Employment Law 2012- What to Expect

With lots of new legislation due in 2012 we have listed the key dates to keep an eye out for.

1 February

New compensation limits come into force, increasing the amount of a statutory week’s pay from £400 to £430 (increasing the maximum unfair dismissal basic award or statutory redundancy payment from £12,000 to £12,900). The maximum compensatory award for unfair dismissal increases from £68,400 to £72,300.

8 March

• As a result of the revised Parental Leave Directive (2010/18/EU), the amount of unpaid parental leave available to those employees with parental responsibility increases from three to four months per child under the age of five years. This amendment must be implemented by member states by 8 March 2012, and will require changes to the existing Maternity and Parental Leave Regulations 1999.

1 April

• The standard weekly rate of statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week.

6 April

• It is the Government’s intention that the qualifying period of service for the purpose of bringing a claim for unfair dismissal will increase from one to two years from 6 April 2012.
• A substantial number of changes are expected to be made to the Employment Tribunal Rules of Procedure, following a review announced in November 2011. This will include the ability for employment judges to hear unfair dismissal claims alone and an increase to the maximum amounts for deposit and costs orders.
• The rate of statutory sick pay will increase from £81.60 to £85.85 per week.

1 October

• Pensions auto-enrolment begins for larger employers (120,000+ employees). Different staging dates will apply following this date, depending on the size of the employer. Following a Government announcement on 28 November 2011, small businesses (fewer than 50 employees) will now begin auto-enrolment from May 2015. Further information is available from the DWP website and the Pensions Regulator.
• The National Minimum Wage rates may increase from this date. The Low Pay Commission will be issuing its recommendations to the Government in February (new rates are normally announced in March).

Further likely developments in 2012 and beyond:

• The Government is due to issue its response to last year’s consultation on Modern Workplaces, with proposals for introducing a new system of ‘flexible parental leave’, flexible working for all employees, amendments to the Working Time Regulations 1998 to make provision for the carry-forward of holiday and new measures to encourage equal pay. A response to the consultation has been delayed as a result of “ongoing discussions within Government”, and is now due to be published in “early 2012”. Dates for these amendments have yet to be confirmed but amendments to the Working Time Regulations are expected in 2012; the new system of ‘flexible parental leave’ is expected in 2015.
• The Government will be consulting on its plans for encouraging the early resolution of workplace disputes, including the introduction of ‘protected conversations’, simplification of compromise agreements, compulsory Acas conciliation and a (further) revision of the Acas Code of Practice on Discipline and Grievances. There are also plans to introduce financial penalties for employers who are found to be in breach of employment rights, payable to the Exchequer.
• The Government is currently consulting on proposals for the introduction of fees for pursuing a claim in the employment tribunal. Fees are likely to be introduced in either 2013 or 2014.
• It is possible that changes will be made to the rules relating to TUPE and collective redundancy consultation, following the “call for evidence” in relation to each of these areas issued in November 2011 (both closing on 31 January 2012).
• The Government has also indicated its intention to consult on the removal of the third party harassment provisions in the Equality Act 2010.

Source Steeles Law