2012 was a big year in employment law. The coalition government had already stated its desire to deregulate industry, announcing a war on ‘red tape’ that it hopes will help to jump-start a stagnant economy with record levels of youth unemployment. Contact Law have produced a round up for us here.
Deregulation may appeal to government and industry leaders, but it presents a challenge to those working in the employment and recruitment sectors who must keep pace with the legislative changes, whilst keeping a firm eye on those still to come in 2013.
February 2012
February 2012 saw another significant increase in the rate available as compensation for claims at Employment Tribunal for unfair dismissal. The maximum award was increased from £68,400 to £72,300, a rise of £3,900. This trend looks set to continue, with a rise of a further £1,900 scheduled for February 2013.
April 2012
April was a busy month in employment law. The biggest change by far was the change of the qualifying period for unfair dismissal claims. Previously set at one year, for employment starting after 6th April 2012 the period is now two years. This change has no effect on any claims made for discrimination, as these claims are still available to any employee regardless of the duration of their employment.
April also saw an increase in statutory sick pay, from £81.60 per week up to £85.85, for employees earning over £107 per week. This rise will also be repeated in April 2013, by another 1%.
October 2012
October saw the launch of the pensions ‘auto-enrolment’ scheme. This new scheme, designed to ensure that everybody in work puts money aside for their retirement, will affect employees not already in a qualifying pension scheme who are aged over 22 and who earn over £8,105 per year. The scheme obliges employers to phase in a qualifying pension scheme for employees over the next five years. Employees will still have the ability to ‘opt-out’ of any scheme they are placed into.
2013
If 2012 was busy then 2013 is showing no sign of let up. In addition to various rises in employee benefits, they year looks set to see the introduction of the new ‘employee-shareholder’ contracts. These look set to be introduced in April and will see employees offered the change to exchange employment rights including the right to claim unfair dismissal and the right to request flexible working hours in exchange for shares in the company they work for. It is thought these new employment contracts will be phased in from April 2013.
Other changes include an overhaul of the employment tribunals system that will see fees charged to those bringing claims for the first time. The year will also see the conclusions of consultations on changes to the TUPE provisions (which allow workers to transfer employment rights when their existing employment is moved from one employer to another).
If you are looking to learn about updates to employment law or need help identifying your rights in the work place, visit Contact Law.
