In our ongoing efforts to assist employers, we identify the key development they need to prepare for in 2012. 

February 2012

From 1 February 2012, the limits applying to Tribunal Awards and other amounts payable under Employment legislation will increase.  The maximum amount of a weeks pay will increase from £400 to £430 and the maximum compensatory award for unfair dismissal from £68,400 to £72,300.  The limit on the amount of a guaranteed payment payable to an employee in respect of any day also increases from £22.20 to £23.50.

April 2012

Unfair Dismissal Rights

The Qualifying period of service for unfair dismissal claims looks likely to rise from 1 year to 2 years.  “To provide more time from employers and employees to resolve difficulties, give employers greater confidence in taking on people and ease the burden on employment tribunal process”.

Tribunal Reform

The Government announced a “fundamental review” of the Employment Tribunals procedure and indicated that substantial changes to employment tribunal procedure could be expected from 6 April 2012.  These look likely to include:-

• Employment Judges sitting alone in unfair dismissal cases. 
• The maximum amount of a deposit order which a tribunal will order a party to pay is a condition to continuing the tribunal proceedings will increase from £500 to £1,000. 
• The maximum amount of a costs order which a tribunal can award in favour of a legally represented party will increase from £10,000 to £20,000.  
• Witness statements are to be taken as read unless a tribunal directs otherwise. 

Rate Increases

• Weekly rates for statutory maternity, paternity and adoption leave pay will increase from £128.73 to £135.45 and,
• The rate of statutory sick pay will increase from £81.60 to £85.85. 

Parental Leave Extension

To bring the UK into line with European requirements, the period of unpaid leave will increase from 3 months to 4 months.

1 October 2012

Pension Changes

Auto-enrolment of employees (“job holders”) into a pension scheme will commence for businesses with more than 120,000 employees.  Staged introduction will follow over the ensuing months/years for those businesses with fewer staff.  Small businesses meaning those with fewer than 50 employees will be assigned staging dates running from the 1 May 2015.  More details on this are to be announced. There are implications for all employers and it is sensible to start thinking about your obligations will be such as enrolment of staff and making mandatory employer contribution  to qualifying pension schemes. Employers need to consider  what its financial effect will be and to plan early, is the National Employment Savings Trust (”NEST”) right for your business?

Other employment law developments are in the pipeline but dates for implementation have yet to be set.

For advice on these changes and employment law generally contact Anna Illingworth Head of Employment and Dispute Resolution  at Rowberry Morris – anna.Illingworth@rowberrymorris.co.uk