Monday, January 23, 2012

Last year was full of interesting (for me anyway!) discussions about problems with the tribunal system and possible changes that might soon be made, some quite dramatic. So what developments can we expect in 2012?

There’s plenty of consultation underway, and news to follow during the next few months, but there are already some concrete changes small business owners need to be aware of this year. So here’s my guide to what you need to look out for.

What’s definitely happening?

Unfair dismissal changes

From April this year employees will need two years’ service to claim unfair dismissal, increasing from a year.  The government has just made clear that this won’t be retrospective, i.e. the increase will only apply to those starting a job on or after 6 April this year.

Pensions auto-enrolment

This will start in October but won’t apply for small businesses for quite a while after that, in fact the deadlines for smaller businesses have been further extended recently. It’s still a good idea to get your house in order though and if you haven’t got a pension scheme or are thinking of reviewing it this year, get some good advice and get a scheme in place now that will meet all the auto-enrolment requirements.

Statutory payments go up

Redundancy pay and maximum unfair dismissal compensation both go up in February, then in April maternity, adoption, paternity and statutory sick pay rates all increase.

Employment Tribunal changes

The government is conducting a ‘fundamental review’ of tribunal procedure with substantial changes expected in April. Confirmed changes include allowing Employment Tribunal judges to sit alone, without the two lay members they are currently accompanied by, and taking witness statements as read.

Extra bank holiday

It’s the Queen’s Diamond Jubilee this year, so we all get an extra day off. Or some of us do anyway. Most of my clients will intend to give staff an extra day, but if you will struggle to do so and you’re not sure whether you have to or not, it will depend on the wording in their contract of employment around bank holidays. 

I will be issuing more detailed guidance in a few weeks, but in the meantime if you’re not sure what you should be doing get in touch for further advice, and then have a read of this article about why a decent contract is vital for even the smallest business.

What might be happening?

There’s loads of consultation open at the moment, on issues such as:

-       A ‘rapid resolution’ scheme to resolve simple tribunal claims in three months
-       Financial penalties for employers found in breach of employment law
-       Fees for bringing a claim
-       The introduction of ‘protected conversations’
-       ‘No fault’ dismissals for micro businesses
-       Possible changes to TUPE and redundancy consultation

Some of these things may have an impact this year, some later on, but some fairly fundamental changes are likely.

It’s going to be another eventful year in employment law so watch this space, and sign up for our newsletter to make sure you hear about changes that matter to you and your business.