News
26 January 2012
Employment Law in 2012 – a look ahead
February
• New tribunal award limits will come into force on 1 February. The maximum compensatory award for unfair dismissal will increase from £68,400 to £72,300 and the limit on the maximum amount of a week's pay for the purposes of calculating statutory redundancy pay or the basic award for unfair dismissal will increase from £400 to £430.
April
• Statutory sick pay will increase from £81.60 to £85.85 and statutory maternity, paternity, additional paternity and adoption pay will increase from £128.73 to £135.45.
• The qualifying period for unfair dismissal is due to double from one to two years on 6 April.
• In its recent response to the 'Resolving Workplace Disputes' consultation, the Government indicated that a range of changes are intended to have effect from April (including the increase in the limit for deposit orders from £500 to £1,000 and the increase in the maximum cost award from £10,000 to £20,000).
October
• The National Minimum Wage is likely to increase (subject to the Low Pay Commission's review, which is expected by the end of February).
• Compulsory pensions will be introduced from October. The date on which compulsory pensions first applies is known as the employer’s “Staging Date”.
Other notable changes for 2012 (no firm dates announced)
• Early conciliation through ACAS
• The introduction of "compensated no fault dismissals" for micro-firms and a consultation on the introduction of "protected conversations"
• Financial penalties for employers who breach employment rights
• Consideration of “rapid resolution” scheme, to provide quicker, cheaper, determinations in low value, straightforward claims
• Consultation on proposals to clarify compromise agreements
• Potential reduction of the 90 day minimum consultation period for collective redundancies and potential simplification of TUPE (The Transfer of Undertakings (Protection of Employment)). The Government has called for evidence on both issues and the deadline for responses is 31 January 2012.
Source: UK Recruiter Newsletter January 2012
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