Employment Law Changes

PEOPLE BUSINESS NEWSLETTER

Employment Law Changes in 2012 and Resolving Workplace Disputes

2012 will see a number of changes to employment law.  A summary of the changes taking place from the 6^th April 2012 are detailed below.

Many of these changes are aimed at helping Businesses to resolve workplace disputes more efficiently and we have provided some further details on these in the second half of our monthly newsletter.

Employment Law changes 2012

• Increases in statutory payment rates
• Statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week
• Statutory sick pay (SSP) will increase from £81.60 to £85.85
• The national insurance lower earnings limit will increase from £102 to £107

• Tribunal reforms to take effect:
• The limit for deposit orders will increase from £500 to £1,000
• The maximum costs award that can be ordered by a tribunal will rise from £10,000 to £20,000
• Witness statements at tribunal will be taken as read
• Witness expenses payable: The current system under which witnesses on either side in tribunals may apply to the state for reimbursement of their expenses is to be abolished.  Powers will be introduced to direct parties to bear such costs, with the party ultimately losing the case reimbursing the successful party for any such cost already paid out.
• Unfair dismissal cases heard by Judge alone: Rule changes will be made to allow judges to hear unfair dismissal claims alone
• Unfair dismissal qualifying period extended: The qualifying period before which an employee becomes entitled to bring a claim for unfair dismissal will be extended from one year to two years.

Resolving workplace disputes – New tools for Businesses

The number of tribunal cases increased by 40 per cent in the three years leading up to 2011, and is now costing businesses in the region of £84 million pounds each year.

In response, the Government has come forward with a series of measures designed to streamline the system and reduce the number of disagreements.

The Government has claimed that the increase in the period during which new employees cannot claim for unfair dismissal alone will reduce the number of unfair dismissal claims by 2,000 each year and save £9 million annually.  They estimate that the savings to businesses of the full set of proposals, if they are all implemented, will be in the region of £40 million every year.

Among the most notable of the changes for 2012 which will be implemented in April are:

• An increase in the period during which new employees cannot claim unfair dismissal, from one to two years (from April 2012)

• A streamlining of the system - for example, just one judge presiding in unfair dismissal cases

A number of other proposed measures are to be put out for consultation, including:

• Compulsory pre-conciliation with ACAS before a complaint can be entered into the tribunal system

• Introducing a system of “protected conversations” on issues like retirement or poor performance so that employers and employees can have frank conversations about workplace issues, without the existence of a formal dispute, without the fear of the content of those conversations being used against them in future proceedings.

• Simplifying the use of compromise agreements:  Including a model compromise agreement precedent text for employers to use should they wish, with accompanying guidance, making it easier to achieve full and final settlement of all claims and changing the name to “settlement” agreements.

• Provisions of quicker, cheaper options in low-value, more straightforward claims (like holiday pay).  A “Rapid Resolution Scheme” to be used as an alterative to the current tribunal process.

• An independent review of the tribunal system itself

As yet there are no planned implementation dates for these proposed changes but consultation is likely to take place during 2012.  Watch out for further developments and updates in our newsletters later in the year.

If you would any advice or help with resolving any work place disputes or would like to make a comment about this newsletter please email us at: julie.ware@peoplebusiness.co.uk or call us on 01932 874944. You can also respond at http://people-insight.blogspot.com/