Changes To Employment Law

The annual increases in the limits on certain employment tribunal awards and other amounts payable under employment legislation came into force on 1 February 2013.

The limit on a “week’s pay”, which amongst other things is used to calculate statutory redundancy payments, will increase from £430 to £450, while the maximum compensatory award for unfair dismissal will increase from £72,300 to £74,200.

The increased amounts will apply where the event that gives rise to the entitlement to compensation or other payment, such as the effective date of dismissal or redundancy, occurs on or after 1 February 2013.

Therefore, employers considering redundancies where the termination date will be 1 February 2013 or later, should take account of the increased amounts in their cost projections.

Meanwhile, portable disclosure and barring checks will be introduced within a matter of weeks.

Once a Disclosure and Barring Service, which was previously the Criminal Records Bureau, check has been conducted, the results will be available online to enable employers to confirm that no new information has been added since the check was originally made.

As Business Secretary Vince Cable said when he first introduced the idea in late 2011, these checks have been a long-standing complaint from employers and staff alike.

The length of time it can take has meant some people are not able to start the job they have been offered, while the need to get fresh clearance every time a person changes jobs currently costs the employer £44 a time.

However, from March, for a small annual fee, the individual’s record will be kept up to date, thereby ending delays and repeated expensive applications.

The reform will be a particular relief to employers and the self-employed who have to obtain a new check for each new contract.