In our Employment Alert dated 4 October 2011, we reported that the qualifying period for an employee to bring an ‘ordinary’ unfair dismissal claim would be increasing to two years. The proposal is part of the Government’s plan to boost economic growth and improve business confidence.
The Government has now published legislation to amend section 108 of the Employment Rights Act 1996 (ERA 1996), which sets the current qualifying period at one year. The increase will come into force on 6 April 2012, subject to Parliamentary approval.
Since our October Alert, it has been confirmed that the increased period will not apply retrospectively, so will only apply to employees whose employment commences on or after 6 April 2012. For this reason, employers may wish to consider a short term ‘recruitment embargo’ until 6 April 2012.
Compromise Agreements– Drafting Error to be corrected
Since the Equality Act 2010 came into force in October 2010, there have been concerns that there was a drafting error in section 147 of the Act, which concerns requirements that must be met to validly compromise claims.
Legislation has now been laid before Parliament to amend the Equality Act 2010 to clarify the meaning of independent adviser. The new wording, will reflect existing legislation on the meaning of independent adviser and will put a stop to the current uncertainty. The amendment will take effect from 6 April 2012.
Comment
It is now the norm for new employment legislation to take effect in April and October of each year.
The Government has set out a commitment to reduce ‘red-tape’ and the burden of employment regulation on employers. This means that the next 18 months could see a flurry of legislative activity in employment law.
The ‘headline’ stories appear to be good news for employers; however employers need to be aware of the potential negative consequences. For example, the increase in the qualifying period for ‘ordinary’ unfair dismissal may have the adverse consequence of claimants seeking to bring claims which do not have a qualifying period, for example discrimination or whistleblowing.
We will be discussing the changes coming into force in April 2012 and proposed changes in the pipeline at our Employment Law Update Seminars on 17 and 19 April 2012. Details of the forthcoming seminars can be found below.
If this alert has been forwarded to you and you would like to sign up to receive regular alerts, you can do so using our online form.
Employment Law Update – Time to Ring the Changes for 2012
Our Employment Law Team will explain the latest and forthcoming changes in the complex area of employment law and will update you on changes and developments for 2012.
Details of our upcoming seminars in April 2012 can be found below or by clicking here for our information booklet and booking form.
If you have any comments or queries please do not hesitate to contact Joanne Holborn or Tom Scaife on 01228 552600. Alternatively, email one of the team at HR@baineswilson.co.uk.
21 February 2012
