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5 Employment Law Changes Make it Fairer for Employers

September 26, 2013 - In Employment Law

On 29th July 2013 five employment law changes came into effect which make it fairer for Employers

1. Claimants to pay a fee to submit an Employment Tribunal Claim.

In a move to reduce vicarious and bogus claims, fees have been introduced. An Issue Fee of either £160 or £250 and if it progresses as far as a Hearing, fees of £230 or £950. A total of £390 or £1,200. The 2 tier system reflects the complexity of the case. Type A would be a simple unlawful deduction from wages whereas Type B would be unfair dismissal or discrimination cases. Post Tribunal it will additionally cost £400 to issue an Appeal and £1,200 to proceed to a full hearing at an Employment Appeals Tribunal (EAT).

2. Pre-negotiation is required.

A requirement that a negotiated settlement has been attempted before progressing further introduced. Plus the introduction of pre-hearing reviews and Case Management Discussions.

3. Reduced cap on the compensatory award for unfair dismissal.

An individual cap of 12 month’s pay when this amount isless than the overall cap, currently £74,200.

4. Pre-termination negotiations become inadmissible inunfair dismissal proceedings.

5. Compromise Agreements renamed Settlement Agreements.

More style over substance, although an attempt to make a more consolatory process. The principle of a process to recognise the ‘Fair & ReasonableActs of a Fair & Reasonable Employer’ remains. It remains important to act with fairness, dignity and compassion. The news rules do however mean that both parties have to play by those very same rules.

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