It is about time we let you know what employment law changes are coming up this year. It is a big set of changes for 2012 after the reforms that were discussed and decided late last year.
As always the compensation limits have been looked at and have been given a slight adjustment. The amount for a statutory week's pay (used to calculate redundancy and the basic award in unfair dismissal claims) rises from £400 to £430. In addition, the maximum compensatory award is increasing from £68,400 to £72,300. Don't worry, very few claims actually reach these dizzy heights!
The above changes are already in place, as they came in on 01 February 2012. From April 2012 however, there are more increases that employers need to be aware of: statutory sick pay will increase from £81.60 to £85.85 per week and statutory maternity, paternity and adoption pay will also increase from £128.73 to £135.45 per week. Although these are claimed back from the government employers will need to think about their cash flow and also should you offer an enhanced scheme you may need to consider raising that too so that your enhancement remains as attractive.
A really interesting amendment that comes in this year is the extension of the qualifying period from one year to two. This will come into force on 06 April 2012 and seems to be as cut and dry as, 'hired on 5th April?- you will have unfair dismissal rights in 1 year. Hired on 6th? That will take you 2 years to gain any rights more that whistle blowing or discrimination.' This is how it is suggested it will happen, as always in law time, and spurious claims, will tell.
Finally, for this instalment, there are some changes that will affect the Tribunals and the mechanics of bringing a claim. Although infrequently invoked a Tribunal can order a Claimant to make a payment into court of up to £500. This is known as a deposit order and can be forfeited if the Claimant loses the case. It has been suggested that this figure will increase to £1,000 in April 2012 in order to deter vexatious litigants.
Still on the theme of paying, in 2012/13 it has been suggested that claims will now need to be paid for. There are 2 options being discussed at present;
1. An issue fee and a hearing fee, the amount of which would depend on the nature of the claim. For example, in an individual unfair dismissal claim, the claimant would have to pay an issue fee of £200 and a hearing fee of £1,000.
or
2. An issue fee only, the amount of which will depend on what the claimant states their claim to be worth. For example an individual unfair dismissal claim worth less than £30,000 would cost £500 to issue and one worth more would cost £1,750.
This is, I'm sure, to weed out vexatious litigants but it could also deter genuine claimants. Of course though, flip the coin and you could see individuals clinging on harder to a claim. Advisors will find it harder to persuade them to withdraw with no payment as they will not wish to be left out of pocket by having to cover any Tribunal fees themselves.