The past year has seen constant media reports and speculation about potential radical reforms to employment law in the United Kingdom as the Government seeks to reassure employers that it is on their side. The message seems to be that employment law has become too employee-friendly, and that the Government is determined to redress the balance and allow employers to run their business and contribute to economic growth, without having to be too concerned about liabilities to employees. The sensationalism of the media can make it hard for employers to know exactly where the law currently stands and what they need to be aware of going forward. In order to ensure you know where you are now we have outlined the main changes that have happened recently, the ones that are likely to be implemented soon, and the ones that are mere speculation. 6 April 2012: Employees whose employment commenced on or after 6 April 2012 now require 2 years’ continuous service to raise claims for “normal” unfair dismissal. Employees who started work prior to 6 April 2012 still only require 1 year’s continuous service. Remember that the continuous service requirement does not apply to claims for automatically unfair dismissal (where there is a “prohibited reason” for dismissal) or for discrimination claims – where no service is required. It remains to be seen whether this is good news or bad news for employers. There is an argument that it could encourage employees, who are dismissed with less than 2 years’ service, to make allegations of discrimination (which are generally more difficult and costly to deal with). 1 October 2012: Pensions auto-enrolment has now started. The Government has made it a requirement that employers automatically enrol workers into a contributory workplace pension, if they meet certain criteria, unless the employee opts out. The scheme is being rolled out gradually over a period of 3-6 years, starting with the largest companies in the UK (those with over 120,000 employees) and working down to the smallest. Even those employers who are not immediately affected do need to be aware of the changes. For example, all organisations will need to assess the costs of compliance with the rules when they apply and factor such costs into projections etc. Thought also needs to be given to ensuring the relevant documentation and agreements with staff are in place. The obligation to provide a stakeholder pension for staff has now been discontinued, even for those employers who still await their auto-enrolment start date (though employers may well have contractually agreed to provide such a scheme, so cannot now simply stop it). Summer 2013: The Government announced that fees will be introduced into Employment Tribunals. The intention is for fees to be introduced from summer 2013. The Claimant (the employee) will be responsible for paying a fee when raising a claim and another fee 4-6 weeks prior to the hearing. The level of the fee will depend on the type of claim raised, and there will be provisions to waive the fees for those who cannot afford to pay. How the waiver system will operate will be fundamental in relation to the impact of the fees. There is a real concern that the fees system will dissuade genuine Claimants as well as those who are “trying it on”. The details will of course be important. Employment Law - Where are we now? Employment Law - Where are we now? Issue: October 2012 In the wake of regular reports in the media concerning changes to employment law, the team provides some clarity by highlighting key recent reforms and imminent changes. Employment Law - The Future Update An overview of the latest tribunal statistics. A quick rundown of proposed measures. One Edinburgh Quay Edinburgh EH3 9QG T: 0131 222 2939 F: 0131 222 2949 48 St. Vincent Street Glasgow G2 5HS T: 0141 221 8012 F: 0141 248 9471 Employment Seminars An announcement regarding forthcoming seminars.
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The past year has seen constant media reports and speculation about potential radical reforms to employment law in the United Kingdom as the Government seeks to reassure employers that it is on their side. The message seems to be that employment law has become too employee-friendly, and that the Government is determined to redress the balance and allow employers to run their business and contribute to economic growth, without having to be too concerned about liabilities to employees. The sensationalism of the media can make it hard for employers to know exactly where the law currently stands and what they need to be aware of going forward.
In order to ensure you know where you are now we have outlined the main changes that have happened recently, the ones that are likely to be implemented soon, and the ones that are mere speculation.
6 April 2012: Employees whose employment commenced on or after 6 April 2012 now require 2 years’ continuous service to raise claims for “normal” unfair dismissal. Employees who started work prior to 6 April 2012 still only require 1 year’s continuous service. Remember that the continuous service requirement does not apply to claims for automatically unfair dismissal (where there is a “prohibited reason” for dismissal) or for discrimination claims – where no service is required. It remains to be seen whether this is good news or bad news for
employers. There is an argument that it could encourage employees, who are dismissed with less than 2 years’ service, to make allegations of discrimination (which are generally more difficult and costly to deal with).
1 October 2012: Pensions auto-enrolment has now started. The Government has made it a requirement that employers automatically enrol workers into a contributory workplace pension, if they meet certain criteria, unless the employee opts out. The scheme is being rolled out gradually over a period of 3-6 years, starting with the largest companies in the UK (those with over 120,000 employees) and working down to the smallest. Even those employers who are not immediately affected do need to be aware of the changes. For example, all organisations will need to assess the costs of compliance with the rules when they apply and factor such costs into projections etc. Thought also needs to be given to ensuring the relevant documentation and agreements with staff are in place. The obligation to provide a stakeholder pension for staff has now been discontinued, even for those employers who still await their auto-enrolment start date (though employers may well have contractually agreed to provide such a scheme, so cannot now simply stop it).
Summer 2013: The Government announced that fees will be introduced into Employment Tribunals. The intention is for fees to be introduced from summer 2013. The Claimant (the employee) will be responsible for paying a fee when raising a claim and another fee 4-6 weeks prior to the hearing. The level of the fee will depend on the type of claim raised, and there will be provisions to waive the fees for those who cannot afford to pay. How the waiver system will operate will be fundamental in relation to the impact of the fees. There is a real concern that the fees system will dissuade genuine Claimants as well as those who are “trying it on”. The details will of course be important.
Employment Law - Where are we now?Employment Law - Where are we now?
Issue: October 2012
In the wake of regular reports in the media concerning changes to employment law, the team provides some clarity by highlighting key recent reforms and imminent changes.
Employment Law - The Future
Update
An overview of the latest tribunal statistics.
A quick rundown of proposed measures.
One Edinburgh Quay Edinburgh EH3 9QG
T: 0131 222 2939 F: 0131 222 2949
48 St. Vincent Street Glasgow G2 5HS
T: 0141 221 8012 F: 0141 248 9471
Employment Seminars
An announcement regarding forthcoming seminars.
A whole raft of measures have been proposed, or are being consulted on, and may well come into force at some point. These include:
It is clear that many (but not all) of these measures, if implemented, will be seen as favouring employers. However, as with all new legislation, there will inevitably be arguments and debates about interpretation, when the new provisions apply, etc., and in the short term this may well mean an increase in litigation (and cost). We will of course keep you advised in relation to these changes. Employment law continues to be complex and fast changing. As ever, watch this space!
bto is pleased to introduce its forthcoming employment law seminars which are essential for all employers who want to keep up to date and minimise the risk of successful claims. Seminars start at 12.30pm prompt, conclude by 1.30pm and are followed by a buffet lunch. There is no charge for attending these seminars. Click on the links below to book your place.
8/11/12: “Holiday Pay, Sick Pay and Time Off Work: Where are we now?”
4/12/12: “Employment Law Update 2012 and Quiz”
Update
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Employment Law - The Future
Tribunal Statistics
Latest figures for 2011-12 show a slight drop in claims, but still a total of 186,000 in the UK over the course of the year.
During the year there were 321,000 Tribunal complaints. These are daunting numbers. Make sure your business does not become part of next year’s statistics!
It is never too late to seek expert employment law advice
Please contact us if you require advice in relation to any of the issues touched on in this newsletter.
David Hoey Douglas Strang Jennifer Kimble
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Caroline Carr
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Compulsory ACAS mediation for all Tribunal claims.
Ongoing consultation in relation to possible changes to TUPE Regula-tions, perhaps removing “service provision changes” from the scope of the Regulations, either entirely, or for professional services.
Possible reduction in unfair dismissal compensation to a maximum of one year’s salary (or otherwise reducing the limit).
Likely introduction of “protected conversations” enabling employers to suggest that an employee leaves under a Compromise Agreement (or “settlement agreement”), without that amounting to constructive dismissal. The employer’s proposal could, however, still be relied on in relation to allegations of discrimination.
Likely abolition of employer’s liability for “third party harassment”.
Possible extension of the right to request flexible working to all employees.
The recently announced, and baffling, proposal to allow employers to insist that new staff give up their employment rights in exchange for shares in the employing company. This proposal raises numerous ques-tions, and it is highly debateable whether it will be attractive to many employers. As employees would not be giving up their rights to complain about discrimination, this approach could potentially lead to an increase in discrimination claims. It is also not clear whether employers would be happy giving up ownership of the company in this way, and potentially having ex-employees who still own part of the business. This proposal could be introduced as early as April 2013.
Significant changes to make mater-nity / paternity leave more flexible.
Employment Seminars
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