Naomi Pearson

UK Business News, 05 January 2012
 

2012 is going to prove to be yet another busy year on the employment law front as the Government progresses its aim of reducing regulatory burdens on business. Key highlights are as follows:

31 January

• Closure date for calls for evidence on the effectiveness of TUPE and the scope of the collective redundancy rules - may result in a formal consultation later in the year.

1 February

• New tribunal award limits, come into force. The limit on the amount of compensatory award for unfair dismissal increases from £68,400 to £72,300 on 1 February 2012. Also the maximum amount of a week's pay for purpose of calculating a statutory redundancy payment and the basic and additional awards for unfair dismissal increases from £400 to £430. The rise in the limits applies where the event that gives rise to the award or payment occurs on or after 1 February 2012.

6 March

• Consultation closes on fees in tribunals and the EAT.
• The Parent Leave Directive (2010/18/EC) repels and replaces the Parent Leave Directive (96/34/EC). The permitted period of parental leave following birth or adoption of a child increases from three to four months, and at least one of the four months will not be transferable between parents. Member states have until 8 March 2012 to bring this into force.

6 April

• From 6 April 2012 the qualifying period for an employee to bring an unfair dismissal claim increases from one year to two years.
• Various tribunal reforms to take effect, including the maximum amount of a deposit order, which a tribunal can order a party to pay as a condition to continuing with tribunal proceedings, increasing from £500 to £1000. The maximum amount of a costs order, which a tribunal may award in favour of a legally represented party, increases from £10,000 to £20,000. Other changes are made to employment tribunal procedue, including changes to witness statements, which are no longer read aloud, and are instead taken "as read", unless tribunal directs otherwise. Tribunals have the power to direct that the parties to a dispute are responsible for paying witnesses' expenses and that the party who loses the case should reimburse the successful party for any such costs already paid out. Employment judges will hear unfair dismissal cases alone in the employment tribunal, unless they direct otherwise, and judges will hear all cases alone in the Employment Appeal Tribunal, unless they direct otherwise.
• Unpaid parental leave to increase from 3 to 4 months.
• Working time rules to be amended to allow holiday to be carried forward in limited circumstances.
• The standard rates of statutory maternity, paternity and adoption pay increases from £128.73 to £135.45 per week from 1 April 2012.
• The standard rate of statutory sick pay increases from £81.60 to £85.85 per week on 6 April 2012.

October

• Starting from 1 October 2012, large employers have to enrol eligible employees automatically and make mandatory employer contributions, into a qualifying workplace pension scheme or the National Employment Savings Trust (Nest).
• The national minimum wage may increase on 1 October 2012, depending on what the Low Pay Commission recommends in February 2012. 

Developments with no confirmed date but likely to be progressed in 2012

• Penalities for employers who breach employment rights. Employment tribunals will have the power to levy a financial penalty against employers that are in breach of employment rights. The amount of penalty will be based on the amount of the award that the tribunal makes, with a minimum threshold of £100 and an upper ceiling of £5,000. Employers will qualify for a reduction if they pay the penalty within 21 days.
• Early compulsary ACAS conciliation of all tribunal claims. Potential claimants will be required to lodge details of their proposed employment tribunal claim with ACAS in the first instance. ACAS will offer parties the opportunity to engage in concillation. Where the parties refuse to engage in conciliation or where conciliation is attempted but is unsuccessful, the claim will proceed.
• Amendment of whistleblowing rules so that disclosures about breaches of employment contracts are no longer covered.
• Compromise agreements to be simplified.
• Consultations on rapid resolution scheme as alternative to tribunal for low-value and straightforward disputes.
• ACAS Disciplinary and Grievance Code to be 'looked at' with a view to a simpler dismissal process. 

Consultations

• Consultations that remain open in the first three 3 months of 2012 include: proposals for the introduction of employment tribunal fees; and calls for evidence over whether or not the law on TUPE and collective redundancy consultation should be amended to reduce the burden on businesses. The Government has announced that in 2012 it will consult on reforming the law on employment disputes and removing the third-party harassment provisions of the Equality Act 2010

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