of that Act (exclusion of right: qualifying period of employment) in subsection (3) (cases where no qualifying period is required) the word “or” at the end of paragraph (gg) shall be omitted and after that paragraph there shall be inserted—

“(gh) subsection (1) of section 104B (read with subsection (2) of that section) applies, or”.

(4) In section 109 of that Act (exclusion of right: upper age limit) in subsection (2) (cases where upper age limit does not apply) the word “or” at the end of paragraph (gg) shall be omitted and after that paragraph there shall be inserted—

“(gh) subsection (1) of section 104B (read with subsection (2) of that section) applies, or”.

Right of employee not to be unfairly dismissed: Northern Ireland

4 (1) After Article 135A of the [S.I. 1996/1919(N.I.16).] Employment Rights (Northern Ireland) Order 1996 (the national minimum wage) there shall be inserted—

“135B Tax credit

(1) An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that—

(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 6(2)(a) or (c) of the Tax Credits Act 1999;

(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under section 9 of that Act, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right; or

(c) the employee is entitled, or will or may be entitled, to working families' tax credit or disabled person’s tax credit.

(2) It is immaterial for the purposes of sub-paragraph (a) or (b) of paragraph (1)—

(a) whether or not the employee has the right, or

(b) whether or not the right has been infringed;

but, for that paragraph to apply, the claim to the right and, if applicable, the claim that it has been infringed must be made in good faith.”

(2) In Article 137 of that Order (redundancy as unfair dismissal) after paragraph (6A) there shall be inserted—

“(6B) This paragraph applies if the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was one of those specified in paragraph (1) of Article 135B (read with paragraph (2) of that Article).”

(3) In Article 140 of that Order (exclusion of right: qualifying period of employment) in paragraph (3) (cases where no qualifying period is required) after sub-paragraph (ff) there shall be inserted—

“(fg) paragraph (1) of Article 135B (read with paragraph (2) of that Article) applies,”.

(4) In Article 141 of that Order (exclusion of right: upper age limit) in paragraph (2) (cases where upper age limit does not apply) after sub-paragraph (ff) there shall be inserted—

“(fg) paragraph (1) of Article 135B (read with paragraph (2) of that Article) applies,”.

Appeals to the Employment Appeal Tribunal

5 In section 21(1) of the [1996 c. 17.] Employment Tribunals Act 1996 (appeal from employment tribunal to Employment Appeal Tribunal on question of law arising under or by virtue of the enactments there specified) the word “or” at the end of paragraph (ff) shall be omitted and after that paragraph there shall be inserted—

“(fg) the Tax Credits Act 1999, or”.