Dorset HR Forum - March Employment Law Update


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March 2013 - Employment Law Update

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Dorset HR Forum - March Employment Law Update

  1. 1. HR Forum March 2013 Employment Law UpdateDec 13 2010
  2. 2. What’s new for 2013? What’s in the pipeline? A few recent casesJune 7 2010
  3. 3. What’s new for 2013? • Tribunal reform • Tribunal Award limits come into force • Employee-shareholder contracts introduced • Unpaid parental leave increases • DBS checks (formerly CRB) now portable • Collective consultation period reduced • Real-time information for payroll • Statutory mat, pat, adoption pay increases • SSP increases • Imposition of tribunal feesJune 7 2010
  4. 4. Tribunal ReformEnterprise and Regulatory Reform Bill, spearheadedby Business Secretary, Vince Cable implements:• various reforms to the employment tribunal system;• permits employers to have protected conversations with employees with a view to terminating employment via a Settlement Agreement;• allows Secretary of State to change the limit on the unfair dismissal compensatory awardJune 7 2010
  5. 5. Tribunal Award Limits From 1 February 2013:  Unfair dismissal rises from £72,300 to £74,200  SRP weekly rate rises from £430 to £450  Guarantee payment rises from £23.50 to £24.50June 7 2010
  6. 6. Employee-shareholdercontracts are introduced From April 2013, giving employees shares in exchange for waiving certain employment rights: • Claim unfair dismissal, (except for reasons that are automatically unfair) • SRP • Make statutory requests for flexible working • Make statutory requests in relation to study or training Will have to give 16 weeks notice to return early from mat leave.June 7 2010
  7. 7. Unpaid Parental Leave The right to unpaid parental leave increases from 13 weeks to 18 weeks from 8 March 2013June 7 2010
  8. 8. DBS Checks areportableFrom March 2013, new updating service is beingintroduced so that once a DBS check has beencompleted the results are available online for employersto confirm that no new information has been added sincecheck was originally conducted (fee payable)This means that DBS checks are portable and that anemployee will not have to have a new check every timethey start a new jobJune 7 2010
  9. 9. Real-time information forpayrollFrom 5 April 2013, employers are required to use real-timeinformation to report payroll deductions.Must send money within 14 days after the end of every taxmonth or 17 days if done electronically.June 7 2010
  10. 10. Collective Consultation period 90 day consultation period for 100+ redundancies reduces to 45 days from 6 April 2013. • ACAS to issue non-statutory code of practice to address key principles of redundancy consultation • Exclude fixed-term contracts that have reached their agreed term from the obligation to consult collectively.June 7 2010
  11. 11. Statutory Mat, Pat and Adoption pay increases Standard rates of statutory maternity, paternity and adoption pay increases from April 2013 from £135.45 to £136.78 per weekJune 7 2010
  12. 12. Rate of Statutory SickPay increases The standard rate of SSP increases from April 2013 from £85.85 to £86.70 per weekJune 7 2010
  13. 13. Imposition ofTribunal FeesFrom summer 2013, fees will apply for 2 levels ofclaim:Level 1: issue fee is £160 and hearing fee is £230(eg. Unlawful deduction of wages, holiday pay & redundancyclaims)Level 2: issue fee is £250 and hearing fee is £950(eg. Discrimination, equal pay & unfair dismissal claims)Fees waived if party cannot afford to pay.June 7 2010
  14. 14. What’s in the pipeline!There are a number of other employment law developments thatare in the pipeline, but for which no date has been set, orproposals that are expected to progress during 2013:- Government consults on reservists- Consultation planned on proposals to amend TUPE- Detail on flexible working changes expected- Consultation due on code of practice covering use of settlement agreements- National Minimum Wage may riseJune 7 2010
  15. 15. Consultation onReservistsProposals include:• Making reserves available for additional roles and increase training• More open relationship with employers• Greater predictability of training & deployment with no more than 1 x 6-month deployment every 5 years• Voluntary Employers Charter• Introduction of anti-discrimination legislation• Building mutual benefit for employers• Kitemark approach for employers that support reservistsJune 7 2010
  16. 16. Proposals toamend TUPENovember 2011 consultation aimed to reduce unnecessaryburden on businesses, whilst protecting fairness to employees.Now doing further consultation covering whether: Service provision changes should be retained or repealed Employee liability should be provided earlier Liability should pass entirely to transferee or be held jointly by transferee & transferor Change of location of workplace does not necessarily lead to automatic unfair dismissal, ie constituting ETO reasonJune 7 2010
  17. 17. Expected changes on Flexible Working In 2014, Government will:  Extend right to request flexible working to all employees  Replace right to request procedure with duty on employers to deal with requests in ‘reasonable’ manner and timescale  Create a statutory code to give guidance on dealing with requests  Not create any exemption for micro business (<10 employees)June 7 2010
  18. 18. SettlementAgreementsACAS will consult on content of statutory code of practicethat will set out principles which will govern use ofsettlement agreements (formerly CompromiseAgreements) in ‘protected conversations’. Principles willinclude: Where offer is made, reason must be clear Where individual refuses settlement, employer must go through fair process before any possible termination Employer should not discriminate in any way Improper behaviour will not be protectedJune 7 2010
  19. 19. National Minimum WageNMW may rise on 1 October 2013, subject toprevailing economic conditions and the LowPay Commission’s recommendation toGovernment in February 2013 (no news asyet…)June 7 2010
  20. 20. A couple of recent cases…June 7 2010
  21. 21. Halford v Seddon Property Services Ltd Worker unfairly dismissed for allegedly smoking in company vehicle The employment tribunal concluded that, while smoking in a company vehicle would have been a reasonable ground for dismissal, the employers investigation was not fair and reasonable, because of confusion over the dates and the resources available to the company of this size. Mr Halfords unfair dismissal claim succeeded, with the remedy still to be determined.June 7 2010
  22. 22. Farnaud v Dr Hadwen Trust LtdEmployee who raised his voice at a colleague was unfairlydismissedThe tribunal found that Dr Farnauds dismissal was both "manifestly and procedurallyunfair". The company failed to show that it had a reasonable belief that Dr Farnaudwas guilty of gross misconduct and to carry out a reasonable investigation.• There was no evidence that Dr Farnaud engaged in abusive or threatening behaviour• The witnesses to the incident were not interviewed by an independent party• Failure to consider all relevant documents of the disciplinary hearing prior to the appeal hearing.However, tribunal found that Dr Farnaud had contributed to his dismissal to someextent and therefore reduced his compensatory award by 25% to £18,266.62.June 7 2010
  23. 23. Gimson v Display By Design LtdFair dismissal of employee who punched colleague afterChristmas partyThe tribunal disagreed with Mr Gimson that the incident was not in the courseof employment. It found that the employer had reasonably concluded thatevents that happened after the work Christmas party were sufficiently closelyconnected to work to have had an impact on the working situation.It was as a result of the work Christmas party that Mr Gimson and some ofhis colleagues were walking home together. This created the situation thatresulted in the assault, which could have impacted on the workingenvironment as the company is small and close contact is unavoidable.June 7 2010
  24. 24. June 7 2010
  25. 25. Change Partner Consultancy Outsourced HR, Payroll and Legal Practice Management services Advice and guidance for Employees to resolve workplace disputes 01202 377270Dec 13 2010