Update on employment law changes timetable

The government has published a timetable for future employment law changes. The key measures and expected implementation dates are set out below.

Spring 2013

Collective redundancy consultation. The 90 day consultation requirement for redundancies involving 100 or more employees is to be reduced to 45 days in April 2013.

Consolidation of national minimum wage (NMW). The government will be simplifying the national minimum wages rules and intends to produce a single set of consolidated regulations by April 2013, merging the current 17 sets of regulations.

Summer 2013

Compensatory award cap. The unfair dismissal compensatory award will be capped at the lower of one year’s pay and the existing limit.

Whistleblowing. The government intends to amend the rules so that workers cannot bring a whistleblowing case relating to a breach of their own contract that is not in the public interest.

New employment tribunal fees. Submitting a claim to a tribunal will be subject to an initial issue fee, followed by a subsequent hearing fee.

Portable Disclosure and Barring Service (DBS) checks. A portable Disclosure and Barring Service (DBS) check which employers can view instantly online will be available. This will allow individuals to move roles without needing a new DBS check each time.

Autumn 2013

Employee ownership. The new employee shareholder status will be implemented in Autumn 2013 rather than April 2013 as previously expected. Under the proposals, employees will be able to obtain shares in their employer in return for giving up some of their employment rights. The first £50,000 worth of shares will be free from capital gains tax on disposal.

Reform of TUPE 2006. In January 2013, the government issued a consultation on proposed changes to TUPE 2006. The consultation closes on 11 April 2013. The changes are expected to be implemented from October 2013.

Spring 2014

Right to request flexible working.  Extending flexible working rights to all employees with 26 weeks’ service, rather than just those employees who qualify as parents or carers.

ACAS early conciliation. On 17 January 2013, the government launched a consultation on how it proposes ACAS will deal with requests for “early conciliation” from prospective claimants who will have to make such a request before they can issue certain proceedings in the employment tribunal.

Employment tribunal penalties for losing respondents. Tribunals would automatically levy a financial penalty on an employer who loses a claim (other than in exceptional circumstances). This would be in addition to the damages awarded to the claimant, and would be payable to the Exchequer. The penalty would be 50% of the award, subject to a lower limit of £100 and an upper limit of £5,000. However, it would be reduced by half if paid within 21 days, to encourage early payment.