The Policy Company Limited

The Policy Company Limited

News Bulletin for Library Members

Headlines:

·  Ending the Employment Relationship – Government’s Plans

·  Employment Law – major changes expected for 2013

·  Disclosure and Barring Service – Court ruling

Ending the Employment Relationship – Government’s Plans

Through the Employment Law Review, the government has been looking at ways to improve the efficiency and effectiveness of the British labour market. The review is looking at all aspects of employment-related law and all stages of the employment life cycle.

The consultation covered two issues:

1.  Ways to encourage the use of settlement agreements as a means of coming to a consensual agreement, allowing both parties to avoid the costs and stresses of a tribunal case;

2.  Changing the limit of the compensatory award in unfair dismissal cases to give employers more certainty about their potential liability and give employees more understanding of the value of unfair dismissal claims.

Proposals:

·  Existing ‘compromise agreements’ will be replaced with ‘settlement agreements’;

·  The Government will implement a Statutory Code of Practice alongside the legislation. Acas will shortly be undertaking separate consultation on the code itself;

·  Guidance will be issued with illustrative examples on the correct way to handle the new settlement approach to avoid ‘improper behaviour’ that could remove the protection;

·  The Government will not set a guideline tariff for settlement offers, but will instead include guidance on the considerations that both parties should bear in mind during the negotiation; and

·  A new limit of the lower of twelve months’ salary and the overall cap on compensation (currently £72,300 and due to increase to £74,200 on 1 February 2013) will be placed on unfair dismissal compensatory awards.

It is expected that the changes will come into effect from summer 2013.

Employment Law – major changes expected for 2013

Many consultations and Government announcements on employment law took place in 2012 with resulting legislative changes likely in 2013 and beyond. However, for many of these the timescale is still unclear.

The main piece of legislation expected to receive Royal Assent in 2013 is the Enterprise and Regulatory Reform Bill which is currently working its way through Parliament. It contains a number of provisions to reform the employment tribunal system including:

·  introducing mandatory pre-claim Acas conciliation;

·  renaming compromise agreements as ‘settlement agreements’;

·  introducing ‘protected conversations’ but only in relation to unfair dismissal claims;

·  reducing the compensatory award in unfair dismissal claims to an employee’s annual salary where this is less than the overall cap;

·  equal pay audits;

·  third party harassment and discrimination questionnaires;

·  changes to which disclosures by whistleblowers are protected.

It is likely that some of the provisions will come into force during2013.

See ‘Making the labour market more flexible, efficient and fair’

February

Increased limits on employment tribunal awards will come into force on 1 February:

·  a 'weeks pay' will rise from £430 to £450;

·  the maximum compensatory award for unfair dismissal will rise from £72,300 to £74,200;

·  the maximum basic award (and redundancy payment) will rise from £12,900 to £13,500;

·  guarantee pay will increase from £23.50 to £24.20 a day.

March

The Government has announced that unpaid parental leave will increase to 18 weeks to comply with the EU Parental Leave Directive which is required to be implemented by 8 March.

April

·  Rates of statutory maternity pay (SMP), statutory paternity pay (SPP), statutory adoption pay (SAP) will increase from £135.45 to £136.78 and statutory sick pay (SPP) will increase from £85.85 to £86.70. The weekly earnings threshold for these payments will also increase from £107 to £109.

·  All employers will have to start reporting PAYE information in real time (except where HMRC has specified a later date) - from 6 April.

·  If the Growth and Infrastructure Bill completes its passage through Parliament, the Government intends that companies will be able to offer new ‘employee owner’ status from April. Those accepting employee owner contracts will agree to giving up certain employment rights in return for company shares.

·  The Government intends to reduce the 90-day minimum collective redundancy consultation period to 45 days.

In the second half of 2013

Employment tribunal fees are likely to be introduced.

October

National Minimum Wage rates may increase - The Low Pay Commission is due to report by the end of February 2013.

Employment-related Acts and Bills

Two Bills introduced in 2012, the Enterprise and Regulatory Reform Bill and the Growth and Infrastructure Bill (see above) are continuing their progress through Parliament. The Government intends to introduce a Children and Families Bill, which will include extending the right to request flexible working to all employees, as soon as the Parliamentary time allows, with implementation in 2014. There will be a consultation on a new statutory code in 2013.

Consultations and their outcomes

·  The Government’s response to the Modern workplaces consultation proposes a new system of shared parental leave to allow parents to choose how they share the care of their child in the first year after birth. Expected to be introduced in 2015, though enabling legislation is expected as soon as Parliamentary time allows.

·  TUPE reform – following an announcement in December 2012, a further consultation is expected to be announced soon.

·  Working Time Regulations amendments to comply with European Court of Justice decision on the interaction between annual leave with sick leave, maternity leave and parental leave - outcome of the 2011 consultation is awaited.

·  Employment tribunal rules review – outcome of 2012 consultation is awaited.

·  Reserve forces consultation – proposes large increases in the number of trained reservists and a new relationship between reservists, employers and the government. Launched November 2012, closes on 18 January 2013.

·  Simplifying recruitment legislation – the intention to consult was announced in November 2012.

Disclosure and Barring Service – Court Ruling

Judges at the Court of Appeal (Queens Bench Division) have handed down a judgment that stated that the Rehabilitation of Offenders Act (ROA) 1974 (Exceptions) Order 1975 infringes Article 8 of the Convention for Human Rights.

It is understood that the Home Office has sought leave to appeal against this judgement. Until the outcome of this appeal is known, “it remains business as usual”, with current DBS checking procedures being unchanged. Click here for Newspaper article.

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Issue Number 9 February 2013

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