Governmental employment law consultations
throughout 2012 have resulted in indications of legislative change for this
year and beyond. However, as yet there is a lack of detail in some areas and a
timescale which is yet to be clarified. The Enterprise and Regulatory Reform
Bill is expected to receive Royal Assent this year. The bill processed through
the third reporting stage of The House of Lords on 6th March 2013.
For more details on this process see:
http://services.parliament.uk/bills/2012-13/enterpriseandregulatoryreform.html
For the latest Lords Hansard on these changes see: http://www.parliamentlive.tv/Main/Player.aspx?meetingId=12650&st=15:27:30
Provisions that have or are coming into force are
detailed below:
Last Month
On the 1st February 2013 employment
tribunals saw an increase to award limits:
- To calculate statutory redundancy, what
constitutes a 'week’s pay' rose from £430
to £450
- The limit on restitutionary awards for unfair
dismissal rose from £72,300 to £74,200
- The new maximum basic redundancy award and
payment rose from £12,900 to £13,500
- The guaranteed pay will increased from £23.50 to £24.20 a day
For more details on employment tribunal
compensatory caps see Nutshel Law: http://www.nutshellaw.co.uk/new-financial-limits-in-the-employment-tribunal/
This
Month
The Government will be implementing changes to unpaid
parental leave to comply with the EU Parental Leave Directive. Unpaid parental
leave will increase to 18 weeks, and
this must be implemented by 18th March 2013.
The Government will begin implementing changes to
The Equality Act 2012. Third party harassment provisions and discrimination
questionnaires will no longer be in use.
Next
Month
Certain statutory pay rates will increase:
- Statutory maternity pay, statutory paternity pay
and statutory adoption pay will
increase from £135.45 to £136.78
- Statutory sick pay will increase from £85.85 to £86.70 and weekly earnings threshold for will rise from £107 to £109.
- From 6 April 2013 employers
will have to start reporting PAYE information to HMRC in real time:
“You may see this referred to as
Real Time Information - or RTI.
This means that employers (or
their accountant, bookkeeper or payroll bureau) will have to:
- Send details to HMRC every
time they pay an employee, at the time they pay them
- Use payroll software to send
this information electronically as part of their routine payroll process”
The Government intends to reduce the collective
redundancy consultation period from 90 day to 45 days where 100 employees are
more are at risk. That change is due on 6th April 2013.
Companies will be able to offer the new ‘employee
shareholder’ status from April 2013 (previously known as ‘employee owner’).
This scheme denotes that accepting employee shareholder contracts will mean
giving up certain employment rights in return for company
shares.
http://www.out-law.com/en/articles/2012/december/collective-redundancy-consultation-period-will-be-cut-to-45-days-government-announces/
July
It is expected that employment tribunal fees will
be introduced.
July/August
A salary-based cap on compensatory reward for
unfair dismissal is due to be introduced.
‘Settlement’ agreements will replace compromise
agreements, and there will be a new Statutory Code of Practice and guidance.
October
The Low Pay Commission is due to report on the
national minimum wage for 2013. “The Low Pay Commission (LPC) was established
as an independent body as a result of the National Minimum Wage Act 1998 to
advise the Government about the National Minimum Wage.” The report may suggest
an increase in the National Minimum Wage this due to change in October 2013. http://www.lowpay.gov.uk/
Other
bills to be aware of:
- Enterprise and Regulatory Reform
- Growth and Infrastructure Bill
- Children and Families Bill
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