Fundamental changes to Employment Law Monday 29 July 2013 was an important day for employment law in Great Britain, with a number of significant changes introduced as summarised below: 1. Tribunal and EAT fees introduced Fees will now be charged for all claims and appeals presented on or after Monday 29 July 2013. The fees vary depending on the type of claim that is being brought and will require an issue fee and hearing fee to be paid, if the case progresses that far. Employers who wish to bring a counter claim for breach of contract etc. will also have to pay a fee for doing so. 2. Interest on Employment Tribunal judgments The time period within which a monetary award made by an Employment Tribunal must be paid before it incurs interest has been reduced from 42 days to 14 days from all such awards. In such circumstances interest will accrue from the day after the Judgment was sent to the parties, but will only become payable if the award has not been paid within 14 days. 3. Compromise Agreements renamed ‘Settlement Agreements’ Whilst the new term is really a matter of style over substance, the Government believes that the new wording better reflects the reality of such agreements. The ACAS Code of Practice on Settlement Agreements has also come into force and states that as a general rule a minimum period of 10 calendar days should be given for the parties to consider the terms of the Agreement and to receive independent advice, unless both parties agree otherwise. 4. Pre termination discussions introduced Pre termination discussions have now been introduced under Section 111A of the Employment Rights Act 1996 which will allow greater flexibility for confidential discussions to take place before any formal dispute has arisen. Currently the “without prejudice” rule prevents any statements made during a without prejudice conversation from being used in a Court of Tribunal as evidence, but only if there is an existing dispute between the parties. The new rules will allow a Settlement Agreement to be suggested by an employer before any formal procedure, such as a disciplinary process, has been initiated. There are however important exceptions in relation to whistleblowing and discrimination and asserting statutory rights, amongst others. 5. Cap on unfair dismissal compensation Unfair dismissal compensatory awards will now be limited to either a year’s salary or £74,200, whichever is lower. This will apply to dismissals that take place after 29 July 2013. 6. New employment tribunal rules introduced One of the most significant changes that have been made to the rules is the introduction of a new initial sift stage whereby an employment judge will automatically review every case on paper once the claim form and Response have been submitted. The Judge will be able to strike out claims or responses which have no reasonable prospect of success. Parties subject to such a decision will have the right to make written representations and if these are not accepted, proceed to a hearing. It is hoped that frivolous or tactical claims will be discouraged or rejected at this new early stage.
Posted on: Wed, 28 Aug 2013 08:51:09 +0000
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