There are a number of proposed changes to Employment Law due this year. We deal briefly below with some of the more important changes and possible developments. Legal advice should always be obtained in specific cases.
Default Retirement Age
The Default Retirement Age (DRA) of 65 is due to be abolished on 1st October 2011. Employers giving notice of retirement after 5th April will no longer be able to rely on the DRA. Only those people who were notified to retire before 6 April, and who have retired at 65 (or their normal retirement age if higher) before 1 October, can be compulsorily retired in reliance of the DRA.
Additional Paternity Leave
The right to additional paternity leave (APL) came into force on 6 April 2010 but will apply to parents of a baby due on or after 3 April 2011
Eligible employee's may take one period of APL to care for the child, taken in multiples of complete weeks, and which should last between 2- 26 weeks. The period of APL must be taken within a "window" that starts 20 weeks after, and ends 12 months after, the child's date of birth or placement for adoption and is taken instead of, not in addition to, the mother’s outstanding statutory maternity or adoption leave.
Limit/Rate Increases
From February 1st 2011 the maximum amount of a week’s pay which is used to calculate statutory redundancy pay (among other things) will rise from £380-£400. From 11 April 2011 Statutory Maternity Pay will rise from £124.88 to £128.73 per week and Statutory Sick Pay will increase from £79.15 to £81.60.
Reforms to Tribunal System?
The Department for Business Innovation & Skills have launched a consultation on wide-ranging reforms to the employment tribunal system. The chief aims are to improve the Tribunal process, achieve more early resolution of disputes, and help businesses "feel more confident about hiring people”. As part of the consultation the following measures will be considered.
- Increasing the qualifying period for “ordinary” unfair dismissal claims from one to two years.
- Introducing a mandatory one month period during which both parties must engage in Pre Claim Conciliation with ACAS.
- Tribunal fees as a means of deterring weak claimants.
