Employment Law Changes in 2012

posted by admin on January 12, 2012.

2012 will bring some significant employment law changes for both employer and employee alike.

Key updates are as follows:

1.  Statutory redundancy payments and guarantee payments increase

• The maximum amount of a week’s pay used to calculate a statutory redundancy payment and the basic and additional awards for unfair dismissal increases from £400 to £430 on 1 February 2012.
• The maximum unfair dismissal compensatory award increases from £68,400 to £72,300.
• The limit on the amount of a guarantee payment payable to an employee in respect of any day also increases from £22.20 to £23.50.

2.  Maternity, paternity, adoption and sick pay increase

• The standard rate of statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week from 1 April 2012.
• Statutory sick pay will increase from £81.60 to £85.85 per week from 6 April 2012.

3.  Qualifying period for unfair dismissal protection is increased

• The qualifying period for an employee to bring an unfair dismissal claim will increase from one year to two years. This change comes into force on 6 April 2012.
• The Government has stated that the change in legislation it to “provide more time for employers and employees to resolve difficulties, give employers greater confidence in taking on people and ease the burden on the employment tribunal process”.

4.  Pensions auto-enrolment begins

• With effect from 1 October 2012, employers with 50 or more employees have to enrol eligible employees automatically, and make mandatory employer contributions, into a qualifying workplace pension scheme or the National Employment Savings Trust (Nest).

5.  Changes to Employment Tribunal procedure

• The Government has announced that there will be a “fundamental review” of the Employment Tribunal Rules of Procedure, with substantial changes to employment tribunal procedure expected to be introduced on 6 April 2012.
• Employment judges will hear unfair dismissal cases alone in the tribunal, unless they direct otherwise.
• The maximum amount of a deposit order, which a tribunal can order a party to pay as a condition to continuing with tribunal proceedings, will increase from £500 to £1,000.
• The maximum amount of a costs order, which a tribunal may 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.

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