Changes in employment law.
Hi guys.
I work for a Leeds based law firm called Lee & Priestley LLP and we want to urge employers to make sure they are aware of changes to employment law planned for 2012. A number of these changes are in response to employers' concerns about the burden of employment legislation. They will have an impact on employers.
1 February 2012
• New tribunal award limits come into force. The maximum limit on a week's pay will increase from £400.00 to £430.00 and the maximum unfair dismissal compensatory award will increase from £68,400.00 to £72,300.00 for dismissals taking effect on or after 1 February 2012.
April 2012
• The qualifying period for unfair dismissal claims will be increased from 1 to 2 years. The qualifying period was last raised to 2 years in 1985.
• The maximum amount of costs an employment tribunal can award will increase from £10,000.00 to £20,000.00.
• The standard rates for statutory maternity pay, statutory paternity pay and statutory adoption pay will increase from £128.73 to £135.45. The weekly earnings threshold for these payments will rise from £102.00 to £107.00.
• Statutory sick pay will increase from £81.60 to £85.85, with the weekly earnings threshold also rising from £102.00 to £107.00.
• Maternity allowance will increase from £124.88 to £135.45, with the earnings threshold remaining at £30.00.
• The amount of deposit order a tribunal will be able to order a party to pay will increase from £500.00 to £1000.00. This can be used to discourage weak claims at the pre-hearing stage.
• Witness statements will be taken as read in the tribunal unless a Judge directs otherwise. Tribunals will be given powers to direct parties to bear the costs of witness attendance, including the cost of witnesses called by the successful party. The government will withdraw state funded expenses.
• Unfair dismissal cases in the tribunal will be heard by a Judge sitting alone without lay members. Progress on this change will be reviewed after a year.
• Working time rules are expected to be amended to allow holiday to be carried forward in limited circumstances. There has been plenty of case law in this area and certainly is needed.
October 2012
• Pension auto enrolment will begin for larger employers. The new duties will be formally implemented over a 4 year period.
Future changes: no date yet announced
• ACAS conciliation. Claimants will be required to submit details of their dispute to ACAS first, at which point they will be offered pre-claim conciliation (PCC) for a period of one month. If it is refused by either party, or is unsuccessful, the Claimant will be able to go ahead and present their claim to the tribunal. If the parties enter into PCC this will 'stop the clock' on the 3 months' limitation period to present the claim to the tribunal. The Claimant will have one month after the conclusion of the PCC to present their claim to the tribunal.
• Mediation. The government will look at measures to increase the use of mediation to resolve disputes. It proposes to work with the private sector to share knowledge of mediation with smaller businesses. Work place mediation is available but does not appear to be widely used at the moment.
• Financial penalties for employers. The government intends to introduce financial penalties for employers of half the total award made by the tribunal if they lose (minimum threshold of £100.00 and a maximum cap of £5000.00). Where a non-financial award is made, the tribunal will be able to ascribe a monetary value. The penalty will be reduced by 50% if paid within 21 days.
• Consultation on 'protected conversations' between employers and staff about employment issues without the risk of dispute.
• Consultation on Compromise Agreements and whether they can be simplified.
• Consultation on a 'Rapid Resolution Scheme' which would provide swifter and cheaper determination of low value straightforward claims, such as claims for holiday pay.
• Consultation on removing the third party harassment provisions in the Equality Act 2010. These provisions currently require employers to take reasonable steps to protect employees from third party harassment. Employers can be liable for the acts of others where reasonable steps are not taken. However, the government considers that this obligation on employers is an 'unworkable requirement' and intends to consult on its removal.
There are a number of changes taking place this year, particularly where disputes arise resulting in tribunals. Only time will tell if these make life easier for employers.
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