Employment Update: changes set for minimum wage, employment tribunals, and terminating employment

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17/09/2012

BWF members are reminded that from 1st October 2012, some of the national minimum wage rates are due to change:

The adult rate will increase by 11p to £6.19 an hour

The rate for apprentices will increase by 5p to £2.65 an hour.

The accommodation offset will be increased by 9 pence to £4.82 per day

The development rate for 18-20 year olds and the rate for 16-17 year olds will be frozen at £4.98 an hour and £3.68 an hour respectively. The freeze echoes the BWF’s pre-budget recommendations to the Chancellor where we stated that, “a freeze in the development rate of the minimum wage would provide an incentive for SMEs taking on young people”.

Employment Update: changes set for minimum wage, employment tribunals, and terminating employmentBusiness Secretary Vince Cable has also just  announced a package of measures which the government hope will give firms more confidence in managing the workforce.

The measures include supporting settlement agreements to help end employment relationships in a fair and consensual way, plans to reduce the cap on compensation for unfair dismissal claims, and proposals to streamline employment tribunals by making it easier for judges to dismiss weak cases.

They include two consultations, one on ending the employment relationship and another on the employment tribunal system. The first consultation covers:

– Ways to encourage the use of settlement agreements as a means of coming to a consensual agreement, allowing both parties to avoid the costs and stresses of a tribunal case;

– Changing the limit of the compensatory award in unfair dismissal cases to give employers more certainty about their potential liability and give employees more understanding of the value of unfair dismissal claims.

The second consultation relates to Employment Tribunal Rules, with the government consulting on Mr Justice Underhill’s recommendations for the rules of procedure for employment tribunals. They include:

– A number of new rules to ensure effective case management, such as simplified and streamlined procedures for preliminary hearings and withdrawing cases;

– New Presidential guidance which will provide all parties a better idea of what to expect and what will be expected of them at tribunal;

– A stand alone rule that gives employment tribunals and judges a clear mandate to encourage and facilitate the use of alternative forms of dispute resolution at all appropriate stages of the tribunal process.

Government is also taking this opportunity to invite evidence and views on wider issues related to the employment tribunal system, such as encouraging better compliance with employment tribunal orders for awards.

Both consultations close on 23rd November 2012

In related news, the government has also confirmed that, having seen the evidence presented by business, it will not be taking forward controversial proposals for compensated no fault dismissal for micro-firms. It has also responded to the call for evidence on TUPE rules when staff transfer to a new employer. It will consult on specific proposals before the end of the year.

BWF members are reminded that they can get advice and guidance on a number of employment issues through our employment and legal helpline, and also through our employment publications, which include redundancy advice and disciplinary guidance.

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