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The Sack Race?

Pure Employment Law
Pure Employment Law

This document summarizes proposed upcoming reforms to UK employment law. Key reforms discussed include increasing the unfair dismissal qualification period from 1 to 2 years, introducing fines for employers in tribunal cases, increasing deposit orders and costs caps, implementing fees for employment tribunal claims, establishing "protected conversations" between employers and employees, and increasing various statutory caps. Other minor reforms are also mentioned such as changes to lay members, witness statements, conciliation services, and compromise agreements.

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The Sack Race? Forthcoming employment law reforms Peter Stevens, Nicola Brown & Anna Rabone
Employment Tribunal Claims Year to 31 March 2011 218,100 cases 382,400 claims
Employment Tribunal Claim March to September 2011 40,300 cases 30% reduction on 2010
Employment Tribunal Claims Of 382,400 claims: 47,900 Unfair dismissal + 16,000 Redundancy pay 930 Reason for dismissal 64,830 317,570 no qualification period
Unfair Dismissal Increase in qualification period 1 to 2 years 6 April 2012 Reduce claims by 3,700 to 4,700 per year
Transitional Provisions Only apply to employees who start on or after 6 April 2012
Unfair Dismissal Encourage recruitment Rules are barrier to recruitment
Unfair Dismissal 6 month qualification period (1970s) 2 year qualification period (1980s) 1 year qualification period (2000s) No evidence of impact on recruitment
Unfair Dismissal Increase in discrimination claims R (Seymour-Smith) v S of S for Employment (2000) HL Age discrimination
Fines and Fees Nicola Brown
Introduction of fines (1) Financial penalties for employers 50% of award made minimum 贈100 maximum 贈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 贈500 to 贈1,000 Cap on costs to increase from 贈10,000 to 贈20,000
Introduction of fees Employment Tribunals are currently 100% funded by taxpayers - annual cost 贈84 million, average 贈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 One Level 1 wages, notice, redundancy etc Level 2 unfair dismissal Level 3 discrimination, equal pay, whistleblowing Issue fee = 贈150 - 贈250 Hearing fee = 贈250 - 贈1,250 Other fees, e.g. Dismissal fee = 贈60 (payable by Respondent)
Proposal Two Single charging point Fee = 贈200 - 贈600 For claims of 贈30,000 or more = 贈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 贈6,000 and they have 3 children Entitled to full remission if the couples income is 贈26,790 or less Get the claim in before you get a new job!
Protected Conversations Anna Rabone
Protected Conversations David Cameron - so a boss and an employee feel able to sit down together and have a frank conversation at eithers 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
Other Reforms Peter Stevens
Other Reforms Employment Tribunal lay members Witness statements taken as read Schedule of loss from outset
Other Reforms The role of ACAS Early Conciliation
Other Reforms Rapid resolution of simple claims Regional mediation networks
Other Reforms Increase in statutory caps Basic award - 贈400 to 贈430 Compensatory award - 贈68,400 to 贈72,300
Other Reforms TUPE Service Provision Changes Collective Redundancy Consultation
Other Reforms Compromise Agreements Equality Act s 147 independent adviser may not be a party to the contract or a person acting for a party to the contract anomaly being addressed
And Finally Compromise Agreements (ERA 1996) Qualifying Compromise Contracts (Equality Act 2010) Settlement Agreements
Any Questions?

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The Sack Race?

  • 1. The Sack Race? Forthcoming employment law reforms Peter Stevens, Nicola Brown & Anna Rabone
  • 2. Employment Tribunal Claims Year to 31 March 2011 218,100 cases 382,400 claims
  • 3. Employment Tribunal Claim March to September 2011 40,300 cases 30% reduction on 2010
  • 4. Employment Tribunal Claims Of 382,400 claims: 47,900 Unfair dismissal + 16,000 Redundancy pay 930 Reason for dismissal 64,830 317,570 no qualification period
  • 5. Unfair Dismissal Increase in qualification period 1 to 2 years 6 April 2012 Reduce claims by 3,700 to 4,700 per year
  • 6. Transitional Provisions Only apply to employees who start on or after 6 April 2012
  • 7. Unfair Dismissal Encourage recruitment Rules are barrier to recruitment
  • 8. Unfair Dismissal 6 month qualification period (1970s) 2 year qualification period (1980s) 1 year qualification period (2000s) No evidence of impact on recruitment
  • 9. Unfair Dismissal Increase in discrimination claims R (Seymour-Smith) v S of S for Employment (2000) HL Age discrimination
  • 10. Fines and Fees Nicola Brown
  • 11. Introduction of fines (1) Financial penalties for employers 50% of award made minimum 贈100 maximum 贈5,000 Payable to the Exchequer Early payment discount In addition to uplift under ACAS Code
  • 12. Introduction of fines (2) Consultation responses - concerns about unintended or accidental shortcomings Judges will have discretion to impose the financial penalty
  • 13. Deposit orders and costs Address business concerns about weak claims Deposit orders cap increasing from 贈500 to 贈1,000 Cap on costs to increase from 贈10,000 to 贈20,000
  • 14. Introduction of fees Employment Tribunals are currently 100% funded by taxpayers - annual cost 贈84 million, average 贈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?
  • 15. Proposal One Level 1 wages, notice, redundancy etc Level 2 unfair dismissal Level 3 discrimination, equal pay, whistleblowing Issue fee = 贈150 - 贈250 Hearing fee = 贈250 - 贈1,250 Other fees, e.g. Dismissal fee = 贈60 (payable by Respondent)
  • 16. Proposal Two Single charging point Fee = 贈200 - 贈600 For claims of 贈30,000 or more = 贈1,750 How should claims be valued?
  • 17. 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
  • 18. The remission system Tim claims unfairly made redundant, has since secured another job at a lower salary. His wife works part time earning 贈6,000 and they have 3 children Entitled to full remission if the couples income is 贈26,790 or less Get the claim in before you get a new job!
  • 19. Protected Conversations Anna Rabone
  • 20. Protected Conversations David Cameron - so a boss and an employee feel able to sit down together and have a frank conversation at eithers request. Will not be admissible in proceedings.
  • 21. Protected Conversations Nick Clegg - confidence to be open about performance, about retirement with their employees. At consultation stage.
  • 22. Protected Conversations Issues: Elements that are not protected (discrimination). Refusal to engage in protected conversations. Systems already in place.
  • 23. 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
  • 25. Other Reforms Employment Tribunal lay members Witness statements taken as read Schedule of loss from outset
  • 26. Other Reforms The role of ACAS Early Conciliation
  • 27. Other Reforms Rapid resolution of simple claims Regional mediation networks
  • 28. Other Reforms Increase in statutory caps Basic award - 贈400 to 贈430 Compensatory award - 贈68,400 to 贈72,300
  • 29. Other Reforms TUPE Service Provision Changes Collective Redundancy Consultation
  • 30. Other Reforms Compromise Agreements Equality Act s 147 independent adviser may not be a party to the contract or a person acting for a party to the contract anomaly being addressed
  • 31. And Finally Compromise Agreements (ERA 1996) Qualifying Compromise Contracts (Equality Act 2010) Settlement Agreements