With so many legislative proposals around at the moment, we thought it would be helpful to provide a summary setting out details of what is coming into force when, to help you plan for the changes in the year ahead and beyond.
1 February 2012
The annual increase to Employment Tribunal limits will take place. The maximum compensatory award will rise to £72,300 and the cap on a week's pay for calculating redundancy payments and basic awards will increase to £430.
By 8 March 2012
Implementation of the new Parental Leave Directive is required, which will increase parental leave from three to four months.
April 2012
The qualifying period for unfair dismissal will increase from one to two years. No transitional provisions are available yet so we do not know precisely how the change will be introduced.
Various Employment Tribunal changes will be made, including doubling the maximum deposit order from £500 to £1,000 and doubling the maximum costs the Tribunal can award to £20,000. Witness statements will be taken as read unless the judge decides otherwise and witness expenses will be paid by the parties; the judge will be able to order the losing party to pay the successful party for these costs. All unfair dismissal cases will be heard by a judge sitting alone without wing members (unless the judge directs otherwise).
The new apprenticeship structure and prescribed form apprenticeship agreements will be introduced.
The rate of statutory sick pay is due to rise to £85.85 per week; statutory maternity/adoption/paternity pay and maternity allowance are due to rise to £135.45 per week from 9 April.
The Government's response to the consultation on amending the Working Time Regulations is due in early 2012 and it remains to be seen whether this happens in time for the changes (which largely deal with holidays and sick leave) to be implemented in April.
1 October 2012
Pensions auto-enrolment and minimum employer contributions will apply to the largest employers.
Annual rises in the national minimum wage may take effect, depending on the recommendations of the Low Pay Commission.
2013
Criminal Records Bureau checks will become portable and employers will be able to use an immediate online checking service.
Date not yet known
The Government has confirmed that various further changes will take place but has not yet given a date for their implementation.
Claimants will have to submit details of their complaint to ACAS for pre-claim conciliation, which will last for one month, and mediation will be extended.
Penalties of up to £5,000 will be introduced for employers who lose Tribunal cases but this will not be automatic; judges will have discretion to impose a penalty where the employer's breach of employment rights has aggravating features, such as negligence or malice.
Fees will be introduced for claimants in the Employment Tribunal. A consultation exercise is currently taking place in relation to the various options, with any scheme unlikely to start until 2013 or 2014.
Compromise agreements will be renamed settlement agreements, a standard form will be published for small employers to use, it will be made clear that both existing and future claims can be waived and section 147 of the Equality Act will be amended to confirm that discrimination claims can be validly waived. (The standard form agreement and the waiver of future claims will be subject to consultation.)
The whistle-blowing legislation will be changed so that an employee cannot rely on a breach of his contract of employment in order to start a whistle-blowing claim.
For further information…
HR professionals are set to have a busy year and we will keep you informed of further changes through these briefings. We have updated our timeline, which sets out details of the proposed changes plus the key judgments that are expected this year. Please see the Resources section of this briefing.