April sees a number of changes to employment law coming into force in the UK.
But the aim here is to sift through some of the coalition government’s rhetoric to provide an easy-to-read summary of the top five changes coming into force this April and exactly what they will mean for employers.
1. Increase in qualifying period for unfair dismissal claims
On 6 April 2012, the qualifying period for bringing an unfair dismissal claim (in most cases) increases from one to two years. This change only applies to employees who start a job on or after the 6 April. Existing employees will continue to be governed by the old rules.
It is one of the Coalition’s flagship changes and they believe that it will both reduce the volume of claims and also encourage businesses to recruit as they will have longer to assess the ability of new employees.
Verdict: While this may initially sound positive for employers who will now have up to two years during which it will be much easier (and lower risk) to terminate employment, because the requirements to have a fair reason or follow a fair procedure of dismissal are not present, it seems doubtful whether this change will achieve the stated aims.
In particular, the general consensus among those that I have spoken to is that one year is definitely enough time to assess an individual’s suitability. More importantly, there are numerous other claims that individuals will still be able to bring with less than two years’ service, which includes various discrimination and whistle blowing ones.
Indeed, over the last few years, we have seen a rise in such claims by individuals who are not protected from unfair dismissal but wish to strike back at their ex-employer. As these claims tend to be more complex and, therefore, expensive to defend there could be a nasty sting in the tail for both employers and the coalition.
2. Reforms to employment tribunal procedures
On 6 April 2012, certain changes to tribunal procedures will come in. The main ones are increases in the maximum amount of deposit and costs orders that can be granted by the Employment Tribunal.
Employment judges will be able to hear unfair dismissal cases alone and it will also be possible to take witness statements as read (ie they don’t have to be read aloud at the hearing by the witness). Again, the stated aims are to more accurately reflect the costs of defending a claim and also to speed up the whole Tribunal process.
Verdict: As far I am concerned, this is all positive news for employees, employers and anyone involved in the process. While the chances of getting a deposit or a cost order remain low, an increase in the amount that can be awarded was long overdue.
Similarly, judges have long been able to hear cases alone in many other forums so why not a Tribunal? Indeed, given the usual difficulties in finding enough panel members, this can only assist in getting more cases heard on time.
Along the same lines, it often seems unnecessary for a witness to read their statement aloud as everybody having a good read before hand is just as effective. The witness will still be cross-examined on the contents so if there is any doubt as to the accuracy or truth, it can be contested at this point.
3. Changes to accident reporting requirements
On 6 April 2012, the required period of incapacity following an injury caused by an accident at work, which triggers an employer’s requirement to report the accident, increases from more than three days to more than seven days. In addition, the deadline by which an employer must report an accident increases from 10 to 15 days.
Verdict: Again, this move gets a thumbs up from me. The message from businesses has been ‘cut the red tape’, especially in the area of health and safety. Of course, this should not be done at the expense of employee safety but, in this case, the relaxing of the law means employers only need to report the more serious accidents.
4. Defining an ‘independent adviser’ in relation to compromise agreements
The Equality Act will be amended on 6 April 2012 to confirm, finally, that an employee’s representative can have an independent adviser for the purposes of signing off a compromise agreement. As you may be aware, one of the conditions of ensuring that a compromise agreement is valid is that the employee has received independent advice on the terms of the agreement.
Verdict: Another sensible change, but one I am loathe to give too much credit as it is simply rectifying the previous Equality Act wording, which was at best unhelpful and, at worst, contradictory on this point.
However, it does mean that we can all breathe a sigh of relief and stop hoping that no one will challenge whether a compromise was actually effective in preventing claims under the Equality Act.
5. Rises in statutory maternity, paternity, adoption and sick pay
On 1 April 2012, the weekly rate of statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45. On 6 April 2012, the weekly rate of statutory sick pay will rise from £81.60 to £85.85.
Verdict: Self-explanatory and, given rising the costs of living all round, a ‘no-brainer’.
Conclusion
I would give the coalition government four out of five for these modifications to employment law.
Ironically, however, it is the headline-grabbing increase to the unfair dismissal qualifying period that I think will make the least difference to employers and employees in practice. But the other employment changes either amount to common sense or are a welcome reduction in unnecessary administration for employers.
Leon Deakin is an employment associate at law firm, Thomas Eggar.
