2012 will bring with it some important changes in employment legislation. It is important to stay updated on what is happening, when it is happening and how it may affect your business – as inevitably it will.
Important key changes which will take place over the next few months are as follows-
Award limits and payments under employment legislation (including statutory redundancy pay) increase from 1 February 2012
The maximum amount of a week’s pay used to calculate statutory redundancy pay and awards for unfair dismissal increases from £400 to £430. The maximum compensatory award for unfair dismissal is also increased to £72,300. The daily rate for guarantee payments made when an employer is unable to provide work in accordance with an employee’s contract of employment is also increased to £23.50 per day for up to 5 workless days.
Parental Leave is extended from 8 March 2012
Currently eligible employees have the right to take up to 13 weeks unpaid parental leave during the first 5 years of their child’s life or, in the case of an adopted child, up to the 5th anniversary of the adoption or the child’s 18th birthday – whichever is sooner. This is set to be extended from 13 weeks to four months.
Statutory maternity, paternity, adoption and sick pay increases from 1 April 2012
Statutory maternity pay, paternity pay, adoption pay and additional paternity pay rates will increase from a weekly rate of £128.73 to £135.45 per week. In addition the weekly rate of Statutory Sick Pay (SSP) increases from £81.60 to £85.85
Changes to the qualifying period for unfair dismissal claims increases from 6 April 2012
Currently in order for an employee to bring a claim for unfair dismissal in an employment tribunal they must have been employed for a period of 1 year. The qualifying period will double and therefore employees will only be able to pursue claims for unfair dismissal after a 2 year period of employment.
Monday, 23 January 2012
Wednesday, 4 January 2012
Proposals on shaking up employment law..
Trying to help the small business owner has been on the agenda recently for the Government.The Business Secretary, Vince Cable announced that they want to reduce the costs of Employment Tribunals and ease the burden of employment law for small businesses
The Government believes that the proposals will help businesses expand by taking on new employees whilst cutting unnecessary bureaucracy when staff have to be let go.
The Business Secretary confirmed that from April 2012, the qualifying period in order to bring a claim for unfair dismissal will increase from 1 year to 2 year’s service.
Following consultation the Government is also considering a requirement that all employment dispute claims are to be dealt with by the conciliation service ACAS to give each party the opportunity to resolve the dispute before reaching an employment tribunal.
There were also other issues that the Business Secretary stated the Government will seek views on. These include:
* No fault dismissals for businesses with fewer than 10 employees allowing the business to dismiss employees without being taken to a tribunal if they pay a compensation payment.
* Allowing employers to have ‘protected conversations’ with employees about poor performance knowing that the discussion cannot then be quoted during an employment tribunal.
* Simplifying the current dismissal processes.
* Introducing fees to lodge employment tribunal claims
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