HR Update - New awards for unfair dismissal
Friday, February 8, 2013
Jacqui Mann provides an update on some of the changes to legislation which will have an impact on you as an employer
February 2013
Increase in maximum Employment Tribunal awards from 1 February 2013:
The increases will be:
- A week's pay: £450 (up from £430), used for calculating statutory redundancy payments and the basic award; and
- Unfair dismissal compensatory award: £74,200 (up from £72,300).
This means the maximum unfair dismissal award can be £87,700 (maximum basic award plus maximum compensatory award).
The Government published its response to the 'Ending Employment' consultation on limiting the cap on unfair dismissal. This confirms that it will go ahead with its plans to limit the cap on unfair dismissal claims to the lower of the current statutory cap (£74,200 from 1 February) or the claimant's annual net salary.
The minimum basic award in cases where the dismissal was unfair, by virtue of being an employee representative or trade union official, health and safety reasons or reasons connected to being an occupational pension trustee, will increase from £5,300 to 5,500.
March 2013
Increase to unpaid parental leave entitlement:
- Up from 13 to 18 weeks in total per child; maximum of four weeks per year.
Removal of employer liability (under the Equality Act):
- for acts of harassment by a third party against an employee.
April 2013
Increase in weekly rate of statutory maternity/paternity/adoption pay and sick pay:
- Statutory maternity/paternity/adoption pay -up from £135.45 to £136.78.
- Weekly rate of statutory sick pay - up from £85.85 to £86.70. Weekly earnings threshold for both of above up from £107 to £109.
Protection of whistle-blowers:
- A worker will be unable to bring a whistleblowing case relating to a breach of their own contract that is not in the public interest.
Reforms to collective redundancy:
- These include reducing the 90-day minimum consultation period to 45 days for collective redundancies involving 100 or more employees.
- Fixed-term contracts, which have reached expiry point, are to be excluded from consultation.
Other expected changes:
- Mandatory pre-claim ACAS conciliation
- Penalties for employers who lose Tribunal claims;
- Employment Appeal Tribunal judges to sit alone
- The use of settlement agreements to replace compromise agreements.
Jacqui Mann is managing director of HR4nurseries www.hr4nurseries.co.uk
