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Employment Law Update 2012
In the fast paced world of employment law change is a given and this year is no exception. However, whilst the historic changes usually meant more employment law legislation and more rights for workers, the emphasis in 2012 will be on reforming the Employment Tribunal system in an attempt by the Coalition Government to reduce the regulatory burden on businesses and employers in general, and encourage more employment.
For employees commencing employment on or after 6 April 2012, subject to parliamentary approval, the qualifying period of service for employees making claims of unfair dismissal at Tribunal will be increased from one year to two years (though the status quo will be retained in relation to those making claims of automatic unfair dismissal for health and safety reasons, pregnancy etc.). This means that in most circumstances employers will have a longer period to assess whether an employee is “working out” and will be able to terminate employment without incurring liability so long as the termination takes place within the first two years (taking into account any notice period) and the termination is not for a discriminatory or otherwise inadmissible reason. Transitional rules will govern the change in the law and will protect employees with less than two years’ service on 6 April 2012, meaning that those with 12 months’ or more service will not lose their right to claim unfair dismissal, and those with less than 12 months’ service will gain the right on achieving 12 months’ service.
Other reforms due to take place in April 2012, again subject to parliamentary approval, include having more judges in unfair dismissal claims sitting alone rather than sitting with lay members of the Tribunal which is currently the case, withdrawing expenses for witnesses, increasing the amount of deposit claimants require to pay if their case is thought to be weak and increasing the amount that either party has to pay to the other in costs if their case had no reasonable prospects of success or their conduct throughout the Tribunal proceedings has been unreasonable. Such reforms are designed to lower costs and speed up Tribunal claims.
During the course of the year the Coalition Government is also likely to consult on other employment law proposals including:
- The introduction of “protected conversations” to allow employers to have frank discussions with employees, which would be inadmissible in Tribunal proceedings;
- A new “rapid resolution” scheme to deal with employment disputes without recourse to a Tribunal;
- Collective redundancy consultation; and
- Improving the operation of the TUPE Regulations.
Fees for employees who wish to make claims at the Employment Tribunal or Employment Appeals Tribunal will also be introduced, though this will not take place until 2013 or 2014. The Coalition Government is currently consulting on two separate fee-charging schemes. Should the reforms have the desired effect, charity and not for profit employers should benefit as much as any other employer.
There are changes afoot that are likely to be welcomed by employees. An eligible employee’s entitlement to take parental leave will increase from a maximum of 3 months’ leave to 4 months’ leave for each parent though this is unlikely to come into force until 2013. The changes will also clarify that the entitlement is open to all eligible workers including fixed-term, part-time and temporary agency workers.
In addition, from Autumn 2012 eligible employees will be automatically enrolled into pensions with mandatory employer contributions to qualifying pension schemes. However, for employers with fewer than 3,000 staff, the duty to auto enrol staff will not be implemented till later and we await the dates for this.
In conclusion, 2012 will be a challenging year for all employers including charities and not for profit organisations, which will have to keep up-to-date with the changes. As part of its seminar series, Lindsays is holding free employment law updates in Dunfermline, Glasgow and Edinburgh in April. Please visit www.lindsays.co.uk for details about how to book.
Employment Essentials
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