Ramsey Employment Law

Employment Law in 2012

In a much welcomed New Year Resolution, 2012 will be the year the Government looks to enforce measures to ease the burden on many employers by making key changes in employment law.  A summary of key dates is set out below:

1 February: New tribunal award limits come into force

Legislation has been published increasing the limit on the amount of the compensatory award for unfair dismissal from £68,400 to £72,300 on 1 February 2012.

Other changes coming into force on the same date through the Employment Rights (Increase of Limits) Order 2011 (2011/3006) include:

•an increase in the maximum amount of a "week's pay" for the purposes of calculating a basic or additional award of compensation for unfair dismissal or redundancy payment from £400 to £430; and

•an increase in the maximum amount of guarantee payment payable to an employee in respect of any day from £22.20 to £23.50.

6 March: Consultation closes on fees in tribunals and the EAT

This consultation is aimed at users of the employment tribunals and the Employment Appeal Tribunal, the legal profession, the judiciary, the advice sector and all with an interest in this area in England, Wales and Scotland.

Bringing a claim or an appeal to the employment tribunal or the Employment Appeal Tribunal is currently free of charge with the full cost of running the tribunals being met by the taxpayer.

The aim of these proposals is reduce the taxpayer subsidy of these tribunals by transferring some of the cost to those who use the the service, while protecting access to justice for the most vulnerable.

More information is available at the Ministry of Justice website:

http://www.justice.gov.uk/downloads/consultations/charging-fees-in-et-and-eat.pdf

April: Changes to qualifying periods

It is expected that qualifying period for unfair dismissal will increase to 2 years
various tribunal reforms to take effect, e.g. increase in deposit orders and costs awards

unpaid parental leave to increase to 4 months

working time rules to be amended to allow holiday to be carried forward in limited circumstances

maternity/paternity/adoption pay increases

SSP increases

October: Pensions auto-enrolment begins for larger employers; National minimum wage may increase, depending on what the Low Pay Commission recommends in February

These coming changes are designed to ease some of the burden on employers and the Employment Tribunal system itself.  To find out more about any of the proposed changes, please contact a member of the REL legal team.