Key Employment Law Developments

As in previous years, employment law gets ever more onerous and key developments to prepare for in 2011 include:

1 February - Tribunal Awards

The limits applying to tribunal awards and other amounts payable under employment legislation will increase for effective dates on or after 1 February 2011. The maximum amount of a 'week's pay' will increase from £380 to £400 and the maximum compensatory award for unfair dismissal will increase from £65,300 to £68,400.

31 March - Retirement

This is the last date on which organisations can give the minimum six months' notice of intention to retire if wanting to make use of the default retirement age; six months' notice would therefore expire on 30 September.

April

The Bribery Act

The Bribery Act will introduce new criminal offences and most important is the offence of failing to prevent bribery. There is the risk of imprisonment and fines in the event of a breach.

Additional paternity leave and pay

These provisions apply to parents of babies born (and adoptive parents notified of a match) on or after 3 April 2011, increasing potential leave for fathers to six months.

Flexible working

The right to request flexible working will be extended to all parents with children under 18.

Immigration

New measures to control the number of migrants that can come to the UK from outside Europe will come into force including an annual limit of 20,700 on those coming to the UK under Tier 2 (general) and abolishing the existing Tier 1 (general) category and replacing it with a new Tier 1 (exceptional talent) category which will be limited to 1,000 people.

Statutory Rate Increases

Weekly rates of statutory maternity, paternity and adoption leave pay will increase from £124.88 to £128.73 and the rate of statutory sick pay will increase from £79.15 to £81.60.

Time off for Training

This may be extended to all employees who have been employed for at least 26 weeks, though this right is under review.

Equality Act

The public sector single equality duty will come into force as will the controversial power for employers to take positive action on recruitment and promotion. This will allow the recruitment or promotion of employees because of their sex, race etc if they are "as qualified as" other candidates, provided this is done on a case-by-case basis rather than as a matter of policy.

October

Retirement Age

The statutory "default retirement age" of 65 will disappear. All compulsory retirements taking effect on or after 1 October will have to be justified to avoid claims of age discrimination and unfair dismissal.

Agency Workers

The Agency Workers Regulations will come into force.

Other Developments

Aside of the changes mentioned above, the Government is committed to introducing its "one-in, one-out" rule, so that no new regulation is brought in without another being cut, and to a review of workplace laws "to ensure they maximise flexibility while protecting fairness and providing the competitive environment required for enterprise to thrive." There have already been indications that proposed changes could be as fundamental as increasing the qualifying period for claiming unfair dismissal from one to two years which would have a major impact on employers. The results of the workplace review should be announced by April 2011 and we will update when we know more.

Employer Action

• Plan how to respond to these changes
• Review and update your procedures
• Advise staff and train management

If you are unsure of how to prepare for these change, you should be seeking professional assistance as soon as possible. One of our employment specialists would be pleased to discuss with you.