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Top 5 Employment Law Updates for 2012

2012 will see many updates and changes in employment law below we have listed the 5 we belive employers most need to know about.


The Qualifying period for unfair dismissal protection is increased

On the 6th April the qualifying period for an employee to bring an unfair dismissal claim will increase from one year to two years. The increase will only apply to employees who start a new job on or after the 6 April 2012.


Pension auto-enrolment

From the 1st of October 2012 employers with 50 or more employees are required to enrol eligible employees automatically, and ensure mandatory employer contributions are made into a qualifying workplace pension scheme or the National Employment Savings Trust (Nest).


Employment tribunal procedure changes

A ‘fundamental review’ as described by the government has proposed changes in Employment Tribunal Rules of Procedure. These substantial changes are expected to be introduced from the 6th April and include;

  • Employment judges will hear unfair dismissal cases alone in the tribunal, unless they direct otherwise.
  • The maximum amount of a deposit order, which a tribunal can order a party to pay as a condition to continuing with tribunal proceedings, will increase from £500 to £1,000.
  • The maximum amount of a costs order, which a tribunal may award in favour of a legally represented party, will increase from £10,000 to £20,000.
  • Witness statements are to be taken “as read” unless a tribunal directs otherwise.


Statutory redundancy payments and guarantee payments increase

As of the 1st of February the maximum amount of a week’s pay used to calculate a statutory redundancy payment and the basic and additional awards for unfair dismissal increased from £400 to £430. The maximum unfair dismissal compensatory award increased from £68,400 to £72,300. The limit on the amount of a guarantee payment payable to an employee in respect of any day also increases from £22.20 to £23.50.


Maternity, paternity, adoption and sick pay increase

As of the 1st of April 2012 the standard rate of statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week. Statutory sick pay will increase from £81.60 to £85.85 per week from the 6th April 2012.


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Posted on Feb 18, to Candidates, Employers
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