At Pharos Legal in 2011 we have been helping employers of all shapes and sizes and industry sectors by doing the following:

  • Advising in relation to redundancies / lay-offs and short-time work (unsurprisingly);
  • Facilitating significant changes to terms and conditions;
  • Helping transferors and transferees in TUPE transfer situations;
  • Drafting employment contracts, service agreements and consultancy agreements and policies, procedures and handbooks;
  • Bringing and defending employment tribunal claims – from straight-forward unfair dismissal to discrimination cases;
  • Preparing and advising in relation to compromise agreements;
  • Interpreting restrictive covenants;
  • Assisting with retirement-related issues;
  • Providing guidance about flexible working applications;
  • Helping negotiate improved terms of employment; and
  • Supporting them in carrying out grievance hearings, disciplinaries and dismissals.

What are we likely to be up to in 2012? More of the same, along with helping our clients grapple with the following sea-changes to employment law with effect, we believe, from April when:

  • The qualifying period for unfair dismissal will be increased from one to two years.
  • The amount of deposit order a tribunal will be able to order a party pay will increase from £500 to £1,000.
  • The maximum amount of costs an employment tribunal can award (without referring the case to the county court for detailed assessment) will increase from £10,000 to £20,000.
  • Witness statements in the Employment Tribunal will be taken as read, unless a judge directs otherwise.
  • State-funded expenses will be withdrawn and Tribunals will be given powers to direct parties to bear the costs of witness attendance, including the costs of witnesses called by the successful party.
  • Unfair dismissal cases in the tribunal will be heard by a judge sitting alone without lay members.
  • Interpreting restrictive covenants;

We will also be waiting with bated breath for news of implementation of the following proposals:

 
 

- Early Acas conciliation. Claimants will be required to submit details of their dispute to Acas first, at which point they will be offered pre-claim conciliation (PCC) for a period of one month. If it is refused by either party, or is unsuccessful, the claimant will be able to go ahead and present their claim to the tribunal. If the parties enter into PCC this will "stop the clock" on the limitation period to present the claim to the tribunal. The claimant will have one month after the conclusion of PCC to present their claim to the tribunal.

- Financial penalties for employers. The government intends to introduce financial penalties for employers who lose at tribunal. The levels proposed in the consultation were that half of the total award made by the tribunal, with a minimum threshold of £100 and a maximum cap of £5,000 be levied. Where a non-financial award is made, the tribunal will be able to ascribe a monetary value. The penalty will be reduced by 50% if paid within 21 days. However, the levy of a financial penalty will be at the tribunal's discretion; it will not be automatic.

- Up-rating tribunal awards and statutory redundancy payments. Increases to a week's pay for tribunal award and statutory redundancy payment purposes will be rounded up to the nearest £1, rather than the nearest £10.

- Protected conversations. On 10 November 2011, David Cameron confirmed that the government intends to consult on the introduction of "protected conversations", as he put it "so a boss and an employee feel able to sit down together and have a frank conversation at either's request".

 

- Compromise agreements. On 23 November 2011, the Government announced that it intended to launch a further consultation to consider the use of compromise agreements. The consultation will consider whether compromise agreements are unnecessarily complex and prescriptive, whether the law should be amended so that all existing and future claims are covered, and whether they can be simplified by removing the list of all possible causes of action.

- Employment tribunal fees. On 23 November 2011, Vince Cable indicated that the government were considering introducing issue and listing fees for all claimants, and introducing a £30,000 threshold, "so those seeking an award of more than £30,000 will pay more". Unconfirmed press reports have suggested that people on low incomes will be exempt but that an issue fee of £250 and a listing fee of £1,000 are being considered. It is possible that where claimants are successful, the respondent will have to reimburse their fees on top of any compensation payable.

- Rapid Resolution scheme. The Government intends to consult further on a "Rapid resolution scheme" which would provide swifter and cheaper determination of low value straightforward claims, such as claims for holiday pay.

Whatever you have been doing in 2011 we at Pharos Legal wish you a very joyous and restful Christmas and a happy, healthy and successful New Year.

 

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