Introduction of fines (1)• „Financial penalties‟ for employers• 50% of award made • minimum £100 • maximum £5,000• Payable to the Exchequer• Early payment discount• In addition to uplift under ACAS Code
Introduction of fines (2)• Consultation responses - concerns about “unintended or accidental shortcomings”• Judges will have discretion to impose the financial penalty
Deposit orders and costs• “Address business concerns about weak claims”• Deposit orders – cap increasing from £500 to £1,000• Cap on costs to increase from £10,000 to £20,000
Introduction of fees• Employment Tribunals are currently 100% funded by taxpayers - annual cost £84 million, average £1,800 per case• Transfer the burden on to those who use the system or who cause the system to be used• Currently consulting about reform – closes 6 March 2012, changes coming in 2013/4?
Proposal Two• Single charging point• Fee = £200 - £600• For claims of £30,000 or more = £1,750• How should claims be valued?
Fees• Paid by the other party if you win (unless Tribunal orders otherwise) – but what is a win?• Separate fees for multiple claims• No infrastructure in the Employment Tribunals
The remission system• Tim – claims unfairly made redundant, has since secured another job at a lower salary. His wife works part time earning £6,000 and they have 3 children• Entitled to full remission if the couple‟s income is £26,790 or less• Get the claim in before you get a new job!
Protected Conversations• David Cameron - “so a boss and an employee feel able to sit down together and have a frank conversation – at either‟s request”.• Will not be admissible in proceedings.
Protected Conversations• Nick Clegg - “confidence to be open about performance, about retirement with their employees”.• At consultation stage.
Protected Conversations• Issues: • Elements that are not protected (discrimination). • Refusal to engage in protected conversations. • Systems already in place.
Protected Conversations• Advantages – Address issues more directly – No fear of reprisal• Disadvantages – False sense of security – Will not cover all scenarios – More complex legislation or guidance for employers to grapple with