Archive for the Current Issues Category

Fewer Employment Tribunal Claims in 2010-11

HM Courts & Tribunals Service has revealed that there has been an 8% fall overall in Tribunal claims for the period April 2010 to March 2011.   However the 218,100 claims still represent a 44% increase on the 2008-9 figures.

Written by Simone Greasley

Delays To The Bribery Act

The Bribery Act was due to come into force in April 2011 but has been delayed.  It will now come into force on 1st July 2011. 

Guidance has now been published thereby allowing businesses three months in which to put their procedures in place.  For further guidance, contact the EMS HR team…………..

Written by Simone Greasley - HR Consultant

An Annuity From Your Pension Fund?

The new rules applying from 6 April 2011 are now known, with flexibility being the name of the game.Annuity rates are very low at present, with no signs of that changing, and the new rules will allow you to draw income from your pension fund without having to buy an annuity. If you have a secured pension income of at least £20,000 a year you will even be able to access 100% of your pension fund if you wish (with an income tax charge on it of course) and the options in your particular circumstances need to be reviewed.

Tribunal Compensation

The tribunal compensation limits have increased, in line with inflation, for all dismissals on or after 1st February 2011.The main changes are that the maximum week’s pay for redundancy payments (or a basic award) has increased to £400, leading to a maximum award of £12,000 (30 weeks x £400). The maximum compensatory award for unfair dismissal has increased to £68,400.

Thinking About Not Retiring?

The Government has announced that it will abolish the default retirement age (DRA) with effect from 1st October 2011. After that date, most employers will be unable to automatically retire employees at 65 unless they can prove that the retirement age is a reasonable and appropriate method of achieving a sensible business objective. There is little assistance on what will be sufficient to justify a retirement age after October.So, after October, employees who do not wish to retire will have a right to remain in work – and Companies face a potentially substantial age discrimination claim if they dismiss them because of their age. Accordingly, employers are going to have to focus to a far greater extent on implementing efficient performance management processes to manage performance levels.

IMMIGRATION CHANGES

On 6th April 2011, new measures to control the number of migrants that come in to the UK from outside Europe came into force.  This includes an annual limit of 20,700 under Tier 2 (general), the abolishment of Tier 1 (general) category and the new Tier 1 (exceptional talent) which is limited to 1,000 people. Written by – Simone Greasley – HR & Recruitment Specialist

POSITIVE ACTION

From 6th April 2011, under the Equality Act 2010, employers will be able to take positive action on recruitment and promotion, choosing employees because of their sex, race etc. if they are “as qualified as” other candidates.  This must be done on a case-by-case basis.

Written by – Simone Greasley – HR & Recruitment Specialist

LONGER PATERNITY LEAVE

Mothers of children due on or after 3rd April 2011, can transfer up to six months of their maternity leave to eligible employees (normally fathers) when they return to work.  Depending on the amount of SMP already received by the mother, this may or may not be paid leave. 

 Written by – Simone Greasley – HR & Recruitment Specialist

EMPLOYMENT GUIDANCE: Statutory Rate Increase

As we reported a while ago, from 6th April 2011, the weekly rate for statutory maternity, paternity and adoption leave pay will rise from £124.88 to £128.73.Statutory sick pay will increase from £79.15 to £81.60.

Written by – Simone Greasley – HR & Recruitment Specialist

Tribunal Input

Early in February, the Department of Business, Innovation and Skills (BIS) acknowledged that serious concerns have been raised that it is too easy for employees to bring unmerited or vexatious claims under the current employment tribunal system, with the system being costly and time-consuming. According to BIS, defending an employment tribunal claim costs a business on average around £4,000. The Government’s consultation on its proposals to tackle these problems is a great opportunity to make a difference to the current employment tribunal system Link to Tribunals Service Consultation Paper 

The consultation will last until 20 April 2011 and it includes proposals such as: 


  • Increasing the qualifying period of service employees must generally have to bring an unfair dismissal claim from one year to two years.
  • Introducing a compulsory first-stage mediation process for employment tribunal claims delivered via ACAS (Advisory, Conciliation and Arbitration Service).
  • Widening the scope of cases where judges may sit alone.
  • Refraining from asking witnesses to read out their written witness statements in the Tribunal.
  • Introducing an employer’s charter, which clarifies what employers are able to do to manage staff effectively with the business in mind.

The Government is also considering introducing fees for claimants wishing to bring an employment tribunal claim and you will get a chance to put forward your views on that issue in a separate consultation in spring 2011.

Wriiten by Sue Gott - HR Consultant