Labour, Employment and Human Rights Bulletin
It's been a busy few months with the Government suggesting widespread reform of employment law, often against the wishes of the majority of those with whom it consulted. Below we look at the 'top ten' you should look out for over the coming year.
1. Parental Leave Increase
This will increase from 13 to 18 weeks in March 2013 in order to comply with the revised Parental Leave Directive (EC). This remains an unpaid entitlement.
2. Portable DBS Checks Introduced
Disclosure and Barring Service (DBS) checks (previously Criminal Records Bureau (CRB) checks) will from March be accessible online to all employers who pay a fee to register with the DBS. This avoids the need for employees to have a new check every time they start a new job.
3. Reduction in Collective Consultation Period
From 6 April 2013 the requirement to consult with the workforce for a minimum period of 90 days (where an employer is proposing to make 100 or more employees redundant) will be reduced to 45 days. The minimum period where an employer is proposing to dismiss 20 to 99 employees remains the same, at 30 days.
4. Increase in Statutory Maternity, Paternity, Adoption and Sick Pay
From 6 April 2013:
Statutory maternity pay, paternity pay and adoption pay will increase from £135.45 to £136.78 per week.
Statutory sick pay is due to increase from £85.85 to £86.70 per week.
5. Employee-Shareholder Contracts Introduced
The new "Employee-Shareholder" status is still due to be introduced in April 2013. Employees forgo certain employment rights, such as unfair dismissal and statutory redundancy pay, in return for between £2,000 and £50,000 of shares in their employer which would be exempt from capital gains tax.
6. Changes to the Equality Act
In May 2013 liability for third-party harassment and discrimination questionnaires will be repealed.
7. Changes to Whistleblowing Legislation
Also in May 2013 the availability of whistleblowing protection will become more limited. A 'disclosure' will no longer be protected unless the employee reasonably believes that the disclosure is in the public interest. This would prevent employees from relying on whistleblowing protection in relation to a breach of their own contracts of employment.
8. Fees for Tribunal Claims Introduced
In July/August 2013 Claimants who issue a claim in the Employment Tribunal will be required to pay a fee. The current proposal is that there will be an initial fee when the Claimant issues the claim and a further fee if the claim proceeds to a hearing. The level of fee will depend on the complexity of the claim. However, many individuals on low incomes may not be required to pay the full fees – under a remission system similar to that available in the civil courts' services which exempts those on income support.
9. Amendment to Cap for Unfair Dismissal
Another change that is due to take place in the Summer of 2013 is the amendment to the cap for compensation in unfair dismissal claims, currently £74,200. Under the new rules, compensation awards will be restricted to an overall cap of 12 months' wages. Employees earning above the cap will however remain subject to the upper limit of £74,200.
10. Changes to PAYE
The HMRC is introducing a new way of reporting PAYE, called Real Time Information (RTI). Employers will be legally required to report PAYE in 'real time' - this means that information about all PAYE payments needs to be submitted to HMRC online each time a payment is made as part of the payroll process, rather than at the end of the year. The new system will be operational from April 2013 and must be implemented as and when employers receive the 'invite' to join the system from the HMRC. It is intended that all organisations will have joined by October 2013.
Click here to find out more about our upcoming seminar, at which we will be discussing these changes in more detail.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
