At this time of year our minds turn toward resolutions and contemplating the future. For business, Employment Law is one area where significant change could be in the pipeline over the next 12 months and beyond. Last November, Business Secretary Vince Cable set out what have been heralded as the biggest changes in this area for years. They are certainly important, and if implemented, could have a major impact on employers and employees.
Some of the key proposals for 2012 are:-
- Unfair Dismissal
From April the qualifying period of service to claim unfair dismissal will change from one year to two. This is certain to go through and the government hopes this will incentivise employers to worry less about taking on new staff which will in turn (theoretically), help boost the economy. It’s all about “cutting the red tape” for businesses.
- Auto-enrolment – link to pensions article
From October, in various staging dates depending on the size of the employer, auto-enrolment into company pensions comes in. This will require employers to contribute at least 3% of qualifying employee’s salary to their pension scheme. This is part of an attempt to address the perennial need for an ageing population to make better provision for retirement (with their employers’ help of course).
- The Working Time Regulations
are to be amended to allow employees to carry forward 4 weeks’ annual leave when they’ve been ill during the holiday year when leave was to be taken. In cases of maternity, paternity, parental and adoption leave the carry forward is likely to be to 5.6 weeks. This helps to clarify an area where there has been real confusion between European and domestic law.
- Employment Tribunal Claims
Consultation is ongoing about whether to charge users a fee before making Employment Tribunal claims and prior to any hearing. This is proving controversial as it goes against the original “accessible justice” ethos of the system. But Government thinking reflects a need to shift the burden of the system away from the general taxpayer. It’s unlikely this change will happen this year. But watch this space to see whether this change will go ahead and what form it takes.
- Financial Penalties – Employers
There could be a new sting in the tail for Employers in the form of Financial Penalties where an Employment Tribunal feels they have breached employment rights. There will probably be exclusions for “inadvertent errors” but again this seems to be a move toward shifting the burden away from taxpayers as the fine would be paid to the exchequer rather than the employee (who may well get separate compensation anyway).
These are just a taster of what is under consideration. Views so far from businesses, unions and others are mixed. What is clear though is that we all need to be braced for a period of change.
To discuss these or any of the other proposed changes in detail please contact a member of our employment team by visiting :
