Friday, 8 March 2013

Employment Law Changes 2013




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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