On Monday, 29 July 2013 the following changes to employment law came into effect.  At last we are now seeing some changes that favour employers.

  1. The cap on the compensatory unfair dismissal award has been set to the lower of £74,200 or one year’s pay.
    This gives employers a clearer idea of their potential liability if they get it wrong!)
  2. Confidential pre-termination negotiations between an employer and an employee will now be kept confidential from an Employment Tribunal in most unfair dismissal cases.
    (This will enable an employer to have a friendly chat and suggest the departure of an employee on agreed terms.  However, employers should note that ‘improper behaviour’ by the employer will negate this benefit so no threats should be made along the lines of ‘accept it or be fired’!)
  3. Compromise Agreements will be called Settlement Agreements.
    (This is essentially a change in name only). 
  4. Employees will now have to pay a fee when issuing a claim in the Employment Tribunal.  For example, an issue fee of £250 and a hearing fee of £950 will be payable for an unfair dismissal claim.

The general view is that these changes will dissuade employees from bringing claims in the Employment Tribunal and make it easier for employers to manage their employment requirements.

However, we would still recommend that you discuss any employment issues with us because, as with all new legislation, there are still boxes which an employer has to tick and they can help you achieve the result you want by taking advantage of these latest changes.

Please therefore contact Sarah Luxmoore to discuss your employment needs or if you have any queries regarding these latest changes.